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Alterna Bank eSaving rate change
June 17, 2022
10:54 am
hwyc
GTA
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The dial moved at Alterna finally ! 1.25% (was 0.90%)

July 6, 2022
6:48 am
hwyc
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Move observed today - 1.50% (was 1.25%)

September 8, 2022
3:58 pm
hwyc
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eSavings now 2.00% (was 1.50%)

December 11, 2022
12:15 pm
mechone
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Well I pulled all my money out of Alterna a few years back due to lagging rate. They are now offering 5% for 1-5 years, so I was reading their term deposit eterms and i quote
1 – 5 Year Term Deposits & 1 – 5 Year eTerm Deposits:
1. Minimum deposit of $500. $100 minimum deposit if under 19 years of age (excluding eTerm Deposits)
2. No withdrawal prior to maturity
3. Annual compound interest paid monthly or annually and at maturity

To me it looks like they will pay the interest out monthly as does Motive .I will phone tomorrow to confirm . Getting close to retirement it's nice to have a monthly stream of cash

December 11, 2022
12:30 pm
Norman1
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If interest compounds or is credited annually, how does Alterna Bank pay it out during the months of year #1, before any accrued interest is added to the deposit balance?

They should correct the wording to "Interest (a) paid out monthly, (b) paid out annually, or (c) compounded annually and paid at maturity" if that is what they mean.

December 20, 2022
5:45 am
hwyc
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2.5%

June 7, 2023
5:38 am
hwyc
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I am seeing 2.25% today (was 2.50%). Hey, why are you going in that direction? sf-frown

June 7, 2023
6:13 am
savemoresaveoften
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None of their rates have been competitive for the last couple of years.... Surprise they still exist.

June 7, 2023
4:00 pm
Briguy
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savemoresaveoften said
None of their rates have been competitive for the last couple of years.... Surprise they still exist.  

Seems like they aren't interested in attracting new money.

June 7, 2023
4:22 pm
Norman1
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Alterna is likely not interested in attracting money that they need to pay those higher rates on, like the 3.3% to 4.1% others are willing to pay for online-only savings account deposits.

Alterna CU may decide to wind Alterna Bank up, like Desjardins did with Zag Bank, once they realise what kind of rates they need to pay for deposits to play in the online-only market.

June 7, 2023
5:07 pm
Loonie
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Alternatively, AlternaBank may be protecting themselves against more financial upsets by minimizing exposure to flighty cash deposits; OR they may not have any place to profitably put it. They aren't the only ones offering low "HISA" rates. Consider EQ, Meridian etc.

A friend of mine got a phone call recently from Meridian, wanting to know if he wouldn't like to move his cash to a GIC. The question is, would that be more for his benefit or for the CU's protection?

June 7, 2023
5:08 pm
BlueSky
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Norman1 said
Alterna is likely not interested in attracting money that they need to pay those higher rates on, like the 3.3% to 4.1% others are willing to pay for online-only savings account deposits.

  

They bank on customers who are afraid, not aware, or are not interested, in online banks which pay higher rates.

June 7, 2023
5:12 pm
AltaRed
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BlueSky said
They bank on customers who are afraid, not aware, or are not interested, in online banks which pay higher rates.  

It does not matter what the underlying reasons or strategies are. They simply do not need to pay more to attract the level of funds they want. No more complicated than that.

June 7, 2023
5:24 pm
Norman1
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That's especially true if Alterna Bank's parent, Alterna CU, can pay 0.05% to 0.35% on its branch savings accounts and raise what it needs in savings deposits.

June 7, 2023
6:57 pm
Norman1
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Loonie said
… They aren't the only ones offering low "HISA" rates. Consider EQ, Meridian etc.

A friend of mine got a phone call recently from Meridian, wanting to know if he wouldn't like to move his cash to a GIC. The question is, would that be more for his benefit or for the CU's protection?

It is for your friend's benefit if he can commit for a year or longer in a GIC and get a higher rate than in a Merdian savings account. It is to Merdian's benefit if they could then lend the money out for a year or longer once the money is GIC money.

Meridian is not a stupid as some of those US banks that supposedly lent their excess savings and chequing deposits out anyways through long term US government bonds, hoping people wouldn't spend those savings and chequing deposits before the bonds matured years from now.

June 7, 2023
9:25 pm
Loonie
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Yes; might be even better if he moved the money to a GIC elsewhere!

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