Alterna E-Savings up to 1.95% & TFSA now 2.05% as of Dec 14, 2017 | Alterna Bank | Discussion forum

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Alterna E-Savings up to 1.95% & TFSA now 2.05% as of Dec 14, 2017
December 14, 2017
5:56 pm
SG
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Noticed as of today (Dec 14, 2017) that the e-savings account is 1.95% (up from 1.90%) and the TFSA e-savings is 2.05% (up from 1.90%)

December 15, 2017
8:54 am
threeoakwest
Ontario, Canada
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Good to see. I have a TFSA as well as cash with them.
If the cash account was higher, I'd have more there.

December 15, 2017
12:46 pm
Londonguy
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I like it, especially the 15 bps bump in the TFSA. I will now probably put my 2018 contribution in there as well instead of chasing a new account promo elsewhere

January 9, 2018
1:21 pm
Peter
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Beware: Their TFSA rate is only valid until March 31, 2018. It reverts back to 1.95% after that (barring any other changes to their "normal rate").

I was tipped off by an astute Twitter user:

And Alterna just confirmed this:

In response to your email, we can confirm that the promotional rate of 2.05% attached to the eTFSA will be effective until March 31, 2018, where it will revert thereafter to 1.95%. However, please be advised that like all other bank rates our digital account interest rates are subject to change without notice. Thank you for your understanding.

January 9, 2018
1:34 pm
Top It Up
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THANKS Peter . it's a constant reminder to always read the nasty fine print - not that THIS deal was all that attractive anyway.

January 9, 2018
3:20 pm
Slybanking
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Good catch Peter.

For info, these are the fines prints where they mention the limited time offer in the rate section of the website.

TFSA eSavings Account Rates
All Balances 2.05%

*Interest rate is annualized and subject to change without notice. Interest is calculated daily on the closing balance and paid monthly. TFSA eSavings Accounts and rates are only available for purchase online. Limited time offer until March 31, 2018.

For accounts opened before May 1, 2017, the maximum balance per customer is $1,000,000 (plus accrued interest).
For accounts opened on or after May 1, 2017 the maximum balance per customer is $250,000 (plus accrued interest).

January 9, 2018
3:22 pm
Peter
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Ah great, they just added that additional text about March 31 in the past 2 hours

January 9, 2018
7:31 pm
Bill
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For those who are looking to put their TFSA money in a HISA and don't want to gamble on promo rates this doesn't really affect much, 1.95% maintains Alterna in 2nd place on the comparison chart.

January 10, 2018
3:13 am
threeoakwest
Ontario, Canada
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What about Hubert with those one year terms at average of 2.25%?
I've never really considered them and wonder if it's a good idea.

January 10, 2018
7:11 am
gicjunkie
Ontario
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I have used Hubert for years and have been very happy with their service. The Hubert 1 year cashable GIC is a good option right now because rates very likely will increase through the year. It pays quarterly compounded interest at incremental rates, but to take full advantage, you have to cash it at one of the 90 day thresholds. No additional interest is paid for days between the quarters. Details from Hubert website:

"The good news? You’re not locked in for the entire year — you can redeem your term after three, six, or nine months (and keep the interest that’s already been paid to you). The even better news? If you sign up and keep your funds in place for the entire year, you’ll earn an average rate of 2.25% for the year (with compounded interest). Not too shabby, is it? Here’s what you will earn:

The first three months: 2.10%.
Months four to six: 2.20%.
Months seven to nine: 2.30%.
The last three months: 2.40%"

January 10, 2018
7:47 am
Koogie
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FWIW, I just had a very difficult time with a maturing GIC at Alterna.

I called them a month ahead of time with maturity instructions. A week after maturity still no cheque in the mail. Called them and they had done nothing and blamed it on the branch. It took two more phone calls after that and I eventually got my money by standard post two weeks after the maturity date.

Not very good customer service. That's just an anecdote but obviously keep them on a short leash.

January 10, 2018
8:17 am
Top It Up
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gicjunkie said
I have used Hubert for years and have been very happy with their service. The Hubert 1 year cashable GIC is a good option right now because rates very likely will increase through the year.

Rising rates seem pretty elusive - what's the dollar amount you're holding out on to capture that "great" rate - low 4 figures, middle 5 figures, high 6 figures - and while you're waiting, what's the opportunity cost?

January 10, 2018
11:11 am
gicjunkie
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Top It Up said

gicjunkie said
I have used Hubert for years and have been very happy with their service. The Hubert 1 year cashable GIC is a good option right now because rates very likely will increase through the year.

Rising rates seem pretty elusive - what's the dollar amount you're holding out on to capture that "great" rate - low 4 figures, middle 5 figures, high 6 figures - and while you're waiting, what's the opportunity cost?  

Normally I invest long term, going for the highest 5 year rate while laddering my investments. This is just TFSA money in the 1 year GIC, and it's better to get over 2% on it this way than to have it just sitting in savings. There is a strong indication that rates are going to go up. I don't feel at this point that this is a risky move to wait on them a bit. As stated earlier, the GIC is cashable.

January 10, 2018
12:01 pm
Loonie
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Koogie said
FWIW, I just had a very difficult time with a maturing GIC at Alterna.

I called them a month ahead of time with maturity instructions. A week after maturity still no cheque in the mail. Called them and they had done nothing and blamed it on the branch. It took two more phone calls after that and I eventually got my money by standard post two weeks after the maturity date.

Not very good customer service. That's just an anecdote but obviously keep them on a short leash.  

What branch? Do you mean you originally called their banch in Ottawa or Gatineau, wherever it is. I think they only have one or maybe two branches, both in that general area.

January 19, 2018
6:47 am
KenB
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Thanks for the heads-up about the March 31 date. Their rates page in teeny tiny print does say "Limited time offer until March 31, 2018." but it does NOT say what the rate will be after that. Sneaky. Or rather... slimey. I don't deal with them and now I probably never will.

January 22, 2018
7:20 pm
Peter
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A rate increase is coming at Alterna Savings, including a removal of the March 31 end date:

January 22, 2018
7:39 pm
SG
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Peter said
A rate increase is coming at Alterna Savings, including a removal of the March 31 end date:

  

Yeah I was glad to see him reply to my post about the March 31 date on Twitter. I don't know if he committed to going higher on the TFSA... Just that the march 31 restriction would be removed... So maybe the savings is going to 2.05 as well.... Would be nice to see 2.10 or 2.15 though 🙂

January 23, 2018
6:12 am
Bill
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The millennials' way - forget about boring, "legacy" concepts like our business model and financial fundamentals, let's decide our interest rates based on social media, tweets, etc! (Good work, Peter & SG!)

October 25, 2018
7:42 pm
mechone
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Time for Alterna to raise rates ,there has been 2 rate increases since there last increase,hopefully soon or the money comes outsf-frown

October 25, 2018
10:28 pm
Loonie
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mechone said
Time for Alterna to raise rates ,there has been 2 rate increases since there last increase,hopefully soon or the money comes outsf-frown  

My $ already went a while ago as they are not as competitive as they once were..

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