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Short term savings
March 18, 2016
8:01 am
Hoodie
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March 18, 2016
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Hi all, I'm new to this forum. Any suggestions where I should go with my tax return... I don't like the stock market at the moment and don't want to be on a wait-list. I saw Zag's promo rate (thanks gipper) and on ratehub today (http://www.ratehub.ca/savings-.....lance=5000) saw 1.85% with Alterna. Whats the consensus for parking money for the short term?

March 18, 2016
8:49 am
AltaRed
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Do you not see all the charts and tables online here? Spend a mere 5 minutes of effort and you will have your answer(s).

March 18, 2016
10:35 am
Hoodie
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Thanks AltaRed... sorry a newbie mistake, this is great info. The page says updated daily (18th) but I dont see Alterna Bank in the list.

March 18, 2016
3:24 pm
Loonie
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I would be very surprised indeed if you could really get 1.85% at Alterna.
I am unclear about the relationship between Alterna credit union and Alterna Bank, but they are both part of the same business somehow. Alterna's savings account rate is currently well under 1%; I think it is the CU, not the bank, but not sure.

It would be best if you phoned and asked them yourself. In the unlikely event that such a rate really exists and is available without going through a broker or some other complication, then I'm sure we would all be eager to see it added to the list.

Historically, Alterna's rates have not been exemplary. We had an account there for a few years, but closed it last year. They still waste their money, many months later, sending us a monthly statement ($0.), even though membership has been terminated, so I also suspect it is not all that well managed.

March 18, 2016
6:01 pm
AltaRed
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Hoodie said

Thanks AltaRed... sorry a newbie mistake, this is great info. The page says updated daily (18th) but I dont see Alterna Bank in the list.

Generally speaking, only those institutions which are relatively national in nature are in the list. There are too many niche regional players to make the list manageable and usable for the majority of forum members.

March 18, 2016
8:16 pm
Norman1
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Loonie said

I would be very surprised indeed if you could really get 1.85% at Alterna.
I am unclear about the relationship between Alterna credit union and Alterna Bank, but they are both part of the same business somehow. Alterna's savings account rate is currently well under 1%; I think it is the CU, not the bank, but not sure.

....

Alterna Savings and Alterna Bank seem to be separate but related financial institutions.

Alterna Savings owns CS Alterna Bank which does business as "Alterna Bank". This is from CS Alterna Bank - About Us:

Alterna Bank is a wholly-owned subsidiary of Alterna Savings, a credit union that first opened its doors in 1908. Together, Alterna Savings and Alterna Bank form the Alterna Financial Group.

For over 100 years, Alterna Savings has been conducting business based on cooperative principles, where decisions are made based less on corporate profits and more on the needs of its members. The organization's goal was to be able to provide those services to all Canadians but, as a provincially chartered credit union, was unable to do that.

To remedy this, in October 2000, Alterna Savings opened Alterna Bank, a federally licensed bank that can operate anywhere in Canada. Alterna Bank operates with cooperative principles in mind. You can access Alterna Bank services though any one of our Alterna Savings branches or at either one of our branches in Gatineau and Hull.

The parent is an Ontario credit union. CS Alterna Bank is a Schedule I bank.

On CANNEX, Alterna Savings is offering up to 0.77% on its Investment Savings Account. In contrast, Alterna Bank is offering 1.85% on its High Interest eSavings Account.

March 18, 2016
8:28 pm
NorthernRaven
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Alterna Savings is the (Ontario) credit union, covered by DICO. But as a subsidiary they have Alterna Bank, which is a full Schedule 1 federally chartered bank, covered by CDIC. It was established in 2000, apparently to let them do business outside of Ontario - there's a couple of physical branches in Hull and Gatineau, and I don't know what else it intended.

It looks like they've just launched a new "eSavings" account through the Bank subsidiary, which is online access only, and presumably they are trying to ease into getting some of the HISA action for themselves. I can't see any reason Peter wouldn't eventually add them to the chart - as a Sched 1 bank they are as "national" as Bridgewater (an arm of the Alberta Motor Association). Bridgewater only has around $30 million of online HISA deposits.

Who knows how long they'll keep the 1.85% rate, but Alterna's eSavings includes 2 free Interac e-Transfers each month, so it is like a baby brother of the EQ account (3%, 5 e-Transfers), although I don't know if it offers bill payment.

March 18, 2016
9:10 pm
Loonie
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Sure enough! Here it is...
https://www.alternabank.ca/Rates/

There is also an e-chequing account that gives .05% but the rest of it appears to all be the same as Alterna CU. The two e-accounts are the only ones with notable rates.
Good option for people living in Quebec who are looking for a savings account.

I wonder if they allow joint accounts, which Eq does not.

No reason not to get an account if it meets your needs. Perhaps, in due course, they will offer other online products with good returns.

Thanks, Hoodie, for drawing this to our attention.

Peter?

March 19, 2016
10:19 am
Peter
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Re: Alterna Bank, it has come up a few times in the past: https://www.highinterestsavings.ca/search/?q=alterna%20bank

... although this is the first time it's been suggested for the comparison chart. I don't see why not, so I'll add it! I've also created a separate thread for some more changes to the chart.

March 21, 2016
8:32 am
Alterna
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Hi guys - friendly neighbourhood Alterna marketing rep (full disclosure of course - let me know if you need me to verify ID somehow) here who caught wind of your discussion. I hope you don't mind me jumping in to help answer some questions that were posted. I also see there's an Alterna Bank subforum that was recently created - I'll pop in there form time to time to answer questions and help out however I can.

First, Norman is right - CS Alterna Bank is a schedule 1 bank, and is a wholly-owned subsidiary of Ontario-based Alterna Savings Credit Union Ltd. Posted rates for the two institutions have traditionally been the same, however the No Fee eChequing and High Interest eSavings accounts are unique to Alterna Bank, available nationally, and offer different features and rates.

NorthernRaven said although I don't know if it offers bill payment.

Our High Interest eSavings Account offers unlimited free bill payments, transfers and debits.

Loonie said
I wonder if they allow joint accounts, which Eq does not.

We do offer joint accounts!

And finally...

Loonie said
We had an account there for a few years, but closed it last year. They still waste their money, many months later, sending us a monthly statement ($0.), even though membership has been terminated, so I also suspect it is not all that well managed.

That's not good to hear at all (and I'm sorry to hear that we lost you as a member). I'll PM you with contact info where we can converse privately to get this resolved. Let's see if we can save you some time, us some money, and the planet some trees!

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