Personal Finance

Alterna Bank High Interest eSavings Account

  • Last Updated:
  • Jul 8th, 2017 1:37 am
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Member
May 3, 2016
215 posts
16 upvotes
I'm new to Canada and Alterna Bank needs at least 6 months of credit history before one can open an account with them. Do you know what other banks or financial institutions (CDIC insured) that offers similar good interest rates and will issue bank cards?
Jr. Member
Dec 12, 2016
105 posts
31 upvotes
wyho007 wrote:
Apr 3rd, 2017 10:22 pm
I'm new to Canada and Alterna Bank needs at least 6 months of credit history before one can open an account with them. Do you know what other banks or financial institutions (CDIC insured) that offers similar good interest rates and will issue bank cards?
No they don't. They cannot refuse a bank account to you because of lack of credit history. I would call them back and tell them this and if that doesn't work, call the FCAC.
Deal Addict
User avatar
Dec 17, 2008
1615 posts
459 upvotes
Winnipeg
Here2day2 wrote:
Apr 4th, 2017 12:09 am
No they don't. They cannot refuse a bank account to you because of lack of credit history. I would call them back and tell them this and if that doesn't work, call the FCAC.
Yes they can... If they are not a federally regulated institution. So the question is.. Are they?

https://www.canada.ca/en/financial-cons ... ities.html

Your rights
Under Canadian law—subject to certain conditions—you have the right to open a personal bank account at a bank.

You must provide the bank with acceptable forms of identification in order to open a personal bank account. Other financial institutions, such as credit unions and caisses populaires, are generally regulated provincially and may have different requirements. Some credit unions are federally regulated. Federal consumer protection laws apply when dealing with a federal credit union.



https://www.canada.ca/en/financial-cons ... count.html

To open an account, you usually have to:

go in person to a bank or other financial institution, like a credit union

provide an acceptable form of identification
Contact the financial institution to find out if there are other ways to open an account.

Financial institutions that operate only online may require that you have an existing account with another financial institution before opening an account for you.




When a financial institution refuses to open an account for you

A financial institution doesn’t have to open a personal account for you if:

it believes you plan to use the account for illegal or fraudulent purposes

you have a history of illegal or fraudulent activity with financial service providers during the past seven years

it believes you knowingly made false statements in the information you gave

it believes you might cause physical harm to, harass or abuse other customers or its employees

you don’t already have an account and it only offers accounts which must be linked to an existing account with another financial institution

you don’t allow it to take steps to verify that the identification you presented is valid

If a financial institution refuses to open a personal account for you, it must:

tell you of its refusal in writing
give you contact details for the Financial Consumer Agency of Canada

You may also tell the financial institution that you want to make a complaint. All banks must have a process in place to handle complaints.
*Do you like someone's idea, post, or response? Why not consider giving them "thanks" and clicking the thumbs up to give them the credit they deserve. This will help eliminate the need to quote their whole post to say "thanks" or "+1' which just clutters up the whole thread*
Jr. Member
Mar 6, 2017
100 posts
69 upvotes
wyho007 wrote:
Apr 3rd, 2017 10:22 pm
I'm new to Canada and Alterna Bank needs at least 6 months of credit history before one can open an account with them. Do you know what other banks or financial institutions (CDIC insured) that offers similar good interest rates and will issue bank cards?
You could try Tangerine, it's a bit random, but you might be able to score a good interest rate promo. Next promo should be released during these few days. Tangerine 3 months 2.5% and 3%
Jr. Member
Dec 12, 2016
105 posts
31 upvotes
Shawguy wrote:
Apr 4th, 2017 12:27 am
Yes they can... If they are not a federally regulated institution. So the question is.. Are they?

https://www.canada.ca/en/financial-cons ... ities.html

Your rights
Under Canadian law—subject to certain conditions—you have the right to open a personal bank account at a bank.

You must provide the bank with acceptable forms of identification in order to open a personal bank account. Other financial institutions, such as credit unions and caisses populaires, are generally regulated provincially and may have different requirements. Some credit unions are federally regulated. Federal consumer protection laws apply when dealing with a federal credit union.



https://www.canada.ca/en/financial-cons ... count.html

To open an account, you usually have to:

go in person to a bank or other financial institution, like a credit union

provide an acceptable form of identification
Contact the financial institution to find out if there are other ways to open an account.

Financial institutions that operate only online may require that you have an existing account with another financial institution before opening an account for you.




When a financial institution refuses to open an account for you

A financial institution doesn’t have to open a personal account for you if:

it believes you plan to use the account for illegal or fraudulent purposes

you have a history of illegal or fraudulent activity with financial service providers during the past seven years

it believes you knowingly made false statements in the information you gave

it believes you might cause physical harm to, harass or abuse other customers or its employees

you don’t already have an account and it only offers accounts which must be linked to an existing account with another financial institution

you don’t allow it to take steps to verify that the identification you presented is valid

If a financial institution refuses to open a personal account for you, it must:

tell you of its refusal in writing
give you contact details for the Financial Consumer Agency of Canada

You may also tell the financial institution that you want to make a complaint. All banks must have a process in place to handle complaints.
Alterna Bank is federally regulated by OSFI and is also CDIC insured. They fall under federal status. The Credit Union side (Alterna Savings) is provincially regulated in Ontario only.
Deal Addict
May 15, 2013
1172 posts
181 upvotes
Montreal
Here2day2 wrote:
Apr 4th, 2017 12:09 am
No they don't. They cannot refuse a bank account to you because of lack of credit history. I would call them back and tell them this and if that doesn't work, call the FCAC.
But in practice Virtual Banks need you to already have an account in a brick and mortar institution so it's kinda logic they refuse.
Member
May 3, 2016
215 posts
16 upvotes
iamthebest wrote:
Apr 4th, 2017 7:52 pm
But in practice Virtual Banks need you to already have an account in a brick and mortar institution so it's kinda logic they refuse.
I do! I have a personal cheque to give them, SIN and government issued ID. I was able to open account at Hubert Financial, only I want to have a bank card that I want an account at Alterna. But guess I'll go to Tangerine now as it offers 3%. By the time the Tangerine promotion ends, it'll reach the 6 months as required by Alterna.
Deal Addict
Jul 22, 2015
1168 posts
351 upvotes
Saint-Hubert, QC
MtX wrote:
Apr 3rd, 2017 10:41 pm
Is this currently the best option for TFSA Saving accounts??
Yes.
Jr. Member
Dec 12, 2016
105 posts
31 upvotes
iamthebest wrote:
Apr 4th, 2017 7:52 pm
But in practice Virtual Banks need you to already have an account in a brick and mortar institution so it's kinda logic they refuse.
Agreed, but they can't refuse you for not having credit history.
Jr. Member
Jul 8, 2013
153 posts
27 upvotes
Montreal
Hi,
I am looking to switch from CIBC to AlternaBank for Savings, TFSA and RRSP.

1. Am I able to link my Tangerine Savings to Alterna Savings?
2. Would there be a negative impact if I withdrew funds from my TFSA, closed my TFSA, and re-opened one with Alterna to avoid transfer-fee?
3. Am I able to move my RRSP from CIBC to Alterna online?
4. Am I able to contribute funds from Alterna Savings to Alterna RRSP on their online platform?
Sr. Member
User avatar
Mar 11, 2011
535 posts
150 upvotes
Toronto
dbzkid777 wrote:
Apr 6th, 2017 8:50 am
Hi,
I am looking to switch from CIBC to AlternaBank for Savings, TFSA and RRSP.

1. Am I able to link my Tangerine Savings to Alterna Savings?
2. Would there be a negative impact if I withdrew funds from my TFSA, closed my TFSA, and re-opened one with Alterna to avoid transfer-fee?
3. Am I able to move my RRSP from CIBC to Alterna online?
4. Am I able to contribute funds from Alterna Savings to Alterna RRSP on their online platform?
2. If you withdraw your funds from a TFSA, you have to wait until the following calendar year to put the money back. The way around this is to withdraw the money in mid December and open the new TFSA in January.
Deal Addict
Mar 11, 2007
2653 posts
593 upvotes
QC
Can't find the information to get a debit card. Is there one?
Deal Addict
May 28, 2009
1224 posts
79 upvotes
dbzkid777 wrote:
Apr 6th, 2017 8:50 am
Hi,
I am looking to switch from CIBC to AlternaBank for Savings, TFSA and RRSP.

1. Am I able to link my Tangerine Savings to Alterna Savings?
2. Would there be a negative impact if I withdrew funds from my TFSA, closed my TFSA, and re-opened one with Alterna to avoid transfer-fee?
3. Am I able to move my RRSP from CIBC to Alterna online?
4. Am I able to contribute funds from Alterna Savings to Alterna RRSP on their online platform?
1 = yes but paper work involved.

4 = yes but best to confirm with Alterna

2 = if you withdraw from TFSA you cannot contribute in a new TFSA until end of fiscal year to avoid penalties

3 = probably not online. but via phone yes. paperwork as in signatures and authorizations will probably be needed.
Jr. Member
Dec 12, 2016
105 posts
31 upvotes
jfmartel wrote:
Apr 18th, 2017 3:39 pm
Can't find the information to get a debit card. Is there one?
Yes there is.

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