In Canada, the landscape of high interest savings accounts has been redefined with the introduction of LBC Digital by Laurentian Bank. This new online banking platform aims to enhance the financial wellbeing of Canadians. Like its digital counterparts, LBC Digital boasts no fees and offers an attractive interest rate currently set at 1.15%, positioning it among the highest in the market.
Laurentian Bank, headquartered in Quebec, has a legacy spanning over 170 years and a workforce of more than 3,300 employees. The bank manages assets totaling $44 billion and $29 billion in assets under administration, and it is a proud member of the Canada Deposit Insurance Corporation (CDIC), assuring customers of their security while banking. Yet, the true value lies in the quality of their offerings, so dive into my LBC Digital review for a comprehensive overview.
Key Features of LBC Digital
- High interest savings account offering 1.15% interest
- Chequing account available
- Guaranteed Investment Certificates (GICs) offered
- CDIC protection of up to $100,000 (including principal and interest) per depositor for each insured category
LBC Digital presents three primary financial products: a high interest savings account, a chequing account, and Guaranteed Investment Certificates (GICs). While these services may reflect those of other digital banks, LBC Digital boasts certain features that set it apart, which I will elaborate on below.
High Interest Savings Account at LBC Digital
- 1.15% interest rate
- No minimum balance needed
- No monthly fees associated
The allure of 1.15% interest is hard to ignore, especially as it aligns with offerings from other leading high interest savings accounts.
If you’re already a Laurentian Bank customer, signing up for LBC Digital could be a no-brainer, as it allows you to capitalize on higher interest earnings. While electronic transfers and money movements between LBC Digital accounts come at no cost, it’s noteworthy that INTERAC e-Transfers are not supported, which seems somewhat unusual.
LBC Digital Chequing Account Features
- No minimum balance requirement
- No monthly fees
- Free access to THE EXCHANGE Network ATMs
- Complimentary INTERAC e-Transfers available
The LBC Digital Chequing Account uniquely offers a platform for individuals to conduct everyday banking without incurring fees. Although personal branch support is absent, customers receive a debit card usable at over 3,500 ATMs within THE EXCHANGE Network, a notable advantage not generally provided by many digital banks.
In contrast to the High Interest Savings Account, the Chequing Account includes free INTERAC e-Transfers, but does not accrue interest on funds held within.
It is worth mentioning that Laurentian Bank enforces annual fees for dormant accounts applicable to both the HISA and chequing accounts. Accounts inactive for 2-9 years incur a fee of $25 annually, while accounts remaining dormant for 10 years or more face an increased fee of $40 per year.
Comparing LBC Digital to Competitors
When analyzing the top high interest savings accounts in Canada, it becomes evident that many closely resemble each other in terms of offerings. LBC Digital provides competition similar to Motive Financial and EQ Bank. Many digital banks present comparable rates and features, making the distinction between them minor. For broader financial solutions, consider Manulife’s All-In Banking package, which includes additional services.
A peculiar aspect of the LBC Digital account is the absence of free INTERAC e-Transfers; however, by opening a Digital Chequing Account, customers can still utilize INTERAC e-Transfers from there. If this inconvenience is a deal-breaker for you, exploring other digital banking options may be advisable.
Conclusion
Overall, I find my review of LBC Digital to be favorable, as the account offers a competitive interest rate. Current Laurentian Bank clients should consider opening an account promptly to enjoy elevated interest benefits. For those weighing their options in the digital banking sphere, the attractive interest rate presented by LBC Digital is certainly worth considering.