Alterna vs EQ vs Oaken | General comparisons | Discussion forum

xup6.yc said

EQ Bank
Pros

• Highest interest rate @2% (tho their rates seems to fluctuate more often?)
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Cons

• Linked accounts disappears randomly? (Seeing how this is the main method of getting money in and out, it's a big problem)
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Rates have been quite stable with EQ Bank. Intially, it was 3%. Dropped to 2.25% and then to 2%. Been at 2% for a while.

Linked accounts don't actually disappear randomly. They sometimes disappear after they upgrade their online banking web site with new features. Happened three or four times last year. See previous thread Transfers broken.

Last time it happened to me, I wasn't stuck. I could still do Interac e-Transfers to transfer modest amounts (up to $2,500) out. Looks like it was an issue with their web site. Called EQ Bank and they said my linked accounts were still in the system the CSR's are using.

Although I deal with none of those, I'm increasingly warming to Alterna Bank (the "knock" I always had against them was uncompelling interest rates and the lack of a free chequing account - I'm also loving the new colours in the revamped logo!), although that may change once Meridian Bank forms its own bank subsidiary (or changes its plans and re-incorporates as a federal credit union) and here's why:

- They pay a highly competitive, "no strings attached" posted interest rate of 1.95% and are an established player, actually having been in business as long as Tangerine (previously, ING DIRECT Canada)
- They've since added an eChequing account with no monthly fees but no access to their credit union branches, which includes 2-3 free Interac e-Transfers (similar to or the same as EQ Bank) per month
- For those in Ontario, it appears as though CS Alterna Bank and Caisse Populaire Alterna Savings customers/members can transact in their credit union branches (except the aforementioned eChequing), which they call "centres," presumably since they afford access to both bank and credit union clients
- They have a no fee USD chequing account with several free transactions per month or unlimited with $1000 USD minimum monthly balance that, I believe, pays interest
- They use the MemberDirect online banking platform from Central 1 (which allows for Me-to-Me Transfers for credit unions/partners that have it enabled in their core banking system) and, presumably, either Celero Systems' Temenos core banking system or a similar superior banking system such as Wealthview (used by First West's "brands") or Fiserv's DNA so their eStatement and transaction histories online will be superior in terms of detailed transaction narratives/descriptions. MemberDirect isn't "perfect" but it's the best online banking system and most detailed of any major financial institution and better than any custom banking system, save for maybe Tangerine's, which is pretty darn awesome

Oaken Financial uses their own banking and online banking system, both of which require VOID cheques or other paper-based verification methods for external bank accounts but they do have certain financial centres with which to transact/open accounts/have coffee & read a book in the major cities like Tangerine. Their rate is only slightly less competitive than Alterna Bank and they've been pretty consistent, being backed by Home Trust and now, Home Bank, previously known as CFF Bank & RedBrick Bank prior to those two's amalgamation. The banking system being somewhat of an "unknown," I've ranked it #2.

I rank EQ Bank "tops" in terms of its mobile app and its "speed of launch" and the paperless, electronic method of linking external bank accounts. The "knock" against them is the: (a) lack of a debit card (it's not that costly but likely has more to do with their custom core banking system that isn't "legacy" in nature), (b) the apparent lack of customer service staff in their contact centre as Loonie mentioned above and (c) their "maximum balance" of $500,000 limitation. If barriers (a) and (c) were to be eliminated, I could rank them as #1. 🙂

In 4th, I'd probably go with the soon-to-be-renamed Motive Financial but hold them back, namely, because: (a) they're not owned by a credit union and (b) the lack of any free Interac e-Transfers, though the 1 free chequebook is nice. If they changed either (b) or added paperless, electronic linking of bank accounts, they'd likely be moved to #1.

Cheers,
Doug

I meant me-2-me withdrawals. Sorry for the confusion. Alterna has dollar limits on these. EQ only has limit per transfer, I think 30K but not sure, but you can do more than one transfer. They make you sign in all over again for an additional transfer. I don't know about Oaken as I don't use it for this purpose.

Doug:
I must admit to some confusion about exactly what you can do at AlternaCU branches ("AlternaSavings") in regard to AlternaBank accounts. I was under the impression that you could not do any AlternaBank business at a CU storefront, but something has changed with the new website. AlternaBank per se only has a couple of branches around Ottawa as I recall. It doesn't seem to make sense that they would offer both Bank and CU rates, which are widely divergent, at the same CU store with the same staff support.

Alterna has actually been around much longer than Tang/ING, but it went under a different name before. The branch I am familiar with (CU) is the same as under the previous banner. I can't remember the previous name now but think it had to do with municipal employees.

I don't know about the underlying technology but Alterna's statements are satisfactory.

I'm not sure what you didn't like about AlternaBank's rates earlier. They opened with 1.85 and quite quickly increased it to 1.95 on the savings account, where it has remained. Perhaps you meant the CU's rates, which are unremarkable. https://www.alterna.ca/Rates/ Why wouldn't they at least say, "for additional rate offers, go to alternabank.ca or something like that?

I believe EQ's limit is now 100K for new customers. Those who got on board early will still be allowed 500K. You can, however, add interest to your 100k. I don't think they will lift that ceiling until and unless they become a much bigger player. In this phase, it appears they want to build their book, as it were, no doubt hoping at some later date to get your "wealth management" business. That's what they're all after these days. I always put it in quotes because it seems like such a dubious enterprise. My "wealth' is not likely to need them to "manage" it, and this feeling is confirmed every time one of them (from any FI) tries to give me advice!
What I want from EQ is joint accounts, but they seem in no hurry to offer them. This will ultimately be a deal-breaker for me. I'm not waiting forever.

Oaken used to be quite competitive, especially o GiCs, but no longer. I Their current savings account rate is 1.5, which, in my opinion, is more then "slightly" lower than AlternaBank's. You can get 1.5 at Meridian for that matter, and more services.

xup:
I can't comment on Tang-EQ transfers. I prefer not to let Tang know where I have other accounts so I only have set up transfers to Big Bank. Tang does have a limit of 3 external linked accounts, so you might want to be aware of that. Generally, Tang and EQ are very efficient on the tech side, so I wouldn't anticipate a problem. It's usually easiest to "pull" the money by arranging the transfer through the receiving institution, as a general principle, although you should be able to do it either way with these two.

Loonie said

I must admit to some confusion about exactly what you can do at AlternaCU branches ("AlternaSavings") in regard to AlternaBank accounts. I was under the impression that you could not do any AlternaBank business at a CU storefront, but something has changed with the new website.…

I don't think there has been a change. It has always depended on the Alterna Bank account that one has.

The High Interest eSavings Account (with 1.95% rate) and the No Fee eChequing Account do not include in-branch withdrawals, bill payments, and transfers.

Their other chequing and savings account do include full in-branch access at Alterna Savings branches and at their Alterna Bank branches.

Loonie said
…
the confusion with Alterna's two entities and 2 websites arises when you look at the (very) new website for the Bank. At the bottom of this page, https://www.alternabank.ca/AboutUs/ContactUs/ there is a list of phone numbers for the Alterna CU branches and you are advised to call them. It's not clear what you might get out of this phone call though. Further, the "bank" website has a link to the CU, but doesn't explain why you might want to go there; but the CU website does not have a link to the bank - where you actually might want to go for better rates.

I don't think Alterna Bank customers are to call an Alterna CU branch first. I think the main phone contact for such customers is the Alterna Bank Contact Centre mentioned in the Phone Us section above that.

No link from Alterna CU site to Alterna Bank site. Not sure Alterna CU would direct their Alterna CU members to their Alterna Bank subsidiary to pay less fees to and get more interest out of them!

… AlternaBank does not have any other chequing or savings accounts (as you suggested it might, Norman); it is only AlternaCU that has them.

In addition to the High Interest eSavings Account and the No Fee eChequing Account, I see

1. Chequing Account,
2. US Chequing Account,
3. Investment Savings Account, and
4. Daily Interest Savings Account

on their Chequing, Savings and US Chequing rates page.

Alterna Bank's service fees sheet also shows the additional accounts and the seven different plans for a chequing account that is not their eChequing account.

Norman1 said

Loonie said
…
the confusion with Alterna's two entities and 2 websites arises when you look at the (very) new website for the Bank. At the bottom of this page, https://www.alternabank.ca/AboutUs/ContactUs/ there is a list of phone numbers for the Alterna CU branches and you are advised to call them. It's not clear what you might get out of this phone call though. Further, the "bank" website has a link to the CU, but doesn't explain why you might want to go there; but the CU website does not have a link to the bank - where you actually might want to go for better rates.

I don't think Alterna Bank customers are to call an Alterna CU branch first. I think the main phone contact for such customers is the Alterna Bank Contact Centre mentioned in the Phone Us section above that.

No link from Alterna CU site to Alterna Bank site. Not sure Alterna CU would direct their Alterna CU members to their Alterna Bank subsidiary to pay less fees to and get more interest out of them!

… AlternaBank does not have any other chequing or savings accounts (as you suggested it might, Norman); it is only AlternaCU that has them.

In addition to the High Interest eSavings Account and the No Fee eChequing Account, I see

1. Chequing Account,
2. US Chequing Account,
3. Investment Savings Account, and
4. Daily Interest Savings Account

on their Chequing, Savings and US Chequing rates page.

Alterna Bank's service fees sheet also shows the additional accounts and the seven different plans for a chequing account that is not their eChequing account.  

I think you've proven my case, Norman! It shouldn't be this hard to figure out what they offer - e.g. going to the fees page etc. You are correct though that they do seem to offer more accounts than I'd noticed before. I had gone to this page, https://www.alternabank.ca/Personal/EverydayBanking/Accounts/ where, on the left, it itemizes 4 e-accounts. I'd assumed that was all they offered as it's all they mention, and I think that was a logical inference in terms of "accounts". There are definitely reasons for not profiling the others, but it is still confusing.

xup6.yc said

That's something i wasn't aware of, I thought me-to-me is just their fancy way of calling EFT and works with every bank. If i were to transfer out to another bank that didn't enable me-to-me, how would that be accomplished (other than interact)?

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Thanks for all the information, it was really helpful.
after reading all the posts, I'm starting to think EQ isn't as unreliable as I thought it is, maybe I'll give EQ a try and see what happens.

sidenote: can any one explain to me the process of transferring money into EQ from Tangerine and vice-versa? and how well it works?
long transfer period? any holds? or any quirks I should be aware of?  

To your first question, yes Me-to-Me Transfers are basically just a "fancy way" of what EFT transfers are called except that it's a registered trademark, or unregistered but copyrighted service mark, term that Central 1 Credit Union owns to call its "add-on" functionality that is part of MemberDirect. It's available to any service partner of Central 1 that uses MemberDirect for online banking, which includes many credit unions (not all, though, you can usually tell by the "login format" and URL structure of their online banking system(s)) as well as certain banks and/or federal trust companies (i.e., Canadian Western Bank including its Canadian Direct Financial/Motive Financial virtual bank "branch" and Alterna Bank) that can integrate it with their proprietary or third-party core banking systems. However, behind the scenes, it does use the EFT system of Payments Canada, which is part of the Automated Clearing Settlement System that also clears our paper-based cheques and bank drafts/money orders. 🙂

To your other question, in terms of "transfers" to/from Tangerine. You can either "push" money out from Tangerine or from EQ Bank, provided you've linked accounts on both ends using whatever their process is and subject to applicable daily/weekly transfer out limits. These would then appear as "direct deposits" and not subject to holds, but it may take 1-2 business days for the funds to appear in your external account. Or, you can "pull" money in from your linked external account, but may be subject to all or partial hold, depending on the institution's "hold policy" and your creditworthiness, generally. However, because the funds are in "two places at once" for 1-2 business days, effectively, you would earn 1-2 day's "double interest" on the same funds. For transfers out of Tangerine, it actually makes more sense to "pull" funds in from the external bank account, i.e. EQ Bank, as Tangerine doesn't do "same day" transfers out (i.e., if you submit a request Wednesday, it won't be processed till Thursday). Similarly, if transferring in to Tangerine, I'd actually "push" funds out to Tangerine, if the institution does same-day transfers (not sure about EQ Bank and how that works) as, with most credit unions or service partners of MemberDirect, they do and the funds will be transferred out and then in to Tangerine same-day, provided you do the transfer prior to around 2 pm PDT/5 pm EDT.

Hope that helps,
Doug

i hope they'll sort out which business they're actually in soon. I don't think it's good for them to be so unfocused.
In the meanwhile, I'll stick with the simple stuff - anything that starts with "e-".