If you’re looking to open a high interest savings account with an online bank to earn more on your savings, you’re not alone.
In this LBC Digital review, you’ll learn about its account types, fees, rates, how it compares to other banks and whether it is a good fit for you or not.
If you’re ready, let’s begin
LBC Digital Bank: Quick Facts
|Credit Check||Yes – soft inquiry|
|Minimum Opening Deposit||$0|
|Account Types||Chequing, HISA and GICs|
|HISA Rate||Up to 4.00%|
|Registered Account Offerings||Not available|
|Monthly Maintenance Fees||Free|
About LBC Digital Bank
LBC Digital is a digital arm of Laurentian Bank, one of the oldest banks in Canada. It is a Schedule I bank that was founded back in 1846 and has been serving Canadians for more than 175 years.
Laurentian Bank is now a diversified financial group with several subsidiaries covering insurance, investment management, banking, trust services and so on.
It has corporate offices in both Toronto and Montreal and employs over 2,900 employees.
In addition to LBC Digital, other banking subsidiaries are Laurentian Bank of Canada and B2B Bank.
With LBC Digital, Laurentian hopes to give Canadians a place to earn competitive returns on their savings with minimal fees.
LBC Digital High Interest Saving Accounts
The bank’s flagship account is an HISA with a current interest rate of up to 3.00%. The savings rate is tiered depending on your account balance
- Under $100,000: 3.00%
- From $100,000 to $5,000,000: 3.00%
- Above $5,000,000: 4.00%
This isn’t much of a deal-breaker because you shouldn’t have more than one $100,000 with the bank anyway. The bank is CDIC insured and the protection is capped at $100,000 per insured category.
Here are the key features of the LBC Digital high interest savings account:
- A decent savings interest rate
- No minimum balance
- No monthly fees or transactions charges
- Link the account to multiple financial institutions
- Deposit protection by CDIC
The HISA is only available as a non-registered account. You’ll need to look at other banks if you need a TFSA or RRSP account.
For example, EQ Bank currently offers a competitive rate of 3.00% on its USD, FHSA, TFSA and RSP accounts. Click the link below to get started or check my EQ Bank TFSA and RRSP Account Review.
LBC Digital Chequing Account
The LBC Digital chequing account has no monthly account fees but pays no interest. You get to send or receive unlimited Interac e-Transfers for free and have access to free ATM withdrawals at over 3,500 The Exchange Network ATMs.
Bills payments, electronic funds transfers, and cheque clearing are also free.
LBC Digital GICs
Like many other banks, LBC Digital offers GICs terms ranging from 1 year to 5 years.
At just $100, the minimum investment amount is low enough to make the account accessible and easy to start with.
The LBC Digital GIC rates are as follows:
- 1-year term: 5.15%
- 2-year term: 5.65%
- 3-year term: 5.15%
- 4-year term: 5.05%
- 5-year term: 5.00%
The GIC account is non-registered and non-redeemable. That means you must be willing to lock in your funds till maturity – you can’t pre-liquidate your investment prematurely.
Interest is either compounded annually and paid at maturity or paid annually to one of your other LBC Digital accounts.
But you need to open a savings or chequing account before buying a GIC.
All the rates are current as of the time of this LBC Digital Bank Review. You can check their website for the latest GIC rates.
How to Open An LBC Digital Bank Account
You can open a new account by completing an online application if you’re:
- A Canadian Citizen or permanent resident
- Attained the age of majority in your province
- Have a valid social insurance number (SIN)
The bank will perform a credit check to confirm your identity. But it’s a soft inquiry so it won’t affect your credit score.
There is no minimum account opening balance and the application can be completed online.
If you have any questions during the account opening process, you can reach LBC Digital Bank by phone at 1-866-249-1489 or 1-416-216-5384.
The hours of operation is between 8am and 10pm on Mondays to Fridays, and 9am to 5pm on Saturdays and Sundays.
LBC Digital Fees
You get to bank for free on most of your everyday banking needs like EFT, Interac Transfers, and payments. But there are a few LBC Digital fees to worry about.
- Interac ATM withdrawals: $1.50
- Bank Draft: $10
- Non-sufficient funds (NSF): $50
- Overdraft: 21%
- Dormant account (2-9 years): $25
- Dormant account (10 years): $40
- Stop payment: $12.50
The good news is that you can avoid many of the fees. You can check here for more details about LBC Digital Fees.
Pros and Cons
Pros of LBC Digital
- Competitive interest rates on both savings account and GICs
- Deposits are protected by CDIC up to $100,000
- No monthly or transactions fees
- Low GIC minimum investment amount of $100
Cons of LBC Digital
- No interest on the chequing account
- Registered accounts are not available
- No U.S. Dollar accounts
- Limited product offerings: No credit cards, loans or mortgages
- There are no mobile apps but the banks website is mobile-friendly
Is LBC Digital Safe
Like all other deposit taking financial institutions in Canada, deposits at LBC Digital are protected by a deposit insurer.
Laurentian Bank, the parent, is a member of CDIC. So your deposits are covered up to $100,000.
In addition, LBC has a reimbursement guarantee in place for cases of fraud. That means you’ll be fully refunded for any fraudulent transaction that happens on your account.
Protecting your account is a shared responsibility though. While the bank has strict security measures in place, you’re also expected to adopt safe and responsible measures to protect your banking information.
LBC Digital vs Its Competitors
So how does LBC Digital Bank fare against other online banks?
Compared to its competitors, LBC Digital has a decent rate that is on the higher end of the current savings rates at Canadian banks.
- EQ Bank: 2.50% (3.00% on USD, FHSA, TFSA and RSP).
- Tangerine (Promotional rate of 5.25% for the first 5 months; 1.00% afterwards + $400 Cash Bonus)
- Canadian Tire Bank: 3.00%
- Neo Financial: 2.25%
- Motive Financial: 4.10%
- Maxa Financial: 3.55%
- Hubert Financial: 3.60% (3.65% on registered accounts)
Unfortunately, there are fewer products, no registered accounts or credit cards.
LBC Digital Vs EQ Bank
EQ Bank is one of best online banks in Canada. With an EQ Bank account, you get one of the highest interest rates available in Canada.
Even better, there are no fees on everyday transactions including bill payments, transfers and many more.
In addition, EQ Bank has more product offerings including joint accounts, USD, FHSA, RRSP and TFSA savings and GICs.
So if you’re looking for an account with more features, EQ Bank is the better choice between the 2 banks.
LBC Digital Review: Is It Right For You?
The parent is one of the largest Schedule I banks in Canada and it provides a very competitive interest rate. But the account types are limited.
Its savings interest rate is decent, but you can get a slightly higher rate from other banks like EQ Bank or Motive Financial with fewer fees to worry about.
And there are concerns about the bank’s customer service going by some online accounts.
In conclusion, my LBC Digital Bank review is mixed.
You can check my review of other online banks through the links below.
- EQ Bank Review 2021: Best Savings Account in Canada
- Saven Financial Review – Competitive Rates for Serious Savers?
- Peoples Trust Review 2021: Is it Right For You?
- MAXA Financial Review (Read Before Applying!)
- Accelerate Financial Review
LBC DIGITAL BANK REVIEW
LBC Digital is a digital arm of Laurentian Bank, one of the oldest banks in Canada, that provides competitive rates and low fees.