LBC Digital High Interest Savings Account Review 2022

A high-interest savings account is important if you want to earn a reasonable return on the money sitting in your savings account.

The rates available on traditional savings accounts are so bad that if you are not using an online bank, you are likely losing spending power for each day that passes by.

LBC Digital offers one of the highest savings rates in Canada and this review covers what you need to know about the bank.

Who is Laurentian Bank?

Laurentian Bank of Canada was founded in 1846 in Montreal, Quebec, and was initially established as the Montreal City and District Savings Bank.

Today, Laurentian Bank Financial Group (LBCFG) has corporate offices in Montreal and Toronto and consists of several subsidiaries including Laurentian Bank of Canada, B2B Bank, Laurentian Bank Securities Inc., LBC Capital Inc., and several others.

LBCFG has more than 3,600 employees and $44 billion in assets.

Laurentian Bank of Canada is a Schedule 1 bank and its stock trades as “LB” on the Toronto Stock Exchange.

LBC Digital is the online banking arm of Laurentian Bank. This digital bank offers a:

Laurentian Bank Digital High Interest Savings Account Review

Related: Best High Interest Savings Accounts in Canada

LBC Digital High Interest Savings Account

This account offers a tiered interest rate of up to 1.15%. There is no monthly account fee and no minimum balance is required.

The interest rate tier works as follows:

  • $1 to $500,000: 1.15%
  • $500,000.01 +: 0.30%

The interest rate is calculated daily on your closing balance and paid out monthly.

Laurentian Bank is a member of the Canada Deposit Insurance Corporation (CDIC) which means your deposits at the bank are insured up to $100,000 per category.

LBC Digital is an online-only bank.

To deposit money into an LBC Digital HISA account, you will need to link your LBC account to a bank account at your other financial institution.

If you have funds in your LBC Digital Chequing account, you can easily transfer them to your savings.

The following fees may apply:

  • Non-Sufficient Funds (NSF): $50
  • Account closure within 90 days of opening: $25
  • Returned items: $5
  • Dormant account fees (2-9 years): $25 per year
  • Dormant account fee (10 years): $40

EQ Bank Savings Plus Account

EQ Bank tfsa.

1.65%* non-promotional interest rate

Unlimited debits and bill payments

Unlimited Interac e-Transfers

No monthly account fees

LBC Digital Chequing Account

This no-monthly-fee account offers free Interac e-Transfers and access to more than 3,500 free ATMs via THE EXCHANGE Network.

The LBC Digital Chequing Account is not currently paying interest on chequing account balances.

To deposit funds into the account, you can link to another bank account or deposit a cheque or cash at an ATM.

Some of the fees that apply to this account include:

  • Bank draft: $10
  • NSF: $50
  • Overdrawn interest rate: 21% per annum
  • Dormant account fees: similar to the savings account
  • Interac ATM transaction: $1.50

RelatedBest Free Chequing Accounts in Canada

LBC GICs

1-5 year non-registered and non-redeemable GICs are available with a minimum deposit of $100.

LBC GIC rates as of May 30, 2022, are:

  • 1-year term: 3.25%
  • 2-year term: 4.00%
  • 3-year term: 4.10%
  • 4-year term: 4.15%
  • 5-year term: 4.15%

The application process for LBC Digital accounts is all completed online. You can reach their customer service at 1-866-249-1489 or 1-416-216-5384 from Monday to Friday (8am – 10pm ET) or on weekends from 9am – 5pm ET.

Related: Best GIC Rates in Canada

Is Laurentian Bank Bank (LBC Digital) Safe?

Laurentian Bank is a CDIC member institution and eligible deposits at the bank are insured for up to $100,000 per insured category.

Deposits covered by the CDIC guarantee include savings, chequing, and GICs with a maturity of 5 years or less.

As per their website, LBC Digital “adheres to the principles adopted by the Canadian Bankers Association with respect to the protection of personal information.”

Pros and Cons of LBC Digital Savings and Chequing Accounts

Pros

  • High-interest savings rates
  • Access to 3,500 free ATMs in Canada
  • Free Interac e-TRansfers (chequing account only)
  • No monthly account maintenance fee

Cons

  • The account opening process can be a real pain
  • Mobile cheque deposits and Interac e-Transfers are not available for the savings account
  • The online platform is not very user-friendly. It looks outdated and some users report that it suffers downtime on a regular basis.

LBC Digital vs. Other Online Banks

LBC Digital compares favourably with other digital banks offering good HISA rates in Canada.

EQ Bank offers a 1.50% rate on its hybrid Savings Plus Account. This account offers free unlimited transactions (including e-Transfers), mobile cheque deposits, cheap international money transfers, and access to one of the best mobile banking apps I have come across.

Unlike LBC Digital, EQ Bank does not offer a traditional chequing account. You can read my EQ Bank review for more details.

KOHO offers a very competitive 1.20% interest rate when you set up a direct deposit to your account. You also get a reloadable prepaid Visa card that earns 0.50% cash back on all purchases, plus free Interac e-Transfers and access to early payroll. Read my detailed KOHO review.

Tangerine Bank savings account has a 0.10% interest rate. It also offers a free chequing account, investments in registered and non-registered accounts, credit cards, loans, and business accounts.

Motive Financial is another virtual bank with one of the best HISA rates. In addition to savings, it also offers a chequing account and GICs. This Motive Financial review covers all the basics.

Best Banking Offers in August 2022

Get a free chequing account and a *$350 cash bonus*

Unlimited free debits and Interac e-Transfer transactions.

No monthly account or transaction fees.

$350 cash bonus when you deposit $100 for 3 months.

Earn a high-interest rate on your savings (3% interest rate offer).

No monthly or minimum balance is required.

Earn cash back on purchases & grow your savings ($20 bonus)

Free reloadable prepaid card and budgeting app.

Up to 2% cash back on all purchases and 5% at brand partners.

1.20% savings interest on your entire account balance.

Get 3-day early access to $100 of your paycheque for free.

$20 bonus after using the card for your first purchase (use CASHBACK referral code at signup).

Best no-fee cashback credit card with a $150 bonus

Earn 2% unlimited cash back in three spending categories.

Get a $150 welcome bonus with $1,000 spending in first 2 months.

0.5% unlimited cash back on all other purchases.

1.95% low balance transfer rate and insurance coverage benefits.

Earn high interest rates on your savings at 2.25%

Earn up to 225x the interest offered by other banks.

Pay no monthly or annual banking fees.

Combines savings and chequing account features.

Includes unlimited free debit transactions and Interac e-Transfers.

Get access to a no-fee credit card with up to 5% cashback.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

5 thoughts on “LBC Digital High Interest Savings Account Review 2022”

  1. These guys are absolutely HORRIBLE to deal with. I would NEVER deal with these clowns again. They actually ignore emails and phone calls. Customer service is non existent. Never have had a worse time dealing with a bank. Definitely do NOT recommend!

  2. LBC Digital doesn’t offer joint accounts and not sure if their customer service is upto the mark. Would rather deal with Tangerine Bank.

    • @Manesh: LBC Digital’s customer service is a bit spotty based on my own recent experience as well.

      • This truly is a basic bank. They don’t offer many features you may expect from a modern bank, and the website is incredibly slow. That was really fine for my needs, I just wanted a spot to park my emergency funds.

        When I signed up at the beginning of 2020, the interest rate was advertised over 3% as their regular non-promitional rate. When COVID hit, they reduced the rate to 2.5% around March. Now, as of June 1 2020 they are dropping the rate again to 2.05%

        They’ve gone from having one of the best rates, to being just run of the mill. I probably won’t be jumping ship, but probably wouldn’t recommend it to new customers.

        • @Pat: Online banks have their pros and cons. Yes, I agree that LBC’s rates have been on a downward slope since they first launched. That being said, if all you want is a HISA to park money, EQ Bank and LBC rates are actually very good compared to many of the alternatives.

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  • Earn up to 225x more than other banks!
  • Get 2.25% interest rate* on every dollar.
  • No monthly fees and unlimited free transactions.
Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
  • Earn up to 180x more than other banks!
  • Get 1.80% interest rate* on every dollar.
  • No monthly fees & unlimited transactions.
Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
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