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LBC Digital High Interest Savings Account Review 2024

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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 2,800 employees and over $50 billion in assets.

Laurentian Bank of Canada is a Schedule 1 bank, and its stock trades as โ€œLBโ€ 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 3.00%. There is no monthly account fee, and no minimum balance is required.

The interest rate tier works as follows:

  • $1 to $500,000: 3.00%
  • $500,000.01 +: 3.00%

The interest rate is calculated daily on your closing balance and paid 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 must 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

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 Digital GICs

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

LBC GIC rates as of February 2024 are:

  • 1-year term: 5.10%
  • 2-year term: 4.75%
  • 3-year term: 4.50%
  • 4-year term: 4.50%
  • 5-year term: 4.50%

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 โ€“ 10pm ET) or on weekends from 9am โ€“ 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 โ€œadheres to the principles adopted by the Canadian Bankers Association with respect to the protection of personal information.โ€

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 regularly.

LBC Digital vs. Other Online Banks

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

EQ Bank offers a high-interest 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 used.

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

EQ Bank Personal Account

eqbanklogotransparent

Earn up to 4.00% interest

No monthly account fees or minimum balance

Unlimited debit transactions and e-Transfers

Free cashback card & no ATM fees

Supports mobile cheque deposits

KOHO offers a very competitive interest rate on your balance. You also get a reloadable prepaid Visa card that pays up to 5% cash back on your purchases, plus free Interac e-Transfers.

KOHO Prepaid Mastercard

KOHO Mastercard Prepaid Card 2

$20 welcome bonus after first purchase (use CASHBACK promo code during sign-up)

$0 monthly fee*

Earn up to 5% unlimited cash back

Get 5% savings interest on your balance

Unlimited Interac e-Transfers and debit transactions

Free budgeting app and access to credit building

Simplii Financial offers a high interest savings account and a no-fee chequing account. It also provides access to mortgages, lines of credit, investments, and a cash back credit card.

Simplii High-Interest Savings Account

simpliifinancialnewlogo3-img

6.25%* rate for 5 months

Unlimited debits and bill payments

Unlimited Interac e-Transfers

$500 cash bonus offer with a free chequing account

Tangerine Bankโ€™s savings account has a 0.70% 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 for October

Get the BEST spending and savings account with 5% rewards + $20 bonus

Instant approval and a $20 welcome bonus when you make your first purchase.

Earn up to 5% unlimited cashback on purchases while paying no fees!*

Get 5.00% interest on your entire account balance.

Free debits, e-Transfers, bill payments, budgeting app, and access to credit building.

Get the best FREE chequing account offer in Canada + $500 cash bonus

Get a $500 cash bonus when you open an account and set up a direct deposit.

Access unlimited free debits and e-Transfer transactions.

No monthly account or transaction fees.

No minimum balance and access to 3,000+ free ATMs.

Earn a regular 4.00% interest on your savings account

Earn 4.00% interest on every dollar when you set up a direct deposit.

Free access to a hybrid account with unlimited transactions & e-transfers.

Get a prepaid card that pays 0.50% cashback on all purchases.

No monthly account fees, free ATM withdrawals in Canada, and no FX fees.

Stop paying monthly fees with a free chequing account + $400 bonus

Get $400 cash bonus when you direct deposit $100 for three months.

Unlimited debits, online bill payments and Interac e-Transfer transactions.

No monthly account or transaction fees.

Get a high interest rate on your savings (6.00% interest rate offer).

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

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5 thoughts on “LBC Digital High Interest Savings Account Review 2024”

  1. Gravatar for Manish Shah

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

    • Gravatar for Enoch Omololu

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

      • Gravatar for Pat

        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.

        • Gravatar for Enoch Omololu

          @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.

  2. Gravatar for Shelby

    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!

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