The best high interest savings accounts in Canada just got a new player as Laurentian Bank has just launched LCB Digital, an online bank that helps Canadians improve their financial health. Like many other digital banks, you’ll pay no fees and get a high interest rate which is currently at 3.30%. This is obviously appealing as interest rates have been pretty much non-existent at traditional banks.

If you’re unaware, Laurentian Bank is based in Quebec and has been around for more than 170 years. They have more than 3,300 employees, $44 billion in balance sheet assets and $29 billion in assets under administration. They’re also a Canada Deposit Insurance Corporation (CDIC) member so you can feel safe banking with them. Of course, this doesn’t matter if their product isn’t any good so read my LBC Digital review now to find out what they’re all about.

LBC Digital features

  • High interest savings account – 3.30% interest
  • Chequing account – Up to 0.65% interest
  • Guaranteed Investment Certificates
  • Up to a maximum of $100,000 (principal and interest combined) in CDIC protection per depositor, per insured category

As you can see, Laurentian Bank’s new LCB Digital offers three core services. A high interest savings account, a chequing account, and Guaranteed Investment Certificates (GICs). This is pretty standard for any digital bank these days but LCB Digital has a few features that stand out which I’ll highlight below.

LBC Digital High Interest Savings Account

  • 3.30% interest
  • No minimum balance required
  • No monthly account fee

There’s no denying that the current interest rate offer of 3.30% is quite appealing. That’s higher than any other high interest savings account out there which is why I assume this is just a teaser rate. Who knows if that rate will go down later, but I’ll update this article if it does.

If you already use Laurentian Bank, there’s no reason why you shouldn’t sign up for LCB Digital as you’ll be able to earn a higher interest rate. Although electronic fund transfers and transfers between LBC Digital accounts are free, there doesn’t seem to be INTERAC e-Transfers available which I find a bit odd. 

LBC Digital Chequing Account

  • No minimum balance required
  • No monthly account fee
  • Free access to THE EXCHANGE Network ATMs
  • Free INTERAC e-Transfers
  • 0.15% interest rate on balances between $0 – $49,999.99
  • 0.55% interest rate on balances between $50,000.00 – $99,999.99
  • 0.65% interest rate on balances above $100,000

The LBC Digital Chequing Account is interesting as it gives customers a chance to set up an account where they can basically do their day-to-day banking without having to pay any fees. Although you won’t have access to live people in a branch, you do get a debit card that can be used for free at over 3,500 THE EXCHANGE Network ATMs. Not all digital banks offer a debit card so this is a huge positive.

Unlike the HISA, the LBC Digital Chequing Account gives you free INTERAC e-Transfers. You do earn some interest depending on how much money you currently have in your account, but it’s much lower than the rate offered with the HISA. Ideally, you’d want to have an LBC Digital Chequing Account and HISA so you could move your money between the two as needed.

One thing I should mention is that LCB does charge dormant annual account fees which applies to all both their HISA and chequing accounts. If your account is inactive for 2 years to 9 years, you’ll pay $25 a year. If you keep it inactive for 10 years or longer, the fee goes up to $40 a year.

How LCB Digital compares to others

Honestly, when you look at the best high interest savings accounts in Canada, they’re all pretty similar. LCB Digital has an interest rate of 0.5% higher than Motive Financial who’s been the industry leader of late. They’re also a full 1% better than EQ Bank who’s become quite popular over the last few years. Again, I don’t think the 3.30% interest rate with LCB Digital will last, but you might as well take advantage of it now.

It’s a bit weird that the LCB Digital account doesn’t have free INTERAC e-Transfers but if you open a Digital Chequing Account with LCB Digital, you could just send your INTERAC e-Transfers from there. If you think that’s a hassle, then you’re probably better off with one of the other digital banks

Final thoughts

My LCB Digital review is positive. If you currently bank with Laurentian Bank, you should open an account right away so you can take advantage of the higher interest rates. If you’re currently trying to figure out which digital bank you want to go with, there’s no denying that LCB Digital has an incredible interest rate right now.