Alterna Bank GICs review
Best for: Online savers who want 1- to 5-year eTerm Deposits with CDIC coverage and the same rates in a TFSA or RRSP.
eTerm Deposit, annual interest. Legal text calls it a special promotional rate that may change without notice.
eTerm Deposit, annual interest; same rate in a TFSA or RRSP
All eTerm Deposits are cashable at maturity only
Maximum $500,000 per investment
CS Alterna Bank is a CDIC member; covers eligible Canadian dollar deposits with terms of five years or less
The bottom line
Alterna Bank, the digital arm of Alterna Savings, listed its eTerm Deposits at 2.65% for 1 year and 3.30% for 5 years when we checked, with the same rates in a TFSA or RRSP. Its legal text calls at least the 1-year rate a special promotional rate, so it may change without notice. All terms are non-redeemable, the minimum is $500, and CDIC covers eligible deposits.
Pros & cons
Pros
- CDIC coverage through CS Alterna Bank
- TFSA and RRSP eTerm rates match non-registered rates
- Interest can be paid monthly or annually
- Up to $500,000 per investment
Cons
- No cashable option; funds are available at maturity only
- $500 minimum per investment
- Rates may be temporary promotional rates
- No terms under 1 year or over 5 years, and no FHSA listed
A plain, online-only term deposit lineup from a CDIC member, with matching TFSA and RRSP rates. Check whether the rate is still the promotional one on the day you buy, since its legal text allows changes without notice.
Suits you if
- You want a CDIC-insured term deposit held entirely online.
- You plan to hold a TFSA or RRSP GIC.
- You want the option of monthly interest payments.
Look elsewhere if
- You need access to your money before maturity.
- You want a short-term GIC under 1 year.
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Our detailed review
Alterna Bank eTerm Deposit rates
Alterna Bank calls its GICs eTerm Deposits. We checked its rates on October 15, 2026, from the term deposit and registered plans rates pages. Rates change often, so confirm them in Alterna Bank online banking before you buy. The rates below assume annual interest, and the same rates apply to TFSA and RRSP eTerm Deposits.
- 1 year: 2.65%
- 2 years: 2.85%
- 3 years: 3.10%
- 4 years: 3.25%
- 5 years: 3.30%
Promotional wording, cashable terms and other options
Treat these rates with some caution. The legal text on Alterna Bank’s non-registered rates page describes the rate as a special promotional rate that may be changed or withdrawn without notice. The registered plans page doesn’t use that wording, so it isn’t clear whether the rates are standard or temporary.
Alterna Bank doesn’t publish a cashable product. All eTerm Deposits are non-redeemable and cashable at maturity only, and existing term deposits can’t be broken to get a new rate. Terms run from 1 to 5 years, with nothing shorter or longer published. Alterna Bank also offers non-personal (business) eTerm Deposits. We didn’t check branch term deposit rates at Alterna Savings, the credit union, which may differ.
Registered plans and how interest is paid
You can hold eTerm Deposits in a TFSA or RRSP at the same rates as non-registered terms. The rates pages we read don’t say whether eTerm Deposits can be held in an FHSA, so ask Alterna Bank if that matters to you.
Interest compounds annually and can be paid monthly or annually. The rate shown is for annual interest, and Alterna Bank doesn’t say whether a lower rate applies when you choose monthly payments, so confirm before you pick that option.
Deposit insurance and safety
CS Alterna Bank is a CDIC member. CDIC covers eligible deposits in Canadian dollars with terms of five years or less, payable in Canada, which includes every eTerm Deposit term Alterna Bank publishes. Check the CDIC site for how the limits apply to your registered and non-registered deposits.
How to buy an Alterna Bank eTerm Deposit
Alterna Bank sells eTerm Deposits online only, through its online banking. New clients apply online to open an account, and existing clients log in to add the product. Each investment needs at least $500 and can be up to $500,000. Because the money is locked in until maturity, pick a term that matches when you’ll need it, or split a larger sum across several terms so part of it comes due each year.
Other gics we review
- Saven Financial GICs1-year GIC: 3.80%
- Oaken Financial GICs1-year GIC: 3.75%
- EQ Bank GICs1-year GIC: 3.70%
- Tangerine GICs1-year GIC: 3.60%
- Desjardins GICs1-year GIC: 3.40% online
- Manulife Bank GICs1-year GIC: 3.35%
- Meridian GICs1-year GIC: 3.30%
- National Bank GICs1-year GIC: 3.30% posted
- Vancity GICs1-year GIC: 3.10% (3.30% registered)
- BMO GICs1-year GIC: 3.00% posted
- CIBC GICs1-year GIC: 3.00% promo
- RBC GICs1-year GIC: 3.00% special
- TD GICs1-year GIC: 3.00% posted
- Simplii Financial GICs1-year GIC: 2.90% APY
- Scotiabank GICs1-year GIC: 2.45% posted
Frequently Asked Questions
Is Alterna Bank’s eTerm Deposit rate a promotional rate?
Possibly. The legal text on Alterna Bank’s non-registered rates page calls the rate a special promotional rate that may be changed or withdrawn without notice, but the registered plans page doesn’t. Check the rate on the day you buy.
What is an Alterna Bank eTerm Deposit?
It’s Alterna Bank’s online term deposit, which works like a non-redeemable GIC. Terms run from 1 to 5 years, the money is available at maturity only, and you buy it through Alterna Bank online banking.
Is Alterna Bank the same as Alterna Savings?
Alterna Bank is the digital subsidiary of Alterna Savings, the credit union. Its eTerm Deposits are held at CS Alterna Bank, a CDIC member. We didn’t check Alterna Savings branch term deposit rates, which may differ.
Can I break an Alterna Bank term deposit to get a higher rate?
No. Alterna Bank says existing term deposits can’t be broken to get a new rate, and eTerm Deposits are cashable at maturity only.
Can Alterna Bank pay my GIC interest monthly?
Yes. Interest compounds annually and can be paid monthly or annually. The published rate is for annual interest, and Alterna Bank doesn’t say whether monthly payments earn a lower rate.
What is the most I can put in one Alterna Bank eTerm Deposit?
Alterna Bank allows up to $500,000 per investment, with a $500 minimum. CDIC coverage has its own limits, so check how much of a large deposit is insured.
Sources
Rates come from Alterna Bank GICs’s own site, checked October 15, 2026. GIC rates change often and can differ for registered accounts or larger deposits, so confirm the rate before you buy. See our methodology.