That meant savvy savers had to look elsewhere to stash their cash and keep ahead of inflation.

LBC Digital

The first shot was fired several months ago when the relatively unknown LBC Digital (an offshoot of Laurentian Bank) started promoting its high interest savings account that pays 3.3 per cent with no minimum balance required and no monthly fees.

That kind of interest rate was sure to draw wide-spread attention, but the sign-up process and user experience has been clunky at best. LBC also must have been getting some high-roller deposits because they recently changed to a tiered structure that pays 3.3 per cent on balances up to $500,000 and 1.25 per cent on balances above that threshold.

Time will tell whether the 3.3 per cent interest rate is here to stay. Colour me skeptical.

Shades of EQ Bank’s launch four years ago, I thought. Back in 2016, EQ Bank burst on the scene offering a chequing / savings account hybrid that paid a whopping 3 per cent interest. Deposits flooded in, and EQ Bank had to temporarily halt new account sign ups until it sorted out its back-end procedures. The 3 per cent rate didn’t last long, settling in at a still competitive 2.3 per cent everyday interest. Continue Reading…