BEST ONLINE BANK ACCOUNT CANADA
In recent years the trend of online banking has started to become the norm in Canada. We already utilize banking apps and online portals, so why do you need a brick and mortar bank to be the go-between? For many Canadians, online banking is a great option, and we thought it was time we helped!
In this review, we are looking at the best online banks in Canada. To help our readers, we removed any bank from the list that has a dedicated physical location. This means that the big five are not here, and although they have online options, they are not an online bank. As well, these banks are all CDIC protected and have stellar track records.
1.05% interest rate on savings, with a 2.75% promotional rate for five months
Up to 0.5% interest on their chequing account and 1.05% for their savings account.
None, you can only transfer money through e-transfers or ETFs
Standard 2.45% interest rate
0.5% interest rate on chequing accounts.
Tangerine has established itself as one of the top online banks in Canada. Their current set of accounts competes with the big five and offers some great perks for clients.
The current slate of accounts at Tangerine is strong. Their no-fee chequing account offers clients unlimited transactions and no fees. As well, it has a variable interest rate of 0.15% to 0.65%. While they also provide five savings accounts with a base 1.05% interest rate.
As a promotional bonus, they are offering 2.75% for the first five months. Plus, the bank offers two competitive credit cards. This includes one of the best cashback no-fee credit cards on the market. Not too bad for an online bank, with access to one of the largest ATM networks in the country.
Rebranded as Simplii Financial, the ex-PC Financial has enjoyed loyal clients for years. The new rebranding has brought in some new blood, and this online bank is starting to hit its stride. As an operational bank, with all the banking services you would expect, Simplii is an excellent option.
As the direct banking arm of CIBC, Simplii is an operational bank. This means that clients have access to services such as mortgages and investments. As for the accounts, Simplii offers a competitive savings and chequing account.
The savings account comes with no fees and unlimited transactions. As well, it boasts a 1.05% interest rate, which is the same for the RRSP and TFSA accounts. For the chequing account, you will enjoy up to 0.50% interest rate, no fees and unlimited transactions. All in all, Simplii Financial is an excellent choice for anyone looking for a full-service online bank.
EQ Bank is one of the newer companies in the online banking world, but they have made a splash. Although without many account options, the bank has established itself with younger Canadians. With a hip and exciting advertising regiment, EQ has started to gain clients at a steep rate.
The bank offers its clients the ability to invest in GICs with only a $100 minimum. These accounts lock-in for one to five years and are great for college students or new grads. EQ makes the biggest splash with their savings account. The EQ Savings Plus Account offers a no-fee bank account with unlimited transactions.
These benefits come standard, as does the 2.45% interest rate. Yes, you read that right, 2.45% A significant rate from an online bank, and EQ’s offerings will only grow. If you are looking for a flexible bank with a high-interest rate, EQ Bank is worth the look.
Motusbank is an online bank that is the banking wing of the Meridian Credit Union. Motusbank was first launched in the Toronto area but has expanded to the rest of Canada. Although, we should note that residents of Quebec do not have access to Motusbank yet, but will soon.
Motusbank offers accounts and other banking services that the big five also provide. Unlike the big guys, Motusbank has a high-rate, low-fee model that rewards clients. Their chequing account offers a no-fee and unlimited transaction account.
Plus, it provides a 0.50% interest rate on every dollar in the account. On the other side, the savings account is excellent. Their standard high-interest rate account has no fees and a standard 2.1% interest rate. While their TFSA account has a 2.35% interest rate, and the RRSP account has a 2.10% rate. All in all, Motusbank is an excellent option for those looking for a reliable online bank.
THE BOTTOM LINE
As you can see, Tangerine and Motusbank dominated these rankings, but this entire list has some great options. The right bank for you will depend on several factors, but this list delivers the best options on the market today.
You have a variety of banks on this list. Motusbank and Simplii are operational banks with investments, mortgages and accounts. Tangerine and EQ have specialties and provide the basics for their clients.
No matter if you are looking to bank with an established brand, or a new one, these options are reliable. For online banks, it is hard to beat these great institutions.
Best online bank for all your banking needs: Motusbank
Best online bank with backing of the big five: Tangerine
Best online bank with credit cards: Tangerine
Best online bank overall: Tangerine or Motusbank