Best 5 Online Banks in Canada 2024

Are you eager to know about the Best 5 Online Banks in Canada? Here we have compiled a list of the top online banks that have a fast growing customer base in Canada.

Canada boasts of the best online banks in the world. Most Canadians prefer to visit digital banks rather than visit the banks physically. They go online to do their transactions or use the banking applications on their devices. Their preferences might be due to the several benefits they enjoy when they bank online.

For example, they can access the banks at any time of the day wherever they are. Some digital banking institutions offer no or low transaction charges to their clients. Clients can also save money and get more interest.

Moreover, physical banks in Canada have developed mobile applications and websites. The aim of doing this is to build their online digital business operations and have more clients.

However, the digital banks listed here have no or few physical branches in Canada.

Best 5 Online Banks in Canada

Let’s dig deeper into the popular Digital Banking Institutions in Canada.

1. EQ Bank

EQ Bank gives client a saving rates that is non-promotional and has no physical branch. EQ has developed a highly efficient and friendly mobile banking application over the years. The only issue is that you can’t open a credit account with EQ. Neither can you open a checking account. But don’t worry, EQ has many account types like RSP and TFSA.

EQ Accounts

These are accounts offered by EQ:

EQ Bank Savings Account:

Customers who choose savings enjoy no transaction charges every month. What’s more, there’s no limit to the transactions they can do. Customers can open new accounts on their devices. EQ customers enjoy a zero account balance operation. The savings account comes with a high interest rate. EQ will calculate the interest every day and give you the interest every month.

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GICs Account Type:

GCI gives clients more interest on their savings. The interest depends on how long the money has stayed in the account. The least opening balance is a hundred thousand dollars.

United States-Dollar Account Type:

This account type comes with an interest of 1.25 percent on money saved. There is no monthly extra charges. Another benefit is the ability to send money from one Canadian account to another. However, you must link both accounts together before you can do so. If you want to do a foreign transfer, you can do so with the EQ US dollar banking app.

EQ Bank TFSA and RSP

EQ Bank offers TFSA and RSP accounts as well. You can enjoy one of the best TFSA saving rates, if you plan to open an EQ account.

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2. Simplii-Financial Bank

Simplii Financial is a subsidiary of a major Canadian bank (CIBC) and offers excellent financial services to clients. You might be curious to know if Simplii is a good bank.

Unlike EQ, Simplii gives credit and checking accounts at no charge. Customers can also operate savings, investment, or mortgage accounts for free. Furthermore, Simplii clients can also withdraw money physically at no cost from CIBC ATMs. If you use other ATMs apart from CIBS within Canada, you’ll be charged a fee of 1.50 dollars. If it’s in a foreign country, you’ll be charged three dollars. Similarly, for a bank draft, you’ll pay 7.50 dollars.

Simplii Financial Accounts:

These are accounts offered by Simplii Financial:

Simplii Financial Savings Account:

Simplii developed savings for clients to get good interest on money saved. The normal interest on money saved in this account is 0.40 percent. Clients can also perform banking transactions without paying extra charges each month. Furthermore, Simplii offers a TFSA or an RRSP savings option with a 0.40 percent interest on money saved.

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Chequing Account Type:

Simplii clients can open this account type free of charge with zero account balance. There’s no need to pay extra charges every month, either. Transactions on checking are unlimited, and the interest is at least 0.05 percent. New clients are currently offered a one-time 350 dollars account opening bonus.

3. Tangerine Bank

Tangerine is an arm of Scotiabank located in Canada. Tangerine customers can open a checking, mortgage, or investment and credit accounts for free. Furthermore, it’s possible to withdraw money physically at any Scotiabank ATM. But you’d be charged a certain fee if you use a different ATM machine within and outside Canada.

Tangerine Accounts:

These are accounts offered by Tangerine:

Tangerine Savings Account:

Tangerine has several savings type. They are, Checking account, RRSP, United States dollar accounts, RRIF, and TFSA. They have an interest rate of 0.40 percent.

Tangerine Chequing Account:

Tangerine doesn’t charge extra fees on this account. Checking account transactions are unlimited every day and interest depends on the amount saved. For a zero account balance up to 49,999 dollars, there’s an interest of 0.01 percent. Also, there’s a 0.05 percent interest for account balances between 50,000 dollars to 99,999. Similarly, for accounts with 100,000 dollars and above, they get a 0.10 percent interest.

Tangerine Credit Accounts:

Tangerine issues credit cards with free transactions and gives cashbacks. Tangerine gives at least two percent cash back when you spend money with the card. You can also get an additional 0.50 percent cash back on other purchases.

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4. Motus Bank

This bank is new in Canada and offers excellent services. Motus Bank clients can use their Motus Bank ATM to withdraw money at any Exchange Network ATM near them. It offers a HISA rate of 1.5 percent.

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Motus Bank Accounts

These are accounts offered by Motus Bank

  • Loan account (personal)
  • Mortgage account
  • Savings account with a good interest rate.
  • Checking accounts
  • Investment accounts

5. Alterna Bank

Last but not the least, Alterna is also a digital bank in Canada with no physical branch. But their clients can withdraw money from the ATM at any Exchange Network.

Alterna clients can open a checking account free of charge. Alterna provides savings accounts with wonderful interests. Those with registered accounts enjoy term deposits. It is also the same for those that have not registered their accounts. In addition, Alterna offers a 1.50 HISA rate. The bank provides individual loans, gives clients the opportunity to open a mortgage account. Furthermore, clients can open checking, investment, or savings accounts.

Note: The information given above is on “as is” basis. The benefits, fees, and other charges are subject to variation. Please check the respective bank’s official site for any changes thereon.

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Online Banks in Canada: Review

It’s clear that digital banks in Canada are on par with their non-digital counterparts. The financial services these banks offer their clients are top-notch. They also ensure their clients’ money and privacy is safe with them. So, if you want to open a digital account today, go ahead and enjoy the numerous offers on the ground. But, once you decide to open a Canadian bank account do thorough research about the online banks and the products and services offered by them.

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Have you opened an online bank account? Feel free to add the name of the best bank in Canada, the one that suits your financial goals. Did we miss out an important banking institution name here? Do share your feedback.

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