All of the best online banks in Canada that we have listed above offer various types of banking products ranging from savings and checks to investments and mortgages.
This may not matter in Canada, but some online banks offer far fewer financial products than larger banks. As online banking has grown in popularity, alternative financial institutions offer various savings and investment accounts without actually being a bank. Online banking in Canada has increased, with many well-known banks, including the “big five,” having started offering most of their services online to keep up with the company’s growth, increasing via its smartphones. Some online banks offer guaranteed credit cards for purchases, some are great for loans and mortgages, and even newer and younger financial institutions offer great interest rates on their checking and savings accounts.
As the only online financial institution offering mutual funds, Simplii Financial takes over as Postmedia chooses the best online bank in service diversity. Neo Financial is still developing its offerings; however, the 1.30% interest rate offered for its savings account puts every other bank on our list to shame. Now Motive Financial is not the only online bank offering earnings, but as far as I know, they have the best rates for checking accounts. In addition to current and savings accounts, Alterna Bank provides mortgage loans, time deposits to registered and unregistered accounts, and online investments.
Alterna Bank is the direct banking arm of Canada’s second-oldest credit union, Alterna Savings, with approximately $8 billion in assets under management. Alterna is an excellent alternative to the big five banks as it offers a complete range of financial products. Tangerine offers free accounts and a full range of banking products, including registered accounts, two credit cards, mortgages and lines of credit. Tangerine has charges no fees for everyday banking transactions and, in addition to current accounts, offers credit cards, mortgages, investment options and five different savings accounts, including retiree products such as RRSPs and TFSAs.
As the name suggests, EQ Bank makes things easy with commission-free checking accounts, high-interest savings accounts, and all the usual financial products you know from traditional banks, including credit cards, mortgages, loans, and investment options. Including bank accounts, loans, investments, mortgages and credit cards, Manulife Bank is one of the best online banks in Canada, providing a little bit of everything combined into some fancy offerings. Offering free savings and joint savings accounts, TFSA and RRSP savings accounts, exceptional customer service, innovative banking technology and near the best interest rates available, EQ Bank is ranked #1 as the best online bank in Canada. Suppose you’d rather keep your current bank but want to take advantage of the excellent savings rates available in Canada. In that case, EQ Bank tops my list with its Savings Plus hybrid account with a high-interest rate, unlimited free transactions, GIC offers, and a USD account that pays a great price.
Best Online Bank for Canadians
EQ Bank is in the lead if you’re looking for the best non-advertising savings rates. If you’ve been looking to maximize your interest rate but still want to invest in a tax-free account, EQ Bank may be the best option for you. Finally, check out my EQ Bank review if you’re interested in learning more.
Since acquiring Scotiabank in 2012, Tangerine Bank has grown into one of Canada’s top online banks, offering customers competitive free interest rates. As one of the oldest banks, Tangerine is considered the best online bank on the Postmedia list because of the variety of services and unique products that are not commonly found in the online banking industry.
Tangerine takes pride in Tangerine when it comes to forethought and its customers. Tangerine Bank is one of the complete online banks today, offering a wide range of account types and offering its clients investment options with five different portfolios that aim to tailor to clients’ needs.
Tangerine, Manulife Bank and Oaken Financial are available in Quebec. What makes Simplii Financial exceptional is that Quebec residents can open an account with them, which many other online banks in Canada do not.
Federally registered online banks such as EQ Bank and Tangerine are affiliated with the Canadian Deposit Insurance Corporation (CDIC), so your funds are protected up to $100,000. As far as online credit unions in Canada are concerned, your deposits are 100% guaranteed by the Manitoba Deposit Guarantee Corporation (DGCM) or covered by the CDIC (e.g. Alterna Bank). Other products offered by EQ Bank are GICs (guaranteed investment certificates) and international bank transfers.
There are currently no credit or debit cards associated with EQ Bank, but they may be available soon as EQ Bank expands and grows. All of the Canadian banks we link to above offer a range of credit card services to help newbies build their credit history at a low cost.
Compare digital banking options in Canada and see which traditional banks offer digital banking services through their websites and banking apps. Online banks, also known as digital banks or virtual banks, offer their customers access to low-cost (or free) banking services and easy access, higher interest rates on savings, a bank balance with no minimum balance, and the safety of funds. In addition, online banks usually offer free banking services that can save you a significant amount each year, making online banking an intelligent financial decision.