Online banking is gaining in popularity in Canada. Two names come up often: EQ Bank and Wealthsimple. Although both are 100% digital, their offerings are very different. One focuses on banking and savings products, the other on guided and self-investing. In this article, find out the strengths of each financial institution, their products and services, but above all, the differences you need to know to make an informed choice.
EQ Bank, a division of Equitable Bank, is a Canadian chartered bank with over 50 years of history. It has no physical headquarters, and all its financial activities are carried out online. EQ Bank specializes in no-fee banking and savings products.
Unfortunately, some EQ Bank financial products are not currently available in Quebec: RRSP Savings, RRSP GICs, FHSA Savings, FHSA GICs, U.S. Dollar Accounts. Check with EQ Bank.
EQ Bank offers a wide variety of financial products, including deposit products eligible for CDIC deposit insurance up to $100,000. Here are their main products:
All accounts offer a competitive interest rate (often among the best in Canada).
For more details, read our full review of the EQ Bank Card.
Although EQ Bank does not issue debit cards, it does offer a prepaid credit card, the EQ Bank Card. You can transfer funds to it, then use it as a credit card and earn cash back on your purchases.
What’s more, with this card, you can withdraw money free of charge from any ATM in Canada, since EQ Bank reimburses the fees charged. This gives you great flexibility, despite the lack of an ATM network.
EQ Bank’s mobile application is simple, fast and highly rated. Deposits can be made by bank transfer, mobile cheque deposit or Interac transfer.
You can also pay bills and receive direct payroll deposit.
Customer service is open daily from 8 a.m. to midnight (ET). They can be reached at 1-844-437-2265 (toll-free within North America) or 1-416-551-3449 (from outside North America).
In addition, EQ Bank offers a chat service, available online and via the mobile application.
Wealthsimple is a Canadian financial technology company, founded in 2014, offering a wide range of financial products and services. Today, Wealthsimple has more than 3 million customers and over C$70 billion in assets under management.
Wealthsimple offers a number of products and services, the list of which is constantly evolving. Here are the main products they offer:
The Wealthsimple Cash account is available in Canadian and U.S. dollars, and the interest offered is equally competitive.
Wealthsimple launched a credit card earlier this year, but it’s not yet available to everyone. However, the Wealthsimple Cash Card, a prepaid credit card, is available to all customers. You can use it anywhere Mastercard is accepted and earn cash back on your purchases.
What’s more, you can withdraw money free of charge from ATMs in Canada, since Wealthsimple reimburses the fees charged.
Finally, you can withdraw money during your travels, without paying exchange fees, which is an undeniable competitive advantage.
Wealthsimple ‘s mobile application interface is modern, well-designed and easy to use. Wealthsimple also stands out for its user-friendliness and tools for novice investors. Deposits can be made by bank transfer, Interac transfer, inter-account transfer and, more recently, by cheque deposit using your phone’s camera.
Customer service is available 24 hours a day, 7 days a week. They can be reached at 1-855-255-9038. Wealthsimple also offers chat and e-mail services. Generation clients have access to a priority line.
Customer service is generally prompt. However, French telephone service is not always available beyond the first line.
Here is a comparative overview of the main features and functionalities of EQ Bank and Wealthsimple:
EQ Bank and Wealthsimple do not offer traditional chequing accounts, but rather hybrid accounts with no monthly fee and no minimum balance: EQ Bank Personal Account and Wealthsimple Cash Account. In both cases, the accounts offer a number of free features, such as day-to-day transactions, Interac transfers and bill payments. In addition to offering a joint account.
EQ Bank provides access to funds via the EQ Bank Card, which requires funds to be transferred in advance. Wealthsimple, on the other hand, provides direct access to funds using a prepaid credit card with cash back.
In addition to personal and joint accounts, EQ Bank offers a high-interest account: the EQ Bank Notice Savings Account.
Here’s more information on each of them.
The Personal Account from EQ Bank (formerly known as Savings Plus Account) is a no-fee account that offers a generous interest rate of up to 2.75%* to all customers on everyday banking services:
This account also offers several free features, such as:
Finally, there is no minimum balance required for this type of account.
Discover the Wealthsimple Chequing Account, a current account with an interest rate of up to 2.25%, with no monthly fees or minimum balance required:
Enjoy unlimited transactions and deposit protection up to $1,000,000. Open several accounts to manage your different financial goals easily.
Maximize your savings with the EQ Bank Notice Savings Account.
Enjoy an interest rate of up to 2.50% with no monthly fees or minimum balance required.
Plan your withdrawals with 10 or 30 days’ notice and benefit from interest calculated daily.
Transfers are free and unlimited.
Both institutions offer the main registered accounts in Canada, such as TFSA, FHSA and RRSP. However, Wealthsimple has a much broader offering, including RESPs, LIRAs, RRIFs, LIFs and more.
At EQ Bank, registered accounts are mainly used for savings and GICs. Wealthsimple, on the other hand, allows you to invest via managed or self-directed investing: ETFs, stocks, options, etc.
EQ Bank offers GICs in all accounts (non-registered or registered). However, not all GICs are available in Quebec. Interest rates are highly competitive and among the highest in the country.
There is no access to GICs at Wealthsimple, which favours investing rather than saving. However, Wealthsimple recently began offering no-risk, no-fee registered savings accounts, which, unlike GICs, can be withdrawn at any time.
Wealthsimple Trade allows you to buy stocks, ETFs and cryptocurrencies commission-free. Options are also available at competitive rates, in addition to offering unique features such as fractional shares, automatic share purchase, and much more. In fact, Wealthsimple is one of the best online brokerage platforms for self-directed investors in Canada.
Wealthsimple also offers a managed investment service, with diversified portfolios tailored to your investor profile. The service is automated, simple and optimized.
EQ Bank offers none of these options.
Wealthsimple has launched a Visa credit card, but it is not yet available to everyone. However, the Wealthsimple Cash Card, a prepaid credit card, is available to all customers.
EQ Bank does not offer credit cards, but it does offer a prepaid card, the EQ Bank Card.
In short, EQ Bank is ideal for those who want a simple, no-fee savings account with good interest rates. If you’re looking to grow your money without actively investing, this is an excellent choice.
Wealthsimple, on the other hand, is designed for investors, although it also offers a chequing account and prepaid card. Whether you’re a beginner or an advanced investor, you can open a managed or stand-alone account. Premium customers enjoy attractive rewards.
The two platforms can be complementary. For example, you could keep your cash at EQ Bank and invest your TFSA and RRSP in the stock market at Wealthsimple.
EQ Bank is a real bank offering savings accounts and guaranteed products. Wealthsimple is more of an investment platform, although it now offers savings products.
You cannot invest in the stock market. However, you can purchase GICs in a FHSA, RRSP or regular account.
Yes. Wealthsimple is regulated and your investments are insured to Canadian standards.
EQ Bank offers some of the highest interest rates in Canada, but rates may vary.
Yes. For example, EQ Bank for your savings and Wealthsimple for investing in ETFs or stocks.
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