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Online banks are gaining popularity in Canada. Two names often come up: EQ Bank and Wealthsimple. Although both are 100% digital, their offerings are very different. One focuses on banking products and savings, the other on guided and self-directed investments. In this article, discover the strengths of each financial institution, their products and services, but above all, the differences to know to make an informed choice.
The EQ Bank, a division of Equitable Bank, is a Canadian chartered bank over 50 years old. It has no physical headquarters, and all its financial activities are carried out online. EQ Bank specializes in banking products and no-fee savings products.
Unfortunately, some EQ Bank financial products are not currently offered in Quebec: RRSP savings, RRSP GICs, FHSA savings, FHSA GICs, US dollar account. Check with EQ Bank.
The EQ Bank offers a wide variety of financial products, whose deposit products are 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, consult our full review of the EQ Bank Card.
Although EQ Bank does not issue debit cards, it offers 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.
Furthermore, with this card, you can withdraw money for free from all ATMs in Canada, as EQ Bank reimburses the fees charged. This offers you great flexibility, despite the absence of an ATM network.
The EQ Bank mobile app is simple, fast, and well-rated. Deposits can be made by transfer, mobile cheque deposit, or Interac e-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 chat service, available online and via the mobile app.
Wealthsimple is a Canadian financial technology company, founded in 2014, offering a wide range of financial products and services. Today, Wealthsimple has over 3 million clients and holds over 70 billion Canadian dollars 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 is not yet available to everyone. However, the Wealthsimple Cash Card, a prepaid credit card, is available to all clients. You can use it anywhere Mastercard is accepted.
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.
The mobile app interface of Wealthsimple is modern, well-designed, and easy to use. Wealthsimple also stands out for its user-friendliness and its tools for beginner investors. Deposits can be made by bank transfer, Interac e-Transfer, account transfer, and 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 fees or minimum balance: EQ Bank Personal Account and Wealthsimple Cash Account. In both cases, the accounts offer several free features, such as everyday transactions, Interac e-Transfers, and bill payments. In addition to offering a joint account.
EQ Bank allows access to funds using the EQ Bank Card, to which funds must first be transferred. Whereas Wealthsimple allows direct access to funds via its prepaid Mastercard.
In addition to the personal account and joint account, EQ Bank offers a high-interest account: the EQ Bank Notice Savings Account.
Here’s more information on each of them.
The EQ Bank Personal Account (formerly called 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 2.75% 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 the TFSA, the FHSA, and the RRSP. However, Wealthsimple has a much broader offering, also providing RESP, LIRA, RRIF, LIF accounts, and much more.
At EQ Bank, registered accounts are primarily used for savings and GICs. Wealthsimple, on the other hand, allows investing through managed or self-directed investments: ETFs, stocks, options, etc.
The EQ Bank offers GICs in all accounts (regular or registered). However, not all of them are offered in Quebec. Interest rates are very 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 offered at competitive rates, in addition to unique features such as fractional shares, automatic stock purchases, and much more. Moreover, Wealthsimple is one of the best online brokerage platforms for self-directed investors in Canada.
In addition, Wealthsimple offers a managed investment service, with diversified portfolios custom-built according to your investor profile. The service is automated, simple, and optimized.
EQ Bank does not offer any 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 a credit card, but it does offer a prepaid card, the EQ Bank Card.
In summary, EQ Bank is ideal for those who want a simple, no-fee savings account with good interest rates. If you are 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 a prepaid card. Whether you are a beginner or advanced investor, you can open a managed or self-directed account there. Advantageous rewards are offered to Premium clients.
The two platforms can be complementary. You could, for example, keep your liquid assets with EQ Bank and invest your TFSA and RRSP in the stock market with Wealthsimple.
EQ Bank is a true 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 these can vary.
Yes. For example, EQ Bank for your savings and Wealthsimple for investing in ETFs or stocks.
Terms and conditions apply. For the most up-to-date product details, please visit Wealthsimple.com.
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