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The Canadian banking landscape has undergone profound changes in recent years. Indeed, new financial institutions and online banks are gaining in popularity. They compete with the big five Canadian banks (BMO, CIBC, RBC, Scotia and TD) with their low-cost financial products. What’s more, their bank accounts offer higher interest rates than traditional banks.
These competitive offers are made possible by savings on rental costs. In fact, these online banks have no physical premises in which to carry out their operations, as their activities are carried out online.
With this in mind, a number of digital platforms have been created. These include Wealthsimple, EQ Bank, Neo Financial, Motusbank and Simplii Financial. But other well-established online banks such as Tangerine, Alterna Bank and Manulife Bank also offer stiff competition.
In this article, we explore Canada’s leading online banks and the financial products they offer. Then, we compare them with those of other Canadian banks and share our opinion.
Among the best online banks in Canada are Alterna Bank, EQ Bank, Manulife Bank, Motusbank, Neo Financial, Simplii Financial, Tangerine and Wealthsimple. These financial institutions offer a full range of products: chequing accounts, high-interest savings accounts, credit cards, investments and mortgages.
Alterna Bank is a Canadian financial institution founded over 30 years ago. It is a member of the Alterna Group, which includes Alterna Credit Union and Alterna Bank. It offers a wide range of financial products and services: chequing accounts, high-interest savings accounts, mortgages and investments (TFSAs, RRSPs, GICs, etc.). Deposits in their savings products are eligible for CDIC deposit insurance.
Banque EQ is part of Equitable Bank, an independent financial institution with over 50 years’ experience. All our financial activities are carried out online, enabling us to offer our customers excellent interest rates. EQ Bank offers a wide variety of financial products: personal account, high-interest savings account and credit cards. What’s more, their deposit products are eligible for CDIC deposit insurance.
Manulife Bank is a federally chartered online bank founded in 1993. Its head office is in Waterloo, Ontario. It distributes its financial products and services through independent financial advisors. Manulife Bank offers several financial products: chequing accounts, high-interest savings accounts, credit cards, investments and mortgages. As a member of CDIC, deposits in their deposit products are eligible for deposit insurance.
Unfortunately, Motusbank’s financial products are not currently available in Quebec.
Motusbank, a subsidiary of Meridian Credit Union, is an online bank that was founded in 2019. It offers Canadians a wide range of products and services: chequing accounts, savings accounts, investments (TFSAs, RRSPs, GICs, etc.), financial planning services, mortgages and home equity lines of credit. Deposits in their savings products are eligible for CDIC deposit insurance.
Neo Financial is a Winnipeg-based Canadian virtual bank specializing in savings and credit products. It allows you to earn rewards on purchases with your credit cards. You can also save with a high-interest savings account and obtain a mortgage.
Unfortunately, Simplii Financial’s financial products are not currently available in Quebec.
Simplii Financial is an online bank affiliated with CIBC, a member of CDIC. All its financial activities are carried out online. It offers a wide range of financial products: chequing accounts, high-interest savings accounts, credit cards, mortgages and investments.
Tangerine is an online bank affiliated with Scotiabank. It is a member in good standing of the Canada Deposit Insurance Corporation(CDIC). Since all financial activities are carried out online, Tangerine makes substantial savings, which it can pass on to its customers in the form of competitive rates. It offers a wide range of financial products: chequing accounts, savings accounts, credit cards and investments.
Wealthsimple is an investment management company that was founded in 2014 in Canada. Today, it has over three million customers and more than CAD 30 billion in assets under management. It offers a diversified range of financial products, such as high-interest chequing accounts, equity trading platforms and customized investment portfolios.
Online banks offer a number of advantages: chequing and savings accounts with no monthly fees, often with no minimum balance required, and higher interest rates than traditional banks. What’s more, since digital banking services are accessible via mobile applications, banking is much easier.
Competition is fierce among Canadian financial institutions, both online and traditional. Many offer bank accounts with no monthly fees and no minimum balance. What’s more, some online banks offer hybrid accounts (high-interest chequing accounts), such as EQ Bank and Wealthsimple.
To compare other chequing accounts, use our bank account comparator.
As with chequing accounts, many Canadian financial institutions have attractive offers: welcome bonuses, promotional interest rates, and more. These offers come from both online and traditional banks.
To compare other savings accounts, use our bank account comparator.
Competition for credit cards is high among Canadian financial institutions and other credit card issuers. This competition is present in both traditional and online banks. From no-annual-fee credit cards to travel cards, cash-back cards and more.
To compare other credit cards according to your needs, use our credit card comparator.
Canadian online banks offer an attractive range of financial products. We like bank accounts with no monthly fees or minimum balance requirements, credit cards and prepaid cards. Some have no annual fee, others no conversion fee.
Competition is fierce among Canadian financial institutions, both online and traditional. There are several attractive welcome bonuses and offers. Above all, however,
banks must offer financial products and services that meet the needs of Canadians.
The best online bank in Canada varies according to individual needs and priorities. Whether you’re looking for an account with no monthly fees or a high interest rate, each financial institution offers distinct advantages. Take the time to compare products to find the online bank that best suits your financial goals.
The best online bank depends on your needs. Some prefer an account with no monthly fees, while others are looking for a high annual interest rate on their savings account. Among the best virtual banks in Canada, we often find EQ Bank, Neo Financial, Tangerine and Alterna Bank. Each offers comprehensive banking services, easy access to account opening, an excellent mobile application and a wide range of financial products.
Since mortgage rates vary according to individuals and circumstances, it’s a good idea to compare offers before taking out a contract.
Virtual banks generally charge lower fees than traditional banks. For investing in mutual funds, Wealthsimple, Alterna Bank and Manulife Bank are popular options among Canadians who wish to manage their investments independently online.
For newcomers to Canada, it’s best to choose a bank with multilingual customer service and few or no monthly fees.
Between EQ Bank and Simplii Financial, our preference is for EQ Bank. It stands out for its low fees, high-interest accounts and comprehensive digital platform. However, if you’re already a CIBC customer or are looking for attractive sign-up bonuses, Simplii may be right for you. Simplii Financial is not available at Quebec.
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