Comparison of the Best Online Banks in Canada
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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 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.
Which are the best online banks in Canada?
Among the best online banks in Canada are Alterna Bank, EQ Bank, Manulife Bank, 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
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.
EQ Bank
EQ Bank is part of Equitable Bank, an independent financial institution with over 50 years' experience. All its financial activities are carried out online, which lets it offer its 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, its deposit products are eligible for CDIC deposit insurance.
Manulife Bank
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.
Neo Financial
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.
Simplii Financial
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
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
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.
Comparison of online banks in Canada
Before you compare rates, check two things that don't change from one promotion to the next: who protects your deposits and whether the institution accepts residents of your province. This table sums them up for the seven institutions above.
| Institution | Status | Backed by | Deposit protection | Available in Quebec |
|---|---|---|---|---|
| EQ Bank | Bank | Equitable Bank | CDIC member | Yes, except some products (RRSP, FHSA) |
| Tangerine | Bank | Scotiabank | CDIC member | Yes |
| Simplii Financial | Banking division | CIBC | CDIC member (through CIBC) | No |
| Manulife Bank | Bank | Manulife | CDIC member | Yes |
| Alterna Bank | Bank | Alterna Savings (Ontario) | CDIC member | Yes |
| Neo Financial | Technology company | Partner institutions | Funds held in trust, CDIC-eligible | Yes |
| Wealthsimple | Technology company | Partner institutions | Deposits placed with CDIC members | Yes |
Chequing account comparison
For everyday spending, most online banks give you a chequing account with no monthly fees and no minimum balance. EQ Bank and Wealthsimple go further with a hybrid account that pays interest on your whole balance, so you don't have to juggle two accounts.
To compare other chequing accounts, use our bank account comparator.
Savings accounts comparison
For your savings, online banks often advertise a high teaser rate for a few months. We suggest comparing the rate after the promotion, how long the offer lasts and the balance it applies to: that regular rate is what will make your money work over several years.
To compare other savings accounts, use our bank account comparator.
Credit card comparison
Online banks also give you no-annual-fee cards, useful for earning cash back without paying a fee. Here are the ones from the institutions above, from EQ Bank's prepaid card, with no foreign transaction fees on purchases in other currencies, to Neo Financial and Manulife Bank cards.
- Annual fee
- $144
- Welcome offerAfter $1 in 1 month
- 3 months free + $20 cash back
Apply Now
on KOHO's website
- Annual fee
- $0
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$25Total$25Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $25
- Welcome offer
- $25 cash back
Apply Now
on Wealthsimple's website
- Annual fee
- $120
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$25Total$25Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $25
- Welcome offer
- $25 cash back
Apply Now
on Neo Financial's website
- Annual fee
- $0
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$25Total$25Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $25
- Welcome offer
- $25 cash back
Apply Now
on Neo Financial's website
- Annual feeNo annual fee the first year
- $0 $139
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$200Annual fee rebated$139Total$339Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $339
- Welcome offerAfter $2,000 in 3 months
- Up to $200 in rewards
Apply Now
on Manulife's website
- Annual fee
- $0
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$120Total$120Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $120
- Welcome offerAfter $1,500 in 3 months
- $120 cash back
- Ends Nov 30, 2026
Apply Now
on Tangerine's website
- Annual fee
- $0
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$100Total$100Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $100
- Welcome offerAfter $1,000 in 2 months
- Up to $100 cash back
- Ends Nov 30, 2026
Apply Now
on Tangerine's website
To compare other credit cards according to your needs, use our credit card comparator.
Review of online banks in Canada
We think online banks are worth a look for most Canadians: you get accounts with no monthly fees or minimum balance, savings rates that are generally higher than at the big banks, and no-annual-fee cards. We're happy to keep a big bank for a mortgage or in-branch services, and an online bank for everyday banking and savings.
Keep the difference in status in mind, though: EQ Bank, Tangerine, Simplii, Manulife Bank and Alterna Bank are CDIC member banks, while Neo Financial and Wealthsimple are technology companies that place your deposits with partner institutions. For savings, always compare the rate after the promotion, not just the teaser rate.
If you live in Quebec, check availability before you get attached: Simplii Financial isn't offered there, and EQ Bank still excludes a few products in the province, including the RRSP savings account and the FHSA.
Which online bank should you choose for your profile?
You'll find the best online bank by starting from how you bank rather than from this week's advertised rate. Here's the one we suggest you look at first, depending on your profile:
- One account for spending and saving: EQ Bank, available across Canada, Quebec included
- ATMs for cash: Tangerine, through Scotiabank's network
- Investing and banking in one app: Wealthsimple
- An advisor to guide you: Manulife Bank
- Cash back on your cards: Neo Financial
- Free withdrawals at CIBC ATMs, outside Quebec: Simplii Financial
To keep track of account-opening bonuses and member-only offers, create your free Milesopedia account.
Frequently Asked Questions
Which is the best online bank in Canada?
It depends on how you'll use it. For an account that earns interest on every dollar, EQ Bank and Wealthsimple are strong choices. If you want ATMs for free cash withdrawals, Tangerine relies on Scotiabank's network, and if you'd rather work with an advisor, Manulife Bank is built around that.
Are online banks safe?
Yes. EQ Bank, Tangerine, Simplii Financial, Manulife Bank and Alterna Bank are members of the Canada Deposit Insurance Corporation (CDIC), which protects your eligible deposits up to $100,000 per category. Neo Financial and Wealthsimple aren't CDIC members, but your eligible funds are held with member institutions, which gives them access to that protection.
Which online banks are available in Quebec?
EQ Bank, Tangerine, Alterna Bank, Manulife Bank, Neo Financial and Wealthsimple accept Quebec residents. Simplii Financial doesn't for now. Keep in mind that EQ Bank doesn't offer some products in Quebec, including the RRSP savings account, the FHSA and international money transfers.
Are Neo Financial and Wealthsimple banks?
No. They're financial technology companies that offer accounts and cards through partner institutions. For you, the difference mainly shows up in deposit protection, which comes through those partners rather than the company itself.
How do I choose an online bank?
We suggest first checking that the bank accepts residents of your province, then that your deposits are CDIC-protected. Next, compare monthly fees, included transactions, the interest rate after any promotion and ATM access. Our bank account comparison tool lets you line up these criteria side by side.
EQ Bank or Simplii Financial: which should you choose?
If you live in Quebec, the choice is easy: Simplii isn't available there, while EQ Bank is. Elsewhere in Canada, EQ Bank suits you if you want one account for both spending and saving, while Simplii is worth a look if you often withdraw cash, since its clients use CIBC ATMs for free.
Which online bank should newcomers to Canada choose?
Look for a bank that accepts newcomers without a long credit history and doesn't charge monthly fees. Also check the ID required to open an account, since it varies from one institution to another.
Do online banks offer credit cards?
Most do. Manulife Bank, Tangerine, Simplii Financial and Neo Financial have their own credit cards, and EQ Bank offers a prepaid card with no foreign transaction fees on purchases in other currencies. You'll find them in the card comparison earlier in this article.
