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EQ Bank: presentation of its financial products

To the point Introducing the EQ Bank, a new online platform. Details of EQ financial products: loan, credit cards, etc.

Introduction

EQ Bank or “Equitable Bank” is an independent financial institution based in Toronto. It has over 35 billion assets under management.

Note that this banking institution has no physical head office and that all of its financial activities are conducted online. This savings on rental fees allows EQ Bank to offer many financial products with excellent interest rates to Canadians.

To this end, we will take an in-depth look at the various financial services of the EQ Bank.

EQ Savings Accounts

EQ Bank offers 6 savings account solutions. To learn more about the definition of savings accounts, refer to this ratesopedia article, “What is a savings account in Canada?”

1) Savings Plus Account

It is a no-fee savings account that offers a generous 1.25% interest rate to all users. Note that this offer is valid for the entire year and has no time restrictions.

This account also offers several free features such as Interac transfers, regular transactions, bill payments, transfers between EQ accounts, deposits and withdrawals among others.

Finally, there is no minimum balance required for this type of account.

2) Joint Savings Account Plus

The Joint Account Plus offers a 1.25% interest rate to its users. Its advantages are the same as the savings account, while many free financial services are offered.

It is also important to specify that there are a few criteria that must be met in order to benefit from the advantages aforementioned. These are the criteria:

  • Canadian Resident
  • Age of majority in the province
  • Have a social insurance number

3) TFSA

This EQ account also offers an interest rate of 1.25%. There are no management fees. The free features are the same as the two previous accounts. It is also possible to purchase GICs (Guaranteed Investment Certificates) for your TFSA.

Guaranteed investment certificates are safe, low-risk investments with stable returns. It should be noted, however, that once the money is deposited in this account, it is advisable to keep it there until the end of the GIC, otherwise you will be subject to penalties.

4) RRSPS

This EQ account offers a 1.25% return and no management fees. The free services are the same as the three previous accounts. GICs can also be purchased through this account.

5) American money

This account has no monthly fee and offers a generous 1.00% interest rate on all U.S. cash. In addition, several interesting features are offered. These include a competitive exchange rate, fast international money transfers through the “Wise” interface and a deposit guarantee similar to that offered for Canadian dollar transactions. Finally, it’s easy to use the digital platform for currency transfer.

6) GIC

Finally, EQ offers a wide range of guaranteed investment certificates.

Note that it is possible to invest cash in both registered (TFSA and RRSP) and non-registered accounts. The terms of this financial vehicle are very flexible as EQ Bank offers no less than 13 different options. The interest rates offered are also attractive.

Note that a minimum deposit of $100 is required to purchase GICs. Finally, it is important to note that users will benefit from Canada Deposit Insurance Corporation protection when purchasing guaranteed investment certificates with EQ.

Summary of EQ’s savings accounts

Savings Plus Joint Savings Plus TFSA Savings RRSP American money GIC (Guaranteed Investment Certificate)
Free Free Free Free Free Free

Free Interac transfers

Free current operations

Free bill payments

Free transfers between EQ accounts

Free deposits and withdrawals

No minimum balance required

Free Interac transfers

Free current operations

Free bill payments

Free transfers between EQ accounts

Free deposits and withdrawals

No minimum balance required

● Acceptance criteria:

1) Canadian resident
2) Age of majority in the province
3) Have a social insurance number

Free Interac transfers

Free current operations

Free bill payments

Free transfers between EQ accounts

Free deposits and withdrawals

No minimum balance required

● Acceptance criteria:

1) Canadian resident
2) Age of majority in the province
3) Have a social insurance number

Free Interac transfers

Free current operations

Free bill payments

Free transfers between EQ accounts

Free deposits and withdrawals

No monthly fees

Competitive exchange rate

Fast international transfers with the “Wise” application

Deposit guarantee similar to that for Canadian dollar transactions

Fast and easy online platform

Minimum deposit of $100

Choice of several options in terms of duration

Choice between registered (RRSP or TFSA) and non-registered GICs

Canada Deposit Insurance Corporation Coverage

1,25 % 1,25 % 1,25 % 1,25 % 1,00 % 3 months: 1.30%
6 months: 1.30%
9 months: 1.30%
1 year: 1.30%
15 months: 1.30%
2 years: 1.35%
27 months: 1.35%
3 years: 1.65%
4 years: 1.95%
5 years: 2.10%
6 years: 2.10%
7 years: 2.10%
10 years: 2.40%
EQB Bank

Other advantages of the EQ bank

International money transfers

EQ Bank offers an international money transfer service through the digital platform “Wise”.

This interface allows the fast sending and receiving of different currencies. The exchange rate is updated regularly and there are no hidden management fees.

Here is an overview of the fees charged by EQ (depending on the currency) for $500 CDN compared to other Canadian banking institutions.

Wise platform
Institutions Transfer in Indian Rupee (INR) Transfer in American money (USD) Transfer in Euros (EUR)
Fair Trade Bank 4,25 $ 4,57 $ 3,61 $
TD Canada Trust 14,84 $ 20,59 $ 25,09 $
Scotiabank 12,89 $ 14,46 $ 14,71 $
BMO 15,93 $ 33,69 $ 49,57 $
CIBC 8,85 $ 13,96 $ 15,53 $
Simplii 7,85 $ 13,96 $ 15,53 $
RBC 23,08 $ 17,43 $ 21,10 $

 

Affordable mortgages

Finally, EQ offers a free digital mortgage service. The process can be summed up in four main steps as follows:

1) Online application: Simply register online and answer a few questions that will determine the best mortgage for your situation.

2) Exploration of options: A mathematical algorithm will do an exhaustive search based on your criteria and present you with the best mortgage choices.

3) Involvement of a broker: A broker will be assigned to you once all the options advanced by the computer software are revealed. The broker will answer your questions and advise you on the best mortgage option.

4) Finalize the application: Your broker will send a mortgage application when your choice is made. He will remain involved in your case until the conclusion of the process.

EQ comparison with other banks

EQ Bank

Scotiabank

BMO

Tangerine

Oaken Financial

Monthly fees

Free

0 – 30,95 $

4 – 30 $

Free

Free

Min. balance to waive fees

No

$5,000

3 000 à 6 000 $

No

No

Regular interest rate for the savings account

1,25 %

Up to 1.35%.

Up to 0.5%.

0,10 %

1,40 %

Savings Account Promotions

No

1.80% with the Savings Plus Momentum account

No

2.10% for the first 5 months

No

Discount for groups of individuals

None

Seniors, students, newcomers

Seniors, students, newcomers and military workers

None

None

EQB versus other banks

EQ Savings Accounts

The EQ savings accounts are all very attractive in terms of returns while offering a generous 1.25% interest rate. This rate is favourably different from other major Canadian cities.

What’s more, we like the fact that this offer is available for a full year and not for a promotional period like Tangerine Bank. We also like the multitude of free services offered by the EQB.

The American money savings account is in our opinion one of the best on the market because there are no monthly costs, and the interest rate is 1.00%. Transactions in U.S. currency are also very simple thanks to “Wise.

Finally, we find the GICs offered by EQ to be very attractive, especially because of the multiple terms (13 options) and high-interest rates. We also like the fact that these GICs are available for registered accounts like TFSAs and RRSPs.

All in all, our review of the EQ Equitable Bank savings accounts is very positive. We would have liked to see personalized promotional offers for specific groups such as seniors, students or young families.

Offering chequing accounts and credit cards could also be considered in order to diversify the financial products offered to users.

Other benefits

We find that the EQ Bank offers exceptional service for international transfers.

As mentioned earlier, the Wise platform is easy to use and transactions are completed quickly. The transaction fees are very low and are currently the best on the market. Exchange rates are reviewed regularly to provide the best possible return for users of the interface.

Verdict on the EQ bank

In light of the observations made in this paper, we note that EQ Equitable Bank is making a strong showing in the Canadian banking landscape with its attractive interest rate savings accounts and innovative international currency transfer platform. In addition, a multitude of free services (day-to-day transactions, Interac bill payment) and personalized services, mortgages) make the customer experience a pleasant one.

While we like the current financial product offering of Equitable Bank’s current financial product offering, we would like to see a greater diversity of financial products, including chequing accounts and credit card . We believe that this initiative would allow EQ to compete very seriously with its biggest competitor, Tangerine. However, we are aware that designing these products requires time and energy.

In conclusion, we observe a great progression of the Equitable Bank and hope that it will continue in the coming years. However, the game is far from won given the competitiveness of the various Canadian banking institutions.

Equitable Bank will also need to be on the lookout for the rise of new digital banks such as Simplii, Motusbank and Alterna, which may come to encroach on their turf by soliciting their users. The next few years will be crucial for EQ.

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