Motusbank: Our review of their financial products

Motusbank is a Canadian online bank offering financial products and digital services for individuals. These include chequing, savings and investment accounts. But it also offers other products, such as mortgages and home equity lines of credit. This article explores the main digital products offered by Motusbank and compares them with those of other Canadian banks. Then we share our review so you can make an informed decision.

As mentioned above, Motusbank offers a wide variety of digital financial products. However, our analysis focuses mainly on their bank accounts.

Several investment options are available to Motusbank customers. First, Guaranteed Investment Certificates (GICs), with terms ranging from 30 days to 5 years. GICs are available in registered (TFSA and RRSP) and non-registered accounts, and are protected by CDIC deposit insurance.

Motusbank also offers mutual funds and personalized financial planning services (in collaboration with Aviso Wealth).

Finally, it offers self-directed investments (online brokerage platform) and professionally managed portfolios (in collaboration with Qtrade).

Motusbank offers a wide range of fixed and variable-rate mortgages. Several attractive options are available, including prepayment (up to 20% per year), optional payment (one per year) and flexible payment schedule (several choices are available, in regular and accelerated payments).

Motusbank offers home equity lines of credit (HELOC) that allow you to borrow a portion of the equity available on your home. Because it’s a loan secured by an asset (your home), you get a lower interest rate than other credit options (credit card, personal line of credit, etc.). Also, payment schedules are flexible, including interest-only payments.

In our Review, the Motusbank chequing account is a good choice. Firstly, because it’s a bank account with no monthly fees. But also, because of our no-fee day-to-day transactions, no minimum balance requirement and free and unlimited Interac transfers. However, other Canadian banks also offer advantageous chequing accounts, from both online and traditional banks. For example:

To compare other chequing accounts, use our bank account comparator.

In our Review, Motusbank‘s high-interest savings account is another good choice. However, other Canadian financial institutions have interesting offers, whether for interest rates, welcome offers or hybrid accounts (high-interest chequing account with debit card and cash rewards on purchases). For example:

To compare other savings accounts, use our bank account comparator.

Overall, Motusbank ‘s range of financial products is attractive, including bank accounts with no fees and no minimum balance requirements. For example, the Chequing Account includes free day-to-day operations, free and unlimited Interac transfers, a free first chequebook, and much more.

However, the “competitive” interest rate on their high-interest savings account is lower than many of these competitors such as EQ Bank, Wealthsimple or Tangerine. Admittedly, this is a non-promotional rate, but it’s about half that of Wealthsimple’s Cash Account.

The range of savings and investment products is limited: TFSAs, RRSPs and GICs. But FHSA is not available. That said, we like the fact that a personalized financial planning service is offered (in collaboration with Aviso).

For several years now, competition has been fierce among Canadian financial institutions, from both online and traditional banks. Motusbank must continue to offer financial products and services that meet the needs of Canadians. But it also needs to develop new financial products and new markets (their financial products are not currently available to Quebec residents).