Online banking is becoming increasingly popular. With many different banking providers in Canada, it's important to compare your options and find the right one for you.
In this blog post, we'll go over the top Online Banks Canada 2024 and provide you with all information you'll need regarding their interest rates, fees, and services.
We'll also go over the benefits and security that online banking brings. So let's dive in!
- Comparing the top online banks in Canada for 2024 shows EQ Bank, Tangerine, Simplii Financial, Motusbank and Neo Money as the leaders
- Get higher interest rates than traditional banks and compare fees to find a cost-effective solution.
- Several banks have special offers available for students, seniors & newcomers.
Top Online Banks in Canada 2024
The best online banks in Canada for 2024 include:
- EQ Bank
- Simplii Financial
- Neo Money
These banks offer a range of online bank accounts, including but not limited to high interest savings accounts, chequing accounts, investment accounts, and more.
Most of these banks are available province-wide; however, there is some limited access to certain banks in Quebec. EQ Bank, Tangerine, and Oaken Financial are available in Quebec.
Online banking provides a convenient and simple banking experience, often accompanied by lower fees and higher interest rates than traditional banks.
Ranked #1 by Forbes in Canada, EQ Bank is the first online banking service we will cover.
EQ Bank offers high-interest savings accounts, GICs, and a unique EQ Bank Card. The most popular product that EQ Bank offers is its Savings Plus account with a respectable 2.50% interest rate. However, EQ Bank does not offer checking accounts, which can make them less suitable for everyday banking. Nonetheless, it's still a great option for savings investments.
EQ Bank is also available in Quebec, empowering more Canadians with higher interest rate savings plans. If this, along with EQ Bank's strong focus on customer satisfaction, sounds right for you, EQ Bank could be one of your choices for your online banking needs in Canada.
Tangerine, a fully-owned subsidiary of Scotiabank, is a well-known online bank in Canada that offers no-fee savings accounts, credit cards, and investment options. For new customers, Tangerine offers a high-interest savings account with a 5% interest rate.
However, Tangerine does have a few disadvantages compared to other online banks. For example, their interest rates for checking accounts are lower and they have limited loan options. Tangerine is still a good choice for those who value convenience and the already established experience from a well-regarded financial institution such as Scotiabank.
Another popular online banking option, owned by CIBC, is Simplii Financial. They provide a range of banking services including checking and savings accounts, credit cards, mortgages, loans, and investment opportunities such as GICs, RRSPs, TFSAs, and mutual funds. First-time customers will receive a bonus $400 voucher when opening a new checking account and a 5.25% promotional interest rate on a new savings account for 5 months.
Simplii Financial does have many similar aspects to Tangerine but is viewed as more attractive by many customers due to its welcoming promotional bonus.
Motusbank, owned by Meridian Credit Union, is another notable online bank in Canada. They offer:
- Chequing and savings accounts
- Financial planning
- Personalized investing
- Investment accounts through a partnership with Qtrade Direct Investing
One of the unique benefits of Motusbank is its access to over 40,000 ATMs in the US through the Allpoint network, making it a great option for those who frequently travel to the US.
With its diverse range of financial products and convenient access to ATMs in the US, Motusbank is an excellent choice for Canadians who value both domestic and international banking convenience.
Neo Money is another up-and-coming online bank in Canada. They offer:
- A high-interest account with a 4% interest rate
- Founded by the creators of SkipTheDishes
- Neo Money brings a fresh perspective to the world of online banking in Canada, catering to those who value innovation and higher returns on their savings.
Neo Money is a great choice for those looking for a modern banking experience with higher returns.
Comparing Online Banks: Interest Rates, Fees, and Services
When comparing the top online banks in Canada, it’s important to consider:
- Interest rates
- Services offered
- High-interest savings accounts
- Low or no-fee chequing accounts
- Investment options
Understanding these factors helps you determine which online banking service is right for you.
Continuing on, we will explain what each section means and how they differ among the top online banks in Canada. Curious about the best life insurance companies in Canada? Learn more here.
Interest rates are a crucial factor when choosing an online bank in Canada. The rates offered by online banks are typically higher than those of traditional banks, with rates ranging from 1% to 3%. For example, Oaken Financial offers a standard interest rate of 3.4% for its online bank accounts.
It’s important to compare the interest rates offered by different online banks. Higher interest rates can help your savings grow more quickly, providing a significant advantage over traditional banks with lower rates.
Comparing fees between different online banks is also an important factor to understand. Most virtual banks do not charge fees for their online banking services; however, some exceptions exist with ATM withdrawal fees or using a non-network ATM. Big banks tend to have more fees and account restrictions due to their higher overhead costs.
When comparing online banks, it’s important to consider the fees associated with each bank and choose an option that offers the most cost-effective solution for your banking needs. Some factors to consider include:
- Monthly maintenance fees
- ATM fees
- Overdraft fees
- Foreign transaction fees
In order to make the most of your financial resources, you should prioritize choosing a bank with little to no fees.
Online banks in Canada provide a wide range of services, including:
- Personal high-interest savings accounts (individual, joint, and USD)
- Competitive investment accounts like GICs, RRSPs, and TFSAs
- Some online banks also offer mutual funds, ETFs, and even mutual funds made up of ETFs.
When comparing online banks, consider the types of accounts and financial products offered and how they align with your financial goals and preferences. Choosing an online bank that offers the services you need will help you optimize your banking experience and achieve your financial objectives.
Benefits of Online Banking in Canada
Online banks, in comparison to traditional banks, offer you higher interest rates. This is beneficial, as this allows you to grow your savings more quickly and advance towards your financial goals. As well, the lower fees accompanied by online banking allow you to keep more of your hard-earned money.
Online banking also offers a high level of convenience and time-saving features. With 78% of Canadians doing most of their banking digitally, online banking has become the go-to way to bank for many. No more waiting in line or worrying about bank hours – you can manage your accounts, pay bills, and transfer funds with just a few clicks, whenever you want.
Overall, online banking in Canada offers numerous benefits, including higher interest rates, lower fees, and a more convenient banking experience. By choosing the right online bank for your needs, you can take advantage of these benefits and make the most of your financial resources.
Safety and Security of Online Banks in Canada
When it comes to online banking in Canada, safety and security are of utmost importance. Online banks use data encryption, security measures, and insurance provided by the Canada Deposit Insurance Corporation (CDIC) to ensure the safety of your money and personal information. CDIC guarantees coverage of up to $100,000 per account, providing an additional layer of protection for your hard-earned money.
To further safeguard your online banking experience, it’s important to use strong passwords, switch them regularly, and enable two-factor authentication if available. With these security measures in place, you can rest assured that online banks in Canada are safe and secure, allowing you to manage your finances with confidence and peace of mind.
Choosing the Right Online Bank for Your Needs
Choosing the right online bank starts by assessing your banking needs and financial goals.
Ask yourself questions regarding what you are looking for and compare these needs amongst the different online banks available. For example, are you looking for a high-interest savings account? Or maybe a no-fee checking account? Or are you interested in researching investment options? There are a lot of option available to you and understanding your needs first can help you narrow it down.
Next, compare the following factors when choosing an online bank:
- Interest rates: Look for higher rates to help your savings grow more quickly.
- Fees: Choose a bank with lower fees to keep more of your money.
- Accessibility and convenience: Consider if the bank offers user-friendly platforms, mobile apps, and customer support to assist you with your banking needs.
By considering these factors and conducting your research, you can confidently choose the right online bank for your needs, ensuring a positive banking experience that aligns with your financial goals.
Opening and Managing an Online Bank Account in Canada
To open and manage an online bank account in Canada, you’ll first need to meet the eligibility requirements, which may include being a Canadian resident, being of a certain age, and providing proof of identity. Once you meet the eligibility requirements, you can begin the process of verifying your identity by providing personal information and waiting for review and approval.
After your identity has been verified, you’ll receive an email with activation instructions to follow to activate your account. Once your account is active, you can manage your online bank account using the bank’s website or mobile app. This may include:
- Checking your account balance
- Transferring funds
- Paying bills
- Setting up automatic deposits or payments
Remember to regularly monitor your account activity, update your personal information as needed, and maintain strong passwords to ensure the ongoing safety and security of your online bank account.
Online Banking for Specific User Groups
Different user groups, such as students, seniors, and newcomers, can benefit from tailored online banking services and features. In the following sections, we’ll explore the best online banks in Canada for these specific user groups and discuss the unique benefits they offer.
Students may benefit from banks that offer low-cost student accounts and no-fee banking.
Online banks that cater to students in Canada often offer:
- Low or no fees
- Easy access to money
- More affordable and convenient options for managing finances
- No monthly fees
- Lower interest rates for students
By choosing an online bank that offers these student-friendly features, students can save money on fees, access their funds more easily, and focus on their studies without the added stress of managing a traditional bank account. Simplii Financial currently has a Student Banking Offer.
For seniors in Canada, online banks that offer easy-to-use platforms and low-fee or no-fee accounts can be an excellent option. These banks provide a user-friendly experience, making it easy for seniors to manage their finances without the need for frequent visits to a physical bank branch.
By choosing an online bank with a simple interface and affordable account options, seniors can enjoy online banking while minimizing the costs associated with traditional banks and considering the benefits of online only banks. EQ Bank for example has an entire section of its website and Annual Report dedicated to seniors.
Online banking is user-friendly, meaning it especially caters to newcomers. Online banks provide a plethora of services that allow newcomers to easily establish themselves in this new banking environment.
Newcomers will be happy to learn that these banks offer accounts with low fees, optimal interest rates, and easy navigation systems to help them become successful.
It doesn't matter if you're a newcomer, a student, a senior, or simply someone just looking for proper financial support and services. Online banking can help provide you with easy and secure resources to get one step closer to your financial goals. Online banks offer many benefits starting with higher interest rates, ending with lower fees, and everything in between.
With the added benefit of convenience in comparison to traditional banks, making the switch to online making could be the right move for you.
If you're looking for more help with your finances, investments, or family insurance needs, reach out to a Dundas Life licensed advisor today. Schedule your free consultation call today.
Frequently Asked Questions
What is the best Canadian online bank?
The best Canadian online bank is subjective. It depends on which services you value most like investments, borrowing, rewards programs, and more. EQ Bank, Tangerine, Simplii Financial, Motusbank, and Neo Money are all great options to explore.
What is the easiest bank to open online in Canada?
Opening an online bank account in Canada has never been easier. With HSBC EasyID, you can open an account and get instant identity verification in just a few minutes.
EQ Bank Savings Plus and Joint Savings Plus accounts and the Simplii No-Fee Chequing Account are the easiest to open online.
Which Canadian bank can I open an account online?
SBI Canada Bank has a new online account opening platform to help make the process simpler and faster.
Additionally, EQ Bank Savings Plus, Joint Savings Plus, and Simplii No-Fee Chequing Accounts are some of the easiest bank accounts to open online in Canada.
What is the largest virtual bank in Canada?
Motive Financial, a division of the Canadian Western Bank, is the largest virtual bank in Canada offering checking accounts, savings accounts, GICs, TFSAs, and RRSPs.
These products are designed to help Canadians save money and reach their financial goals. They offer competitive interest rates, no monthly fees, and no minimum balance requirements. They also provide 24/7 customer service and online banking tools to help customers manage their accounts.
What are the top online banks in Canada for 2024?
The top online banks in Canada for 2024 are EQ Bank, Tangerine, Simplii Financial, Motusbank, and Neo Money.