Top 16 Best Online Banks, Canada

Yes, we now live in a digital world and the banking system has caught the drift! The majority of Canadians now do their banking operations online and through their mobile device. So if you’ve not stepped into a physical bank branch in ages, you are definitely not alone.

There are many significant reasons to opt for any of the digital banks, including no monthly fee, convenience, no minimum balance requirement, high interest rates, the security of funds, and more. Canadian traditional banks also have an online presence. However, they require you to maintain a minimum balance to enjoy no monthly fees.  

Read on to see the best online banks Canada has to offer that you can choose from if you are considering moving to an online-only bank.


Table of Content


Perks of Banking with an Online Bank

First, let’s look at the perks that come with banking with digital banks: 

  1. Ease of access: You can carry out all of your transactions via the bank’s online platform or on the mobile app. You can pay your bills, transfer money, make cheque deposits, etc., without a hassle.  
  1. Pricing & Competitive Rates: Online-only banks come with a no-fee account option, high-interest savings accounts, and competitive rates for Interac e-Transfers. Since they have no physical branches, they save money on the costs that come with running physical locations.

Then they use some of these savings to provide their customers with these enticing pricing and better rates, e.g., a 1.50% savings account rate instead of 0.05%. Some brick-and-mortar banks also offer their customers low-fee accounts; however, it comes with a base monthly fee, unlike digital banks.

  1. Safety: Your deposits with online-only banks are secure and either covered by Canada Deposit Insurance Corporation CDIC or the appropriate credit union deposit guarantee corporation. CDIC insures deposits up to $100,000 per category, while provincial deposit guarantee corporations can cover your entire deposits irrespective of the amount.
  1. Flexibility: Another unique perk is you can connect your online banking account to your money management application to track your expenses. Thus, you can control your finances.  
  1. Time Management: You don’t have to spend time waiting on long queues at a bank. You can carry out your banking transactions on the mobile app while doing other things. Even if you encounter a challenge, you can contact customer service by chat or phone. 
  2. Unique Features: Online banks offer Interac e- transfers and mobile cheque deposits, essentially sending money with an e-mail or depositing your cheque with a picture. There are several other unique features that online-only banks offer that you can’t get elsewhere. We’ll touch them as we progress.

Downsides of Online Banking

When you choose an online-only bank, you should know these:

  1.  No Personalized Service: If you prefer to conduct banking operations face to face, you won’t get this in an online bank.  
  1. Some Banks Lack All-in-One Package: Banks like Tangerine offer customers an all in one package. So, you can conduct all your transactions (chequing, savings, investments, and mortgage accounts) with them. However, some online banks only provide savings accounts so if you need more services, you’ll have to get them from another bank.   
  1. Limited Transactions: Online banks are limited when it comes to complicated banking transactions. If you regularly conduct transactions like bank drafts, wiring money overseas, or you need a safety deposit box; you’ll have to do this at a physical bank in person.
  1. Fewer ATMs or ABMs (Automated Banking Machines)- The online bank you go for might not have sufficient ATMs in your area and you and you’ll have to use ATMs linked to other networks and likely pay. This is something you probably won’t experience with traditional banks. 

However, this issue might not be a problem since the online banks we are about to review either belong to a bank or credit union. Let’s get on with it.


Best Online Banks Canada:

1. Tangerine Bank

Tangerine bank is a subsidiary of Scotiabank that entered the banking scene in 2014 and has since stood out from the crowd. Tangerine offers a no-fee chequing and savings account, high-interest rates, mortgage, low-fee investment opportunities, credit card, and more. 

Although they have no brick-and-mortar branches, they have Tangerine cafes. Customers in Vancouver, Calgary, Montreat, and Toronto can get financial advice or learn more about Tangerine services from their staff over a cup of coffee at these cafes.  

Moreover, Tangerine describes their lack of a physical branch as an opportunity to redirect more savings to their customers. How? They save money they’d have spent on maintaining physical locations and pass on these savings to their customers in form of unique and competitive rates.


Chequing Account

Tangerine’s no-fee chequing account has all the perks you can want in a chequing account. No monthly account fees, free Interac e- transfers free access to 3,500 ATMs across Canada and 44,000 worldwide, unlimited daily transactions etc. Tangerine follows a tiered approach to provide interest on your chequing account depending on your account balance:

  • $0.00 to $49,999.99- 0.15% interest rate
  • $50,000 to $99,999.99- 0.55% interest rate
  • $100,000 or more- 0.65% interest rate

Savings Account

Tangerine offers 5 different savings accounts, and you can always choose the one advice as much that changed entirely. These are the five accounts and their interest rates:  

  • High Interest Savings Account (HISA)- The interest rate is 0.1%
  • Retirement Savings Plan (RSP)- The interest rate is 0.1%
  • US$ Savings Account- The interest rate is 0.1%
  • Tax-Free Savings Account (TFSA)- The interest rate is 0.1%
  • Retirement Income Fund (RIF) Savings Account- Interest rate is 0.15%

Now let’s discuss their credit cards: 


Tangerine World Mastercard

With the Tangerine World Mastercard, you can change your purchase category and control your rewards at any time. It also offers insurance on your mobile devices and other benefits. 

  • Welcome bonus: Not Available
  • Annual fee: $0
  • Balance transfer: 1.95% for six months
  • Interest: 19.95% on cash and purchases

Rating: 

  • Rewards rate: 1.14%
  • Credit estimate: Good (660-725)

Tangerine Money-Back Credit Card

This is one of Canada’s best no-fee cash back cards. There are no annual fees and you can get up to 2% cashback on three spending categories. The categories can include gas, restaurant, groceries, drug purchase, entertainment, and more. Then, on everything else, you can get 0.50% cashback.

  • Welcome bonus: Not Available
  • Annual fee: $0
  • Balance transfer: 1.95% for six months
  • Interest: 19.95% on cash and purchases

Rating: 

  • Rewards rate: 1.14%
  • Credit estimate: Good (660-725)

Pros

  • No monthly fees. 
  • They offer special high-interest rates.
  • They have award-winning 24/7 customer service.
  • You’ll get full banking services (including lines of credit, mortgages, TFSAs, and lines of credit, etc.)
  • They offer free, unlimited daily transactions, email money transfers, and Interac e-Transfers. 
  • You are entitled to a free chequebook with 50 cheques when you open an account.
  • They have a versatile mobile app that allows instant mobile cheque deposits.
  • You can earn up to 0.15%-0.65% interest depending on your account balance on the chequing account and up to 0.10% on every dollar for the savings account.

Cons

  • The tangerine cafes are only located in the big cities. This can make some customers people left out.

“Hey, I really like banking with Tangerine, and I think you’ll enjoy becoming a Client, too.”

2021 Tangerine Orange Key and Promotion: Get up to $200 Bonus Offer

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The valid Orange Key Code to use is -> 52169202S1

You must provide the above Orange Key during your Account opening process and complete all necessary requirements for opening an Account with Tangerine in order for you to get the Bonus payment. 


Best Online Banks Canada:

2. Simplii Financial

Simplii Financial is a subsidiary of  CIBC previously operated as PC Financial. 

They prioritize simplicity by offering customers a no-fee chequing and savings account. Apart from a no-fee account, Simplii customers can also access a credit card, investments, mortgages, and more. They also have free access to over 3,400 CIBC ATMs across Canada.


Simplii Chequing Account

Just like tangerine’s no-fee chequing account, Simplii Financial’s chequing account offers zero monthly fees, unlimited transactions, no minimum balance requirement, unlimited free Interac e- transfers, and interest rates up to 0.15%.

They charge you $45 for NSF (Non Sufficient Funds) fee, $1.50 if you use a non-CIBC ATM in Canada, or  $3 if you use one outside Canada and $7.50 for bank drafts. 


Simplii High-Interest Savings Account

Simplii’s savings account offers no monthly fees and a standard 0.15% interest rate. You also have the option of keeping your money in a TFSA or RRSP savings account at the same rate.


Simplii Financial also offers a credit card known as the Simplii Financial Cash Back Visa Card.

Simplii Financial Cash Back Visa Card

The Simplii Financial Cash Back Visa card offers clients incredible cashback earn rates. If you are interested in their chequing or savings accounts, you can get their no-fee card. With this card, you’ll enjoy a 4% return on restaurant purchases and save up to $5,000 yearly, 1.5% return on groceries, gas, and pre-authorized payments and then save up to $15,000 every year, then 0.5% on every other thing. 

Pros

  • Zero monthly account fees. You won’t have to spend a dime out of your savings on account management fees each month.   
  • Easy access. You can easily open an account with Simplii financial under 10 minutes using the online application. You can also access your account and conduct transactions easily with the mobile app.
  • Simplii Financial does not require you to maintain a minimum account balance in any of their account.
  • Your deposits are protected up to $100,000 by the CDIC- Canada Deposit Insurance Corporation. 
  • You’ll be able to transfer money abroad easily using your Simplii chequing account at a significantly lower fee than you’d normally pay for a wire transfer.
  • Several account types. You can sign up for several accounts with options for cash and registered accounts.

Cons

  • Lower interest rates. Compared to other digital banks, Simplii Financial offer lower interest rates on GICs and savings accounts.
  • No physical service. As an online-only bank, there are no brick and mortar branches you can walk into to do your banking. You can’t go through CIBC for your Simplii banking either. 
  • Simplii Financial is not available in Quebec, so Quebec residents can not open an account with them.

2021 Simplii Financial (Bank) Promotion: Get $50 Bonus Offer

Join Simplii Financial (Bank) by using this unique link to open and use an eligible account; and Get $50 deposited directly into your account.

To ensure you get the Bonus payment, follow all the instructions to set up your new Simplii account and complete the eligible activities by the specified time period. Have questions about getting your $50 Bonus? Check out Simplii’s FAQ.


Best Online Banks Canada:

3. EQ Bank (Best For Super Savers)

If you are a super saver or a money-savvy Canadian, then EQ Bank, or Equitable Bank is the best choice for you. Equitable Bank (EQ Bank) has been in operation for nearly 45 years. 

Just like other online-only banks, they currently do not have any physical branch. Rather, they offer customers round the clock online banking and customer service starting from 8 a.m to midnight (EST). 

Equitable Bank (EQ Bank) takes a different approach to digital banking. Instead of using a debit card, personal cheques, or an ATM, clients can move their funds between their connected accounts and Savings Plus Account accounts.

Money-savvy Canadians can also take advantage of their high interest rates by stashing money in the savings account. However, one thing that stands out about EQ Bank is they allow you to use your savings account as if it were a chequing account. 

You can send money at no cost, pay your bills, and earn interest on your money. Amazing right? If what you are looking for is the best non-promotional savings rate, EQ bank tops that chart. 

Equitable Bank (EQ Bank) offers these two main accounts:

EQ Bank Savings Plus

This high interest savings account comes with zero monthly fees, no minimum balance, and free unlimited transactions. EQ Bank Savings Plus acts as a hybrid between a savings and chequing account. So although it is primarily a savings account, you can send unlimited free Interac e-transfers, make mobile cheque deposits, transfer funds electronically, and earn a 1.50% standard interest rate.

They calculate this interest daily and pay out monthly.   

EQ Bank GICs (Guaranteed Investment Certificate)

This account offers high-interest guaranteed investment certificates within a one to five year term. You need at least a $100 deposit to open a GIC account.

Pros

  • You can link your account to another “Big Five” bank account.
  • They have a high interest rate savings account
  • You can transfer money overseas at a very reasonable charge.
  • They offer you get all the perks of a chequing account on your savings account. 

Cons

EQ Bank offers no physical debit card, chequing account, or ATM access.


Best Online Banks Canada:

4. Motive Financial

Motive Financial is an online only Canadian bank and a subsidiary of the Canadian Western Bank. Motive Financial currently pffers one of Canada’s highest interest savings accounts together with some of the best RRSP, GIC, and TFSA rates. 

They have two free chequing accounts- Motive Chequing Account and Motive Cha-Ching Chequing Account together with two free savings account- Motive Savvy Savings Account and Motive Savings account. 

Motive Savvy Savings Account

This is the more popular savings account with an enticing 1.55% interest rate. The account zero monthly fee and no minimum balance requirement. You can withdraw for free twice every month after which you’ll have to pay $5 for each additional transaction. You’ll also be charged $1 for Interac e-transfers.

Motive Savings Account

The Motive savings account offers a tiered interest rate of 1.25% on your first $5million, then 0.5% subsequently. Although they have slightly lower rates than the savvy savings account, the account offers unlimited free withdrawals. 

Motive Chequing Account

The account charges zero monthly fees and offers unlimited free transactions. Your first chequebook when you open an account is free and it comes with  50 cheques. You’ll earn a 0.60% interest rate, and you can withdraw without limits from The EXCHANGE Network ATM at no charge.

However, you have to pay a $1 fee for each Interac e-Transfer you make and a $20 inactive account charge if you don’t complete any transaction for two years.  

Motive Cha-Ching Chequing Account

The Cha-Ching Chequing account offers no monthly fee, unlimited free transactions, and free Interac e-Transfers. They offer no EXCHANGE Network ATM withdrawal fees and two free  non-Exchange Network ATM withdrawals. The interest rate is 0.25%. 

The account doesn’t offer mobile cheque deposits so depositing money through cheques might be strenuous. 

Pros and cons of Motive Financial

Pros

  • Zero monthly fees on all accounts.
  • You can apply for all Motive financial’s four accounts using the easy online application.
  • The CDIC will protect your deposits up to $100,000.
  • Motive financial has a mobile app so you can check your account balance and make transfers on your mobile phone.
  • They offer one of the highest interest rates in Canada. 

Cons

  • You need to make a minimum deposit of $1,000 if you want to put money into a GIC.
  • Some accounts require you to pay high fee on withdrawals.

Best Online Banks Canada: 

5. Manulife Bank 

Manulife bank offer customers several perks and services. From bank accounts, to credit cards, loans, investments, and mortgages. To top these, they also have a collection of offers for small businesses in Canada to benefit from. 

They have two unique accounts: 

  1. Manulife Advantage Account

This account is a hybrid between a savings account and a chequing account.

It offers a 0.15% interest rate, no monthly fee, and debit card access to over 3,500 ATMs in Canada. However, if you have less than $1,000 in your account, you’ll be charged transaction fees (Interac e- transfers and debit card purchases at $1 each; ATM withdrawals in Canada at $1.50). But as long as you exceed this limit, these fees will be waived.   

  1. Manulife All-In Banking Package

For this account, you’ll get unlimited e-Transfers, bill payments, withdrawals, debit purchases, high interest savings account and more. However, there is a $10 monthly fee, but they can waive it as long as you save $100 every month.

Let’s have a look at their two credit cards:

ManulifeMONEY+ Visa Platinum Card

This credit card comes with no annual fees. This card will get you 5% cash back on the first $2,000 you spend in grocery purchases for the first 3 months as welcome bonus. This alone is worth up to $100.

Subsequently, you’ll earn 2% cashback on the first $15,000 you spend on groceries yearly, and then it’ll later drop to 1%. Other items you buy will earn you a standard 1% cashback.

However, if you want more benefits, you can go for the ManulifeMONEY+ Visa Infinite.

ManulifeMONEY+ Visa Infinite

This credit card will cost you $99 per year. For the welcome bonus, it is raised to 10% cash back on the first $2,500 you spend in grocery purchases for the first three months. This can save you up to $250. Subsequently, you’ll earn:

3% cash back on groceries ($25,000 limit), then

2% cash back on travel ($25,000 limit), and

1% cash back on every other purchase.

More perks: An exclusive Visa Infinite benefit and comprehensive insurance package. However, you should know that this credit card requires a $60,000 personal or $100,000 household income.


Best Online Banks Canada: 

6. Oaken Financial

Oaken Financial has two accounts:

  1. Oaken Financial Savings Account

The Oaken Financial Savings Account offers a 1.25% high interest rate, which is very good, although it is not the best. Apart from the high interest rate, you’ll also be free from monthly fees or a minimum balance requirement. You can also make free transactions without any limit so you have no course to keep track of your transactions round the month. .

Oaken also allows you to quickly move your money from your savings account to a GIC. 

  1. Oaken Financial Chequing Account

Oaken does not offer a chequing account currently.   

At the moment, Oaken Financial does not have a credit card either.   

Pros

  • Zero monthly fees. 
  • High interest rates. 
  • No minimum balance requirement. You don’t need to have a minimum balance in your account to stay active
  • Easy access . With Oaken Financial’s online application, you can open an account in just minutes.  
  • Your deposits will be covered up to $100,000 by CDIC insurance on both the GIC and savings account.
  • You can easily manage your account online.  

Cons

  • No debit card. 
  • You have to wait several business days to get your money when you transfer from your Oaken Financial account into your regular bank account.

Apart from digital banks owned by Canadian banks, credit unions also provide online banks to increase their customer reach. Many of these banks also have equally amazing perks that qualify them to be part of Canada’s best online banks. So from numbers 6 to 11 are the best online banks in Canada that are owned by credit unions.


Best Online Banks Canada: 

7. Motusbank

Motusbank is a subsidiary of the Meridian Credit Union, so they are a CDIC member which means they insure customers’ deposits. Apart from this, they also offer a high-interest rate and easy connectivity to other banking institutions.   

Motusbank’s High Interest Savings account offers customers 2.1% interest on their deposits. To top this, they don’t have to pay any monthly fee, transaction fee, or maintain a minimum balance to access it. 

Another account is the Motusbank TFSA which offers customers a 2.35% interest rate. They also have GIC accounts, one chequing account, and RRSPs and they all have similarly enticing rates and features. 

Pros

  • They offer high interest rates. 
  • They have different investment options. (GICs, RRSPs, and TFSAs). 
  • Motusbank offers an efficient mobile app for Android and iPhone devices to deposit cheques, make mobile cheque deposits, and easily pay your bills.
  • They give you a debit card that allows you to get easy access to ATMs for everyday transactions.

Cons

  • Although Motusbank offers more features than the usual online-only savings account, they don’t meet up with the major banks’ services. 
  • Not available for Quebec residents. 

Best Online Banks Canada: 

8. Alterna Bank

Alterna Bank is the online division of Ontario’s Alterna Savings Credit Union. They offer a no-fee chequing account, unlimited transactions, term deposits for both registered and non-registered accounts, online investment, and mortgage loans. Alterna bank is also known for their high-interest savings account and effortless inter-bank transfers. 

Pros

  • Alterna Bank accommodates Quebec residents, which is an excellent perk as they are sometimes left out of other special bank offers due to provincial regulations.
  • They offer unlimited free e-transfers monthly and unlimited transactions.
  • AlternaBank clients can also access thousands of free ATMs through The EXCHANGE Network.
  • They also provide RRSPs, TFSAs, and GICs. 
  • Alterna Bank is a member of CDIC so clients’ deposits are protected. 

Cons

  • According to some users, Alterna bank’s customer service can be sometimes inadequate.  

Best Online Banks Canada: 

9. Outlook Financial

Outlook Financial is a subsidiary of Manitoba’s Assinibone Credit Union. It is a great choice for young Canadians looking to invest some cash for a while at a high interest rate.

They offer both GICs (Guaranteed Investment Certificate), and a competitive high interest savings accounts. Clients deposits are protected by the DGCM- Deposit Guarantee Corporation of Manitoba. 

Outlook Financial operates similarly to the previously mentioned Tangerine bank however, while their GICs offer no monthly account fee, it requires a minimum deposit of $1,000. The savings account on the other hand requires no monthly fee or minimum deposit.

Pros

  • Outlook Financial offers great savings opportunities without all stress associated with the big banks.
  • Their GICs offer no monthly account fee. 
  • They offer some of the highest interest rates present on deposits. (2% for the savings account).

Cons

  • Their services are limited when compared to a fully functional bank.

Best Online Banks Canada: 

10. Accelerate Financial

Accelerate Financial is the online arm of Manitoba’s Crosstown Civic Credit Union and it was launched in 2010.

Just like other credit union owned online banks, they offer a high-interest savings account, GICs, and the option to invest these products in a RRIF, RRSP, or TFSA account. Since the main company is in Manitoba, deposits made with Accelerate Financial are 100% guaranteed by DGCM.

Pros

  • They offer decent interest rates on all their accounts, although GIC rates are a little lower than the ones other digital banks offer.
  • Unlike the big banks, you won’t have to pay monthly fees.
  • No minimum balance required. You won’t have to keep a certain balance or “float” in your account to take advantage of member benefits.
  • You can open an account in a few minutes with their online application.
  • Any deposits you make will be insured without limit by the DGCM (Deposit Guarantee Corporation of Manitoba).
  • They’ll give you a debit card which you can use to withdraw cash from your account quickly. 

Cons

  • You’ll have to pay a $1 debit fee each time you make an Interac transfer, pay bills, or withdraw money from an ATM.
  • You need a minimum deposit of $1,000 to put money into a GIC (Guaranteed Investment Certificate).

Best Online Banks Canada: 

11. Achieva Financial 

Achieva Financial is an online bank owned by Cambrian Credit Union. They only offer a high-interest savings account and GICs with the option to deposit inside an RRSP, TFSA, or RRIF account if necessary.

DGCM protects customers’ deposits, whether they are Manitoba residents or not.  

Pros

  • Neither the savings account nor the GICs have monthly fees attached.
  • With Achieva Financial’s easy online application, you can open your accounts in just minutes.  
  • Your deposits will be insured without limit by the Deposit Guarantee Corporation of Manitoba (DGCM).
  • You can earn up to $100 in a year on friend referrals.
  • A versatile mobile app. You can make transfers or check your balance right from your phone. 
  • Achieva Financial offers one of the highest interest rates.
  • No minimum balance is required. You can qualify for benefits irrespective of the amount in your account.   

Cons

  • They require a  minimum deposit requirement of $1,000 to put your money inside a GIC.
  • You have to pay $1 as debit fee every time you pay bills, make Interac transfers, or perform ATM withdrawals on your account.   

We can’t have a detailed list on the best online banks Canada has without analyzing the Big Five banks. As stated at the beginning of this article, the big banks have an online presence. However, unlike the online-only banks, they have specific requirements you have to meet before you can enjoy the perks.

So numbers 12 to 16 will cover our review of the big five banks’ online banking options:


Best Online Banks Canada: 

12. RBC Online

RBC, or the Royal Bank of Canada, has an online banking option known as RBC Online. Their monthly fees range from $4 to $30. RBC Online does not cancel its account fees for a minimum balance, but you can bundle two or more services together like lines of credit or credit cards, and cut down service charge. 

RBC online offers customers all the usual features, such as bill payment and transfer, but they don’t really have outstanding offers. For Canadians who are most comfortable banking with the big banks and want to combine different services in one place, RBC Online is the go-to.

Pros

  • RBC Online is suitable for customers who feel more comfortable banking with a big name.
  • RBC’s industry experience and vast employee base can make you confident that your funds are safe.

Cons

  • According to some users, their customer service can use some improvement.

Best Online Banks Canada: 

13. BMO Online  

BMO Online is the Bank of Montreal (BMO)’s online platform. They offer online bill payments, Interac e-transfers, direct online deposits, cheques, debits, contactless payments, and mobile cheque deposit. Some of the features have a standard set rate but you can earn additional interest up to 1.6% rate with their Savings Builder Account.  can earn up to 1.6% interest

Their monthly fees range from $4.00 to $30.00 per month, although they offer students, seniors, and armed forces discounts. 

Pros

  • The BMO mobile app is efficient and has really high reviews. More than 13,000 users gave it an average of 4.5 stars. 
  • You can sign in  on the app with Touch ID or Face ID.
  • You can add uo to1.60% rifght

Cons

The monthly account fees go as high as $30 per month, which can be too high for some customers.


Best Online Banks Canada: 

14. TD Online  

TD Online is the general name for TD Canada Trust’s (TD) online services. TD Online offers free online e-transfers and round the clock mobile cheque deposits.

Although the interest rates are not all that tempting, they offer some decent no-fee savings accounts. They also have a mobile app that has features for tracking and improving spending habits (TD MySpend).   

  • Pros
  • You can keep track of your transactions and spending patterns with the TD MySpend app feature,
  • They have an efficient and polite customer service. 

Cons

They don’t have enticing interest rates.


Best Online Banks Canada: 

15. CIBC Online: 

One thing that distinguishes CIBC is they have five different account types tailored to seniors’ needs. From a simple chequing account to a US dollar account, down to a bundle with a premium credit card,all designed for seniors. 

Their online banking platform (CIBC Online) offers mobile cheque deposits, the chance to order foreign cash and have it delivered to you at home, and alerts on fraudulent activities.  

Pros

  • Mobile cheque deposits are available.
  • You can order foreign cash online and have it brought to your home. This is a feature many travelers would appreciate.
  • They have different accounts tailed to seniors’ needs. 
  • Independent advisory firm Forrest Research named CIBC’s banking app as the first in Canada in 2019.

Cons

  • They have relatively fewer credit card options.

Best Online Banks Canada: 

16. Scotia Online

To end our overview of the big banks’ digital platforms, let’s look at Scotiabank’s Scotia Online.

ScotiaBank offers both savings and chequing accounts. The chequing accounts come with unlimited transactions, while the savings account offers competitive interest rates. 

They charge a monthly account fee, but the fee can be removed if you exceed the monthly required minimum balance (around $3,000 for most chequing accounts).

Pros

  • Unlimited transactions.
  • Competitive interest rates on the chequing account.
  • You have the opportunity to win a cash incentive or an exciting interest rate during one of Scotiabank’s promos. 

Cons

Your monthly fees can start to accumulate if you are unable to maintain the monthly minimum account balance. 


How Safe are the Online Banks in Canada?

Just like traditional banks, there are very slim chances of online banks failing. 

 Federally-incorporated like Tangerine, EQ Bank, and Simplii are associated with the CDIC- Canada Deposit Insurance Corporation. So, your deposits would be insured up to a  $100,000 limit. So, you can be sure that your funds are protected.

The digital banks owned by credit unions are either associated with CDIC or DGCM-Deposit Guarantee Corporation of Manitoba. Either way, you are assured that your deposits are protected.


FAQs- Best Online Banks Canada

What is the best online bank in Canada?

Tangerine is arguably Canada’s best online bank. They have several attractive offers like no-fee savings and chequing accounts, advanced banking technology, efficient customer service, and respectable interest rates.

Can I trust online banks?

Online banks that follow standard security measures are as safe as traditional banks. Before you open an account check to see that the deposits are insured by the Federal Deposit Insurance Corp. Also, check for features like fraud monitoring and encryption.

Who is the number 1 bank in Canada?

Based on assets, the leading bank in Canada is RBC (Royal Bank of Canada).
Their total assets sum up to 1.43 trillion Canadian dollars. Closely behind them is Toronto-Dominion Bank (TD Bank).

Are credit unions better than banks?

When it comes to customer service, credit unions are better than banks. The smaller banks are almost as good as credit unions. Credit unions also offer lower interest rates on loans and much higher interest on deposits. However, banks often adopt new tools and technology faster.

Can you open a bank account without going to the bank?

Yes, gone are the days where you need to visit a branch to open a bank account. You can open your bank account, set up payments, and make deposits right within your home. Your card will be sent to your mail after you apply, then you can commence!


Last Words- Best Online Banks Canada

Choosing an Online-Only Bank

While deciding on which online bank to choose, you should start by considering your banking needs. For example, if you want to completely replace your traditional bank and move your entire banking operations (chequing, savings, investments, etc.) online, Tangerine Bank and Simplii Financial would be fitting.  

What if you wish to keep your present bank, but at the same time, you want to take advantage of the better savings rates that come with an online bank? EQ Bank offers a suitable option with their high-interest Savings Plus account and unlimited free Interac e-Transfers.

Generally, all the online banks on this list can help you save money on fees, and their savings rates are far above what the big banks offer.

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