Online banking has become increasingly popular in Canada, with more Canadians turning to digital channels for their banking needs. According to the Canadian Bankers Association, 78% of Canadians now do their banking through online and mobile apps. The usage of mobile banking apps has also seen a significant increase, with 65% of Canadians using them in 2021 compared to 56% in the previous year.
This shift towards online banking highlights the growing preference for convenience and accessibility in managing finances. The best online banks in Canada are continuously enhancing their features, pricing, and convenience to attract customers. In our comprehensive guide to digital banking, we’ve researched and identified the top online banks in Canada, helping you find a banking account that aligns with your lifestyle and financial requirements.
Convenience: Online accounts offer round-the-clock accessibility, eliminating the need to wait in line or rush to the bank before closing time. Most banking transactions can be conducted from the comfort of your home, even in your pajamas.
Customer Service: Traditional banks often entail long wait times to speak with a personal banker. In contrast, online banks typically provide dedicated personal bankers available for extended hours via live chat, email, or phone support. Additionally, non-personalized banking assistance is accessible 24/7 for general inquiries.
Features: Online banks embrace cutting-edge finance technology tools not available in brick-and-mortar banks. These include features such as mobile cheque deposit, free online bill payments, and person-to-person payments facilitated through online banking platforms.
Pricing: Cost-effectiveness is a significant advantage. While some credit unions offer no-fee chequing accounts, many customers tired of paying banking transaction fees and monthly charges are transitioning to online banks. Most online banks provide all essential banking services without fees and offer higher interest rates. In 2017, the average Canadian incurred $200 annually in banking fees, a considerable portion of which could be saved by selecting the right online bank account or transitioning to an online-only bank.
Online banking can be categorized into two main types:
Most traditional brick-and-mortar banks now offer online banking services, albeit with varying degrees of functionality. These online services typically include features such as fund transfers, balance inquiries, and bill payments, similar to those offered by online-only banks.
The primary distinction between online-only and traditional banks lies in their fee structures and interest rates. Online-only banks often impose minimal or no monthly fees and transaction charges for their chequing accounts, while offering competitive interest rates on savings accounts. This cost-effectiveness is attributed to their absence of physical branches, allowing them to pass on savings to customers.
However, online-only banks lack face-to-face interaction with personal bankers, which may deter some individuals seeking personalized assistance. If personalized service is a priority for you, consider exploring the online banking platforms offered by traditional brick-and-mortar banks.
Here are some limitations associated with online banks:
All the banks listed are reputable financial institutions with long-standing presence in Canada. While the possibility of them failing is extremely unlikely, there’s a safety net in place. In the event of failure, your deposits are protected up to $100,000 by the Canada Deposit Insurance Corporation (CDIC).
CDIC coverage extends to eligible deposits held in your name, joint accounts, trust accounts, TFSAs, RRSPs, and more. However, it doesn’t cover investment products like stocks, bonds, and mutual funds.
Regarding the security of your online account, breaches are rare, but it’s important to take precautions to safeguard your information. This includes using strong, unique passwords and PINs that are not easily guessable.
The surge in online banking’s popularity is understandable, given that digital-only banks lack only a few services offered by traditional banks, such as safety deposit boxes, counter service, and in-person advice.
However, online banking provides financial advice through various customer service contact options and offers the unique advantage of accessibility 24/7 from any location.
With decreasing service fees, rising interest rates, and an expanding array of convenient services, online banking has become increasingly appealing. Here are the top online banks in Canada:
EQ Bank provides a variety of financial products, including savings accounts, joint accounts, TFSAs, GICs, and more. It offers competitive rates across its accounts, including the Joint Savings Plus Account, TFSA Savings Account (3.00%), and RSP Savings Account (3.00%) for tax-sheltered interest income. Additionally, customers can send quick and cost-effective international money transfers directly from their Savings or Joint Savings Plus Account.
With no physical branches or ATMs, EQ Bank operates exclusively through its web and mobile app—a distinctive approach in the banking industry. Instead of relying on personal cheques, debit cards, or ATMs, clients manage their funds by transferring money between their Personal Account and linked accounts.
For those open to exploring alternative banking methods, the advantages are evident: the EQ Personal Account boasts no everyday banking fees, complimentary Interac e-Transfers®, free day-to-day transactions, and an impressive 2.50%* everyday interest rate (which increases to 4% if you direct deposit your pay or set up recurring authorized debits)—the highest rate among online banks. Additionally, clients can earn 5.75% interest on a 1-year GIC. It’s worth noting that Forbes has ranked EQ Bank as the top bank in Canada for two consecutive years.
Although EQ Bank doesn’t offer a traditional chequing account, the EQ Personal Account serves a similar function, enabling bill payments and instant money transfers without transaction or account fees. Moreover, clients enjoy complimentary bill payments and Interac e-Transfers®, features that can be hard to come by among Canadian online banks.
EQ Bank GICs offer rates calculated on an annual basis and are subject to change at any time.
Tangerine’s chequing account comes with no monthly fees, unlimited daily transactions, and free access to 3,500 ATMs in Canada.
Tangerine provides a range of financial products, including credit cards, mortgages, investment options, and savings accounts. Its chequing account stands out with no monthly fees, unlimited daily transactions, and complimentary access to 3,500 ATMs across Canada.
With over 1,200 employees in Canada, Tangerine Bank is renowned for its exceptional customer service. For the 11th consecutive year, Tangerine Bank has claimed the top spot for customer satisfaction among Midsize Banks in the J.D. Power 2022 Canada Retail Banking Satisfaction Study. Tangerine has been lauded for its comprehensive account offerings, time and cost-saving benefits, versatile banking options, and user-friendly digital channels, including its mobile app and website.
Simplii Financial, formerly known as PC Financial, has emerged as a leading player in the realm of online banking in Canada, renowned for its dedication to simplicity and innovation in personal banking.
Offering a comprehensive range of services covering daily banking needs like fund transfers and bill payments, as well as more significant financial endeavors such as investments and loans, Simplii ensures banking is accessible and hassle-free. Their commitment to security, evidenced by features like two-factor authentication and advanced fraud detection, instills confidence in customers regarding the safety of their transactions and personal information, all while providing the convenience of round-the-clock customer support.
Simplii Financial’s essence lies not only in its seamless day-to-day banking solutions but also in its pioneering approach to customer service and digital banking convenience.
Simplii’s appeal extends to its no-fee chequing accounts, high-interest savings opportunities, and an impressive mobile app that brings banking to users’ fingertips, reflecting the bank’s core ethos of customer-centric innovation. Special promotions, such as the high-interest savings account offer and the cash back rewards of their Visa card, underscore Simplii’s commitment to delivering tangible value to its customers.
As a testament to the power of online banking, Simplii Financial not only meets the demands of today’s digital landscape but also anticipates the needs of tomorrow’s customers, making it an outstanding choice for Canadians seeking a reliable, innovative, and customer-focused online banking experience.
Scotiabank’s online platform offers a range of banking options tailored to seniors and students alike.
For seniors, Scotiabank’s Basic Bank Account provides access to 25 debit transactions per month² and free Interac e-Transfers† for a monthly fee of $11.95. However, this fee can be waived by maintaining a balance of $3,000 for the entire month.
Additionally, students can benefit from Scotiabank’s Ultimate Package, which offers $350* in welcome bonuses, the opportunity to earn Scene+ rewards on everyday purchases with the Scene+™ program¹, and eight premium perks.
These offerings make Scotiabank’s online banking platform a versatile choice for individuals of different demographics, providing tailored solutions to meet their specific banking needs.
As one of Canada’s leading “Big 6” banks, Scotiabank’s online banking options, available through both web and mobile app platforms, are renowned for their rich features and user-friendly interface. While most customers incur a monthly service fee ranging from $3.95 to $30.95 (with exceptions for accounts with minimum balances and student accounts, and seniors receiving a discount, conditions apply), Scotiabank’s digital banking experience has earned accolades, notably being named “The Best Consumer Digital Bank in Canada” by Forrester.
Scotiabank’s online platform stands out for its time-saving banking features, seamless account opening process, and valuable tips for maximizing account benefits. With a diverse range of accounts catering to various lifestyles and financial objectives, there’s an option available to suit every individual. Moreover, Scotiabank distinguishes itself by offering rewarding perks and membership benefits that enhance the overall banking experience.
In summary, Scotiabank’s online banking platform combines convenience, versatility, and rewards, making it a top choice for Canadian consumers seeking a comprehensive digital banking solution.
It seems there might be a misunderstanding. HSBC Canada is not owned by RBC Royal Bank. HSBC is a global banking institution headquartered in London, United Kingdom, and operates independently in Canada as HSBC Bank Canada.
As part of one of the largest banks in the world, HSBC Bank Canada offers a full range of financial services and expert advice to its customers. With its global presence and extensive experience in banking, HSBC provides comprehensive solutions tailored to meet the diverse needs of individuals, businesses, and organizations across Canada.
For global citizens with frequent international transactions, the HSBC Premier Chequing Account is tailored to meet their needs. It offers unlimited withdrawals and deposits in both Canadian and U.S. funds, along with waived Interac e-Transfers® fees and $0 global wire transfer fees for transactions under $10,000, making it ideal for those regularly sending or receiving money abroad.
The HSBC Advance Chequing Account is another attractive option for frequent Interac e-Transfer® users seeking a lower monthly fee. With this account, customers enjoy unlimited transactions and waived Interac e-Transfer® fees. Additionally, the $25 monthly fee is waived after the first 6 months if a minimum balance of $5,000 in combined deposits and investments is maintained, including chequing, savings, RRSPs, TFSAs, and more, or if the account holder has a personal mortgage with HSBC with an original amount of $150,000 or more.
RBC’s online banking platform encompasses all standard features, including transfers and bill payments.
You can conveniently order foreign currency through the RBC platform and collect it from your nearest branch.
Additionally, users can access their credit score for free without any impact on their credit rating.
RBC Online, a member of the prestigious “Big 5” banks, provides a plethora of account options with varying monthly fees ranging from $4.00 to $30.00. With a rich history dating back to 1864, the Royal Bank of Canada instills trust and reliability in its customers. It serves as an ideal choice for Canadians seeking the convenience of a major bank or those interested in consolidating their financial services under one institution.
While RBC does not waive fees based on maintaining minimum balances, customers can mitigate service charges by bundling RBC products such as credit cards, investments, and mortgages. However, individuals seeking free accounts and additional perks may find better options elsewhere in the online banking landscape.
BMO’s online banking interface is user-friendly and encompasses all the standard features one would anticipate from a leading institution among the “Big 6” banks.
Their Performance Chequing Account and Premium Chequing Account carry monthly fees of $16.95 and $30.00, respectively. However, newcomers to Canada can enjoy the Performance account free of charge*, and account holders have the option to waive the monthly fee by maintaining the minimum balance*.
BMO extends discounts to seniors, students, and armed forces personnel, offering monthly fees ranging from $4.00 to $30.00.
Aligned with its counterparts among the “Big 6” banks, BMO provides a comprehensive suite of features at standard rates. However, customers leveraging the Savings Amplifier Account may enjoy the opportunity to earn competitive interest rates, boosted by bonus interest. BMO Online offers a broad array of digital services, encompassing functionalities like mobile cheque deposits and the integration of various accounts (e.g., credit cards, savings) within a unified platform.
TD Bank offers a range of no-fee savings and chequing accounts, along with a trading account accessible through TD WebBroker. This online platform provides access to trading tools, market data, and research reports, enabling users to build diversified portfolios across Canadian and U.S. markets, including stocks, ETFs, and options.
Their mobile app facilitates convenient online banking, complemented by features like TD MySpend, aiding customers in tracking and enhancing their spending habits. TD Online presents two primary checking account options: TD Unlimited Chequing and TD All-Inclusive Banking Plan, with monthly fees ranging from $16.95 to $29.95, excluding free alternatives available at institutions like Tangerine or EQ Bank, unless you qualify as a student up to 23 years of age.
Renowned as one of the premier online banks in Canada, TD Online offers the convenience of consolidating all financial services under one roof, spanning from mortgages to RRSP accounts and daily banking needs.
TD Online, encompassing all online services provided by TD Canada Trust, stands out as one of the top contenders among Canada’s best online banks. Anchored by its online platform, EasyWeb, which debuted in 2007, TD Online continually enhances its product offerings to meet evolving customer needs and preferences.
CIBC provides a comprehensive range of account options tailored to individuals across various life stages and professional paths. Specifically curated for seniors, CIBC offers five distinct account types, ranging from straightforward chequing accounts to bundled packages featuring premium credit cards and dedicated US dollar accounts.
The CIBC Everyday® Chequing Account, priced at $4 per month, offers 12 transactions monthly with an additional $1.50 charge per Interac e-Transfer. In terms of fees and interest rates, CIBC remains competitive and aligns with the standards set by other major banks in Canada.
CIBC presents two premium online chequing account options: the CIBC Smart™ Account and the CIBC Smart™ Plus, featuring monthly fees ranging from $16.95 to $29.95. Both accounts also offer up to $400 in introductory offers. Customers can waive the monthly fees by maintaining account balances of $4,000 and $6,000, respectively. Additionally, individuals under 25 years old can benefit from free banking through the CIBC Smart™ Start account option.
When you’re prepared to explore opening an online bank account in Canada, utilize this chart to compare the top online banks and their services:
This chart provides an overview of the account types, monthly fees, interest rates, and additional features offered by the leading online banks in Canada.
The best online bank account in Canada for you is the one that offers convenience, competitive features, and savings without unnecessary fees.
For those seeking a reliable online banking experience with no fees and user-friendly mobile apps, EQ Bank and Tangerine are top choices. Despite lacking physical branches, both banks provide 24/7 online and mobile access, along with essential features like unlimited transactions, paperless cheque deposits, and Interac e-Transfers®.
However, EQ Bank emerges as the standout option. With its range of no-fee savings accounts, TFSA and RRSP savings options, exceptional customer service, and cutting-edge banking technology, EQ Bank offers the best interest rates and comprehensive banking services. This makes it our top pick for the best online bank in Canada.
By choosing EQ Bank, you’ll access a full suite of banking services while maximizing your savings potential.
If you’re still undecided, consider exploring the best banks in Canada, the top chequing accounts, and the leading high-interest savings accounts for further guidance.
The content provided on Myfinancesguru.com is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.
