Introducing motusbank, Canada’s newest full-service online bank, aimed at injecting vitality into the virtual banking landscape. As a subsidiary of Meridian, one of Canada’s largest credit unions, motusbank leverages instant credibility to deliver customer-focused service, emphasizing high interest rates and minimal fees. With a bold, colorful branding and user-friendly website, motusbank distinguishes itself from the traditional banking giants.
Now, the critical question: How does motusbank compare to its direct competitors—Tangerine, EQ Bank, and Simplii Financial—in terms of fees and interest rates, the paramount factors for virtual banking customers?
Traditional banks’ chequing accounts typically offer minuscule interest rates, coupled with transaction fees that can only be avoided by maintaining a minimum balance or paying a monthly fee.
In contrast, motusbank’s chequing account not only waives most transaction fees but also boasts a 0.15% interest rate. While this rate may not be as remarkable as those offered by savings accounts, it stands out as one of the highest in the country for chequing accounts.
Motusbank shines with an impressive 2.5% interest rate for its High-Interest Savings Account (HISA). Notably, this rate is permanent, distinguishing it from promotional rates that often drop significantly after a short period. Moreover, motusbank’s HISA features no minimum balance requirements or monthly fees for self-serve transactions like transfers and withdrawals.
Comparatively, Tangerine’s savings account, while fee-friendly, offers a less remarkable interest rate. However, EQ Bank’s Savings Plus Account emerges as the frontrunner among no-fee, no monthly balance HISAs with a rate of 2.50%*.
(*Interest calculated daily on total closing balance, paid monthly. Rates subject to change without notice.)
Canadians cherish their Tax-Free Savings Accounts (TFSAs) for good reason. As a versatile account capable of holding various investments such as stocks, bonds, and ETFs, it stands as one of the most effective ways for Canadians to earn tax-free income.
Motusbank leads the pack with a no-fee, no minimum balance TFSA offering an impressive 2.50% interest rate. In comparison, Tangerine offers the same rate of 1.00% on its TFSA as it does on its High-Interest Savings Account (HISA). Meanwhile, Simplii Financial’s TFSA rate sits at 0.40%, while its HISA offers up to 2.00%.
GICs are a favored method of saving for those who prefer a steady and reliable form of investment. Presently, motusbank stands out with a 5-year fixed rate GIC offering a competitive rate of 4.05%, alongside TFSA GIC options. Similarly, Tangerine offers a 5-year GIC at the same rate of 4.05%. In contrast, EQ Bank boasts a slightly higher rate of 4.50% for their five-year GICs.
(*EQ Bank GIC rates are calculated per annum and are subject to change.)
Buying a home marks a significant financial milestone for many Canadians, with securing a reasonable mortgage rate being the crucial first step in the house-hunting journey. Mortgage rates can vary greatly based on whether you opt for a variable or fixed rate, as well as the timeline you’re working with. It’s important to note that banks may also offer special rates from time to time, so it’s advisable to check with individual financial institutions to ensure you have the most up-to-date information on mortgage rates.
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