Canadian online banks distinguish themselves from traditional banks by primarily offering virtual services without physical branches. Unlike traditional banks that incorporate some online services, online-only banks typically lack brick-and-mortar locations, providing all services digitally. These online banks often operate as subsidiaries of credit unions or traditional banks, such as Motusbank under Meridian and Tangerine under Scotiabank. However, independent financial institutions, like WealthONE Bank of Canada, also exist within the online banking sector. Online banks offer great online-only checking accounts, which often earn interest, unlike traditional checking accounts.
Online-only checking accounts can be a great option for people who do not require in-person services, and have no need to frequently withdraw funds from ATMs as the online-only banks may have limited ATM service. Online-only checking accounts often have no fees, they offer interest income for deposits, and demand low or no minimum deposits to open accounts. They also come with some new hi-tech features like budgeting help and recurrent automatic transfers to different accounts. Some services enable customers to effortlessly retrieve their account details, facilitating budgeting and simplifying tax preparation process.
EQ Bank Personal Account
EQ Bank, introduced in 2016 under Equitable Bank, its parent company, serves as a cost-effective digital substitute for conventional banking services. While its range of accounts and investment options may be more restricted compared to other financial entities, its appealing interest rates and absence of monthly charges have drawn in excess of $8 billion in customer deposits.
EQ Bank is one of the online-only banks that offers pretty attractive checking accounts. Here are some of the features of EQ Bank:
- Customers who arrange direct deposit on their EQ Bank account can enjoy a bonus interest on recurring pre-authorized debits. Here’s how to qualify for the bonus interest:
- Establish $500 or more per month in either direct deposit for your salary or recurring pre-authorized debits.
- This offer applies to your Personal Account, Joint Account, and EQ Bank Card¹ balance.
- Once set up, you’ll be eligible for the enhanced rate of 4.00%* for 12 months!
- Those who have already set up the above automatically qualify for the bonus interest.
- With a 4.00% interest rate (Interest is calculated daily on the total closing balance and paid monthly), no monthly fee, and a hybrid structure combining savings benefits with chequing flexibility, this account is a compelling option.
- Mobile Cheque Deposit is available via the EQ Bank mobile app, and there are zero monthly banking fees, transaction fees, or service fees. EQ Bank does not impose account fees, charge for Interac e-Transfers, bill payment fees, overdraft fees, or dormant account fees.
- There’s no minimum balance requirement, but there is a maximum balance limit of $200,000.
- Accessing your funds is convenient through the mobile app and online banking website, where you can deposit or transfer funds using Interac e-Transfers® or Electronic Funds Transfer (EFT) to linked accounts.
- The account is eligible for CDIC deposit insurance.
- As of December 2022, EQ Bank is available to residents of Québec.
Simplii Financial No Fee Chequing Account
Simplii Financial™ is a division of CIBC. That means that banking products and services under the Simplii Financial™ brand are provided by CIBC. Here are the features of Simplii Financial’s online-only checking account:
- New Simplii Financial™ clients can earn rewards by setting up eligible recurring direct deposits totaling at least $100 per month within 120 days.
- The account offers no monthly fees, no minimum balance requirement, and unlimited debit transactions.
- Clients also get free access to CIBC ATMs across Canada and can use the Simplii Financial Debit Mastercard for online and in-store purchases.
- Optional features include overdraft protection for a monthly fee and the ability to earn $50 by referring friends.
- Interest rates are 0.01% on balances up to $25,000 and 0.05% on balances over $25,000.
- CDIC protects eligible deposits.
Tangerine No-Fee Daily Chequing Account
Tangerine is a subsidiary of Scotiabank . The bank offers the following features on its online-only checking account:
- If you open your first chequing account and move your paycheques to it for two consecutive months, you will receive $250.
- The account has no monthly fees and an interest rate of up to 0.1%.
- You can enjoy free online daily banking, covering debit purchases, bill payments, pre-authorized payments, Interac e-Transfers, and ABM transactions within Scotiabank’s ABM network.
- For ABM withdrawals with other banks in Canada, only a minimal fee of $1.50 is applicable. For withdrawals on other networks worldwide, the fee is $3.00. As a bonus, you receive your first cheque book (50 cheques) for free. Each additional cheque book costs $50.
- The Tangerine Client Card with Visa Debit, is accepted anywhere Visa is acknowledged, and it is seamlessly integrated with Apply Pay, Google Pay, and Samsung Pay.
- Rest assured, your card is protected by Interac and Visa Debit Zero Liability, safeguarding you from unauthorized purchases.
- You can monitor your spending activity effortlessly with Tangerine’s tools and alerts.
- CDIC protects all eligible deposits, ensuring peace of mind for your finances.
Wealthsimple Spend
Wealthsimple is an independent bank and an investment platform that was set up in 2014. As of now, it holds $20 billion in assets. It also offers one of the best checking accounts on the Canadian market, a Spend checking account.
Here are the benefits of a Wealthsimple checking account:
- No monthly fees, foreign exchange fees, or ATM fees.
- No minimum balance requirement.
- You can easily manage your rewards, spending, and peer-to-peer transactions using the mobile Wealthsimple Cash App.
- You can utilize your Wealthsimple Spend account for bill payments, e-transfers, and direct deposit of your paycheque.
- You can use the Wealthsimple Spend card anywhere Visa is accepted, both in-store and online.
- You can opt for either a digital or physical Wealthsimple Cash Visa debit card, or both.
- Adding your card to digital wallets such as Apple Pay and Google Pay is simple. Also, you can use it at ATMs nationwide (standard ATM fees apply).
- You earn 1% back in cash, stock, or cryptocurrency with every purchase made using your account.
- Enjoy the security of CDIC protection for eligible deposits.
Overall, these four online-only checking accounts offer a range of features tailored to individuals seeking a fee-free banking experience with convenient access to various banking services and rewards.
The choice is up to you!
