Best Hybrid Bank Accounts in Canada 2022

Best Hybrid Bank Accounts in Canada 2022

Written by Chrissy Kapralos
Fact-checked by Caitlin Wood
Last Updated August 2, 2022

As the market changes and innovation continues, people continue to look for banking and financial solutions that are tailored to their personal and financial situations, and that doesn’t stop with the traditional chequing and savings accounts, or with online banking. People want more flexibility in how they can manage and access their money, and a hybrid bank account is one innovative way of achieving that.

What Is A Hybrid Account?

Resembling a high-interest savings account, a hybrid bank account boasts a similar interest rate to a high-interest savings account, with the flexibility of a regular chequing account. Depending on your financial needs, you have the flexibility to let your money stay in the account and grow interest or you can use your account daily to pay bills, send e-transfers, and withdraw money. Most hybrid accounts offer interest rates ranging from 0.05 – 2%, while most chequing accounts offer low to no interest at all. In short, a hybrid bank account gives you the interest-accumulating power of a savings account, combined with the freedom of a chequing account. 

Advantages And Disadvantages Of A Hybrid Account

While a hybrid bank account has many advantages for the right person, there are also a couple of negative factors to consider before deciding to sign up for one. Take a look at these pros and cons before making a decision:

Pros Of Hybrid Bank Accounts

  • Low fees – Many hybrid accounts are offered by online-only banks. Their lower management costs lead to lower or no fees for their clients. 
  • No physical bank branch – As mentioned, hybrid accounts are generally offered by digital banks. This means everything can be managed online from the comfort of your home.  
  • Unlimited transactions – Hybrid accounts usually have unlimited transactions and withdrawals. It’s designed to provide the user with the flexibility of a chequing account while still allowing the user to save and earn interest on their balance like a savings account. Do note,  while many hybrid bank accounts offer unlimited transactions it can vary by provider, so be sure to read the fine print. 
  • High-interest rates – Many hybrid accounts come with high-interest rates, especially compared to the big banks like TD, BMO, RBC, CIBC, etc. 
  • Easy access online – You can open, manage or close your account all online. 

Cons Of Hybrid Bank Accounts

  • No physical bank branch – If you prefer doing your banking in-person, then a hybrid account may not be the best option as many are offered by online-only banks. 
  • Limited functions  – Compared to other credit and debit cards, a hybrid bank account may have limited functions. 
  • Limited ATMs for cash withdrawal – The number of free ATMs for cash withdrawal may be limited based on the provider you choose.

Best Hybrid Accounts In Canada

 FeesInterestMain Features
EQ Bank Savings Plus AccountNone 1.50*%– One of the highest interest rates
– Absolutely no fees
– No min deposit
– Max deposit of 200,000
KOHO SaveNone 1.2%– High, long-term interest rate
– Cash back on purchases
Manulife Advantage AccountNone, unless account balance is under $1,0000.15%CDIC-protected
– No fees with balances over $1,000
Simplii Financial™ No-Fee Chequing AccountNone0.05%– No monthly fee
– No min balance
– Unlimited free e-transfers
– Free access to all CIBC ATMs

EQ Bank Savings Plus Account

EQ Bank Logo

The EQ Bank Savings Plus Account is an attractive choice for consumers who like to keep a large balance in their chequing account but are looking for the benefits of a savings account. There is no minimum balance required but the total balance cannot exceed $200,000. This hybrid account offers a high-interest rate of 1.50%* (calculated day, paid monthly) on all deposited funds, which is one of the highest out of all the hybrid accounts listed here. Moreover, there are no fees and deposits are CDIC protected.

*Interest is paid monthly and calculated daily on the total closing balance. Rates are subject to change without notice

Interest Rate1.50%*
Monthly Fee$0
Welcome/ Bonus OfferN/A
Mobile AppYes (Android & Apple)
– Mobile cheque deposit feature

*Interest is paid monthly and calculated daily on the total closing balance. Rates are subject to change without notice

KOHO Account

KOHO

When you open a free KOHO account, you’ll earn a 1.2% interest rate on all your money, from both your savings and spendable accounts. KOHO offers a long-term rate, with no promotional period, no fees, and no minimum balances. Additionally, KOHO lets you earn 0.5% cash back on every dollar that you spend, plus earn even more when you shop with their partners. So, you’re earning interest and extra money just for making purchases using the card.

Learn More
Interest Rate1.2 %
Monthly Fee$0
Welcome/ Bonus OfferGet $20 when you sign up for a free KOHO account with code LOANSCANADA and make your first purchase.
Mobile AppYes (Android & Apple)
– Track your spending + balances
– Lock your card in-app
– Sign up for credit building tool

Manulife Advantage Account

Manulife Insurance

Manulife’s Advantage Account has a relatively low-interest rate for your deposited funds – 0.15%. The account has no fees, the same flexibility as most hybrid accounts, and there is no minimum balance to start earning interest. There is also no monthly fee but account holders need to keep a minimum balance of $1000 to take advantage of free unlimited everyday banking transactions 

Interest Rate0.15%
Monthly Fee$0
Welcome/ Bonus OfferN/A
Mobile AppYes (Android & Apple)

Simplii Financial No-Fee Chequing Account

While Simplii Financial’s No-Fee Chequing Account offers a relatively low-interest rate for your deposits, at 0.05%, this account truly shines because of its no-fee structure. There is no monthly fee and no minimum balance to meet. Unlimited debit transactions, bill payments, and withdrawals. And account holders can send unlimited Interac e-Transfers for free. Clients also have access to any CIBC ATM in Canada for free. 

Simplii™ provides its clients with free daily banking, which for many Canadians, is an important part of creating a budget and meeting financial goals.

Welcome Offer

When new clients open a Simplii Financial No-Fee Chequing Account they can earn $350. Account-holders must set up 3 eligible direct deposits. Offer ends on October 31, 2022, and limits apply.

Learn More
Interest Rate0.05%
Monthly FeeFree
Welcome/ Bonus Offer$350 welcome bonus for new clients
Mobile AppYes (Android & Apple)
– Pay bills
– Transfer funds
– Check your balance
– Mobile cheque deposit

Hybrid Account FAQs

Is interest earned on the hybrid accounts taxable?

  Yes, similar to other high-interest savings accounts, you must pay taxes on the interest you make with a hybrid account. Note that you only need to pay taxes on the interest amount, not the amount of money originally put into the account. 

Is a hybrid account better than a high-interest savings account?

It depends on your financial scenario. Hybrid accounts are generally more beneficial to bigger spenders, as they have the opportunity to make interest on money that would otherwise already be sitting in their chequing account. People who keep most of their money in savings, however, might be better off with a high-interest savings account. 

Is my money protected by the CDIC with Hybrid accounts?

Your money is safe with hybrid accounts, as the money deposited and interest made is protected by the Canada Deposit Insurance Corporation (CDIC). KOHO and EQ hybrid accounts are insured up to $100,000 by the CDIC, while Wealthsimple Cash accounts are insured up to $1,000,000 by the Canadian Investor Protection Fund. 

Final Thoughts

Hybrid bank accounts are great options for people who want more flexibility in their banking. They are especially good for those who keep large amounts of money in their chequing accounts, as they have the opportunity to generate interest. Make sure to inquire about all the incidentals in your bank agreement, such as minimum deposits, CIDC insurance, interest rates, and any administrative fees. 

Chrissy is a Toronto-based communications advisor. With an English degree from the University of Toronto and editing courses under her belt from Ryerson University, she has continued her lifelong passion for writing and editing. In addition to working for Loans Canada on a variety of financial topics, Chrissy has a few years of resume writing and editing under her belt, and takes great pleasure in helping people find work that fits with their experience and passions. When she isn't working, you can find her practicing yoga, hanging out with her dog, reading up on financial and real estate news, or planning her next trip abroad.

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