Best Hybrid Bank Accounts in Canada 2023

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 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

Neo Money^TM Account

The Neo Money^TM Account offers one of the best daily interest rates, 2.25%*, for a hybrid high-interest savings and everyday spending account. Not only will account holders earn interest on their balances (up to $200,00), but they will benefit from no monthly or annual fees, no minimum balance requirements, and unlimited free transactions.

The Neo Money Account can be used to save for the future, pay bills, and send Interac® e-Transfers for free. If you’re looking for a bank account that’s free, doesn’t require a minimum balance, and offers unlimited free transactions, the Neo Money^TM Account is a great option to consider.

Sign Up Bonus

Open a Neo Money^TM Account today and receive a $5 bonus².

EQ Bank Savings Plus Account

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

KOHO Account

KOHO offers three tiers of accounts that you can use to spend and save money. When you open a KOHO account, you’ll earn savings interest of up to 1.5% on your entire KOHO account balance. Additionally, KOHO lets you earn up to 2% cashback on your purchases and up to 6% cashback when you shop with their partners. So, you’re earning interest and extra money just for making purchases using your account.

Manulife Advantage Account

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 

Simplii Financial No-Fee Chequing Account

While Simplii Financial’s No-Fee Chequing Account offers a relatively low-interest rate for your deposits, up 0.10%, 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

Open a new Simplii No-Fee Chequing Account and earn $350. Add an eligible direct deposit of at least $100 a month for 3 straight months. Limits apply offer ends January 31st, 2023.  

Additional Reading

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Canadian Bank Institution Numbers

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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. 

Neo Money^TM is provided by Concentra Bank.

® Trademark of Interac Inc. Used under license.

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

¹ The Neo Money^TM account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Money^TM accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor. For more information about CDIC deposit insurance, please consult CDIC’s website cdic.ca.

² Limited-time offer. Only new Neo Money™ customers are eligible for this offer. This offer is only awarded if a new customer opens a Neo Money™ Account and deposits a minimum of $50 within the next 90 days. Offer is subject to the Rewards Policy, the Neo Platform Terms and Conditions and all other applicable terms and conditions. Offer may be amended or cancelled at any time without notice.