Most Canadians depend on their chequing accounts for paycheque deposits and cash withdrawals. But you don’t have to rely on your brick-and-mortar bank to provide you with such widely-used accounts. Instead, there are several online-only banks in Canada that offer e-chequing accounts that offer competitive interest rates and no monthly fees.
We’ve assessed the various online chequing accounts available to Canadians and hand-picked a few that stand out.
Previously known as ING Direct, Tangerine is an online-only subsidiary of Scotiabank and offers plenty of banking options and products, much like you would get with a traditional brick-and-mortar bank. That said, Tangerine’s more popular product is the no-fee chequing account, which pays out a decent interest rate on funds deposited.
There are no monthly or transaction fees, which is a big plus considering many other no-fee chequing accounts come with a finite number of free transactions. No minimum balance is required either, so you won’t get slapped with pesky fees to keep your account open.
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One of the newer players on the online-only banking scene is motusbank, which is owned by Meridian Credit Union and is a member of CDIC, so your deposits will always be insured for security. motusbank’s low overhead banking model allows the bank to pass its savings onto clients in the form of higher interest rates. There are no monthly or transaction fees that are typical of the average bank, and you’ll have around 3,700 bank machines across Canada to withdraw cash from for free.
Simplii Financial, the online banking arm of CIBC, is a widely-used banking option for a growing number of Canadians. Simplii™ offers a number of financial products, including its popular No-Fee Chequing Account. With this account clients receive free daily banking. This includes no fees and no minimum balance requirements, free Interac e-transfers, and unlimited debit purchases and bill payments. Plus, you’ll have access to 3,400 ATMs across Canada for free.
The most popular financial product offered by Alterna Bank is its no-fee chequing account. It’s entirely free to use and comes with a number of attractive perks, such as no transaction limits and no monthly fees. You’ll have access to over 3,300 ATMs within the EXCHANGE Network, and your deposits will also be fully insured by the CDIC. While the bank is entirely online, it does offer in-person service at its parent, Alterna Savings Credit Union. Your deposits will also be fully insured by the CDIC.
Motive Financial’s chequing account offers one of the highest interest rates going. At 0.25% for all balances, that’s a pretty competitive rate and one that attracts many Canadian consumers. You’ll also have the freedom of unlimited transactions and deposits, no monthly fees, and free withdrawals with the second largest ATM network in Canada.
| Tangerine | motusbank | Simplii Financial | Alterna Bank | Motive Financial | |
| Fee | $0 | $0 | $0 | $0 | $0 |
| Minimum Balance | $0 | $0 | $0 | $0 | $0 |
| Interest rate | Up to 0.10% | Up to 0.25% | Up to 0.05% | 0.05% | 0.25% |
| # Transactions | Unlimited | Unlimited | Unlimited | Unlimited | Unlimited |
| Interac e-Transfers | Free, unlimited | Free, unlimited | Free, unlimited | Free, unlimited | Free to receive; $1 to send |
| Paper cheques | First 50 cheques free | First 25 cheques free | Free, unlimited | N/A | First 50 cheques free |
| Overdraft Rate | $5 per item | N/A | $4.97 per item | $2.50/month | $5 per item |
| Accessibility | Online, app, ATMs | Online, app, ATMs | Online, app, ATMs | Online, app, ATMs | Online, app, ATMs |
| Insured/Protected | Yes | Yes | Yes | Yes | Yes |
While savings accounts are meant to help you grow your money safely with a very modest interest rate, chequing accounts are the backbone of your banking. They’re meant to deposit your paycheque, access funds from an ATM or through your debit card, and pay your bills, among other things. Basically, chequing accounts act as transaction accounts.
The funds you have deposited in these accounts can grow with the right online bank, while still serving as direct access to your money at any time without penalty. Thanks to the liquidity of the money in these accounts, they traditionally do not come with very high-interest rates. But there are some checking accounts that give savings accounts a run for their money when it comes to interest, including some of those mentioned above.
And while most traditional big banks tend to charge a fee for these accounts, the online chequing accounts listed here do not, making them an even more attractive financial product to add to your repertoire.
When it comes to online-only chequing accounts, you’ll have the opportunity to access your account completely online, making banking as convenient as possible. If you’re digitally savvy and prefer to do all your banking remotely from wherever you happen to be, then an online-only chequing account may be a perfect option for you.
When choosing an online-only chequing account, there are certain things to take into consideration, including the following:
Some consumers might worry about taking their banking entirely online and interacting with their chequing accounts virtually rather than the traditional way of physically visiting a bank. Given the sensitivity of the information you’re dealing with, it’s understandable to be a bit skeptical. But the truth is banking online is completely safe.
If you bank with a reputable online bank, your funds are safe, as is your personal information. Online banks use robust encryption to keep your personal information safe, though it’s still advised to use a strong password to minimize the risk of hacking. Further, online banks such as the ones listed here insure deposits through the CDIC in the event that the bank collapses, so you won’t be left empty-handed.
Chequing accounts aren’t known for their high-interest rates, but some offer higher-than-average rates that can help take your money a little further. And with online-only chequing accounts, you can take advantage of the ultimate in convenience by doing all your bill payments, cheque deposits, and other transactions for the comfort of your home or wherever else you happen to be.
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Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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