Motusbank Review

Written by Lisa Rennie
Fact-checked by Caitlin Wood

Categories

Today’s savvy consumer doesn’t want to waste their time physically visiting their bank branch to deal with their day-to-day banking. Instead, what they’re looking for is a much more convenient and time-effective way to manage their finances, and digital banks like Motusbank are providing such conveniences.

One of Canada’s newest online-only banks, Motusbank delivers a fully digital banking experience for Canadians looking for convenience when handling their finances. The online bank was launched by the Ontario-based Meridian Credit Union in 2019. Like other digital banks, Motusbank has no physical locations. It is available to Canadians everywhere except Quebec.

The online bank offers all the typical services that you would expect from a traditional bank, like mortgages, lines of credit, TFSA savings accounts, GICs, and simple chequing accounts.

Let’s review Motusbank in a little more detail before you decide if this is the right online bank to entrust your daily banking needs with.

What Accounts Are Available Through Motusbank?

Motusbank offers the following types of accounts.

These are the bank account types that Motusbank has to offer:

High-Interest Savings Accounts

Interest rates start at 1.55%
No minimum balance required
No fees for self-serve transactions
No limits on withdrawals and debit purchases
Automatic savings option available

TFSA Savings Account

Interest rates start at 1.75%
No minimum balance required
No monthly fees
Tax-free withdrawals
Up to $100,000 by CDIC
Automatic savings option available

RRSP Savings Account

No monthly fees
No minimum balance required
Earnings are sheltered from tax until withdrawn
Interest rates start at 1.55%
Automatic savings option available

No-Fee Chequing Account

Free Interac e-transfers
No minimum balance required
No monthly fees
0.25% interest on every dollar
First order of 25 cheques is free
Unlimited withdrawals and debit purchases
$100,000 secured by CDIC
Deposit cheque by photo with Deposit Anywhere

RRSP GIC Accounts:

18-month GIC

Interest rates start at 1.70%
Minimum investment of $100
Tax-Free (TFSA) and RRSP GIC options
Principal and interest guaranteed
$100,000 secured by CDIC

18-month TFSA GIC

Interest rates start at 1.75%
Minimum investment of $100
Tax-Free (TFSA) and RRSP GIC options
$100,000 secured by CDIC

5-year RRSP GIC

Interest rates starts at 2.15%
Minimum investment of $100
Tax-Free (TFSA) and RRSP GIC options
$100,000 secured by CDIC

Home Equity Line of Credit (HELOC)

Interest rate 2.75%
Prime Rate 2.45%

Mortgages

Fixed-rate mortgage rate starting at 2.59%
Variable-rate mortgage rate starting at 2.45%

Pros and Cons of Online Banking at Motusbank

Pros

Many products offered. Motusbank’s offerings are pretty impressive and are comparable to your average brick-and-mortar bank. You can take out a savings account, apply for a mortgage, or invest for your future with the products offered by Motusbank.
No fees on savings and checking accounts. A big advantage of Motusbank is that there are no fees charged for the savings and checking accounts, so you won’t be slapped with any unpleasant surprise fees on your statements.
High-interest savings. You can earn a little bit every month thanks to the high rates offered on savings accounts, starting at 1.55%.
Great deposit and withdrawal options. You’ll have unlimited free Interac e-transfers and can make bill payments to yourself to get access to your money. Plus, you can and virtually deposit cheques simply by taking an image with your smartphone thanks to the Deposit Anywhere feature.
Part of THE EXCHANGE Network. This is a group of banks and credit unions that are in contract with one another, allowing clients of each other’s institutions to use their ATMs, so you’ll have access to thousands of ATMs across the nation and the world.
Money is insured by the CDIC. Up to $100,000 in eligible deposits will be protected by the federal government.
Competitive loan rates. The rates offered for mortgages, personal loans, and lines of credit are competitive relative to what other financial institutions are offering, helping you save money.
Flexible payment and skip-a-month options. If you’re looking to work around your paychecks or are having a challenging month, you may be able to come up with a more flexible payment plan or even skip a month in payments to help you get back up on your feet and catch up.

Cons

The biggest drawback is the lack of physical presence. While online banking is incredibly convenient, there may be times when some customers may prefer to speak with someone face-to-face.

Overview of Accounts

Motusbank Chequing Accounts

	Chequing Accounts
Annual Fee	$0
Minimum Balance	None
Number of ATM Withdrawals Permitted	Unlimited
Interest Rate	0.25%
Special Features	$100,000 secured by CDIC Deposit cheque by photo with Deposit Anywhere™ First order of 25 cheques is free

Motusbank Savings Accounts

	High-Interest Savings Accounts	TFSA Savings Account	RRSP Savings Account
Annual Fee	$0	$0	$0
Minimum Balance	None	None	None
Interest Rate	Start at 1.55%	Start at 1.75%	Start at 1.55%
Special Features	Automatic savings option available	Automatic savings option available. Tax-free withdrawals	Automatic savings option available. Earnings are sheltered from tax until withdrawn

Motusbank Investing Accounts/Option

	18-month GIC	18-month TFSA GIC	5-year RRSP GIC
Fees
Minimum investment	$100	$100	$100
Interest Rate	1.70%	1.75%	2.15%
Special Features	Tax-Free (TFSA) and RRSP GIC options $100,000 secured by CDIC	Tax-Free (TFSA) and RRSP GIC options $100,000 secured by CDIC	Tax-Free (TFSA) and RRSP GIC options $100,000 secured by CDIC

Borrowing With Motusbank

	Fixed-Rate Mortgages	Variable Rate Mortgages	HELOC
Terms	6 months to 5 years	5 years
Interest	Starting at 2.59%	Starting at 2.45%	Interest rate 2.75% Prime Rate 2.45%

What Customer Support Does Motusbank Have Available?

Motusbank offers different channels to contact them:

Toll-free: 1 (833) 696-6887
International: (416) 925-7373
Email: memberservice@motusbank.ca
Contact form on the website

How to Open an Account With Motusbank

To open an account with Motusbank, you will have to show proof that you are a Canadian resident, have a valid email address, and are the age of majority. You’ll then be asked to submit a few pieces of information regarding your identity, including:

Full name
Mailing address
Email address
SIN
Birthdate

From there, you’ll be asked to set up an account by choosing a password, after which you’ll be taken through a series of steps to complete your account registration.

Is It Safe to Bank With Motusbank?

Yes, it is absolutely safe to bank with Motusbank. As much as $100,000 of your hard-earned money will be insured by the CDIC. That means if your money is ever lost in the event that the bank goes under, your money will still be available to you. Plus, Motusbank is affiliated with Meridian Credit Union, which has been around for about 75 years, so you’ll be dealing with a financial institution that has decades of experience.

Who is Best Suited For Online Banking With Motusbank?

Motusbank is perfect for consumers who:

Are looking for a more convenient way to do their banking
Are looking for competitive rates on loan products
Want a one-stop-shop with a bank that offers a variety of banking products

Final Thoughts

In today’s digital age, more and more people are looking for a more convenient way to do their banking, and nothing is more convenient than being able to apply for loans, move money around, and even deposit checks with a few simple clicks. Motusbank is all about this experience and may be worth checking out if you’re looking to take your banking entirely online.