Digital banking has become the norm for an increasing number of Canadians, and several online-only banks have emerged over recent years to accommodate this growing practice.
Simplii Financial™ and Tangerine are two of the more commonly-used online-only banks in Canada, each of which offers a slew of products and services to meet the banking needs of Canadian consumers.
If you’re looking to make the switch to an online-only bank, should you go with Tangerine or Simplii™?
Simplii vs. Tangerine: Who Are They?
Simplii Financial is an online-only bank that offers digital banking products for consumers who prefer to take their banking completely online. It’s a company that looks to change the way Canadians do their banking. The brand was founded in 2017 and is a trademark and division of CIBC. They offer a wide array of bank accounts and credit cards, all of which can be entirely managed online or through Simplii Financial’s mobile app.
Tangerine is one of the original online-only banks to have emerged in Canada. Originally named ING DIRECT, the digital bank has since been acquired by Scotiabank and rebranded to its current name. Tangerine rivals traditional banks in terms of the banking products provided. You’ll find a full suite of products available with Tangerine, including checking and savings accounts, credit cards, and mortgages.
What Does Simplii vs. Tangerine Offer?
Both Tangerine and Simplii Financial make excellent choices for online-only banking. To help you determine which financial institution to bank with, you’ll want to compare the products, services, and features they offer to find one that more closely matches your needs.
| Simplii Financial | Tangerine | |
| Basic Banking Accounts | – High-interest savings account – No-fee chequing account – USD savings account | – Savings account – US dollar savings account – Children’s savings account– Business savings account |
| Investment Accounts | – Guaranteed investment certificates (GICs) – Mutual fund accounts – RRSP savings account – Tax-free savings account (TFSA) | – Guaranteed investment certificates (GICs) – RIF investment fund accounts – RSP investment fund accounts – Non-registered investment accounts – Tax-free savings account (TFSA) |
| Loans | – Personal loans – Mortgages – Lines of credit | – RSP loans – Mortgages – Lines of credit |
| Credit Cards | Simplii Financial Cash Back Visa Card | – Tangerine World Mastercard – Tangerine Money-Back Credit Card |
| Money Trasfer Service | Simplii Financial Global Money Transfer | N/A |
Benefits Of Banking With Simplii vs. Tangerine
Both online banks offer a plethora of perks, which is why they are two of the more popular digital banks among Canadian consumers.
Simplii Financial
- No monthly fees
- No minimum account balance requirements
- Unlimited withdrawals, bill payments and debit purchases.
- Free access to more than 3,400 CIBC ATMs in Canada
Tangerine
- No monthly fees
- Unlimited withdrawals
- Free Interac e-Transfers
- Free access to more than 3,500 Scotiabank ATMs in Canada
- High-interest rates on GICs
- 2.10% promotional rate for your first savings or checking accounts
Drawbacks Of Banking With Simplii vs. Tangerine
While there are plenty of benefits of banking with either Simplii Financial or Tangerine, there are also a few drawbacks to consider.
Simplii Financial
- Interest rates on savings accounts are slightly lower than other digital banks
- Not available in Quebec
Tangerine
- Interest rates on savings accounts are slightly lower than other digital banks
- No personal or auto loans available
- No foreign currency services or international money transfers
Overview Of Simplii vs. Tangerine
| Simplii Financial | Tangerine | |
| Monthly Fee | $0 | $0 |
| Transactions limits | Unlimited | Unlimited |
| Interac e-transfer | Free | Free |
| ATM withdrawals | Free at CIBC bank machines | Free at Scotiabank bank machines |
| Branches available | No | Some Tangerine “cafes” open in select cities in Canada |
| Overdraft rate | $4.97 + 19% of the amount accessed. Only available on chequing accounts. | $5 if the balance remains overdrawn by the end of the day. |
| Auto-deposit | Yes | Yes |
| Types of accounts | – High-interest savings account – Tax-free savings account (TFSA) – USD savings account – No-fee chequing account – RRSP savings account – Guaranteed investment certificates (GICs) – Mutual fund accounts | – Savings account – Tax-free savings account (TFSA) – RSP savings account – US dollar savings account – RIF savings account – Children’s savings account – Business savings account – Guaranteed investment certificates (GICs) – RIF investment fund accounts – RSP investment fund accounts – Non-registered investment accounts |
| Sign-up bonus | n/a | 2.8% promotional rate in first 5 months on savings accounts |
| Mobile App | Yes | Yes |
| International Money Transfers | Free | Not available |
Is It Safe To Bank With Tangerine And Simplii?
Both digital banks are very safe to bank with. Tangerine and Simplii Financial are insured by the Canada Deposit Insurance Corporation (CDIC). Plus, both banks use encryption features and security systems to protect your personal information from potential hackers.
Should You Bank With Tangerine Or Simplii?
Both Tangerine and Simplii Financial are very comparable. If you’re looking for accounts that come with zero monthly fees, unlimited transactions, and the convenience of banking online or via your mobile device, then either bank will do just fine. That said, each bank comes with its own features that you may not find with the other.
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For instance, if you want foreign currency services or international money transfers, then go with Simplii, as Tangerine does not offer such services. But if you reside in Quebec, then consider banking with Tangerine, as they are available all across Canada. Be sure to assess your needs to help you choose which bank more closely matches what you’re looking for.
