Online banking continues to grow in popularity among Canadians looking for convenient and low-cost banking options. Online-only banks offer many services as traditional brick-and-mortar banks but without the overhead expenses of operating physical branches. This allows many online banks to offer higher interest rates on savings accounts, lower fees, and compelling promotional offers.
This article compares the top online-only banks available to Canadians in 2024 based on factors such as types of accounts offered, fees, interest rates, accessibility and reputation. Whether you want a chequing account, high-interest savings or a hybrid chequing/savings account, one of these leading online banks can likely meet your needs.
Best Online-Only Banks 2024 At A Glance
| Bank | Key Features |
| Simplii™ | No fees, free transfers, $500 sign up bonus, access to mortgages, loans, investments |
| Tangerine | No-fee savings accounts, free transfers between savings accounts, Great no-fee credit card, access to mortgages and loans |
| EQ Bank | High everyday interest savings up to 4.00%, chequing account pays interest, 0.5% cash back debit card, no monthly fees |
| motusbank | Unlimited free transactions checking accounts, high 2.5% savings rate, access to 43,000+ no-fee ATMs, TFSA & RRSP accounts |
| Wise | Multi-currency accounts in 10 currencies, hold & exchange over 50 currencies, low fee money transfers |
| Alterna Bank | 2.25% high interest savings, Up to $2K new client investing offer, no-fee chequing available, online investing with Qtrade partnership |
| Wealthsimple | Hybrid spending & savings account, 1% cash back on spending, up to 5% interest rate on deposits, peer-to-peer lending |
#1 Simplii Financial™ – Best No-Fee Banking
Simplii™, owned by CIBC, earns its spot due to its diverse range of no-fee banking services. It provides various products, including chequing and savings accounts, credit cards, mortgages, loans, and investment options. This makes it a great one-stop shop for online banking.
Despite lower fees, Simplii’s interest rates aren’t market-leading. Overall, Simplii is a good solution for diverse online banking with low to no fees.
Key Features
- A high-value welcome bonuses
- Earn $500† when you become a new client and open a No-fee Chequing Account by February 28, 2025. Add an eligible direct deposit of at least $100 a month for 3 straight months. Offers ends February 28, 2025.
- Get a special interest rate. Earn a 6.0% interest rate on your first Simplii Financial High Interest Savings Account for the first 5 months. Limits apply. Offer ends January 31st, 2025.
- Diverse banking services encompassing savings, investments, loans, and more
- Low fees or no-cost banking
Types Of Products And Services Offered
- Personal Everyday Banking: Savings accounts, chequing accounts, USD savings accounts, foreign savings accounts, newcomer banking, and student banking.
- Personal Borrowing: Credit cards, secured lines of credit, personal loans, and mortgages.
- Personal Investments: GICs, TFSAs, RSPs, and mutual funds.
- Business Banking: N/A
Simplii Financial Pros And Cons
| Pros | Cons |
| – $400 welcome bonus for chequing accounts – Wide range of banking options available – Low, or no-fee banking – Access CIBC ATMs | – Only one credit card option |
#2 Tangerine – Best For Goal-Based Saving
Tangerine is owned by Scotiabank, and is a direct Simplii competitor. As above, Tangerine stands out with diverse banking options, including everyday banking, borrowing, and investments. Its value matches Simplii, only edging it out with business banking.
As usual with online banking, Tangerine’s chequing and savings accounts have no fees. However, they also have one of the best no-fee credit cards available today, the Tangerine Money-Back Credit Card. Overall, Tangerine remains a popular choice, offering many solutions to centralize online banking.
Key Features
- Tangerine offers a wide range of online banking products, but it’s most well-known for its no-fee chequing account and no-fee credit card.
- If you apply for the Tangerine Money-Back Credit Card by January 31, 2024, you’ll earn an extra 10% back on up to $1,000 in everyday purchases made within your first 2 months.
- New clients can use the promo code: EARNMORE to take advantage of 3 promotional offers including a special 6% interest rate on RSPs and TFSAs for new customers
- Get credit card options with 2% cash back.
Types Of Products And Services Offered
- Personal Everyday Banking: Chequing account, savings accounts for TFSA, RSP, USD, and RIF.
- Personal Borrowing: Credit cards, home equity line of credit (HELOC), personal line of credit.
- Personal Investments: GICs, TFSAs, RSPs, and RIFs.
- Business Banking: Business savings and investment accounts.
Tangerine Pros And Cons
| Pros | Cons |
| – Many banking products available – High promotional interest rate – Great no-fee credit cards – Free access to Scotiabank ATMs | – No in branch support for problem resolution – App usability lags behind competitors in user-friendliness |
#3 – EQ Bank – Best for High-Interest Savings and No-Fee Banking
EQ Bank is known for rock-bottom fees with sky-high interest rates. Customers can earn up to 4.00% interest on various accounts, including savings, TFSA, and USD accounts. This differentiates it from preceding banks offering such high rates only as promotional deals.
The star is their EQ Bank Savings Plus Account, a hybrid chequing and savings account. You’ll earn up to a 4.00% interest rate, with 0.5% cash back on spending. It also provides ATM withdrawal rebates and no foreign exchange fees.
Key Features
- Earn a competitive interest rate of up to 4.00%. You’ll earn a base 2.50% on everyday banking, and an extra 1.50% when you direct deposit your pay to the account.
- Earn 0.5% cash back on all your purchases.
Types Of Products And Services Offered
- Personal Everyday Banking: A hybrid chequing and savings account, joint savings account, TFSA savings, and a US dollar account.
- Personal Borrowing: Mortgages and personal loans.
- Personal Investments: GICs, TFSAs, and RSPs.
- Business Banking: Business savings and investment accounts.
EQ Bank Pros And Cons
| Pros | Cons |
| – No monthly fees or minimum balance requirements. – ATM fee reimbursements – Offers competitive interest rates up to 4% on its Savings Plus Account. – You can manage your EQ Bank accounts via the EQ Bank mobile app. | – Slower bank-to-bank (EFT) transfers – Missing accounts like credit cards might limit choices for customers seeking more options |
#4 – motusbank – Best For Credit Union Virtual Banking
motusbank is a newcomer that was established in 2019. While offering competitive rates, they lack a suite of banking products provided by competitors. You’ll earn a 2.50% yield on high-interest savings and their GIC rates starting at 3.75%.
motusbank doesn’t have credit cards but offers interest-earning chequing accounts, competitive personal loans, and no-fee chequing options. Overall, motusbank is a strong choice for robust online banking, offering competitive terms and no monthly fees.
Key Features
- Access to surcharge-free ABMs via the EXCHANGE network, totalling over 43,000 units across North America
- High-interest savings rates at 2.5%
- Offering TFSA and RRSP savings accounts, loans, investment platforms, and low-cost portfolio management
Types Of Products And Services Offered
- Personal Everyday Banking: Savings and chequing accounts.
- Personal Borrowing: Mortgages, home equity line of credit, personal line of credit.
- Personal Investments: GICs, TFSAs, RSPs, RIFs.
- Business Banking: Business savings and investment accounts.
Motusbank Pros And Cons
| Pros | Cons |
| – Credible and federally-authorized online bank backed by a reputable credit union – Competitive high-interest savings rates – Extensive access to ABMs in North America | – Absence of credit cards- Integration with Interac e-Transfer for international transfers might not be the most cost-effective – Limited range of financial products compared to other online banks |
#5 – Wise – Best For Multi-Currency Banking
Wise stands out as the go-to choice for multi-currency banking. It’s renowned for cost-effective transfers and the comprehensive multi-currency account. Aside from a Canadian bank account, you can effortlessly receive account details from nine other countries. For example, the Euro account comes with IBAN information, enabling European transactions.
Furthermore, you can hold over 50 foreign currencies and access them through the Wise debit card or app. This institution is ideal for travel and foreign transactions.
Key Features
- Access to bank details in 10 currencies, including Canada, the US, Eurozone, and more
- Hold, exchange, and top-up over 50 currencies
- Multi-currency Visa debit card for fee-free payments in foreign currencies
- Seamless access to Wise’s international money transfer service
Types Of Products And Services Offered
- Personal Everyday Banking: Wise multi-currency accounts with multiple account details, multi-currency balances supporting over 50 currencies.
- Personal Borrowing: N/A
- Personal Investments: N/A
- Business Banking: Business savings and chequing accounts.
Wise Pros And Cons
| Pros | Cons |
| – Offers bank details in multiple currencies, simplifying international transactions – Wide range of supported currencies for holding and exchanging – Competitive exchange rates with low fees for international money transfers | – No support for cash or cheque payments – Lack of interest on account holdings – Fees for topping up the account via debit/credit card and limitations on fee-free international ATM withdrawals |
#6 – Alterna Bank – High-Interest Savings & Qtrade Partnership
Alterna Bank, not to be confused with Alterna Savings, is an online bank servicing Canadians. They’re a subsidiary of Alterna Savings, which is an Ontario-based credit union.
Their high-interest savings account offers a competitive 2.25% interest rate, and Alterna’s Qtrade collaboration dangles a lucrative $2,000 cashback welcome bonus. Otherwise, Alterna offers a range of accounts, including a fee-free eChequing account, high-interest savings, TFSA, RRSP, and various investment options.
Alterna Bank’s collaboration with Qtrade sets it apart, offering an attractive cash back incentive for new investors and a diverse range of accounts to cater to different financial needs. However, potential customers should consider the minimum $5,000 investment requirement for the Qtrade bonus and the limited physical branch locations.
Key Features
- Competitive 2.25% interest rate on High-Interest Savings Account (HISA)
- Partnership with Qtrade offering up to $2,000 cashback
- Accounts include no-fee eChequing, high-interest savings, TFSA, RRSP, and online investing through Qtrade
- $800 coverage for mortgage legal fees and appraisals
Types Of Products And Services Offered
- Personal Everyday Banking: Savings/high-interest savings and chequing accounts.
- Personal Borrowing: Mortgages, home equity line of credit, personal line of credit.
- Personal Investments: GICs, TFSAs, RSPs, RIFs, personal investing portal with guided and direct investing.
- Business Banking: Business savings, business loans, cannabis business and investment accounts.
Alterna Pros And Cons
| Pros | Cons |
| – Competitive interest rates – Qtrade welcome bonus incentive – Variety of account options including no-fee eChequing and high-interest savings | – High deposit requirements for Qtrade bonus – Savings rates may not be the highest available among online banks – No credit cards |
#7 – Wealthsimple Cash – Convenient Spending & Cash Management
Wealthsimple Cash earns you 1% cash back on spending. With no monthly fees or minimum balance requirements, it stands out for its simplicity and limited fees compared to traditional banks. The standout features of Wealthsimple Cash include its peer-to-peer lending functionality, auto-invest feature linked to direct deposits, and a round-up spending option that invests spare change.
Wealthsimple has some key drawbacks, including a 2.5% withdrawal fee, daily deposit limits of $3,500, occasional platform glitches, and the absence of a desktop application. Despite these limitations, Wealthsimple Cash is beneficial for individuals seeking a simple spending solution with rewards, and unique features.
Key Features
- Limited fees and no monthly account minimums
- 1% cash back on all spending, which can be directed to investment accounts
- Interest rates up to 5% based on account balance
- Peer-to-peer lending functionality within the platform
Types Of Products And Services Offered
- Personal Everyday Banking: Digital account and cash access card.
- Personal Borrowing: N/A
- Personal Investments: Stocks, EFTs, options trading. Self-guided investment platform.
- Business Banking: N/A
Wealthsimple Pros And Cons
| Pros | Cons |
| – Minimal fees and no account minimums – Earn 1% cash back on spending – Integration with other Wealthsimple accounts for streamlined investing | – 2.5% fee for instant withdrawals – Daily deposit limit of $3,500 – Limited merchant acceptance for prepaid cards |
Pros And Cons Of Online-Only Banks
Pros
Online banks often offer higher interest rates on savings compared to traditional banks due to lower operational costs. They typically provide various account options like high-yield savings and GICs, often without minimum balance requirements or service fees.
Moreover, direct banks generally charge fewer fees for account maintenance, direct deposits, or transactions, making them more cost-effective.
Cons
Traditional banks prioritize personal relationships and face-to-face assistance, beneficial when seeking extra financial services or making account changes. On the other hand, online banks might face limitations with transactions like cash deposits and international transfers, relying on external ATM networks that may have accessibility issues and potential fees.
Furthermore, online banks may not offer a complete range of services available at traditional banks, such as insurance, brokerage accounts, and wealth management.
How To Open An Online Bank Account
Opening a fully digital bank account with an online-only bank is typically quick and convenient:
- Visit the bank’s website and browse through the options
- Click on “Open Account” option, or the equivalent
- Provide two pieces of personal identification information, one indicating your name and address and another indicating your name and date of birth. These can include government-issued identification, tax assessments, benefit statements, utility bills, bank statements, or foreign passports.
- Make an opening deposit electronically via a linked bank account
- Start accessing your new online bank account!
Bottom Line
Online banking brings the same regulated and insured services Canadians expect from a bank but at lower costs and with more convenience and flexibility. With no fees, higher interest rates and easy digital access, the above banks represent Canadians’ premiere online banking choices in 2024. Their secure platforms, innovative features and focus on digital customer experience will continue driving online banking adoption in the years ahead.
