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Jarrod Suda
Guide
Byron MĆ¼hlberg
Reviewer
Online banks in Canada, sometimes referred to as virtual banks, have become very popular alternatives to traditional banking. They provide online-only banking services, which include chequing, savings, bank transfers, investments, mortgages, and more.
Even though they have no physical brick-and-mortar branches, you can sign up online easily, access your funds with a debit card that they ship to you, and manage your money instantly 24/7 with their dedicated smartphone app.
To help you decide which Canadian virtual bank account will fit your needs best, we've introduced seven of the best online banks and fintech platforms in Canada, including KOHO, Neo Financial, and Tangerine. When we review virtual banks, we always pay close attention to their credibility, fees, service quality, and customer satisfaction.
Control your finances and track your budgets with KOHO's virtual everyday account. KOHO offers unlimited e-Transfers, zero-interest overdraft protection, and a user-friendly mobile app to track your spending.
The account earns you interest and also comes with a credit card that offers cash back and a tool to help you build a strong credit history.
To determine which online banks scored better than others in Canada, we used a consumer-first framework to analyse several key factors. To begin with, we weighed a number of concrete metrics relating to factors such asĀ fees and rates, ease of use, credibility, service and coverage, transparency, and customer satisfactionĀ to piece together a reliable all-around picture of which top digital banks offer the savviest solutions to Canadian residents.
Next, we explored these results and presented our findings in the form of a series of key takeaways that we believe you should know about the digital banks that ranked highest.
While we ranked these online banks on an overall list, bear in mind that this list does not mean that our choice for Canada's best virtual bank account is necessarily the best choice for you. As you'll see, each online bank comes with its own unique set of pros and cons that may impact its overall relevance to you.
Without further ado, let's go through our rankings for the top virtual bank accounts in Canada in 2024 ā
| š¦ Accounts Compared | KOHO, Tangerine, Neo Financial, EQ, Simplii, Wise, Motusbank |
|---|---|
| š Features Compared | ATM fees, Virtual Service, App & more |
| š Best Monito Score | 8.9/10 |
| š° Most Expensive Monthly Fee | $0 |
| š» Easiest Account to Open Online | |
| š³ Instant Debit Card |
KOHOĀ offers a high-quality interest-earning chequing accounts with a direct deposit setup and a credit card, providing 1% cash back on several select categories. Utilize their optionalĀ credit builderĀ tool to improve your credit history, and as of April 2024, 5% interest on your balances.
The smartphone app tracks your spending and offers a RoundUp feature to move your spare change into your interest-bearing savings account. KOHO offers overdraft protection at no interest, and their paid plans offer one freeĀ international ABMĀ withdrawal per month.
With KOHO, you can have a virtual or physical card at your disposal. The account offers unique benefits like earning interest on your entire balance, including the spendable amount. Depending on your chosen plan, you can earn 5% interest. Up to $100k of your funds are eligible for CDIC protection, giving you peace of mind.
You can also set aside funds as a secured line of credit in your KOHO account, ranging from $30 to $500. This up-front repayment system helps build credit history and improve your credit score. This can be a great benefit down the line when you apply for loans for cars, mortgages, and other large purchases. With a strong credit score, you can be offered lower interest rates on your future loans ā keeping costs down.
In conclusion, KOHO is an excellent choice due to its high interest rates on balances and the unique credit builder credit card, which is a rarity in Canada. Additionally, the app's tracking feature for purchases and balances further enhances your financial management experience, making KOHO a compelling and user-friendly option.
Neo Financial is a comprehensive Canadian fintech platform that offers multiple financial tools with no monthly fees. It comes integrated with a Neo Money account and card, budget tracking software, bill payment capabilities, and a credit builder.Ā
Most impressive is its suite of other financial services, which you can access as a Neo Financial account holder. The Neo Money card comes with an average of 5% cash back and provides 2.25% interest on every dollar in your account balances (rates are subject to change without notice). In addition to the Money card, you can access a no annual fee cashback credit and a secured credit card, which can help you build a positive credit history.
Total cost: $0 per month.
Noteworthy features: Average 5% cash back, high interest, investment portfolios, mortgages.
More info: Visit their website.
Founded in 2019, Neo Financial gives Canadians access to far more financial services than your average fintech platform: namely a no annual fee cashback credit and secured credit card, high interest savings account, Ā investing, mortgage financing, and credit building.
Their Neo Moneyā¢ account is a great option for everyday banking because it waives monthly maintenance fees, has free send & receive Interac e-TransfersĀ®, free Bill Pay transfers, no charges for insufficient funds, no domestic ATM fees, and no minimum balances. Neo will deliver the card (issued by Equitable Bank, Member CDIC) to you free of charge as well. The Neo Moneyā¢ account is provided by Concentra Bank, Member CDIC, to ensure that you have deposit protection over your balances.
As a digital-first account, Neo Financial will serve you best if you conduct all of your finances electronically. For example, they charge fees to send you paper statements. However, the Neo Financial app has an insights tool in their app that helps you keep track of your cash back, understand your spending by category, and compare your spending month-to-month. Neo also offers a secured credit builder card to help improve your credit history.Ā
Neo Financial does not operate brick-and-mortar branches so their customer service will be available online or over the phone. They are easiest to reach by live chat from 7 AM to 8 PM MT.Ā
Overall, we think Neo Financial is a great fintech option for Canadians who are looking to conveniently manage their domestic finances online and with a mobile app. With their Neo Moneyā¢ account, you can enjoy no fees on everyday transactions ā from transfers to ATM withdrawals ā and explore their entire suite of other financial services.
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts with zero monthly maintenance fees. In place of brick-and-mortar locations, Tangerine runs spaces that they call "cafes" in Toronto, Vancouver, Calgary, and Montreal to provide financial advice and showcase Tangerine's services (and serve coffee).
What really sets them apart is their access to loans, mortgages, and other debt services. They even offer a low-fee investment platform design for long-term wealth building. Tangerine's interest rate (up to 1%) is much higher than the high-street bank average. They also offer savings accounts with even high interest rates, with terms and conditions that require you to hold the money for a specified time period.
Tangerine also comes with a credit card, which Monito recommends for those users looking for a credit card and cash back.
Total cost: $0 per month.
Noteworthy features: 2% cash back, 1% savings rate, tax-free investment account.
More info: See our full Tangerine review.
Tangerine offers an impressive array of free virtual bank account services. Their chequing account has no monthly fees, overdraft protection, free ATM access, and a mobile app to manage your spending.
Tangerine has also partnered with Canadian international money tranfer company Interac e-Transfer to provide international money transfers (although we recommend you compare fees before using Interac).
Milesopedia
In addition to their chequing account, you can sign up for Tangerine's savings account for a 1% interest rate. They have many investment accounts to choose from too, such as a TFSA (Tax-Free Savings Account) or a guaranteed interest rate account. You can access home equity lines of credit and credit cards with 2% cash back. This list of products consists of just the tip of the iceberg.
Tangerine's free online-only banking has an incredible range of options for not just chequing and savings, but also investments, loans, and credit. Plus, it boasts award-winning customer service. Because it is one of the most complete virtual banks in Canada that we've found, we recommend Tangerine without reservation.
EQ Bank, like Tangerine, runs 24/7 online only banking. However, EQ Bank works best as a great saving account supplement to a separate main chequing account. That's because EQ Bank does not offer a debit card or ABM access.
EQ Bank's virtual bank account allows you to pay bills and transfer money while profiting from their industry-high savings interest rate of 1.25% to 2%. However, it does not function as a chequing account for day-to-day spending.
Total cost: $0 per month.
Noteworthy features: No monthly fees, unlimited free transactions, no minimum balance, up to 2% savings rate.
EQ Bank works as a chequing-savings hybrid, which gives clients to basic online banking services like bill pay and money transfers while also applying an incredible 1.25% to 2% interest rate on their money. EQ Bank also offers high-interest guaranteed investment certificates (GICs) with terms that range from 1 to 5 years.
Betakit
If you already have a bank account with Equitable Bank, then EQ Bank (their online banking arm) may be an easy option for you. Even if you decide to go with Tangerine or another Canadian online bank for day-to-day chequing, we still recommend EQ Bank's savings features as a beneficial supplement.
Simplii Financial is an online banking arm of CIBC and offers a complete package of banking services, including a chequing account, GICs, mutual funds, RRSPs (Registered Retirement Savings Plan), and TFSAs.
Customers have noted that the smartphone app, available on Android and iOS, is simple but gets the job done. Perhaps Simplii's most appealing factor is its access to CIBC's ABM network, which is one of the largest in Canada.
Total cost: $0 per month.
Noteworthy features: Unlimited transactions, CIBC-branded ABM access, 0.4% savings rate.
Simplii Financial is a rebrand from PC Financial when it was acquired by CIBC. Clients benefit from no-fee daily banking, Interac transfers, and high-interest savings rates. Account holders can use the Simplii Financial debit card to withdraw money for free from CIBC's network of 4,000 ABMs across Canada.
Simplii Financial and Tangerine offer quite similar products, although customers have found Tangerine's app to be more user-friendly.
Simplii
No list of online banks in Canada would be complete without Simplii Financial. It offers a full range of banking products that you can access on the internet, from chequing to savings to investments. It may not have the best smartphone app in Canada, but it still remains a convenient alternative to high street banking.
Many know Wise for offering some of the cheapest international transfers to and from Canada. However, they also offer the powerful Wise Multi-Currency Account, which gives you access to Canadian bank account details and bank accounts from 9 other countries.
This means that you could use those Canadian bank details to receive your paycheck from your Canadian employer. Ideal for travel and foreign purchases, the account even allows you to hold 50+ foreign currencies and access them from the Wise debit card or Wise's digital app.
Total cost: $0 per month.
Noteworthy features: International money transfers, multiple account details, multi-currency balances.
More info: See our full Wise Multi-Currency Account review.
Applying for a Wise Account is fast and easy and can be done using proof of residence in Canada (or most other countries worldwide). Once you're signed up and your card has arrived (which takes up to two weeks to be delivered to Canada), you'll be able to take advantage of the following unique features:
Wise is one of the best online multi-currency account available in Canada and around the world ā full stop. Whether you are looking for an Interac e-Transfer alternative or are looking to spend money abroad, we firmly recommend the Wise Multi-Currency Account for holidaymakers, online spenders, and Canadian expats alike.
Motusbank is not backed by one of Canada's top-five large banks but by the country's second-largest credit union: Meridian Credit Union. Like the other virtual bank accounts on this list, Motusbank offers chequing accounts without maintenance fees, unlimited domestic transfers, and access to Interac e-Transfer.
Total cost: $0 per month.
Noteworthy features: ABMs in the United States, 1.85% savings rate.
Motusbank members access ABMs not from one Canadian bank network but from the EXCHANGE network, which consists of about 3,500 of surcharge-free ABMs in Canada and over 43,000 units in North America. It also offers TFSA and RRSP savings accounts, loan products, an investment platform, and low-cost professional portfolio management.
Unlike the others on this list, Motusbank does not currently offer credit cards to its clients.
David Correira
Motusbank's interest rates for its savings accounts compete well with and even surpass other large online bank accounts in Canada. However, it lacks a credit card offer and its range of other financial products are relatively limited. If you're looking for a more local feel with Ontario-based Meridian Credit Union, then this virtual chequing account will still let you control your finances 24/7 with online banking.
To wrap things up, let's take a look at how the product, service, and pricing of Koho, Neo Financial, Tangerine, EQ Bank, Simplii Financial, the Wise Multi-Currency Account, and Motusbank compare to one another in Canada.
Monthly Fee | $4 | $0 | $0 | $0 | $0 | $0 | $0 |
|---|---|---|---|---|---|---|---|
Free Intl. ATM Access | ā | ā | ā | ā | ā | ā | ā |
Intl. Transaction Fee | Varies by plan | 2.50% | 2.50% | ā | 2.50% | 0% | 2.50% |
Intl. Transfer Fee | N/A | N/A | 0.35%-3.6%Ā¹ | 0.35%-3.6%Ā¹ | 0.35%-3.6%Ā¹ | 0.35%-2.85% | 0.35%-3.6%Ā¹ |
Card Delivery Fee | $0 | $0 | $0 | ā | $0 | $0 | $0 |
Contactless | ā | ā | ā | ā | ā | ā | ā |
Google Pay | ā | ā | ā | ā | ā | ā | ā |
Apple Pay | ā | ā | ā | ā | ā | ā | ā |
3D Secure | ā | ā | ā | ā | ā | ā | ā |
Deposit Options | EFT, PayPal, Stripe | EFT, Interac e-Transfer | EFT, cash, cheque, debit/credit card | EFT, cash, cheque | EFT, cash, cheque, debit/credit card | EFT, debit/credit card | EFT, cash, cheque, debit/credit card |
Overdraft | ā | ā | ā | ā | ā | ā | ā |
Platforms | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet |
CDIC Deposit Insurance | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $250,000 (by U.S. FDIC) | $100,000 |
No. of Customers | 500,000 | 2 million | 2 million | 250,000 | 2 million | 10 million | 360,000 |
Customer Service | Email, telephone, live chat | Live chat or call 1-855-636-2265 | Email, telephone, live chat | Email, telephone | Email, telephone, live chat | Email, live chat | Email, telephone, live chat |
| Try Koho | Try Neo Financial | Try Tangerine | Learn More | Learn More | Try Wise | Learn More |
1 Uses international fee schedule from Interac e-Transfer
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