Featured Partner Offer
1
Simplii HISA
APY
0.40% – 5.50% for eligible deposits
Minimum Deposit Requirement
$0
Other Features:
No maintenance or monthly fees. Set up automatic deposits. From May 1st to July 31st, 2024. Get a special interest rate – Earn 5.90% interest for 5 months on your first Simplii Financial High Interest Savings Account. Limits apply.
Best Online Banks In Canada For 2024
We’ve compared 42 nationally available banks and credit unions to find some of the best options available. Out of those, only those banks and credit unions that were online only, with no physical branches, were considered. See below to learn more about why we picked each online bank, the pros and cons, as well as any other benefits.
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EQ Bank
On EQ Bank's Website
Products
Chequing, Savings, GICs
Fees
No monthly, overdraft or ATM
ATM Network
All ATMs in Canada
Why We Picked It
EQ Banktops our list of best online banks in Canada thanks to its competitive interest rates and lack of monthly fees. Customers can earn 4% on the Personal Account and Joint Account and 3% with both their TFSA and US Dollar accounts. Most no-fee bank accounts only offer high interest like this as a promotional rate.
Chequing is part of the Personal Account as a way to earn interest on everyday spending. This account can be linked to an EQ Bank Card, a prepaid Mastercard that offers 0.5% cash back and free withdrawals from any ATM in Canada. Plus, there aren’t any monthly fees, interest charges, or foreign transaction fees.
Learn more: Read our EQ Bank Review
Pros & Cons
- No monthly fees or minimum balances required
- Free Interac e-Transfers and ATM withdrawals
- 0.5% cash back on EQ Bank Card purchases
- EQ Bank Card must be loaded with funds from a personal account
- Slow bank-to-bank (EFT) transfers
Additional Details
EQ Bank offers five savings accounts, one chequing account and options for registered and non-registered GICs.
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Manulife Bank
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Chequing, Savings, Credit Cards, GICs
Fees
No ATM, $10 monthly, 15% overdraft
ATM Network
3,500+ EXCHANGE ATMs
Products
Chequing, Savings, Credit Cards, GICs
Fees
No ATM, $10 monthly, 15% overdraft
Why We Picked It
Manulife Bank is a top online bank that bundles chequing and savings into a single Advantage Account. Get high-interest savings with all the features of a chequing account, including mobile cheque deposits, e-transfers and debit card purchases. However, unlimited free banking is only available for accounts with a minimum balance of $1,000.
The All-In Banking Package has a separate no-fee chequing account and a savings account that earns 2.10% interest. This package also comes with overdraft protection and up to $10,000 in annual travel disruption insurance. The $10 monthly fee will be waived if you save $100 or more per month, which is easy to fulfill.
Pros & Cons
- Unlimited daily banking with low or no fees
- High-interest savings account
- Includes travel disruption insurance up to $10,000
- Minimum balance required for no monthly fees
- Only free withdrawals on in-network ATMs in Canada
Additional Details
Manulife Bank has two chequing accounts, three savings accounts and GICs with no set-up or maintenance fees.
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Wealth One Bank of Canada
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Savings, GICs
Fees
No monthly or ATM, $30 overdraft
ATM Network
No ATM network
Products
Savings, GICs
Fees
No monthly or ATM, $30 overdraft
ATM Network
No ATM network
Why We Picked It
Wealth One Bank of Canada is the best online bank for earning interest daily on every dollar you save. Its high-interest savings account has a 4.00% interest rate with no monthly minimums or fees. Linked accounts include unlimited transactions, which you’ll need for cash withdrawals since this bank doesn’t have ATMs.
Incoming e-transfers and 10 bill payments per month are free. However, it costs $5 for each additional bill and $1.50 per transaction to send an e-transfer. These fees can add up quickly on top of paying $30 for overdrafts plus daily interest.
Pros & Cons
- 4.00% interest rate on personal savings
- Unlimited transactions to linked accounts
- No monthly fees or minimum balances
- No ATM network for cash withdrawals
- $1.50 per transaction to send e-transfers
Additional Details
Wealth One Bank of Canada has three savings accounts and offers GIC terms ranging from one to five years.
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Tangerine Bank
On Tangerine Bank's Website
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $5 overdraft
ATM Network
44,000+ Scotiabank ATMs
Why We Picked It
Tangerine Bank is known for its no-fee online banking services. Interest rates are on the low end, but you won’t be charged monthly, annual or maintenance fees. Chequing accounts earn up to 0.10% interest and come with a Visa debit card. This account includes free e-transfers, bill payments and withdrawals from Scotiabank ATMs.
There’s no shortage of savings account options, including regular savings accounts, TSFAs, RRSPs, RRIFs, and US accounts. Interest rates range from 0.10% to 0.75%. Tangerine offers all types of GICs with interest rates up to 5.25%, depending on the term.
Pros & Cons
- Free transactions and ATM withdrawals
- Earn interest on chequing and savings accounts
- Automatic savings and contributions
- Low interest rates (under 1%)
- 2.5% foreign transaction fees
Additional Details
Tangerine Bank has one chequing account, five savings accounts and a range of GICs that have no fees or surcharges.
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Motusbank
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $5 overdraft
ATM Network
40,000+ EXCHANGE ATMs
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $5 overdraft
ATM Network
40,000+ EXCHANGE ATMs
Why We Picked It
Motusbank is a relatively new online bank that’s really pulling its weight when it comes to comprehensive banking products. It offers a chequing account, multiple savings accounts and high-interest GICs ranging from short-term to long-term, including TFSA and RRSP options.
No-fee chequing accounts from Motusbank have an interest rate of 0.15%, a debit card, unlimited e-transfers and access to over 40,000 surcharge-free ATMs in North America. Motusbank savings accounts earn 2.25% APY, including TSFA and RRSP accounts. All accounts have no monthly fees, but there’s a decent list of other charges for overdrafts, sending e-transfers, ATMs and more.
Pros & Cons
- 2.25% APY on savings accounts
- 40,000 surcharge-free ATMs in North America
- No daily banking fees
- $5 overdraft fee and 21% interest
- Fees for using other ATMs go up to $5
Additional Details
Motusbank offers a stand-alone chequing account, three savings accounts and a selection of GICs with interest rates up to 3.55%, depending on the term.
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Wealthsimple
4.4
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Chequing, Savings
Fees
No monthly, overdraft or ATM
ATM Network
All ATMs in Canada
Products
Chequing, Savings
Fees
No monthly, overdraft or ATM
ATM Network
All ATMs in Canada
Why We Picked It
Wealthsimple is an online bank designed for investors. It offers a free spending account (Wealthsimple Cash) that earns between 4% and 5% interest, depending on the value of your assets. The base rate is still impressive and there are zero account fees regardless of your portfolio value (or lack thereof).
Purchases made using the Wealthsimple Cash Card will return 1% back in stock, cryptocurrency or cash. Sign up for direct deposit with your employer, and you could get paid up to a full day earlier than most big banks. There are options for pre-authorized bill payments and auto-investing in stocks, ETFs or cryptocurrency.
Pros & Cons
- Earn up to 5% interest on account balances
- Get paid a full day earlier with direct deposits
- No foreign transaction fees on Cash Card purchases
- Better interest rates based on assets owned
- No cash deposits available
Additional Details
Wealthsimple has a high-interest chequing account and two savings accounts for an RRSP and TSFA.
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Simplii Financial
On Simplii Financial's Website
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $4.97 overdraft
ATM Network
3,400+ CIBC ATMs
Why We Picked It
Simplii Financial is popular for its no-frills online banking options. These include regular and student chequing accounts, plus savings accounts for high-interest, foreign currency, including U.S. dollars. All of these accounts have no monthly fees, minimum balances, or transaction limits. Global money transfers also have no fees or deductions.
RRSP and TSFA savings accounts earn around 0.40% interest, paid monthly. There are no minimum deposits or balances to open an account. GIC options are rather limited and non-redeemable, so they can’t be cashed before the maturity date.
Pros & Cons
- Overdraft protection up to $5,000
- Send money internationally with no transfer fees
- 24-hour support (some hours have virtual assistants)
- Higher interest rates require balances over $500,000
- $45 non-sufficient funds fee
Additional Details
Simplii Financial has a regular and student chequing account, five types of savings accounts and GICs with an APY between 4.25% and 5%.
Forbes Advisor Ratings
COMPANY | FORBES ADVISOR RATING | Products | Fees | ATM Network | Learn More CTA text | Learn more CTA below text | LEARN MORE |
---|---|---|---|---|---|---|---|
EQ Bank | ![]() | Chequing, Savings, GICs | No monthly, overdraft or ATM | All ATMs in Canada | Learn More | On EQ Bank’s Website | |
Manulife Bank | ![]() | Chequing, Savings, GICs | No ATM, $10 monthly, 15% overdraft | 3,500+ EXCHANGE ATMs | View More | ||
Wealth One Bank of Canada | ![]() | Savings, GICs | No monthly or ATM, $30 overdraft | No ATM network | View More | ||
Tangerine Bank | ![]() | Chequing, Savings, GICs | No monthly or ATM, $5 overdraft | 44,000+ Scotabank ATMs | View More | ||
Motusbank | ![]() | Chequing, Savings, GICs | No monthly or ATM, $5 overdraft | 40,000+ EXCHANGE ATMs | View More | ||
Wealthsimple | ![]() | Chequing, Savings | No monthly, overdraft or ATM | All ATMs in Canada | View More | ||
Simplii Financial | ![]() | Chequing, Savings, GICs | No monthly or ATM, $4.97 overdraft | 3,400+ CIBC ATMs | Learn More | On Simplii Financial’s Website |
Methodology
To create this list, Forbes Advisor analyzed online and branchless banks across Canada. We ranked each online bank on 17 data points within the categories of fees, access, customer experience, digital experience, annual percentage yield, plus the minimums and balance needed to avoid monthly fees.
The following is the weighting assigned to each category:
- APY: 50.68%
- Minimum Deposit Requirement: 13.15%
- Customer Service: 5.67%
- Compound Interest Schedule: 8.15%
- Available Terms: 5.67%
- Availability: 5.67%
Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.
Online banks offering high interest and offering no or very low fees scored the highest, as did those offering low minimum requirements and high customer service and digital experience scores. To appear on this list, the online banks had to be nationally available.
Banks We Monitor
Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motusbank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, Home Bank, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union, Wealth One Bank of Canada, Innovation Credit Union.
What Is Online Banking?
Online banking enables financial transactions over the internet instead of visiting a physical bank or credit union. Most online banks have a range of chequing, savings and investment accounts. Some also provide debit or credit cards to use at ATMs and for everyday spending.
How Does Online Banking Work?
Online banking works similarly to traditional banking. Once you register for an online bank account, you can view your account balance, transfer funds between accounts, pay bills and even deposit cheques using your smartphone.
What Are the Benefits of Online Banks?
Since online banks don’t have physical branches, they can pass these cost savings to customers in a variety of ways:
Low or No Fees
Most online banks don’t charge fees for monthly account maintenance, require no minimum balances to waive those fees and offer unlimited Interac e-Transfers for free. Some also offer free ATM withdrawals and unlimited free transactions in general.
High Interest Rates
Online banks generally offer higher annual percentage yields (APYs) since they have fewer overhead costs. They also have some of the best interest rates on money deposited into their savings and chequing accounts.
Mobile Cheque Deposits
Mobile cheque deposits come standard with most online bank accounts. Simply take a picture of the front and back of the cheque and upload it to the mobile app to deposit it into your account.
Automatic Bill Payments
Online banks make it easy to schedule automatic payments for recurring bills. This eliminates the hassle of manually paying bills each month and helps avoid late payments.
Early Pay Days
Some online banks can process paycheques faster than big banks. Sign-up for direct deposit with your employer and you could get paid up to two days earlier at some online banks.
How To Choose an Online Bank
When it comes to choosing the best online bank, here are a few things to consider:
- Fees: Charges should be kept to a minimum, including monthly fees, overdraft fees and ATM fees.
- Interest Rates: Compare APY and make sure high interest-rates aren’t just promotional rates.
- Convenience: Accounts should be easily accessible on mobile devices and desktops.
- ATM Network: If you need access to cash, choose an online bank with a large surcharge-free ATM network.
- Customer Service: Check if support is available by phone, email or live chat (or all three).
How To Open an Online Bank Account
While the registration process varies, here are some general steps you can follow to open an online bank account:
1. Visit the online bank’s website or mobile app.
2. Select an account and fill out an application form.
3. Provide details or documents to verify your identity (e.g., photo ID, utility bill, etc.).
4. Deposit a minimum amount if required.
5. After the deposit clears, start using your account.
Online Banks vs. Traditional Banks
Online Bank | Traditional Bank |
---|---|
Online-only banking | Physical bank branches |
Third-party ATM network | Bank-owned ATM network |
Limited financial products and services | Extensive financial products and services |
Online banks provide similar services to traditional banks, but without physical branches. Customers can open chequing and savings accounts, access GICs and sometimes apply for loans or credit cards all online. Traditional banks generally have more financial products and options for investments, loans and business accounts.
Cheque deposits and accessing cash can be more convenient at a branch or bank-owned ATM. Most online banks can offer the same level of convenience with a third-party ATM network and mobile cheque deposits. Ultimately, the choice between online banks vs. traditional banks depends on your banking needs and preferences. If you prefer a more hands-on or in-person approach to customer service or the ability to withdraw cash from readily available ATMs, then online banking may not be for you. However, if you’re looking for high-interest on your deposits, low fees and unlimited free transactions, then online banking may be exactly what you’re looking for.
What Are Online Banks Best For?
- High interest on daily spending and savings
- Low or no fees for common banking services
- Unlimited debit purchases and Interac e-Transfers
Featured Partner Offer
1
Simplii HISA
APY
0.40% – 5.50% for eligible deposits
Minimum Deposit Requirement
$0
Other Features:
No maintenance or monthly fees. Set up automatic deposits. From May 1st to July 31st, 2024. Get a special interest rate – Earn 5.90% interest for 5 months on your first Simplii Financial High Interest Savings Account. Limits apply.
Frequently Asked Questions (FAQ)
What are the best online banks?
The best online banks will have the services and features you need. If you’re paying for debit purchases or sending money, consider an online bank with unlimited transactions and Interac e-Transfers. To earn more interest, find a savings account with a high APY. Make sure you look at the fee schedule and breakdown before choosing an online bank.
Are online banks CDIC-insured?
Any reputable, federally regulated financial institutions, including online banks, have CDIC membership to insure eligible accounts up to $100,000. This information will be on the banking website.
Do online banks have ATMs?
Online banks typically don’t have their own ATMs. Instead, they partner with other banks or third-party networks to provide surcharge-free ATM access.
What bank accounts can I open for free?
All bank accounts have fees in some form or another. However, there are online banks with savings and chequing accounts that have no monthly fees. They also may have no transaction fees or ATM withdrawal fees
Is online banking safe?
Yes, online banking is safe. Online banks with CDIC insurance insure your accounts up to a maximum of $100,000 for a covered reason and all transactions are encrypted to prevent unauthorized access.
How do you get a bank statement online?
To get a bank statement online, log in to your online banking account and navigate to the section that has account statements.
Why is my online bank account locked?
An online bank account can lock if you try logging in with the wrong username or password too many times or if there is suspicious activity. Another reason could be unpaid debts to creditors or the government. To get your account unlocked, speak to customer service by phone, email or live chat.
Why can’t I open a bank account online?
You can’t open a bank account online if the bank can’t verify your identity or if you have a history of unpaid fees and negative balances.
How do you deposit cash into an online bank?
If your online bank accepts cash deposits, you can deposit cash at an in-network ATM. Alternatively, you can transfer money from another bank into your online bank account.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Candice ReevesContributor
Candice Reeves is a financial writer based out of Nova Scotia. She specializes in personal finance, investing, and cryptocurrency. Her work is featured in leading publications across various industries, including Wealth Rocket, CryptoVantage, and StackCompare.