If you're in the market for a safe place to stash some cash away, you're in luck.
A new digital, online bank has entered the Canadian landscape – motusbank. Owned and operated by Meridian Credit Union, motusbank is breaking into the digital banking space.
And it’s taking the online-banking world by storm, with no monthly fees and some of the highest interest rates you can get in Canada.
Plus they offer other great products as well, like mortgages, all with great rates. After all, they're here to compete for your business.
So let's see what motusbank is bringing to the table and how it compares to what we can get elsewhere.
Note: All rates are current as of October 2020, but they are subject to change at any time. Please visit the corresponding links to see the most up-to-date rates.
Motusbank mortgage rates
Looking for a new house? Your mortgage coming up for renewal? Motusbank offers a line of mortgages with very competitive rates at both traditional and fixed rate options.
How competitive? Here's what they currently offer, as well as some rates from their competition.
Related: How To Save Money On Your Mortgage
Fixed rate mortgages
Motusbank offers a wide variety of fixed rate mortgages. Here are the most common terms used compared to the other Canadian digital banks.
| motusbank | Tangerine | Simplii | Alterna Bank | |
|---|---|---|---|---|
| 1 year fixed | 3.09% | 3.24% | Not offered | 2.84% |
| 2 year fixed | 3.19% | 3.19% | 2.84%* | 2.84% |
| 3 year fixed | 3.49% | 3.34% | 3.04%* | 2.94% |
| 4 year fixed | 3.74% | 3.49% | 3.14%* | 2.94% |
| 5 year fixed | 4.59% | 3.59% | 3.24%* | 3.04%* |
| Interested? | Apply | Apply | Apply | Apply |
* indicates special/promotional rate
Variable rate mortgages
Prefer to get a variable rate mortgage? Motusbank has you covered.
And like fixed rate mortgages, motusbank doesn't disappoint when it comes to variable rates either.
| motusbank | Tangerine | Simplii | Alterna Bank | |
|---|---|---|---|---|
| 5 year variable mortgage | 2% | 1.90% | 1.79%* | 1.70% |
| 5 year open variable rate | 4.45% | Not offered | Not offered | Not offered |
| Interested? | Apply | Apply | Apply | Apply |
Motusbank no fee savings accounts
Motusbank has several different savings accounts – all without monthly fees and minimum deposit requirements. You have a choice of getting an RRSP, TFSA, or just a regular, unregistered savings account.
All of these accounts provide great interest rates that are among the best you'll find in Canada.
We'll go over each one and see how they stack up to the competition. Just note these products are currently not available for residents of Quebec.
Related: Free Chequing Accounts Canada: Save $200 A Year In Bank Fees
Motusbank tax free savings account (TFSA)
Let's start off with their high interest tax free savings account.
This account has the highest interest rate of everything motusbank offers, coming in at 1.1%.
In fact, when it comes to TFSAs, it has the highest rate you can get amongst the big digital banks.
Here's a comparison between the major digital banks in Canada and what they offer for an interest rate on their TFSA accounts:
| Bank | Promotional rate | Regular rate | Apply Now |
|---|---|---|---|
| motusbank | None | 1.1% | Apply on site |
| Tangerine | 2.1% for 5 months | 0.1% | Apply |
| Simplii | None | 0.1% | Apply |
| Alterna Bank | None | 1.2% | Learn more |
Related: Alterna No Fee eChequing Account Review: Unlimited Transactions Plus A Low Interest Rate
When looking at the regular rate, motusbank is clearly above everyone else. You can't get a higher interest rate in Canada on your TFSAs from a big digital bank.
And while the big banks aren't included, all of them have rates even lower than what's displayed here.
Motusbank RRSP savings account
Prefer to get an RRSP savings account instead? Motusbank has you covered there too.
And while the rate is not quite as high as its TFSA counterpart, you'll still get a great rate of 1% on your savings.
How does this rate compare to others?
| Bank | Promotional rate | Regular rate | Apply Now |
|---|---|---|---|
| motusbank | None | 1% | Apply on site |
| Tangerine | 2.1% for 5 months | 0.1% | Apply |
| Simplii | None | 0.1% | Apply |
| Alterna Bank | None | 1.2% | Learn more |
While a notch lower than Alterna, it's still a great rate compared to everyone else.
Motusbank's high interest savings account
If you just want a regular savings account, motusbank offers one as well. Get the same rate as the RRSP savings account – 1%.
And similar to the RRSP account, though motusbank has a great rate, it's not quite the best:
| Bank | Promotional rate | Regular rate | Apply Now |
|---|---|---|---|
| motusbank | None | 1% | Apply on site |
| EQ Bank | None | 1.50%* | Apply |
| Tangerine | 2.1% for 5 months | 0.1% | Apply |
| Simplii | None | 0.1% | Apply |
| Alterna Bank | None | 1.2% | Apply |
*EQ Bank only appears in this section since they don't offer the other registered accounts. Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
Still, it's good to see another bank offering high rates for your savings.
Motusbank's Guaranteed investment certificates
If a guaranteed investment certificate (GIC) is what you're after, motusbank offers both registered and unregistered investment options.
There's a variety of short and long term GICs to choose from, but we'll focus on the long term ones since it's more important to have a better rate when you're locked into an agreement for longer.
Motusbank unregistered GIC rates comparison
If you prefer the unregistered option, motusbank's rates are consistently higher than the competition.
| GIC Length | motusbank GIC | Tangerine GIC | EQ Bank GIC |
|---|---|---|---|
| 1 year | 1.10% | 0.90% | 1.25% |
| 18 months | 1.15% | 0.95% | Not offered |
| 2 years | 1.20% | 1% | 1.05% |
| 3 years | 1.30% | 1.10% | 1.15% |
| 4 years | 1.40% | 1.20% | 1.25% |
| 5 years | 1.50% | 1.25% | 1.50% |
Related: Tangerine GICs Review: Should You Go With An Online Bank For Your GICs?
Motusbank registered GIC rates comparison
We see a similar trend with registered accounts, though the competition is less since EQ Bank doesn't offer registered accounts.
| RRSP GIC Length | motusbank GIC | Tangerine GIC |
|---|---|---|
| 1 year | 1.15% | 0.90% |
| 18 months | 1.20% | 0.95% |
| 2 years | 1.25% | 1% |
| 3 years | 1.35% | 1.10% |
| 4 years | 1.45% | 1.20% |
| 5 years | 1.55% | 1.25% |
No matter what type of GIC you're looking at, motusbank will likely give you the better rate.
Related: Best GIC Rates In Canada: Comparison Of The Big 5 And Online Banks
Motusbank chequing account
It goes without saying that motusbank also offers a great, no fee chequing account. Pay zero fees, and get a great list of chequing account features.
First, there's no minimum balance required, so no need to worry about having enough money in the account to avoid paying a monthly fee.
You also get great ATM access. Motusbank is on the EXCHANGE network, which will give you free access to over 3,700 ATMs across canada.
And if you're travelling abroad and need some cash, you can access any ATM with the Cirrus logo on it (just note that withdrawals from international ATMs are extra).
Want more? How about:
- unlimited transactions,
- bill payments,
- Withdrawals, and
- Interac e-transfers.
And one more thing – you'll earn 0.25% interest on every dollar in your account. A nice way to get some increased savings, even on your chequing account.
To summarize
It's nice to see a new competitor in the banking industry. Motusbank clearly has a lot to offer and many competitive rates.
What about you? Do you like what you see?
Thinking about applying for a product from them?
Let us know in the comments below.
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Comments
Hey Ray, thanks for your feedback! We'll keep Motive Financial in mind for future updates. :)