The debate between EQ Bank vs. Tangerine mostly comes down to how you use your money. Both are convenient, online bank with no-fee chequing accounts and several registered savings account options.
Only Tangerine offers a true credit card and separate chequing and savings accounts – so we think it’s the better option for most Canadians. Still, EQ Bank has higher base interest rates.
To determine whether EQ Bank or Tangerine is the better online bank, we compared them across categories like chequing accounts, credit cards, investment options, and more.
Key Takeaways
- EQ Bank and Tangerine are online-only banks with no physical branches.
- EQ and Tangerine both have no-fee chequing accounts.
- Tangerine has a higher promo savings rate but EQ’s base rate is higher.
- Tangerine offers two credit cards, whereas EQ only offers a prepaid Mastercard.
- Both offer investment options like TFSAs and RRSPs.
EQ Bank vs. Tangerine: Overview
EQ Bank and Tangerine are two of Canada’s most popular online banks.
Both banks are similar in key ways:
- Neither charges monthly fees
- Neither has physical branches
- Both are covered by CDIC
However, they differ in areas like ATM access, investing, credit cards, and mortgage options.
For example:
- EQ Bank ATM access: Free (reimbursed) at any ATM in Canada
- Tangerine ATM access: Free only at Scotiabank ATMs
Tangerine also has more customers (about 2 million to EQ Bank’s 700,000).
Customer service is the biggest challenge with online-only banks like EQ Bank and Tangerine.
While Tangerine rates higher for overall user satisfaction (according to a recent J.D. Power survey), it should be noted that EQ Bank has been using a leading AI platform called Adoreboard to help build trust and improve retention. EQ has managed to increase its Trust Metric by 8% in just one year.
Many Canadians choose to keep accounts with both banks:
Chequing accounts
EQ Bank and Tangerine offer no-fee chequing accounts with features like unlimited transactions and free Interac e-Transfers. However, they differ in account types and access.
Both accounts offer:
- No monthly fees
- Unlimited transactions
- Bill payments and direct deposits
- Free Interac e-Transfers
- Mobile cheque deposit
EQ offers a unique hybrid chequing/saving account, the EQ Bank Personal Account, which offers these features:
- Up to 3% interest
- Free ATM use, including reimbursement for any independent fees
- A partnership with Wise for quick, inexpensive global money transfers
- A prepaid EQ Bank Mastercard that provides 0.5% cash back
The Tangerine Chequing Account is a more traditional account that offers the following:
- Free first book of 50 personal cheques
- Visa Debit card for online and international purchases
- Unlimited internal and external bank transfers
- A consistently valuable welcome bonus (currently $250)
The winner: Tangerine
If you’re looking for a chequing account, Tangerine’s option has everything you need and then some.
We love EQ’s hybrid account – especially the interest rate – but EQ loses points for not offering cheques or a welcome bonus. Try using it as a secondary chequing account, as recommended by this user:
High-interest savings accounts
While none are technically a High Interest Savings Account, both EQ Bank and Tangerine offer accounts to help Canadians grow their savings.
Both accounts provide competitive interest rates and no monthly fees but with notable differences between interest rates and accessibility.
Maximum interest rates are:
With Tangerine’s account, you earn 4.5% for five months as a promo rate, but then you revert to the paltry base rate of 0.3%.
EQ Bank Personal Account offers 3% on every dollar, but only if you set up direct deposits of at least $2,000 per month. Otherwise, the rate is 1%.
The EQ Bank Notice Savings Account approaches interest in an unusual way by rewarding you with 2.75% on your balance if you give 30 days' notice before withdrawal, but a lower 2.6% with 10 days’ withdrawal notice.
The winner: Tie
We like Tangerine’s high promo rate and the easy accessibility to your money. However, its base rate is super low.
EQ Bank’s interest rate on the hybrid account is pretty high and you have constant access to your funds.
Ultimately, the best savings account for you will depend on whether accessibility or interest is more important to you.
Credit cards
When comparing EQ Bank and Tangerine's credit cards, it's important to note that their products differ significantly in structure and features.
EQ Bank doesn't offer a true credit card, only its prepaid EQ Bank Mastercard:
- Prepaid and reloadable
- Earn 0.5% in cash back rewards
- Earn up to 3% interest on your balance
- No FX fees
- Doesn't affect your credit score
Prepaid cards do have benefits, as this Redditor points out:
Tangerine offers two traditional credit cards. Both offer cash back rewards and don't charge an annual fee:
The Tangerine Money-Back Credit Card offers 2% cash back in up to three categories of your choice and 0.5% on all other purchases. New cardholders can receive a 10% cash back bonus on up to $1,000 spent within the first two months.
The Tangerine World Mastercard has the same cash-back reward structure but a higher minimum income requirement. This card also offers better perks, like extra insurance coverage and access to Mastercard Travel Pass.
The winner: Tangerine
Neither of Tangerine's cards charges an annual fee, but you'll earn better cash back and a sweet welcome bonus with a Tangerine card, plus the opportunity to build and maintain good credit.
Still, EQ Bank’s prepaid card is a good option if you’re not looking to build credit and want something that can't cause you to slide into debt.
Investments
If you’re looking for a bank you can invest with, EQ Bank and Tangerine both have valuable options.
Mutual funds
EQ Bank doesn't offer mutual funds. Their investment products are primarily focused on registered savings accounts and GICs.
Tangerine offers mutual funds as a valuable investment option:
- Various options based on risk tolerance
- Multiple portfolio options
- Automatic rebalancing
- Competitive MERs
- Low $25 Minimum investment
The winner: Tangerine
Since EQ doesn’t offer mutual funds, Tangerine wins this category by default.
But even if this wasn't the case, there’s a lot to love about Tangerine’s portfolios. The returns are decent, the fees are low, and it's especially easy to get started since the minimum investment amount is so low.
GICs
If you want to set aside cash to grow for a specific amount of time, EQ Bank and Tangerine both offer Guaranteed Investment Certificates (GICs). Both are competitive options among the best GICs in Canada.
Choose how long you want your GIC term to be, and compare interest rates to decide which one is right for you.
The best rates available right now are:
- Tangerine GICs: 3.55% for a 5-year term
- EQ Bank GICs: 3.6% for a 5-year term
As of February 18, 2025, here are the GIC terms and rates available from each bank:
| Bank | 1-year term | 2-year term | 3-year term | 4-year term | 5-year term |
|---|---|---|---|---|---|
| EQ Bank | 3.4% | 3.45% | 3.45% | 3.4% | 3.6% |
| Tangerine | 3.5% | 3.5% | 3.5% | 3.5% | 3.55% |
Tangerine’s terms range from three months to five years, whereas EQ Bank’s terms range from three months to ten years.
Tangerine doesn’t state a minimum investment whereas EQ Bank requires $100.
The winner: Tie
Both offer similar returns. However, if short-term GICs matter more to you (and you like Tangerine for other reasons), then Tangerine is a good choice for GIC investing.
On the other hand, EQ Bank offers longer-term GICs which you could use for GIC laddering.
Registered and foreign currency savings accounts
Neither bank has a long list of registered account options, but each offers the essentials.
Both EQ Bank and Tangerine offer:
Only EQ Bank offers an FHSA, while Tangerine is the only one of the two to offer RRIFs and business savings accounts.
The winner: EQ Bank
We’re giving this one to EQ Bank for its diversity of options, including our top choice for an FHSA: the EQ Bank FHSA Savings Account .
EQ Bank recently launched the beta version of a hybrid business account that offers 3% interest alongside its chequing functionality for businesses. The waitlist is currently closed, but we anticipate it will be a popular product.
Mobile apps
Both EQ Bank and Tangerine have user-friendly mobile apps:
| EQ Bank | Tangerine | |
|---|---|---|
| App Store | * 4.8 stars * 42,600 ratings | * 4.8 stars * 70,800 ratings |
| Google Play | * 4.4 stars * 9,600 ratings | * 4.6 stars * 42,900 ratings |
Note that you can’t access investments or credit card info on the EQ Bank app.
The winner: Tangerine
Tangerine’s app earns better ratings and offers more functionality.
Unfortunately, EQ Bank’s users report some bugs in the mobile app, including this user:
$75 GeniusCash + Unlimited transactions for $0 + Ding-free non-affiliated ATM usage.
$25 GeniusCash + $50 bonus for funding a new account, and $0 commissions on stocks & ETFs
$12 GeniusCash + Access trusted news coverage 24/7 + Digital and home subscription options.
$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Other bank features
When you’re choosing a bank, it’s important to look at the features that are important to you. If you’re looking for a bank that offers HELOCs or you regularly need to transfer money internationally, these features might make a difference in your decision.
| EQ Bank | Tangerine | |
|---|---|---|
| Mortgage | No* | Yes |
| Home Equity Line of Credit (HELOC) | No | Yes |
| Personal loans | No | Yes |
| International Money Transfers | Yes | No |
| Business Accounts | Yes | Yes |
| Business GICs | Yes | Yes |
| Kids bank accounts | No | Yes |
Note: Technically, EQ offers mortgages through its partner, nesto.
The winner: Tangerine
Simply put, Tangerine has more banking products than EQ Bank, including traditional offerings like mortgages and personal loans.
If you’re looking for a single bank for all your financial needs, Tangerine is more likely to work for you than EQ Bank.
Final winner
Tangerine won in most of the categories listed above. It offers standard chequing, savings, investment, credit, and business accounts with reasonable rates and low or no-fee services. Plus, its mobile app is easy to use.
Nevertheless, EQ Bank can’t be ignored. Its hybrid account is unique, and the prepaid EQ Bank card can work for Canadians who don’t want another credit card. Plus, EQ Bank’s base interest rates tend to be higher than Tangerine’s.
The solution? Well, many Canadians are using both banks to get the best of both worlds:
FAQ
Is EQ Bank a reputable bank?
EQ Bank is a reputable digital bank in Canada, a CDIC member with competitive interest rates and low fees. It’s a subsidiary of Equitable Bank, which has been a trusted financial institution in Canada for over 40 years.
Is EQ better than Tangerine?
It's close, but Tangerine comes out on top. While EQ's base interest rates are higher, Tangerine provides more traditional banking services and true credit cards. Compare products, fees, features, and interest rates to find the best fit for you.
Which bank owns Tangerine?
Scotiabank acquired Tangerine (formerly ING Direct Canada) in 2012, but the two operate as separate, direct banking divisions. Tangerine offers no-fee chequing, savings accounts, and other financial services, while most of Scotiabank's products come with fees and big bank perks.
Which bank owns EQ Bank?
Equitable Bank, a federally regulated institution, owns EQ Bank. As the digital arm of Equitable Bank, EQ Bank provides competitive rates and innovative banking solutions to Canadians, including personal accounts, business accounts, mortgage products, and more.
Is there a catch to EQ Bank?
Some may find EQ Bank’s account options fairly limited. For instance, it only offers one prepaid Mastercard, while other banks have one or more typical credit cards available. Plus, EQ Bank is an online-only bank with no physical branches.
Leave a comment
Comments