As a relatively new type of product, there's no real standard for hybrid bank accounts, but some of the best options in Canada include the KOHO Earn Interest, EQ Bank Personal Account, and Wealthsimple Chequing. All of these are unique financial products that combine the best elements of traditional chequing and savings accounts.
With the convenience of a chequing account that allows easy and frequent transactions, and the high-interest features of a savings account, hybrid bank accounts are a hot new option on the Canadian banking scene. Especially if you'd prefer not to have multiple accounts for multiple purposes, a hybrid account can be an easy way to one-stop-shop your banking needs.
In this article, we look at Canada’s best hybrid bank accounts, discuss some general pros and cons, and offer pointers if you're considering whether it's the right choice for you.
Key Takeaways
- Hybrid bank accounts offer the best of both worlds: transaction convenience and savings growth.
- They suit customers seeking simplicity, flexibility, and easy access to funds.
- Some of the best hybrid bank accounts in Canada are offered by EQ Bank, KOHO, Neo Financial, and Wealthsimple.
Without further ado, here are the best hybrid bank accounts in Canada:
| Bank account | Details | Interested? |
|---|---|---|
| KOHO Earn Interest | * A monthly fee of
$0 to $19, depending what plan you choose
* 2% - 3.5% interest on your balance * Up to 5% cash back * Prepaid mastercard |
Open an account |
| EQ Bank Personal Account | * No monthly fees
* Unlimited transactions * No foreign exchange (FX) fees * 3% interest on your balance * 0.5% cash back on your purchases |
Open an account |
| Wealthsimple Chequing | * No monthly fee
* 1.75% to 2.75% interest * 1% cash back * No foreign exchange (FX) fees * Free Interac e-Transfers * Set up option to automatically invest funds |
Learn more |
| Neo Everyday Account | * No monthly fees
* 0.1% interest on your balance * Free and unlimited daily transactions * Up to 5% cash back |
Open an account |
As you can see, most of these accounts pay you interest on your money and reward you with cash back on your purchases.
For example, the EQ Bank Personal Account offers guaranteed cash back and a solid interest rate above what big banks pay. Here’s a rundown of what you get with this account:
- 3% interest rate on your balance
- A prepaid Mastercard to use for spending
- No FX fees
- 0.5% cash back
- Free transactions
- No monthly fees
Get all the details here:
If you’re looking for a simple place to stash some extra cash and earn a higher-than-average interest rate, EQ Bank Personal Account may be exactly what you’re looking for. It does have a few other features, including the ability to easily send International Money Transfers, but otherwise it’s mostly geared to earning you interest.
- High daily interest rate
- Easy access to all other EQ Bank products
- Less expensive international money transfers
- Zero everyday banking fees
- Free Interac e-Transfers, electronic funds transfers, and bill payments
- No minimum balance
- No welcome bonus
- Age of majority
- Canadian citizen
- Very high interest rate
- Includes a prepaid cash back Mastercard
- No ATM fees, plus reimbursement for any independent fees
How hybrid bank accounts are different
The most obvious way that hybrid bank accounts are different from traditional account types is that they combine some of the best features of other accounts all into one product. The best characteristic of a savings account is the interest rate, and the best part of a chequing account is the ability to spend and make transactions. A hybrid account features both of those benefits.
Even though they do offer more interest than a standard chequing account, hybrid accounts don't offer as much as high interest savings accounts. They rank somewhere in the middle. Chequing accounts typically have no interest, and the average interest rate for a basic savings account in Canada is between 0.05% and 1.5% – but hybrid accounts average between 2% to 4%.
Plus, hybrid accounts are still a fairly new concept, so not all banks offer them yet. Chequing and savings accounts are quite standard at most big banks, online banks, credit unions, etc., but hybrid accounts are much rarer.
What are the pros and cons of a hybrid bank account?
Not sure about hybrid accounts yet? Here are some pros and cons to consider before making your decision.
| Pros | Cons |
|---|---|
|
|
Who should use a hybrid bank account?
A hybrid bank account is a great option for a wide range of consumers, especially those who are comfortable with online-only banks and who want an account for spending.
More specifically, hybrid accounts are well-suited for those who:
- Need an all-in-one solution for day-to-day transactions and savings
- Want to earn interest on their balance while maintaining easy access to funds
- Prefer simplicity and wish to reduce the number of separate accounts to manage
Who shouldn't use a hybrid account
However, hybrid bank accounts aren't an ideal choice for everyone, specifically those searching for an especially high interest rate or welcome bonus. The features of hybrid accounts just don't fit these requirements.
You probably shouldn't bother with a hybrid account if any of these situations sounds familiar:
- You have specific banking needs that products such as high-interest savings, investment accounts, or registered savings products can meet more effectively.
- You prefer to keep your finances entirely separate, with distinct accounts for different purposes.
- You already have a well-established and optimized banking setup that meets your financial goals.
- You struggle with budgeting and might be at risk of overspending, as they have easy access to savings through the hybrid account.
Are you interested in a hybrid bank account?
Combining the convenience of a chequing account with the interest-earning potential of a savings account, hybrid bank accounts can be a great product to add to your financial fleet.
Based on everything you’ve read today, are you interested in a hybrid bank account? Do you already have one?
Share your thoughts and let us know in the comments below!
FAQ
What is a hybrid account?
A hybrid bank account combines several features of both chequing accounts and savings accounts. They provide you with the convenience of being able to make everyday transactions along with the opportunity to earn interest on your balance.
What is a hybrid bank card?
This is essentially a prepaid credit card that functions like a debit card for making everyday transactions and even earning you cash back on your purchases. Depending on the account, you may have to load the card with money.
What type of account is like a hybrid between savings and a chequing account?
Some of the best Canadian hybrid accounts that combine these features are the KOHO Earn Interest, EQ Bank Personal Account, and Wealthsimple Chequing. These accounts offer interest on your savings and convenient access to funds.
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