Tangerine is the best online bank in Canada, featuring one of the most popular free chequing accounts available and consistently valuable welcome offers. Runners-up include Simplii Financial and EQ Bank.
Online banks are a relatively new addition to the Canadian banking landscape, but the right institution and right account can provide users with excellent products, services, and cost savings.
All these banks have the same CDIC coverage as the big banks you know and trust. The guide below offers everything you need to know about online banks and what they have to offer.
Key Takeaways
- The best online bank in Canada is Tangerine.
- Online bank accounts tend to offer much higher savings rates than big bank options.
- Digital banks also offer free chequing accounts with unlimited transactions.
- The major downside to online banking is you most likely can't meet with customer service face to face.
5 best online banks in Canada
These are the five best online banks in Canada:
The fees, perks, and features of each bank are very different.
We reviewed the offerings of each bank in detail, including its fees, types of accounts, ATM access, and app store presence.
Tangerine online bank review
As a subsidiary of Scotiabank, Tangerine has been a frontrunner of virtual banks in Canada for a while now.
Total cost: $0
Noteworthy features: No fee cash back credit card, amazing promotions, competitive mortgage and GIC rates
Debit card: Yes
Mobile app: iOS and Android
We love that the Tangerine Chequing Account has no fees for daily transactions and that Tangerine customers can use any of Scotiabank’s 3,600+ ATMs with zero withdrawal fees.
We also love Tangerine’s two credit cards, the Tangerine Money-Bank Mastercard and Tangerine World Mastercard. These give you 2% cash back on two categories that you choose. You can get a third bonus category if you deposit your cash back rewards into your savings account.
The biggest drawback is the unimpressive 0.3% interest rate offered by the Tangerine Savings Account.
This Redditor recommends using Tangerine alongside EQ Bank or Alterna Bank, which isn't a bad idea if you like the promotion offered by one bank but the regular features of the other:
You can learn more about Tangerine's offerings here:
Simplii Financial review
If your priority is having a great, free place to keep the money you want to spend – and easy access to it at all times – Simplii Financial (a subsidiary of CIBC) can be a great option for you.
Total cost: $0
Noteworthy features: No minimum balance, free daily banking, free unlimited cheques, savings and chequing accounts
Debit card: Yes
Mobile app: iOS and Android
While the Simplii High Interest Savings Account's regular rates are nothing to write home about, the promo 4.5% rate makes up for it – and we absolutely love the Simplii No Fee Chequing Account. You enjoy no monthly fees, no minimum balance, and free daily banking that includes debit purchases, bill payments, and withdrawals.
Simplii customers can withdraw their money fee-free from any of CIBC's nearly 3,000 ATMs .
Another valuable product is the Simplii Financial Cash Back Visa, which has some nice cash back earn rates.
Here's what one Reddit user thinks about their Simplii products and services:
Here's more information on Simplii's products:
EQ Bank review
If you're looking for a place to store your hard-earned money to get some easy interest, EQ Bank has one of the best interest rates on a savings account and GICs in Canada.
Total cost: $0
Noteworthy features: High interest rates for savings, no fees for everyday banking, no minimum balance, unlimited transactions, refunded ATM fees
Debit card: Yes
Mobile app: iOS and Android
EQ Bank’s hybrid chequing-saving combo is pretty irresistible.
The EQ Bank Personal Account allows you to earn 1%* everyday interest on your savings – all for no everyday banking fees, no minimum balance, and yet with unlimited transactions.
And with the prepaid EQ Bank Card, this account essentially doubles as a chequing account. You can access your money on the go and earn 0.5% cash back on all your purchases.
EQ bank doesn't currently offer mortgages, loans, or stock investment opportunities, but this institution is an excellent option for everyday banking.
As this EQ client points out on Reddit, you can always choose to use EQ's valuable products alongside those of other banks, making an excellent balance:
You can get an overview of each of their products here:
Meridian review
Backed by the second biggest credit union in Canada, Meridian offers an impressive array of products that offer the feel of a big bank but with the conveniences and low prices we've come to expect from online banks.
Total cost: $0 to $19
Noteworthy features: Full suite of banking products, student discounts, unlimited cheques, U.S. dollar accounts
Debit card: Yes
Mobile app: iOS and Android
Meridian is special for two reasons: it’s the only credit union on this list, and it actually has in-person branches in Ontario.
Meridian offers customers a wide range of banking services. You can get chequing and saving accounts, lines of credit, car financing, credit cards, and non-registered and registered savings accounts. You can use The EXCHANGE Network ATMs in the U.S. and Canada.
Its Meridian High Interest Savings Account is highly rated, plus Meridian offers a valuable FHSA account. You'll also have access to travel and mortgage protection insurance.
Meridian clients are required to pay a membership fee. But good rates and all-in-one banking can be worth it, especially when supporting a community-minded institution like this.
Many clients (360,000+, in fact) appreciate this credit union's excellent products and customer service, including these Redditors:
Manulife Bank review
Manulife Bank offers a little bit of everything – bank accounts, credit cards, mortgages, loans, and investments. They also have some well-rated travel and health insurance packages available.
Total cost: $0
Noteworthy features: Hybrid chequing/saving account, strong interest rate, comprehensive banking services
Debit card: Yes
Mobile app: iOS and Android
The Manulife Advantage Account is a hybrid chequing-savings account with a decent 1.85% interest rate and a sweet promo that boosts this rate up to 4.7% for four months. There are no transaction fees unless your account balance dips below $1,000.
Manulife Bank also offers two different credit cards: The ManulifeMONEY+ Visa Platinum and ManulifeMONEY+ Visa Infinite. The first is a no-fee card and the other has a $139 annual fee, but both offer cash back on your regular purchases.
Some reviewers have had bad experiences, though, like these Reddit users:
While not technically a banking product, Manulife Health Insurance deserves special notice – it's one of our top choices for the best health insurance in Canada.
$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.What is online banking vs. online-only banks?
Online-only banks: Clients do all banking online, but there are few or no physical branch locations.
Online banking: Clients can do their banking online and visit in-person branches as needed.
When banks focus more on their digital presence instead of brick-and-mortar branches, they can cut costs and pass on the savings to consumers by way of better rates and lower fees.
Here are a few common features of most online banks in Canada:
- Little or no physical banking presence
- Backed by a big bank or credit union
- Offer free chequing accounts
- Better rates than big banks on savings accounts and GICs
Is online banking safe?
Yes, online banking is just as safe as traditional banking.
Online security threats: Digital banks and big banks are equally vulnerable since all banks now offer online banking services.
Subsidiary stability: Most online banks are subsidiaries of big banks or large credit unions, so they have an established presence and track record in Canada. For example:
- Tangerine – Owned by Scotiabank
- Simplii – Owned by CIBC
- EQ Bank – Owned by Equitable Bank.
- Meridian – Second-largest credit union in the country and the largest in Ontario.
- Manulife Bank – Owned by Manulife Financial
CDIC protection: Online banks are also protected with CDIC coverage, just like a standard bank account. This means that your eligible deposits are insured in case of the bank's failure, for up to $100,000.
Canada’s financial industry is highly regulated to protect consumers.
"The regulations make it difficult for foreign competition to compete here, but they've also given Canadian banks a reputation for stability," says finance professor Jie Zhang in response to President Trump’s comments about cross-border banking.
The pros and cons of online banks
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Big banks vs. online banks in Canada
Big banks: This includes BMO, CIBC, RBC, Scotiabank, TD, and National Bank. These banks represent the lion's share of banking in Canada and have a coast-to-coast presence.
Online banks: These are digital-first banks that may not have physical branches. They may or may not be owned by a big bank.
Online banks tend to offer the following products:
Big banks usually offer a larger product lineup:
- Savings accounts
- Chequing accounts
- GICs
- Mortgages
- Credit cards
- Online investing platform
- Investment products
- Loans
- Insurance
In early February 2025, the National Bank of Canada officially acquired the Edmonton-based Canadian Western Bank for $5 billion. NBC was already the sixth largest bank in Canada and now it’s even bigger.
How to pick an online bank
Consider these key factors when evaluating online banks:
- Fees: While most online banks have no monthly fees, some charge unless you keep a minimum balance. Check on transaction fees, ATM fees, and inactivity fees, too.
- Interest rates: Compare the interest rates, and make sure you know whether it’s a flat or tiered rate. Is there a temporary promotional rate with strings attached?
- U.S.D. accounts: Some online banks offer U.S.D. accounts, which are helpful for earning, spending, and saving USD – especially valuable as the Canadian dollar falls.
- Features: Some (but not all) online banks offer a ton of banking products, from chequing accounts to credit cards and mortgages. If you want to do all your banking in one place, choose carefully.
- Usability: Choose a bank with plentiful fee-free ATMs near you. Do they offer a mobile app that’s compatible with your devices? Do you like the layout of their website?
- Support: If you ever need help with your account, you will appreciate having access to support. Simplii offers 24/7 customer service, for instance.
- Perks: From free budgeting tools to cash back rewards, perks vary wildly between online banks.
Keep up with the news before you choose a bank, as upcoming trade negotiations and elections could impact rates across Canada – like an emergency rate cut from the Bank of Canada (as predicted by the Financial Post).
Summary: Online bank promotions on now in Canada
Looking to open an account soon? Here are the best online bank promotions in Canada:
- Simplii High Interest Savings Account: Get 4.5% interest for five months on up to $1,000,000 in savings
- Simplii No Fee Chequing Account: Get $350 when you open your first account and set up a direct deposit of at least $100 for three months
- Tangerine Chequing Account: Get up to $250 by opening an account and switching your payroll deposits for two consecutive months
- Tangerine Savings Account: Get 4.5% interest for five months on your savings, up to $1,000,000
- EQ Bank Personal Account: Get 3% interest on your money by setting up a direct deposit of at least $2,000 per month
FAQ
What's the best online bank in Canada?
With a large selection of top-quality financial products and services, including its very popular no-fee chequing account, Tangerine is the best online bank in Canada. The fact that it's backed by Scotiabank offers peace of mind for many clients.
What are the advantages of an online bank?
Fee-free chequing accounts, unlimited transactions, and higher savings account interest rates are typical perks of online banks. If you don't mind doing everything online, then you might prefer online banks to the big banks of Canada.
What are the disadvantages of an online bank?
If you run into issues with your account, the lack of face-to-face support can be highly inconvenient – mobile apps and ATMs only offer so much. You may not be able to access other banking products either, like mortgages or loans.
What's the difference between a big bank and an online bank?
There are several differences. The big banks are full-service institutions that offer a large variety of banking products. Online banks, on the other hand, are more specialized – but also tend to offer better rates and lower fees.
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