The 11 Best Online Banks In Canada

The rise of online banks is reshaping how Canadians think about managing their money. With their convenience, low fees, and competitive interest rates, online banks are quickly becoming the preferred choice for many. As the digital revolution continues to transform the financial industry, traditional banks may find themselves struggling to keep up with the innovation and flexibility offered by their online counterparts.

Today, Canadians have an abundance of online banking options, each tailored to different needs and preferences. But with so many choices, finding the right fit can feel overwhelming. That’s why we’ve done the research for you. In this post, we’ll break down the top online banks in Canada, compare their features, and reveal which one stands out as the best option. Before diving into the specifics, let’s start by exploring what online banking is and why it’s gaining so much traction.

What Are Online Banks?

Online banking encompasses everything related to managing your bank accounts using your computer, tablet, or smartphone. While this can include services from traditional brick-and-mortar banks, for the purpose of this discussion, “Online Banks” and “Online Banking” refer exclusively to banks accessible only through the internet.

It’s easy to see why online banks are gaining popularity. These virtual institutions provide effortless access to features, higher interest rates on savings, and no minimum balance requirements, often paired with minimal or even no fees.

You Should Use An Online Bank If:

• You can manage most of your banking needs without visiting a physical branch.
• You’re okay with limited options for account types and investment products.
• You value the convenience and flexibility of online banking combined with the security of traditional banks.

You Shouldn’t Use An Online Bank If:

• You need to perform complex transactions that require in-person assistance.
• You prefer having all your financial products and services in one place, as most online banks primarily offer chequing and savings accounts.

Pros And Cons Of Online Banks

Pros

• Lower Fees: Without the overhead costs of physical branches, online banks typically charge lower fees or none at all. This can save Canadians significant amounts, as average banking fees can reach $216 annually.
• Higher Rates: Savings from reduced operational costs are passed on to customers in the form of higher interest rates on savings and term deposits.
• Convenience: Online banks excel in offering swift, hassle-free access. Tasks like paying bills, depositing cheques, and transferring funds can all be completed through apps or online platforms.
• Security: Funds in online banks are safeguarded by the Canada Deposit Insurance Corporation (CDIC) or provincial credit union guarantee programs, providing peace of mind.
• Versatility: Online banking apps make budgeting and financial management simpler, allowing you to track spending and stay organized.
• Time-Saving: Say goodbye to waiting in line. With online banks, you can handle your banking needs anytime, anywhere. Customer support is also just a call or chat away.

Cons

• Transaction Limitations: If you frequently require bank drafts, wire transfers, or safety deposit boxes, online banks may fall short of your needs.
• Less Personalized Attention: For complex inquiries, the absence of face-to-face interaction can make problem-solving more challenging.
• Limited Services: While some online banks, like Tangerine, offer a broader range of products, most stick to basic chequing and savings accounts. Additional services often need to be sourced from traditional banks.

Are Online Banks Safe?

Absolutely. Online banks provide deposit guarantees comparable to traditional banks. Federally incorporated online banks like EQ Bank and Tangerine are insured by the CDIC, protecting deposits up to $100,000. Meanwhile, online banks affiliated with credit unions are either CDIC-insured (e.g., Motusbank) or fully guaranteed by provincial organizations like the Deposit Guarantee Corporation of Manitoba. This ensures that your money remains secure, no matter where you choose to bank.

The Best Online Banks In Canada

#1 EQ Bank

EQ Bank, the online division of Equitable Bank, launched in 2016 as an extension of Canada’s ninth-largest independent Schedule I bank. Equitable Bank, a federally regulated institution, employs over 900 staff nationwide and backs EQ Bank with a strong reputation.

EQ Bank’s standout product is the Savings Plus Account, which offers one of the highest interest rates among online-only banks. Interest is calculated daily and paid monthly. Key features include:

• Zero minimum balance
• No monthly fees
• Unlimited free Interac e-Transfers®
• Unlimited bill payments
• Free electronic funds transfers
• Free and unlimited day-to-day transactions
• 10 free linked accounts
• Free mobile cheque deposits
• Mobile banking app

Additionally, EQ Bank provides GICs (Guaranteed Investment Certificates) and international money transfer services.

#2 Oaken Financial 

Launched in 2013 by Home Trust, Oaken Financial offers high-interest savings accounts and GICs, providing customers with reliable service and fresh financial options. Deposits are held by Home Bank or Home Trust Company, both members of the Canada Deposit Insurance Corporation (CDIC).

Oaken’s Savings Account features:

• Zero monthly fees
• Unlimited transactions
• No minimum balance
• Options to build savings and establish emergency funds with automatic contributions

Oaken’s GIC products include:

• Non-registered GICs
• Tax-Free Savings Accounts (TFSA)
• Retirement Savings Plans (RSP)
• Retirement Income Funds (RIF)
• Commercial GICs

#3 Motusbank

Motusbank, launched in 2019 by Meridian Credit Union, offers a fully digital banking experience across Canada (excluding Quebec). Federally chartered and CDIC-insured, Motusbank brings a modern approach to online banking with these account offerings:

• High-interest savings account: 1.65%
• RRSP savings account: 1.65%
• TFSA savings account: 1.65%
• No-fee chequing: 0.15%

Motusbank’s additional services include:

• GICs
• Personal loans
• Personal lines of credit
• Secured lines of credit
• Mortgages

#4 Motive Financial

Motive Financial, the online division of Canadian Western Bank, was founded in 2008 and rebranded in 2017. It stands out for its competitive rates on savings accounts, TFSAs, RRSPs, and GICs. Key products include:

• Motive Cha-Ching Chequing Account™: 0.60%
• Motive Savvy Savings Account™: 3.20%

#5 Simplii Financial

Simplii Financial launched in 2017 as a direct banking brand of CIBC, offering a simple and accessible online banking experience. Its accounts include:

• No-fee Chequing Account: 0.05% – 0.50% interest
• High-Interest Savings Account: Promotional rate of 6.00% for the first five months, then 0.35%–4.25% interest

Simplii also provides:

• Simplii Financial Credit Card
• Mortgages
• Investments (TFSA, RRSP, RRIF, RESP, and non-registered accounts)
• Personal loans

#6 Alterna Bank

A subsidiary of Alterna Savings and Credit Union Ltd., Alterna Bank operates primarily online but offers face-to-face services through Alterna Savings branches in Quebec and Ontario. Account offerings include:

• No-fee eChequing Account: 0.05% interest
• High-Interest Savings Account: 1.65% interest

Alterna Bank’s additional products:

• GICs
• TFSA
• RRSP

#7 Outlook Financial

Outlook Financial, a division of Assiniboine Credit Union, allows members to become co-owners and vote on board decisions. Products include:

• High-Interest Savings Account: 2.75% interest
• GICs
• TFSAs
• RRSPs
• RRIFs

#8 Accelerate Financial

A branchless division of Crosstown Civic Credit Union, AcceleRate Financial guarantees all deposits through the Deposit Guarantee Corporation of Manitoba. Key offerings include:

• Savings Account: 2.30% interest
• GICs
• TFSAs
• RRSPs
• RRIFs

#9 Achieva Financial

Achieva Financial, a division of Cambrian Credit Union, serves Canadians nationwide with these products:

• Daily Interest Savings Account: 3.00% interest
• TFSA Savings Account
• RESP Savings Account
• RRIF Savings Account
• Achieva GICs

#10 Hubert Financial

Hubert Financial, the online arm of Sunova Credit Union, offers competitive rates on savings products. Key offerings include:

• Happy Savings: 2.35% interest
• Tax-Free Savings
• RRSP and RRIF Savings
• U.S. Savings
• Term deposits
• Hubert Financial Cash Back Mastercard
• Hubert Financial World Mastercard

#11 Implicity Financial

A division of Entegra Credit Union, Implicity Financial guarantees all deposits without limit. Products include:

• High-Interest Savings Account
• Guaranteed Investment Certificates (GICs)
• Tax-Free Savings Accounts and Term Deposits: 2.30% interest
• RRSP Savings and Term Deposits
• RRIF Savings and Term Deposits

Online Banks In Canada: Features Comparison

In the following tables, you can compare side to side each of the features the banks have to offer. You can see the account and interest rates offered by each bank as well as their investment products. 

Bank	Accounts Offered	Interest Rate (as of November 15, 2024)	Investments Offered	CDIC Coverage
EQ Bank	Savings Plus Account	3.75% with direct deposit	GICs	Yes
Oaken Financial	Savings Account	2.30%	GICs, RSPs, RIFs	Yes
Motusbank	High-Interest Savings, RRSP Savings, TFSA Savings, No-Fee Chequing	HISA: 2.25%, TFSA: 2.53%, RRSP: 2.25%, Chequing: 0.25%	GICs	Yes
Motive Financial	Chequing Account, Tax-Free Savings Account, Savings Account	Chequing: 0.60%, TFSA: 2.40%, RSP Savings: 0.25%–1.25%	GICs	Yes
Simplii Financial	No-Fee Chequing, High-Interest Savings	Chequing: 0.05%–0.50%, HISA: 1.05%	TFSA, RRSP, RRIF, RESP, Non-Registered Investment Accounts	Yes
Alterna Bank	No-Fee eChequing Account, High-Interest Savings	eChequing: 0.05%, HISA: 2.20%	GICs	Yes
Outlook Financial	High-Interest Savings	2.40%	GICs, TFSAs, RRSPs, RRIFs	No (Guaranteed by DGCM)
AcceleRate Financial	Savings Account	2.30%	GICs, TFSAs, RRSPs, RRIFs	No (Guaranteed by DGCM)
Achieva Financial	Daily Interest Savings Account	2.30%	GICs	No (Guaranteed by DGCM)
Hubert Financial	Happy Savings, Tax-Free Savings, RRSP and RRIF Savings, U.S. Savings	Happy Savings: 2.25%, TFSA: 2.25%, RRSP and RRIF: 2.25%, U.S. Savings: 0.75%	VirtualWealth	No (Guaranteed by DGCM)
Implicity Financial	High-Interest Savings, Tax-Free Savings	HISA: 2.30%, TFSA: 2.30%	GICs	No (Guaranteed by DGCM)

In this next table, we have more features. In this case, we’re focusing on the additional perks each bank offers, such as referral programs, purchase coverage, travel insurance and international transfers. 

Bank	Referral Program	Purchase Coverage	Travel Insurance	International Transfers
EQ Bank	Yes, details change over time.	–	–	✓
Oaken Financial	–	–	–	–
Motusbank	✓	–	–	–
Motive Financial	–	–	–	–
Simplii Financial	Earn $50 per referral.	Yes, on its Simplii Financial Cash Back Visa.	–	✓
Alterna Bank	–	Offers buyer protection and Extended Guarantee.	✓	✓
Outlook Financial	–	–	–	–
AcceleRate Financial	–	–	–	–
Achieva Financial	–	–	–	–
Hubert Financial	–	Yes, on the Hubert Cash Back Mastercard.	Yes, on the Hubert World Mastercard.	–
Implicity Financial	–	–	–	–

In Summary

In our opinion, EQ Bank is the best option for most Canadians. They offer high-interest savings, no monthly fees, and unlimited free transactions, all managed easily online — perfect for maximizing your savings without the hassle of a traditional bank.