Top Digital Banking Options
TL;DR: The best online banks in Canada in 2025 are EQ Bank (number six on Forbes World's Best Banks 2025, up to 4.00% APY on savings with direct deposit, no fees, Wise-powered international transfers), Tangerine (ranked first in the J.D. Power 2025 Canada Retail Banking Satisfaction Study among midsize banks, no-fee chequing, TFSA, RRSP, GICs, mortgages, credit cards), Simplii Financial (CIBC-backed, no-fee chequing and savings, mortgages, loans, strong mobile app), Neo Financial (Winnipeg-based, high-interest savings, cashback credit cards, mortgage products), and Wealthsimple (three million customers, cash account earning interest, stock and ETF trading, crypto). All are CDIC members providing deposit insurance up to $100,000 per eligible category. None have physical branches, which lowers costs and enables them to pass value back to customers through higher savings rates and lower fees than Canada's Big Five banks.
Why Choose an Online Bank in Canada?
Canada's Big Five banks, Royal Bank of Canada, TD Canada Trust, Bank of Nova Scotia, Bank of Montreal, and CIBC, have historically charged monthly account maintenance fees of $15 to $30 and paid near-zero interest on savings balances. Online banks in Canada eliminate or significantly reduce both of these costs simultaneously, operating without the branch overhead that anchors traditional bank cost structures. A customer who switches from paying $16.95 per month in maintenance fees at a Big Five bank to a no-fee EQ Bank Personal Account while moving their savings from a 0.01% Big Five savings rate to EQ Bank's 2.75% to 4.00% rate captures a meaningful annual financial advantage that compounds over time. The EQ Bank founder stated that when they switched from a credit union to Equitable Bank, they went from paying $15 per month in fees to earning $45 per month in interest, a $60 monthly improvement from a single account transition. This arithmetic, multiplied across the growing base of Canadians making similar calculations, explains why digital banking has accelerated from a niche to a mainstream phenomenon across Canada.
How Online Banks Are Regulated in Canada
Online banks in Canada are regulated by the Office of the Superintendent of Financial Institutions (OSFI) and protected by the Canada Deposit Insurance Corporation (CDIC), which insures eligible deposits up to $100,000 per depositor per eligible deposit category at each CDIC member institution. EQ Bank operates as the digital banking arm of Equitable Bank, a CDIC member. Tangerine is a CDIC member as a subsidiary of Scotiabank. Simplii Financial is a CDIC member as a subsidiary of CIBC. Neo Financial is a CDIC member. This deposit protection is equivalent to the protection provided to customers of Canada's Big Five banks, meaning online bank customers assume no additional deposit safety risk relative to traditional bank customers when dealing with CDIC member institutions. KOHO, which operates as a fintech using Peoples Trust as its partner bank, provides CDIC protection through that arrangement rather than directly, a structural detail that customers should confirm is active for their specific account type.
EQ Bank: Best for High-Interest Savings and No-Fee Banking
EQ Bank is the digital banking arm of Equitable Bank, which has operated in Canada for over 50 years and is listed on the Toronto Stock Exchange. Founded in 2016, EQ Bank has grown to over 639,000 customers and was ranked sixth among all Canadian banks on Forbes World's Best Banks 2025 list. Its flagship EQ Bank Personal Account is a hybrid account combining chequing and savings functionality: it earns a base rate of 1.25% on all balances, rising to 2.75% for customers who set up eligible direct deposit, with a promotional rate of up to 4.00% available for qualifying customers. There are no monthly fees, no minimum balance requirements, no transaction fees, and no NSF fees. The EQ Bank Card, a prepaid Mastercard, provides fee-free ATM withdrawals and reimbursements at any ATM across Canada, a feature that meaningfully differentiates EQ Bank from other digital-only banks whose customers must locate partner ATMs or pay withdrawal fees. EQ Bank also offers GICs with terms from 3 months to 10 years at rates from 2.35% to 3.75%, TFSAs, RRSPs, FHSAs (First Home Savings Accounts), and a US dollar account. EQ Bank works with Wise for international money transfers, enabling customers to send money abroad at rates significantly lower than Canadian bank wire fees. The bank does not currently operate in Quebec for all products.
Tangerine: Best for Full-Service Digital Banking
Tangerine, originally launched in 1997 as ING Direct and acquired by Scotiabank in 2012, was renamed Tangerine in 2014 and has grown to nearly two million clients with over $40 billion in managed assets. Forbes named Tangerine the number one bank in Canada on its World's Best Banks 2025 list, and J.D. Power ranked it highest in overall customer satisfaction among midsize Canadian banks in its 2025 Canada Retail Banking Satisfaction Study. Tangerine's No-Fee Daily Chequing Account offers unlimited transactions, free Interac e-Transfers, no minimum balance, and a standard interest rate on the balance. Tangerine chequing customers access Scotiabank ATMs across Canada and up to 44,000 ATMs globally through the Global ATM Alliance without surcharges, a practically significant ATM access advantage over banks requiring customers to find specific partner ATMs. Tangerine additionally offers savings accounts, a TFSA, an RRSP, an RRIF, business savings accounts, USD savings accounts, a Money-Back credit card with up to 2% cashback in chosen spending categories, mortgages, home equity lines of credit, RSP loans, and GICs with rates up to 3.40% for five-year terms. New customer promotions have historically included elevated savings rates of 5.00% for introductory periods. The breadth of Tangerine's product range makes it the most complete online banking alternative to a traditional Big Five bank available to Canadians.
Simplii Financial: Best CIBC-Backed No-Fee Banking
Simplii Financial is the digital banking division of CIBC, one of Canada's Big Five banks. This affiliation provides Simplii customers with access to CIBC's network of over 3,400 ATMs across Canada without fees, a practical cash access advantage that many digital-only banks without a parent bank ATM network cannot match. Simplii's No-Fee Chequing Account offers unlimited transactions, no minimum balance, no monthly fee, and free Interac e-Transfers. Its high-interest savings account has offered promotional rates of up to 3.70% for new clients in specific promotional periods. Simplii also offers a TFSA, GICs, a Cashback Visa card with an introductory interest rate of 9.99% for the first year, personal loans, and a 25-year variable or fixed rate mortgage with an all-digital application process supported by CIBC's mortgage specialists. Simplii Financial is not currently available in Quebec. For customers who want the convenience of digital banking combined with the ATM network and lending infrastructure of a major established bank, Simplii provides a compelling combination. The CIBC backing also means customers can access CIBC branch support if a banking need arises that the digital platform cannot resolve remotely.
Neo Financial: Best for Cashback and Modern Banking Tools
Neo Financial is a Winnipeg-based fintech and CDIC member bank that has built a distinctive position in the Canadian digital banking market by combining high-interest savings with a cashback credit card reward program and mortgage products, targeting consumers who want a modern, integrated financial platform. Neo Money, its daily spending account, earns 2.25% interest on balances and provides 2% cashback on eligible purchases in partnership with thousands of Canadian retailers through the Neo network. The Neo High-Interest Savings Account offers competitive rates for savers seeking a digital-first savings vehicle. Neo's mortgage product, developed through its acquisition of Concord Mortgage Group, provides a full online mortgage application process. Neo has grown rapidly since its 2019 founding and continues to expand its product range. The cashback network, which operates through partnerships with specific Canadian merchants, delivers the most value to customers whose spending naturally aligns with the enrolled partner merchants.
Wealthsimple: Best for Investing Alongside Banking
Wealthsimple is not a bank in the traditional sense but a licensed investment manager and fintech company that offers a Cash account earning 1.75% to 2.25% APY with cashback on spending and a Visa debit card, alongside its primary investment platform. It serves over three million customers in Canada with over $30 billion in assets under management. Its investment products include commission-free stock and ETF trading, robo-advisory managed portfolios in individual, RRSP, TFSA, RRIF, LIRA, FHSA, and joint configurations, and cryptocurrency trading. For Canadians whose primary banking relationship requires investment access, Wealthsimple's integrated platform that combines a functional spending account with sophisticated investment and tax filing tools represents a genuinely differentiated offering relative to banking-only digital alternatives. CDIC protection on deposits held through Wealthsimple's banking features is available through its partner bank arrangement, and customers should confirm the applicable deposit insurance details for their specific account types on Wealthsimple's website.
Frequently Asked Questions
Are online banks in Canada safe?
Yes, when using CDIC member institutions. EQ Bank, Tangerine, Simplii Financial, and Neo Financial are all CDIC members, providing deposit insurance up to $100,000 per depositor per eligible deposit category equivalent to the protection at any of Canada's Big Five banks. CDIC protection applies to chequing accounts, savings accounts, GICs with terms up to five years, and US dollar deposits at member institutions. Always verify CDIC membership status for any financial institution you are considering by checking the CDIC member directory at cdic.ca.
What is the best online bank in Canada for savings?
EQ Bank offers the strongest combination of savings rate and flexibility, providing up to 4.00% APY with eligible direct deposit on its Personal Account hybrid chequing and savings product, with no fees, no minimum balance, and no transaction limits. Tangerine and Simplii offer competitive promotional savings rates for new customers, typically in the 3% to 5% range for introductory periods, that revert to lower standard rates after the promotional period. KOHO offers 3.5% interest on balances for holders of its spending account product. For ongoing, non-promotional savings rate leadership, EQ Bank consistently ranks among the highest of CDIC-member institutions in Canada.
Can newcomers to Canada open an online bank account?
Yes, though the documentation requirements and eligibility criteria vary by provider. EQ Bank Savings Plus accounts and the Simplii No-Fee Chequing Account are among the easiest online bank accounts to open in Canada. Most online bank account applications can be completed entirely digitally using a valid government-issued photo ID and a Social Insurance Number or temporary tax identification. Some providers accept newcomers to Canada specifically. For those who need banking access immediately upon arrival before completing CDIC-member bank account applications, Wise's multi-currency account provides a Canadian bank account number and transit number usable for receiving payments as a domestic transfer while longer-term account setup is completed.
Does EQ Bank offer a chequebook?
No. EQ Bank does not offer a chequebook with any of its personal accounts. As a digital-only bank, EQ Bank is designed around electronic payment methods including Interac e-Transfers, bill payments, and direct deposits. Customers who require the ability to write physical cheques should consider Tangerine or Simplii Financial, which offer chequebooks on their no-fee chequing accounts. Tangerine provides the ability to order cheques at cost, and Simplii offers cheque writing capability as part of its no-fee chequing account.
Which Canadian online bank is best for international money transfers?
EQ Bank, through its partnership with Wise, offers the most cost-effective international money transfer capability of any CDIC-member online bank in Canada, providing access to Wise's mid-market exchange rate and transparent percentage fee structure for transfers to over 70 countries directly from the EQ Bank app. Traditional Big Five banks and even most online bank alternatives typically charge SWIFT wire fees of $25 to $50 combined with exchange rate markups of 2% to 4%, making EQ Bank plus Wise the most cost-competitive option for Canadians who send money internationally on a regular basis.
Sources
EQ Bank Official Website: https://www.eqbank.ca
Tangerine Bank Official Website: https://www.tangerine.ca
Simplii Financial Official Website: https://www.simplii.com
Forbes World's Best Banks 2025: https://www.forbes.com/lists/worlds-best-banks/
CDIC Deposit Insurance Information: https://www.cdic.ca
NerdWallet Canada: EQ Bank vs Tangerine: https://www.nerdwallet.com/ca/p/article/banking/eq-bank-vs-tangerine
J.D. Power 2025 Canada Retail Banking Satisfaction Study: https://www.jdpower.com
