EQ Bank and Tangerine Bank are two of Canada’s widely trusted online-only banks. Both banks are suitable for those who are comfortable with doing most of their banking independently, as customer service is limited to virtual and over-the-phone assistance. However, there are quite a few differences between the two banks that are worth exploring before choosing which financial products are right for you.
If you’re looking for a simple, low-risk way to grow your savings over time and want to maintain some control over your spending, EQ Bank’s products will deliver. Those looking for a full range of traditional bank accounts, more opportunities for investments outside of GICs and personal borrowing options will likely find Tangerine more suitable. That’s not to say you can’t be a customer at both banks and combine the best of both worlds.
But before opening an account, it’s worth weighing your options, considering everything from interest rates and account capabilities to fees and cash bonuses to ensure your choice is aligned with your short-term and long-term financial goals.
Featured Partner Offer
1
EQ Bank Personal Account
On EQ Bank’s Website
APY
4%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
2
EQ Bank Registered GIC
On EQ Bank’s Website
APY:
3.75% (3 month) to 5.05% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
FEATURED PARTNER OFFER
EQ Bank
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Chequing, Savings, GICs
Fees
No monthly, overdraft or ATM
ATM Network
All ATMs in Canada
On EQ Bank's Website
Products
Chequing, Savings, GICs
Fees
No monthly, overdraft or ATM
ATM Network
All ATMs in Canada
Why We Picked It
EQ Bank tops our list of best online banks in Canada thanks to its competitive interest rates and lack of monthly fees. Customers can earn 4% on the Personal Account and Joint Account and 3% with both their TFSA and US Dollar accounts. Most no-fee bank accounts only offer high interest like this as a promotional rate.
Chequing is part of the Personal Account as a way to earn interest on everyday spending. This account can be linked to an EQ Bank Card, a prepaid Mastercard that offers 0.5% cash back and free withdrawals from any ATM in Canada. Plus, there aren’t any monthly fees, interest charges, or foreign transaction fees.
Learn more: Read our EQ Bank Review
Pros & Cons
- No monthly fees or minimum balances required
- Free Interac e-Transfers and ATM withdrawals
- 0.5% cash back on EQ Bank Card purchases
- EQ Bank Card must be loaded with funds from a personal account
- Slow bank-to-bank (EFT) transfers
Additional Details
EQ Bank offers five savings accounts, one chequing account and options for registered and non-registered GICs.
FEATURED PARTNER OFFER
Tangerine Bank
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $5 overdraft
ATM Network
44,000+ Scotiabank ATMs
On Tangerine Bank's Website
Products
Chequing, Savings, GICs
Fees
No monthly or ATM, $5 overdraft
ATM Network
44,000+ Scotiabank ATMs
Why We Picked It
Tangerine Bank is known for its no-fee online banking services. Interest rates are on the low end, but you won’t be charged monthly, annual, or maintenance fees. Chequing accounts earn up to 0.10% interest and come with a Visa debit card. This account includes free e-transfers, bill payments, and withdrawals from Scotiabank ATMs.
There’s no shortage of savings account options, including regular savings accounts, TSFAs, RRSPs, RRIFs, and US accounts. Interest rates range from 0.10% to 0.75%. Tangerine offers all types of GICs with interest rates up to 5.25%, depending on the term.
Learn more: Read our Tangerine Bank Review
Pros & Cons
- Free transactions and ATM withdrawals
- Earn interest on chequing and savings accounts
- Automatic savings and contributions
- Low interest rates (under 1%)
- 2.5% foreign transaction fees
Additional Details
Tangerine Bank has one chequing account, five savings accounts and a range of GICs that have no fees or surcharges.
EQ Bank Vs. Tangerine Bank Overview
EQ Bank | Tangerine | |||
---|---|---|---|---|
Types of Accounts | Personal savings/chequing hybrid account, joint account, registered and non-registered savings accounts, US dollar account, and GIC accounts. | Registered and non-registered savings accounts, US dollar account, traditional chequing account, GIC accounts, non-registered investment account, and business accounts. | ||
Chequing Account Interest Rate* | Chequing account equivalent: 2.50% plus 1.50% bonus interest for direct deposit pay. | Up to 0.10% | ||
HISA Interest Rate* | Up to 5.00% (Notice Account) | 6.00% bonus rate (then 0.60%) | ||
Monthly Bank Fees | None | None | ||
Account Minimums | None ($100 for referral bonus) | None ($250 for referral bonus) | ||
ATM Withdrawl Fees | None, plus reimbursem*nt for other providers in Canada. | None | ||
Interac e-Transfer Fees | None | None | ||
NSF Fee | None | $45 | ||
Referral Program | $20 for first friend, up to $500 | $50 per friend, up to $150 annually | ||
Credit Cards | Prepaid, EQ Bank Card | Tangerine World Mastercard, Tangerine Money-Back Credit Card. | ||
5-year GIC Interest Rate* | 4.35% | 3.50% to 3.75% | ||
Other Products Offered | Mortgage marketplace for EQ Bank customers, International Money Transfers. | Mutual fund investments, mortgages, HELOCs, lines of credit. | ||
CDIC Insurance | Yes | Yes | ||
*Rates as of July 4, 2024. |
Product Types
Both EQ Bank and Tangerine Bank have daily banking products, registered and non-registered accounts, and investing solutions, but only Tangerine offers borrowing options.
EQ Bank
- Everyday Banking: Open a Personal or Joint account that acts like a chequing account and has high interest-earning potential.
- Saving: Notice Savings account (choose interest rate based on how much notice you give before withdrawals), TFSA, FHSA, US Dollar Account.
- Investing: GICs, RSP.
- Payments: EQ Bank Card, International Money Transfers.
- Business: Coming soon.
Tangerine Bank
- Save: Savings Account, TFSA, RSP, RIF, US$ Savings Account.
- Spend: No-fee Daily Chequing Account, World Mastercard, Money-Back Credit Card.
- Invest: GICs, Mutual Funds, Money Market Fund, Non-Registered Investment account.
- Borrow: Mortgages, Home Equity Lines of Credit (HELOCs), Lines of Credit.
- Business: Savings, US$ savings, GIC, US$ GIC.
Customer Service
Both banks are online-only, with no brick-and-mortar locations. That means most of your banking will be done independently. But you can still reach a customer service representative when you need to.
EQ Bank
EQ Bank earns a Trustpilot rating of two stars, with some users having concerns about issues logging into their accounts through the EQ Bank app and over-active security blocks on their accounts. However, some four and five star ratings praise the bank’s GIC interest rates, claim it’s easy to bank with them online, and say response times are low.
EQ Bank offers 24/7 virtual assistance via its online chatbot. If you’d rather speak with a representative over the phone, you can do so from 8:00 a.m. to midnight (Eastern Time) every day of the week at 1-844-437-2265.
Tangerine Bank
Tangerine Bank has a Trustpilot rating of 1.3 stars. Some users claim to have had issues linking existing accounts to newly opened accounts, delayed e-transfers, and that customer service isn’t helpful. But, some positive reviews note that customer service successfully stopped fraudulent charges on one user account while others confirm quick problem-solving over the phone.
You can connect with a customer service representative to discuss everyday banking 24/7 at 1‑888‑826‑4374. Inquiries related to mortgages, investment funds, and business must be made from 8 a.m. to 8 p.m. ET, though no service is available on holidays. Otherwise, the Tangerine Chatbot is available to answer more general questions.
- Investment Funds: 1-877-464-5678
- Outside of Canada: 416‑758‑3139
Referral Program
Both banks reward customers for referring a friend or family member when they open a new account.
EQ Bank
To earn a referral bonus, new referrals must sign up using the link provided by the existing customer. The new customer has to deposit at least $100 in their new account within 30 days of opening it for the existing customer to earn money. While the new account holder will only earn $20 once they deposit money into their account, the existing customer earns $20 for their first three referrals, $30 for the following four referrals, and $40 for each referral thereafter, up to $500 maximum.
Tangerine Bank
Existing Tangerine customers can earn $50 for each friend or family member who becomes a Tangerine Client using their Orange Key code. Once it’s entered, the new customer can open their account of choice, but they must deposit at least $250 and maintain that amount for the first 60 days for the bonus to be granted. The new, successful referral will receive $50 as well.
Noteworthy Features
While EQ Bank is known for its flexible Personal Account, prepaid EQ Bank Card and zero-fee structure, Tangerine Bank boasts ongoing, high promotional interest rates and cash-back welcome offers and a no-fee chequing account with interest.
EQ Bank
EQ Bank offers a unique Personal Account that provides chequing account capabilities within a savings account and earns up to 4% interest (when you set up direct deposits to the account). Its EQ Bank Card is reloadable, and the balance earns the same interest as your Personal Account until the money is spent一at which point cardholders earn 0.5% cash back. The flexibility allows customers to earn as they save and shop, while the prepaid card promotes responsible spending. On top of that, customers don’t have to worry about added fees, including NSF charges.
Tangerine Bank
Tangerine offers a 6% promotional interest rate on registered and non-registered savings accounts for five months. That offers a strong start for those opening an account with a large balance, particularly a registered account, so customers won’t be taxed on the interest. The bank also offers an extra 10% cash back for the first two months up to $100 on both of its credit cards. While Tangerine’s promotional value is high, it also offers a unique No-Fee Daily Chequing Account that consistently allows unlimited transactions and earns interest from 0.01% to 0.10%, which is rare for a chequing account.
Interest Rates
EQ Bank
The Personal Account and Joint Account both offer 2.50% plus 1.5% interest with recurring direct deposit, reaching up to 4%. Its Notice Savings Account offers 4.50% interest for 10 days’ notice before withdrawing money and 5.00% for 30 days’ notice. EQ Bank’s TFSA, FHSA, RSP, and US Dollar Account all collect 3.00% interest, and its GICs range from 4.35% to 5.05%.
Tangerine Bank
The Tangerine Bank Savings Account, TFSA, and RSP all offer a 0.60% interest rate with a 6% promotional rate for five months. The RIF Savings Account earns 0.65% and the US Dollar Savings Account earns 0.10%. The No-Fee Daily Chequing Account offers very little interest from 0.01% to 0.10% depending on your balance, and GICs currently range from 3.30% to 4.80%.
The interest charged on Tangerine credit cards for purchases, balance transfers, and cash advances is 19.95%, a standard rate.
Fees
EQ Bank
EQ Bank charges zero fees. The only fees that may come up in your Personal Account or on your prepaid card include an International Money Transfer fee if you complete one (powered by a third-party provider called Wise) or an out-of-network ATM fee. Fortunately, EQ Bank reimburses ATM fees from other Canadian providers within 10 days. Since EQ Bank charges absolutely zero fees directly, its fees are among the lowest on the Canadian market.
Tangerine Bank
Tangerine Bank only charges what it calls “fair fees.” Fees associated with the chequing account include:
- $50 for subsequent chequebooks
- $12.50 for subsequent stop-payment cheques
- $10 for Canadian drafts
- $45 for non-sufficient funds
- $7.50 for returned items
- $1.50 for non-Scotiabank ABM withdrawals
- $3 for ABM withdrawals outside of Canada
- $10 for one year of inactivity
- 2.50% for foreign currency conversion
- $5 for overdraft protection and 19.00% overdraft interest
Non-registered savings accounts are also subject to a $45 non-sufficient fund fee and are charged $20 to $40 for dormancy, depending on the length. Registered savings accounts are charged $50 for transfers to a different banking institution and all savings accounts are subject to a $2 paper statement fee and a $5 fee for reprints. Though this may seem like a lot in comparison to EQ Bank, the fees are typical of other banks. The good news is there are no daily transactions or monthly fees on Tangerine accounts, and most of these fees can be avoided.
Other Products
EQ Bank
In addition to its savings accounts, GICs, and a prepaid, reloadable Mastercard, EQ Bank offers International Money Transfers and a Mortgage Marketplace for EQ Bank customers to browse the best mortgage rates from Canadian lenders (keep in mind, Equitable Bank offers mortgages, but EQ Bank does not).
EQ Bank also claims its International Money Transfers are up to eight times cheaper than Canada’s Big Five Banks, and some institutions, like Tangerine, don’t offer the feature at all.
Its Mortgage Marketplace gives EQ Bank customers access to more than 2,000 mortgage products, so they can shop around for the best rate 一 all online. The four-step process can get customers preapproved for a mortgage that suits their needs within minutes, which can be a great option for those who want simplicity when comparing rates.
Related: Equitable Bank Mortgage Review
Tangerine Bank
While Tangerine Bank offers a chequing account, savings accounts, GIC accounts, and credit cards, it also offers mortgages, mutual and money market funds, HELOCs and lines of credit.
Tangerine mortgage rates are moderate to high, with its current five-year fixed rate (5.24%) surpassing that of the Bank of Montreal (4.84%). However, the bank’s mutual and money market fund investment options allow customers to start investing with just $25, making it accessible for beginners. Its HELOC interest rate is aligned with other banks (7.45%), though it only offers traditional variable-rate lines of credit without the option of a fixed-rate.
Featured Partner Offer
1
EQ Bank Personal Account
On EQ Bank’s Website
APY
4%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
2
EQ Bank Registered GIC
On EQ Bank’s Website
APY:
3.75% (3 month) to 5.05% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
Frequently Asked Questions (FAQs)
Who owns EQ Bank?
EQ Bank is owned by Equitable Bank.
Who owns Tangerine Bank?
Tangerine Bank is owned by Scotiabank (The Bank of Nova Scotia).
Does Tangerine have ATMs?
Yes, Tangerine clients have access to more than 3,500 Scotiabank ATMs in Canada and 44,000 worldwide.
Does EQ Bank have ATMs?
No, but you can withdraw money from any ATM in Canada at no cost. If the provider charges a fee, EQ Bank will reimburse you.
Which is better, EQ Bank or Tangerine Bank?
It depends on what your financial goals are. EQ Bank may offer higher long-term interest on your savings, while Tangerine may be better if you’re looking for a wider range of products, including a traditional chequing account and borrowing options or if you like taking advantage of short-term promotional account incentives.
What are the cons of Tangerine Bank?
Tangerine Bank doesn’t have the best online reviews regarding customer service and payment speed (some transactions can be delayed). It also doesn’t provide international wire transfers, and most of its high-interest offers are only for a limited time, so you’re limited to GICs for long-term interest gains.
What are the cons of EQ Bank?
EQ Bank doesn’t offer a standard chequing account, and you’re limited to one payment card that has to be reloaded in order to spend money (so you won’t build credit). There are no traditional credit card offerings, no extended investment options like mutual funds, and no personal borrowing products.
Where does EQ Bank rank in Canada?
EQ Bank is a subsidiary of Equitable Bank, the seventh-largest Schedule I bank in Canada. It is regulated by the Federal Bank Act.