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This website provides a full description and breakdown of what online banking is and the importance of online services as we continue to advance technologically. It discusses what makes online banking so beneficial and also provides information about what you should consider when you are choosing an online bank.

I chose to include this website because it provides essential information and introduces the concepts of online banking and online banks in a clear and stream-lined manner. A piece of information that I found useful was the breakdown of various online bank options. The top overall online bank is listed as Tangerine, a bank I personally had never even heard of prior to my research on this topic.

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The world is going digital and banking is no exception. According to the Canadian Bankers Association, in 2019, more than 76% of Canadians were doing their banking online and through mobile - and that number is rapidly rising.

There are many solid reasons to consider any of the online banks in Canada including convenience, features, and pricing.

Read on to learn about this emerging trend in personal finance management, including our top picks for the best banks in Canada.

If you haven't yet tried online banking, you might wonder what the fuss is about. After all, traditional face-to-face branch banking has served Canadians well for decades.

Before you make up your mind, consider these three areas in which online banking in Canada exceeds in-person branch banking:

Convenience
With online banking, your account is accessible from your computer, tablet, mobile app, or telephone.

This means an end to searching for a brick-and-mortar branch or an ATM, and renders the concept of "banker's hours" obsolete. If you want access to your money 24/7, online banking is the way to go.

Some brick-and-mortar banks offer customers "low-fee" accounts, but even these command a base monthly fee which can add up fast. In fact, Canadians are still paying an average of $200 per year in banking fees.

With online banking, customers have the option of a no-fee account - usually coupled with extremely competitive rates for common services like Interac e-Transfers® and a high-interest rate on savings accounts. If you don't want to pay for the privilege of accessing your own money, an online account might be just the solution.

Special Features
Imagine asking a teller to deposit a cheque using a smartphone photo or to send money by email?

They'd probably look at you like you have two heads - but Mobile Deposit and Interac e-Transfers® are services that many online banks offer.

In addition to all the traditional features to which customers have become accustomed, online banks offer special features that are simply unavailable elsewhere.

Finding the Best Bank in Canada

Traditional banks are being left behind by online banking in Canada. The only services online banks can't offer that traditional banks can are safety deposit boxes, counter service, and in-person advice.

That said, online banking does offer advice over the telephone or email and has the distinct advantage of being available 24/7 from wherever you are.

Decreasing service fees, increasing interest rates, and a wider selection of convenient services make online banking an attractive choice.

Tangerine: Best Overall

One of the best fully "branchless" online banks in Canada, Tangerine pairs some of the best online banking services with zero fees on all daily banking like debit purchases, withdrawals, transfers, bill payments, and Interac e-Transfers.

Their 0.15% interest rate for savings accounts is respectable, but the 2.15%* promotional rate when you sign up for a no-fee Tangerine Savings Account, TFSA, RSP, RIF, or US$ Savings Account for the first 5 months is outstanding.

For savvy savers, it's a great way to maximize your savings, and you can also earn up to $200 in cash bonuses simply by switching to a Tangerine Chequing account.

Tangerine also has two cash back credit cards: the Tangerine Money-Back Credit Card and the Tangerine World Mastercard®. There are no annual fees for either of these cards, and you can earn up to 2% unlimited Money-Back Rewards on everyday purchases.

Tangerine has also been ahead of the game in using technology to enhance their services, and they've earned a reputation for excellent customer service, winning awards year after year.

Should you need help, you can get in touch with a Tangerine Associate through an online chat session, a Twitter DM, or the 24/7 customer service line. Read our full Tangerine review to find out why it's our top pick for an online bank in Canada.

EQ Bank: Best For Super Savers

EQ Bank takes an entirely different approach to online banking than the others on this list.

With no branches and no ATMs, EQ Bank is accessed entirely through the web and mobile app only - a totally unique model. Instead of using personal cheques, a debit card, or an ATM, clients can move money between their Savings Plus Account and linked accounts.

For those willing to try a new way of banking, the benefit is clear: the Savings Plus Account offers no everyday banking fees, unlimited Interac e-Transfers®, free day-to-day transactions, and a 1.50%* everyday interest rate on their no-fee Savings Plus Account.

While EQ Bank may not be as well known in Canada, it's certainly a trustworthy bank to stash your cash - EQ Bank is brought to you by Equitable Bank, which has been around since 1970. One thing to note: the Savings Plus Account functions like a chequing account and can be used to pay bills and also transfer money instantly with no transaction or account fees.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice
Learn more about EQ Bank

Scotia OnLine: Best For Digital Interface

As one of Canada's "Big 5" banks, it's not surprising that Scotiabank's online (web and mobile app) banking options are feature-rich and intuitive to use.

Although most customers pay a monthly service fee of between $3.95 and $30.95 (accounts with a minimum balance and students accounts are free, and seniors get a discount), the interface and offerings were enough for Forrester to name Scotia OnLine as "The Best Consumer Digital Bank in Canada."

As a special promotion, earn $300 cash ¹ when you open a new Scotiabank Preferred Package account. Rewards chequing accounts are a rarity in the banking world, so this is a big perk.

Learn more about Scotiabank
¹To qualify, certain conditions must be met. Offer ends December 16, 2020. Visit www.scotiabank.com for full terms.
HSBC: Best For Global Banking

As one of the largest banks in the world, you can expect to receive a full range of services and expert advice at HSBC. For global citizens who have frequent international transactions, the HSBC Premier Chequing Account offers unlimited withdrawals and deposits in both Canadian and U.S. funds, as well as waived ¹ Interac e-transfers ® and $0 global wire transfer fees ² for transactions under $10,000 - a bonus if you send or receive money abroad on the regular. Plus, you'll pay $0 in monthly banking fees* for the first six months.

Learn more about HSBC Premier Chequing Account

The HSBC Advance Chequing Account is another solid option for frequent Interac e-Transfer ® users who also want a lower monthly fee. With this account, you get unlimited transactions, waived ¹ Interac e-Transfer ® transactions, and no-fee mobile cheque deposits. You pay $0 monthly banking fees* for the first 6 months, and the $25 monthly fee is waived beyond that if you maintain personal deposits and investments of $5,000 or more with HSBC Bank Canada or if you hold a personal HSBC Bank Canada mortgage with an original amount of $150,000 or more.

Bonus: Get up to $1,000* in cashback and rewards when you switch over to HSBC by November 30, 2020

Learn more about the HSBC Advance Chequing Account

Issued by HSBC Bank Canada and HSBC Investment Funds (Canada) Inc. *Terms and Conditions apply.

¹Other regular transaction fees may apply.

²Agency/beneficiary bank fees may apply. Additional conditions apply.

®Trade-mark of Interac Inc. Used under license.

RBC Online: Best For Bundles

Another "Big 5" bank, RBC Online offers numerous account options at different levels with a wide range in monthly fees (from $4.00 to $30.00).

Though they don't waive fees for maintaining certain balances, customers can cut down their service charges by bundling RBC products (such as credit cards, investments, and/or mortgage).

The RBC online banking option includes all the typical features, like transfer and bill payments, but there's not much outstanding in their portfolio.

Learn more about RBC Online

BMO Online: Best For Senior, Student, & Military Discounts

In line with the other "Big 5" banks on this list, BMO offers a standard set of features with standard rates, though customers with the Savings Builder Account can earn up to 1.6% interest.

Although they offer discounts to seniors, students, and armed forces, the monthly fees range from $4.00 to $30.00 month. Their online banking interface is intuitive and has all the typical features.

Learn more about BMO Online

TD Online: Best For Mobile App

Neither the account options nor the interest rates tempt with TD Canada Trust, but this bank does offer several decent no-fee savings accounts.

They have a mobile app for online banking along with handy add-on features like TD MySpend that helps customers track and improve spending habits.

Learn more about TD Online

CIBC Online: Best Overall For Seniors

CIBC offers a full portfolio of account options designed for people at different stages of their lives and careers. In terms of fees and interest rates, CIBC is in line with the other Big 5 banks.

One notable difference here is that unlike the other institutions on our list, CIBC offers five account types for seniors - everything from a simple chequing account to a bundle that includes a premium credit card to US dollar account for seniors.

Learn more about CIBC Online

FirstOntario: Best For Ontarians Seeking a Credit Union

The only credit union on our list, FirstOntario offers chequing and savings accounts, as well as free and paid options. Some of their features include online bill payments, debits, bank transfers, Interac e-Transfers®, and personal cheques, along with a slew of nifty online tools.

There's even a feature that lets you round up on purchases and save the balance.

Learn more about FirstOntario

Simplii Financial: Best For Free Internet e-Transfers

Formerly PC Financial and affiliated with CIBC, Simplii is one of the branchless options for online banking in Canada. Like the name says, Simplii trades in simplicity, offering one chequing and one savings account, each without monthly fees.

Using web or mobile, customers can do everything from pay bills to transfer funds to paperless cheque deposits. The no-fee chequing account offers unlimited debit purchases, bill payments and withdrawals, free access to over 3,400 CIBC ATMs across Canada, and free Interac e-Transfers®.

Learn more about Simplii Financial

Comparison of the Best Banks Canada 2020

When you're ready to consider opening an online bank account in Canada, use this chart to compare the best online banks in Canada with the best online banking services.

*Terms and conditions apply. Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice

Comparing Tangerine and Simplii

When it comes to naming the best online banking services in Canada, the field narrows to the top branchless online banks: Tangerine and Simplii.

Unlike traditional banks, these two carry no monthly fees, have robust feature sets, and are made for online or mobile use. With the exception of EQ Bank (which missed the top spot overall because of a lack of features such as ATM withdrawals), branchless banks offer similar interest rates to traditional banks but without the fees.

While either option is a great choice for the average Canadian, there are some slight differences. Let's take a closer look.

For chequing accounts, both Tangerine and Simplii offer:

No fees for daily transactions including withdrawals, transfers between accounts, and Interac purchases

Unlimited bill payments (one-time or automated)

Free Interac e-Transfers

Unlimited ATM withdrawals within parent's networks of machines (Scotiabank for Tangerine and CIBC for Simplii)

Mobile cheque deposit (where you can use the camera on your phone to deposit a cheque)

Overdraft protection (with application)

24/7 customer support

Tangerine vs Simplii Chequing Account

As you can see, the difference between these two online banking options is really minor. The choice may just come down to whether you prefer the CIBC or Scotiabank ATM network.

How Safe Are Online Banks in Canada?

Every bank on our list is well-established in Canada and a credible financial institution.

Like traditional banks, the odds of online banks failing are very slim. In any case, you can rest easy: the Canada Deposit Insurance Corporation (CDIC) covers eligible deposits in your own name, joint accounts, trust accounts, TFSAs, RRSPs, and more up to $100,000.

It does not apply to investment products such as stocks, bonds, or mutual funds.

Security breaches of online accounts are rare, but it's always wise to choose a unique and complex password and PIN.

Why Go with Online Banking: Benefits of Banks with No Fees?

The best bank account in Canada for you is the one that helps you save money - not the one that costs you money to use.

Based on that criterion alone, look for a trustworthy online bank without fees, like Tangerine or Simplii. Although neither bank has brick-and-mortar branches (so you'll have to store your family jewels elsewhere), both offer the benefit of 24/7 online or mobile access, superior pricing (can't beat no-fee!), and a full feature set including unlimited transactions, paperless cheque deposits, and Interac e-Transfers®.

Ultimately, Tangerine stands out as the best online bank in Canada. Offering no-fee chequing and savings accounts, outstanding customer service, innovative banking technology, and respectable interest rates, Tangerine snags our top spot as the best online bank in Canada.

You'll enjoy a full range of banking services while keeping more money in your wallet where it belongs.
If you liked this article, you might also enjoy The Best Robo Advisors in Canada: A Complete Guide

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The Complete Guide to Best Banks in Canada 2020 - Young and Thrifty

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The world is going digital and banking is no exception. According to the Canadian Bankers Association, in 2019, more than 76% of Canadians were doing their banking online and through mobile - and that number is rapidly rising. There are many solid reasons to consider any of the online banks in Canada including convenience, features, and pricing.

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This video titled "How Canadians Bank" was created by the Canadian Bankers Association and provides both statistical and general information regarding how most Canadians utilize banking tools to perform their banking needs. It breaks down online banking usage by different generations and provides statistics about the percentage of online bank users who feel safe and confident using these online services.

I chose to include this video because I felt it provided a really beneficial breakdown of how Canadians view online banking and services offered through electronic means. I found the use of statistics to be educational and a great way to simplify difficult information. This video demonstrates that the younger generations rely more heavily on technology and as a result, the banking industry has adapted various services to meet the advancements in technology. I found it interesting to see that approximately 76% of Canadians use electronic banking.

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This website discusses four simple ways we can protect ourselves while doing our banking online and breaks down the steps in a way that is informative and easy to understand. The four steps it covers are protecting your device, choosing a secure password, making sure not to disclose any personal information, and checking in with your bank regularly, especially if something seems wrong.

I chose to include this website because I feel that these reminders are very important for anyone using an online service, especially banking. With the many different scam and fraud schemes out there, we all need to be proactive in ensuring we are doing our part in keeping our information safe and secure. A piece of information I found useful is their recommendation on how to strategically create a password formula that is both difficult for hackers to figure out and is also easy for the user to keep track of.

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Cyber hygiene may sound like the online equivalent to a root canal, but it's really just a series of ongoing, simple steps, that we should all be taking proactively to protect our devices from cyber threats. Because being vigilant about online security is now a part of our daily lives. Online banking is very popular with Canadians - more than two-thirds (68%) of Canadians now do most of their banking digitally, using online and mobile banking because it's easy, convenient and secure. Banks in Canada use sophisticated technology and layers of security to help protect customers from fraud when doing their banking online or using a mobile banking app. There are simple steps that customers can take to protect themselves from security threats too. Read on or watch our video to learn how to protect yourself.

4 simple steps you can take to protect your computer and mobile devices
1. Protect your computer, tablet and mobile
Protect your devices against malicious software by installing anti-virus, anti-spyware and Internet firewall tools on all your devices. Make sure that you keep these programs active and updated to keep your information protected.

You can protect against malicious software by being careful about using free public WiFi to conduct financial transactions and by ensuring you only download apps directly from your bank or a reputable app store that your bank directs you to.
2. Choose secure passwords
When choosing your online banking password, make sure that it is difficult for criminals to guess. And don't reuse passwords on multiple websites. A security breach at one site means your password could be handed to criminals who may try to use it at other sites where you've used the same login. It's tough to think of a unique password, but try these tips.

Use a song title for your password - a song that comes to mind when you use that website.

Create a personal formula using a combination of letters and numbers, symbols, a word you'll remember, and a few letters from the website. For example, a combination of your word (eg. sushi) your favourite number (21) and the first three letters of the site you're accessing (Facebook) would look like this: FACsushi21!

3. Never disclose personal information
Although your bank may contact you by text, email and phone they will never ask you to disclose personal information such as your credit card number, PIN or online banking password as they already have that information. If you are unsure about any communication you receive, contact your bank using a phone number or email address that you know is legitimate.
4. If something's not right, contact your bank
Check your bank statement regularly or review your transactions online more frequently. If there are any transactions you didn't make, contact your bank immediately.

The CBA also publishes a Fraud Prevention Tip. Be sure to sign up to receive regular tips and information about how to practice cyber hygiene and keep your money and your personal information safe from thieves.

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4 simple steps to protect yourself online

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There are simple steps that customers can take to practice cyber hygiene and protect themselves online.

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Website #3 - Effect of Pandemic on Online Banking

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Website #3 - Effect of Pandemic on Online Banking

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This website is a Financial Post article that I felt was very interesting and also extremely relevant given our current world circumstances. It discusses the effects of the COVID-19 pandemic on the banking industry, specifically how the pandemic has caused many banks to have to accelerate their electronic banking options in order to meet the needs of their customers.

I chose to include this website because it provides a real world reference as to the effect of the COVID-19 pandemic on online banking. A piece of information that I found useful is that many different services are now being offered through online means by more banks, making it easier to access your banking information in a safe and reliable way. Most banks were working to make online banking services available, however they had to expedite this process due to the need for social distancing and lessened face-to-face interactions.

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Some Hiccups

"We didn't think two months ago that it was possible, but it is," said Sharon Kim, TD Securities' global head of foreign-exchange sales. "It's not without its hiccups, however it has not been as monumentally challenging as we thought it would have been."

Even the banks' annual general meetings went virtual for the first time. In their webcast speeches, chief executive officers credited technology for helping overcome obstacles of the pandemic.

"We've spent more than C$22 billion in the last five years on technology that has really helped us build programs for customers, get our employees working from home in a safe way or building our contact centers," Royal Bank CEO David McKay told reporters after his bank's April 8 meeting. "Thank God the technology evolution has allowed us to do this."

Bank of Nova Scotia spent C$15 billion on technology in the past five years. That helped Canada's third-largest lender become "operationally robust" in the outbreak, CEO Brian Porter said during the company's annual meeting on April 7.

That's paid off for Scotiabank's financial-services analyst.

"One month into work from home, we have been able to publish reports, have regular contact with clients and even host virtual fireside chats with CEOs," Malhotra said. "So the adjustment has been pretty good. I just make sure that I change out of the pajamas and robe before noon. You've gotta draw the line somewhere."

©2020 Bloomberg L.P.

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Pandemic Accelerates Canada's Shift to Electronic Banking

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Some Hiccups "We didn't think two months ago that it was possible, but it is," said Sharon Kim, TD Securities' global head of foreign-exchange sales. "It's not without its hiccups, however it has not been as monumentally challenging as we thought it would have been."

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Website #4 - Best Online Banks in Canada, 2020

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Website #4 - Best Online Banks in Canada, 2020

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This website provides a thorough breakdown of the advantages and disadvantages of using online banks, as opposed to brick-and-mortar banks. Additionally, it provides information on the features of some of the top online banks in Canada and why someone might consider one of these banks over other traditional banks.

I chose to include this website because it is an excellent reference when considering your banking options and deciding whether online banking is the right choice for you. Something I found to be informative is that several online banks offer high interest savings and low fees. There are even banks that I had never heard of that offer competitive online services and are worth pursuing if someone is looking to lessen their banking fees and save more money with high interest savings accounts.

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If it has been a while since you last made your way into a brick-and-mortar bank branch, you are not alone.

Current data from the Canadian Bankers Association shows that more than 75% of Canadians now use online and mobile banking to conduct most of their day-to-day banking transactions.

Online banks aka digital banks or virtual banks offer their customers access to low-fee (or no-fee) banking and easy access, higher interest savings rates, no-minimum balance banking and security of funds.

Traditional banks in Canada also have an online presence to provide their services, however, this write-up focuses on those branchless direct banks whose main service delivery model is via the internet i.e. they have zero or very limited physical locations you can walk into.

Read on to see the options available to you if you are considering an online-only bank for your banking needs.

Advantages of Online Banking

Here are some of the benefits you can expect from online banking:

1. Convenience: These days you can conduct most of your transactions using your bank's mobile app or by visiting their online platform. Easily pay bills, deposit cheques, transfer money between accounts and more.

2. Better Rates: Online-only banks save on the overhead costs that come with managing physical locations. They redirect some of these savings to their customers by offering high-interest rates on savings and term deposits. For example, a 2.45% savings account rate as opposed to 0.65%.

Many internet banks even pay you interest on your chequing account balance which is something you won't find with traditional banks.

3. Lower or No Fees: Canadians pay an average of $200 per year in banking fees. Many online banks do not levy a monthly account maintenance fee for chequing and their service fees are often cheaper. Online-only banks also offer no-minimum balance banking.

4. Save Time: Hate waiting on the line for services at a bank? Conduct your banking using your mobile app while you are on the go. If you need assistance, you can reach customer service by phone or chat.

5. Versatility: If you are using a budgeting or money management application, you can easily connect your online banking account in order to track your spending and stay on top of your finances.

6. Security: The funds you deposit in online-only banks are protected by Canada Deposit Insurance Corporation (CDIC - similar to traditional banks) or the relevant credit union deposit guarantee corporation (similar to credit unions).

CDIC guarantees deposits up to $100,000 per category, while provincial deposit guarantee corporations may guarantee up to 100% of your deposits regardless of the amount.

Disadvantages of Online Banking

When you choose a digital bank, here are some of what you may miss:

1. Less Personalized Service: If you prefer to interact with a person face-to-face every time you make a deposit or withdrawal, a virtual bank does not provide this perk.

2. Fewer ATMs or Automated Banking Machines (ABMs) as they are now referred to. Depending on your choice of an online bank, they may not have as many ATMs available in your area like the resident traditional banks.

When you use ATMs tied to other networks, you may have to pay. That being said, the online banks in this post are either owned by a bank or are related to an established credit union which makes this issue less of a problem.

3. Transaction Limitations: If you routinely conduct "complicated" banking transactions e.g. bank drafts and wiring money abroad, or need a safety deposit box, an online bank is not for you.

4. Lack of an All-in-One Package: Online banks like Tangerine provide an all-in-one solution so that you can easily hold your investments, chequing, savings and mortgage accounts with them. Some online banks only offer a savings account which means you will need to source additional services from another bank if required.

Best Online Banks in Canada

The top 3 online-only banks in Canada offer free online chequing accounts, savings accounts, or a combination thereof.

1. Tangerine Bank

Tangerine is my top pick among digital banks in Canada. A subsidiary of Scotiabank, Tangerine offers a savings account, no-fee chequing, credit card, investments in registered and non-registered accounts, mortgage, HELOC and business accounts.

While they do not have branches, Tangerine clients have access to cafes where they can chat with Tangerine staff in Toronto, Vancouver, Montreal, and Calgary. You can also use over 3,500 ATMs for free across Canada.

They offer 5 different savings accounts:

High-interest Savings Account

TFSA

RRSP

US$ Savings Account

RRIF Savings Account

Given the poor rates offered by the big banks, Tangerine clients can earn more with their higher interest savings rates...currently 0.70%.

When you open an account here, you qualify for a 2.75% rate for 5 months on all their savings accounts. There are no monthly account or service fees and no minimum balance requirement.

Their no-fee chequing has all the bells and whistles you can look for in a chequing account, including no monthly fees, unlimited free daily transactions, free cheques (first book), free access to 3,500 ATMs in Canada and 44,000 worldwide.

Additionally, you earn interest on your chequing account balance as follows:

$50,000 or less: 0.15%

$50,000 to $99,999.99: 0.55%

$100,000 or more: 0.65%

Watch out for the $40 NSF fee, Interac e-Transfers ($1 each now FREE!), Canadian drafts ($10) and $1 per ATM transaction outside the Tangerine or Scotiabank networks.

This Tangerine credit card is one of the best no-fee cash back cards in Canada. It has no annual fees and offers a 2% cash back on up to 3 categories of spending including groceries, restaurants, gas, entertainment, drugstore purchases and more plus 0.50% cash back on everything else.

With no limits on how much cash back you can earn, the Tangerine Money-Back Card is one of the best in its category.

For a limited time, you can earn a $250 cash bonus when you spend up to $5,000 combined in your first three months.

Read more about the Tangerine Money-Back Credit Card here.

Tangerine also recently introduced the Tangerine World Mastercard. Similar to the Money-Back card, it offers up to 2% cash back ($250 cash bonus) and no annual fees. In addition, it also offers free mobile device insurance and several other perks.

Read my Tangerine World Mastercard review here.

For more details about the investment options at Tangerine, check out my review of Tangerine Investment Funds.

2. EQ Bank

If you are looking for the best non-promotional savings rates, EQ Bank is in the lead.

EQ Bank is the direct online banking arm of Equitable Bank. It has no physical locations, however, customers have access to a well-rated mobile app for online banking access.

They offer two main accounts:

Their high-interest account comes with no monthly fees, unlimited free transactions and no minimum balance.

Although it is a savings account, the EQ Bank Savings Plus functions as a hybrid between savings and chequing, allowing you to send unlimited free Interac e-Transfers, electronic fund transfers, deposit mobile cheques and earn a standard 2.00% interest rate.

The interest is calculated daily and paid out monthly.

They offer high-interest guaranteed investment certificates with terms from 1-5 years. The minimum deposit to open a GIC account is $100.

EQ Bank does not currently offer a chequing account or credit card.

Read my complete EQ Bank review for more details about their offerings.

3. Simplii Financial

Simplii Financial is the direct banking arm of CIBC and formerly operated as PC Financial.

Simplii clients have access to a no-fee chequing account, savings, credit card, mortgages, investments and more. Additionally, customers can use over 3,400 CIBC ATMs across Canada for free.

Simplii High-Interest Savings

This account offers a standard rate of 0.70% and has no monthly account fees.

You also can choose to keep your funds in an RRSP or TFSA savings account at the same rate of 0.70%.

Their no-fee chequing account is similar to Tangerine's and offers no monthly fees, no minimum balance, unlimited transactions and interest up to 0.50%.

In addition, you can send unlimited free Interac e-Transfers.

Check out for their $45 NSF fee, bank drafts ($7.50), and $1.50 (Canada) or $3 (outside Canada) when you use a non-CIBC ATM.

Simplii also offers a credit card. You can read my review of the Simplii Financial Cash Back Visa Card.

Best Online Banks Owned by Credit Unions

The provision of free online bank accounts is not limited to digital banks owned by Canadian banks. Credit unions have also launched several of these virtual banks as a way to increase their customer base beyond their province of residence.

4. Motusbank

motusbank is the latest kid on the block in the online banking world. It is owned by Meridian Credit Union, an Ontario credit union.

motusbank offers a variety of accounts including high-interest savings, chequing, investments, mortgages and personal loans. Their customers have access to over 3,700 free ATMs across Canada through The EXCHANGE Network.

motusbank is federally incorporated and is a member of CDIC.

Read my complete motusbank review.

5. Alterna Bank

Alterna Bank is the direct banking arm of Alterna Savings Credit Union (based in Ontario). It has no branches and is a member of CDIC.

They offer a no-fee e-chequing and high-interest savings accounts, as well as term deposits for registered and non-registered accounts, mortgage loans and online investing through a robo-advisor.

Clients of AlternaBank can access thousands of surcharge-free ATMs via The EXCHANGE Network.

Read my complete Alterna Bank review.

6. Outlook Financial

Outlook Financial is a division of the Assiniboine Credit Union, a Manitoba credit union. Members of Outlook Financial also become members of Assiniboine Credit Union with voting rights.

They offer a high-interest savings account and GIC products that can also be utilized using registered accounts like the RRSP, TFSA or RRIF.

Deposits are protected by the Deposit Guarantee Corporation of Manitoba (DGCM).

Read my full Outlook Financial review.

7. AcceleRate Financial

Accelerate Financial is the online division of Crosstown Civic Credit Union, a Manitoba financial institution. It was launched in 2010.

They offer a high-interest savings account, GICs, and options to invest using RRSP, TFSA and RRIF accounts. Deposits with the bank are 100% guaranteed by DGCM.

Read more about Accelerate Financial here.

8. Achieva Financial

This online bank is owned by Cambrian Credit Union.

Similar to the other online banks owned by credit unions, Achieva Financial only offers a high-interest savings account and GICs with options to have these deposits products inside a TFSA, RRSP or RRIF account if needed.

Given that their parent company is located in Manitoba, deposits in Achieva are 100% guaranteed by DGCM. This coverage protects your funds even if you are not a resident of Manitoba.

Read my Achieva Financial review.

9. Hubert Financial

Hubert Financial is a division of Sunova Credit Union. They offer a high-interest savings account (happy savings), TFSA, RRSP, US Savings, mortgage loans and a credit card.

Customer deposits are fully guaranteed without limits by DGCM.

Read my Hubert Happy Savings review.

10. Implicitly Financial

Implicitly Financial is the online banking arm of Entegra Credit Union.

Their product offerings include a high-interest savings account and GICs which are also available in RRSP, TFSA and RRIF accounts.

Implicitly Financial customers have access to a debit card they can use surcharge-free at any "ding-free" ATM (over 1,800 ATMs across Canada).

Deposits in Implicitly Financial are guaranteed 100% by DGCM.

Worthy Mentions

A few other virtual banks in Canada that offer high-interest savings and low fees (but not credit union affiliated) include:

Are Online Banks in Canada Safe?

Digital banks in Canada offer a deposit guarantee similar to traditional banks.

The online-only banks that are federally-incorporated (e.g. EQ Bank, Tangerine and Simplii) are associated with the Canada Deposit Insurance Corporation. This means your deposits with these banks are protected up to $100,000.

For the virtual banks that are owned by credit unions, your deposits are either covered by CDIC (e.g. Alterna and motusbank) or they are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba (Implicitly, Achieva, Hubert, Accelerate and Outlook).

Choosing an Online-Only Bank

Your choice of an online bank will depend on your banking needs. If you are looking to replace your traditional bank entirely i.e. move your savings, chequing, mortgage, investments and more, Tangerine Bank stands out as the overall best. Simplii Financial also works well.

If you prefer to keep your current bank but want to take advantage of the superiorly better savings rates available out there, EQ Bank offers a great option with their high-interest Savings Plus account and unlimited free Interac e-Transfers.

Generally, all the online banks on this list can help you save on fees and their savings rates far exceed what is available at all the big banks as of this writing.

Online Banks in Canada Summary

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If it has been a while since you last made your way into a brick-and-mortar bank branch, you are not alone. Current data from the Canadian Bankers Association shows that more than 75% of Canadians now use online and mobile banking to conduct most of their day-to-day banking transactions.

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With significant advancements in technology, more and more services are being offered through electronic or online methods. Banking is no exception! This board focuses on the advantages, disadvantages, and safety precautions to be aware of when it comes to online banking. I hope this information will be both helpful and informative. Happy reading!

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This video titled "How to Bank Safely Online" provides some tips and tricks for utilizing online banking services in a safe and secure way. It breaks down common password mistakes and recommends simple ways to ensure your confidential information is protected.

I chose to include this video because I found it breaks down these online banking security concepts in a straight-forward and helpful manner. This video provides tips that we could all utilize in ensuring our financial information is not easily targeted and accessed by hackers. A piece of information I found helpful is the advice to refrain from accessing your online banking on public wifi, as it can potentially lead to hackers accessing your personal information.

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There are simple steps that customers can take to protect themselves from fraud when conducting their online banking. Watch our video to learn tips for banking safely online.

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Video #3 - Ranking of Online Banking Platforms

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Video #3 - Ranking of Online Banking Platforms

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This video titled "How Canada's online banking platforms rank on customer experience", is an interview with Glenn LaCoste, the president and CEO at Surviscor. In this interview he provides information about a study his company performed to determine how various Canadian banks rank based on the experience of customers using their online banking services.

I chose to include this video because it provides context to see how and why certain online banking features receive higher satisfaction ratings from customers. He provides an interesting perspective on why features of certain banks receive a more positive response from customers, and why other banks struggle to make their way up from the bottom of the online banking rankings. I was interested to see that RBC has maintained the highest ranking on the list for a second year in a row. Other banks that try to change their online banking platforms too suddenly, sometimes find they receive negative results in response.

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France's prime minister said supermarkets will be banned from selling non-essential products such as toys or books starting on Tuesday, in a move aimed at quelling the anger of shuttered local shopkeepers.

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How Canada's online banking platforms rank on customer experience

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Glenn LaCoste, president and CEO at Surviscor, explains his latest study that shows how each Canadian banking platform ranks for customer experience. He discusses the trends emerging in the online banking space and what users are wanting to see from their brokerages.

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This video titled "The Benefits of Online Banking" discusses what online banking is, what it can be used for, and why it is beneficial. It breaks down how you can utilize online banking to make the banking process easier.

I chose this video because while it may not specifically be produced by a Canadian bank, it provides a really great foundation for understanding what online banking is and why it is so valuable. A piece of information I found useful was how it explained that using online banking helps you to save time, money, and even helps you de-clutter your life with less papers.

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1) What did you learn about your topic that surprised you the most?
The information I learned about online banking that surprised me the most is that there are many people who are still very hesitant to use online banking. During my research, many of the sources suggested that online banking can actually be safer than traditional banking. I can understand the concern with using an online platform considering the risk of hackers or scams, but I think learning how to protect yourself and doing research on what scams to watch for could help to alleviate those concerns.
2) Provide a real-life example of how this topic is relevant or interesting for you.
Online banking is relevant for me because I perform all of my banking in an online format. The bank I use is actually an online only bank, so I have become very well accustomed to using online platforms to complete many financial tasks. I think it is important for myself and everyone else to gain a better understanding of the flexible options available when using online or mobile banking.
3) If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?
If I could pass the knowledge I have gained on to a family member or friend, I think the most important thing I would pass on is the information I have learned about protecting yourself online. Throughout my research on this topic, I have discovered how simple it can be for someone to gain access to your financial information. I would recommend that my family member or friend follow the four steps outlined by the Canadian Bankers Association, especially making sure to create a secure password and regularly checking your financial statements for suspicious activity.

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This image illustrates some of the many benefits of using online banking.

I chose this image because I think it shows that there are many advantages of banking online, including transferring funds electronically, depositing cheques easily using your mobile device instead of going into a bank, and even opening bank accounts from your online account.

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This image illustrates the rise in online banking usage in the years from 2012 through to 2016.

I chose this image because I thought it was an interesting representation of how popular online banking has become and was even in 2016. This image also shows the beginning of the growth of mobile banking. When an updated study is released, it will be interesting to see if this graph changes significantly with the younger generation relying even more heavily on technology.