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While reading my posts, you will learn about all of the different things about online banking. There are many unknown factors that go into online banking and not many people know about them. Most people use it to just take a quick look at their balance. I am going to show how much more you can do with your online banking account!

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This website explains everything about and useful information about online banking. It explains that you can use your lap top and mobile device to online bank, which makes it even more essential.
I chose this website because I believe that it has very useful information about key point in using online banking. One thing that I found useful in this website is how they gave us certain responsibilities while you use online banking, this helps me understand the privacy aspect of it.

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The second website that I have chose shows and breaks down all of the top online banks to use in 2020. It breaks down each bank by looking at it's advantages and disadvantages, as well as giving a brief description of each bank. The top 3 online banks for 2020 are Tangerine, EQ Bank, and Simplii Financial.
I chose this website because it shows great description about all of the best online banks to use and all of the special features they can give you. I found that it was very useful that they explained all of the advantages and disadvantages of online banking at the start of the article so that it gives you an eye for what you are getting into.

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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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All You Need to Know About Online Banking in Canada

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All You Need to Know About Online Banking in Canada

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This website is another great example of online banking because of the information that was used. They give some very interesting statistics about banking, which is the amount of Canadians using online banking is at 68% and the amount actually walking into a branch is stuck at 16%. There are also comparisons between online banking and basic branches about which one is more worth it.
I believe that this website was a good choice because it shows us a variety of different comparisons and statistics that help understand a lot about online banking. The useful information that was provided were definitely the statistics used in the article, these are not used in many other articles and it is very important information.

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Best online banks in Canada: Quick look

For our best online banking guide, we researched the best online banks in Canada based on their unique strengths so you can choose the online bank that best suits your lifestyle and financial needs.

Why online banking?

According to the Canadian Bankers Association ¹, 78% of Canadians do their banking through digital channels (online and mobile apps). It also reported that 65% of Canadians used a mobile app for their banking in 2021, up from 56% in the previous year. This means Canadians seek online banks for their daily banking needs.

1. Convenience. Online accounts are open all the time. There's no need to wait in line or hurry to get there before the branch closes, and you can carry out most banking transactions in your pyjamas.

2. Customer Service. When visiting a traditional bank, you might have to wait in line for a long time before you're able to talk with a personal banker. Online banks frequently offer a dedicated personal banker who is available for much longer hours through live chat, email, or telephone support. On top of this, you can access non-personalized banking support around the clock for general questions and assistance.

3. Features. Online banks support new finance tech tools that brick and mortar banks do not. Features like mobile cheque deposit, free online bill payments, and person-to-person payments are made possible via online banking.

4. Pricing. As always, the bottom line is a major incentive. Although it is possible to find a no-fee chequing account with a credit union, many consumers who are fed up with paying for banking transactions on top of monthly fees are switching to online banks. Most everyday banking customers can get all of the same services they need from an online bank, but without the fees, and enjoy higher interest rates as well. Noted in 2017, the average Canadian pays $200 a year in banking fees, a large portion of which can be saved by choosing the right online bank account, or by moving to an online-only bank.

Best online bank in Canada overall
* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.*Interest is calculated daily on the total closing balance and paid monthly. For the EQ Bank Card, interest is paid into the linked Personal Account. Rates are per annum and subject to change without notice. For the Personal Account, Joint Account and EQ Bank Card, the current base interest rate is 1.00% (the "Base Rate"). Customers who add and maintain qualifying recurring direct deposits of at least $2000/month to a Personal Account or Joint Account are eligible to earn a bonus interest rate of 3.00% (the Base Rate plus an additional 2.00%) for the eligible accounts (the Personal Account, Joint Account, and the EQ Bank Card balance). Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details. EQ Bank GICs: Rates are calculated on a per annum basis and are subject to change at any time.
Best online bank with no fees

Best online bank for rewards

Legal Reference & Disclaimer - $700 offer for Preferred or Ultimate Package

*The Scotiabank Cash Bonus Bundle Offer (the "Offer") is available between August 1, 2025 and October 30, 2025 (the "Offer Period") to individuals who open new eligible accounts. Subject to the Offer conditions, eligible clients can earn $500 when they open a new Preferred Package or Ultimate Package chequing account and complete certain qualifying transactions. Plus, clients who meet the conditions for the $500 bonus are also eligible to earn up to $200 in additional cash bonuses when they bundle their new Preferred or Ultimate Package chequing account with a new Money Master Savings Account and/or a new eligible Registered Account and complete certain qualifying transactions. $500 Cash Bonus for Preferred or Ultimate Package Conditions: To qualify for the $500 cash bonus (the "$500 Package Bonus"), you must 1. Open a new Ultimate Package or new Preferred Package chequing account (the "Eligible Chequing Account") during the Offer Period; and 2. Complete any two (2) of the following activities in your Eligible Chequing Account within 60 days of Eligible Chequing Account opening: * Set up and receive at least one eligible automated and recurring direct deposit, such as payroll or pension, which will recur monthly for a minimum of six (6) consecutive months in total, or * Set up and make a minimum of two (2) separate eligible recurring pre-authorized transactions with a minimum value of at least $50 per transaction which will each recur monthly for a minimum of six (6) consecutive months in total, or * Make at least one (1) eligible online bill payment of at least $50 through the Scotiabank Mobile App or through Scotia OnLine. † Click here for a list of eligible direct deposits, pre-authorized transactions and online bill payments. Notwithstanding a transaction may be included in these lists, certain exclusions may still apply and Scotiabank reserves the right to modify these lists and to determine whether a specific direct deposit, pre-authorized transaction or bill payment is eligible for the $500 Package Bonus. Fund transfers initiated to other Scotiabank accounts (one time or recurring, e.g. credit card or savings account), to chequing or savings accounts held at other financial institutions, or to payment processing firms, are not eligible for the $500 Package Bonus. $100 Money Master Savings Account Bundle Conditions: To qualify for the $100 cash bonus (the "$100 Savings Bundle Bonus"), you must meet all of the conditions for the $500 Package Bonus, and: 1. During the Offer Period and within 60 days of opening your Eligible Chequing Account: i. Open a new Money Master Savings Account (the "Eligible Savings Account"). ii. Enroll your new Eligible Savings Account in either the Pay Yourself First or the Savings Finder tool (each a "Smart Savings Tool"). 2. Remain enrolled in your selected Smart Savings Tool for 90 consecutive days. Note: Enrolment in a Smart Savings Tool is subject to certain eligibility requirements and can only be done through the Scotiabank mobile banking app. For example, enrollment in the Pay Yourself First tool will not be available if you have not had at least 4 recurring deposits to your Scotia Chequing Account at the time you attempt to enroll. Also, both the Eligible Chequing and Savings Accounts must be "Any to Sign" to be eligible for the Smart Savings tools. Only one Smart Savings Tool can be enrolled in at a time but you can switch tools at any time, however, you must remain enrolled in a Smart Savings Tool for 90 consecutive days from the date of first enrolment in Section 4.a.ii. above. See the Smart Savings Tool Agreement for full terms and conditions. $100 Registered Account Bundle Conditions: To qualify for the $100 cash bonus (the "$100 Registered Bundle Bonus"), you must meet all of the conditions for the $500 Package Bonus, and: a. During the Offer Period and within 60 days of opening your Eligible Chequing Account, open a new Eligible Registered Account (as defined below); and; b. Within 60 days of the Eligible Registered Account opening, contribute or transfer in a minimum of CAD $5,000 into your new Eligible Registered Account and maintain that minimum amount each day for at least three (3) consecutive months. For the purposes of this Offer, the following Scotia Registered Accounts opened with either The Bank of Nova Scotia ("Scotiabank") or Scotia Securities Inc. are defined as "Eligible Registered Accounts": Scotia Registered Retirement Savings Plans (excluding Spousal RRSPs and locked-in plans such as LIRAs and LRSPs) (each an "RRSP"), Scotia Tax-Free Savings Accounts (each a "TFSA") and Scotia First Home Savings Accounts (each a "FHSA"). Scotia RRIFs (including locked-in income plans), RESPs, RDSPs, and non-registered Scotia Investment Accounts are not included in the definition and are not eligible for the Offer.

$500 Package Bonus: Individuals who are currently holders of, or who were previously holders within the last two (2) years, of a Scotiabank Chequing Account are not eligible for this Bonus. "Scotiabank Chequing Account" means any of the following accounts: Ultimate Package, Preferred Package, Scotia One Account, Basic Plus Bank Account, Basic Banking Plan, Basic Bank Account, Momentum Chequing, Power Chequing, Scotia One Service, Scotia Value, Student Banking Advantage Plan. $100 Savings Bundle Bonus: Individuals who currently hold or have held a Money Master Account with Scotiabank in the six (6) months preceding the Offer Period are not eligible for this Bonus. $100 Registered Bundle Bonus: In order to qualify for the $100 Registered Bundle Bonus, Individuals who have held the same type of Eligible Registered Account (as that opened during the Offer Period) with Scotiabank in the six (6) months preceding the Offer Period are not eligible for this Bonus. Employees of Scotiabank are also not eligible for the Offer.

General Offer Terms: Provided all of the applicable Offer conditions have been met: a. the $500 Package Bonus will be deposited to the Eligible Chequing Account within approximately nine (9) months from account open date. b. the $100 Savings Bundle Bonus will be deposited to your Eligible Savings Account within approximately thirteen (13) months from the account open date. c. the $100 Registered Bundle Bonus will be deposited to your Eligible Registered Account within approximately ten (10) months from the account open date. You have 24 months from the date you believe you have fulfilled the applicable Offer conditions to notify us if you have not received the applicable cash bonus so that we may confirm your eligibility. For clients investing in non-Canadian dollar currencies, the investment will be calculated based on Canadian dollar equivalent at the Scotiabank rate on the transaction date to determine eligibility for the offer. All bonuses will be paid in Canadian dollars.

For any cash bonus to be fulfilled, the Eligible Chequing Account, the Eligible Savings Account and the Eligible Registered Account, as applicable, must be open and in good standing until the time of payout of the cash bonus. The Eligible Chequing Account is not in "good standing" if: (i) it has a negative balance exceeding the authorized overdraft limit, (ii) it has been in continuous overdraft for a period of three consecutive months, or (iii) the Account holder is in breach of the Account agreement with Scotiabank. The Eligible Savings Account is not in 'good standing' if it has a negative balance. An Eligible Registered Account is not in 'good standing' if the account holder is in breach of the Eligible Registered Account's client account agreement. Clients are responsible to confirm their applicable registered plan contribution limits prior to making any contribution to their Eligible Registered Account(s). If more than one (1) Eligible Chequing Account is opened, only the first Eligible Chequing Account opened will be eligible for the $500 Package Bonus. If more than one (1) Eligible Savings Account is opened, only one Eligible Savings Account that fulfilled the $100 Savings Bundle Bonus conditions will be eligible for the $100 Savings Bundle Bonus. If more than one (1) Eligible Registered Account is opened, only the first Eligible Registered Account that fulfilled the $100 Registered Bundle Bonus conditions will be eligible for the $100 Registered Bundle Bonus. If two Eligible Registered Accounts fulfill on the same day, the $100 Registered Bundle Bonus will be paid into only one of the Eligible Registered Account(s) in the following order: (1) Eligible TFSA, then (2) Eligible FHSA, then (3) Eligible RRSP. For joint accounts, only the primary Eligible Chequing Account holder is eligible to receive the $100 Savings Bundle Bonus and $100 Registered Bundle Bonus into their Eligible Savings Account and Eligible Registered Account, as applicable. The primary account holder must be the same client on both the Eligible Chequing Account and Eligible Savings Account.

This Offer is non-transferable and may not be duplicated. Limit of one (1) $500 Package Bonus, (1) $100 Savings Bundle Bonus, and one (1) $100 Registered Bundle Bonus per client (for a total bonus of up to $700), regardless of the number of Eligible Chequing Accounts, Eligible Savings Accounts or Eligible Registered Accounts opened.

The $100 Registered Bundle Bonus is not considered a contribution. Scotiabank and Scotia Securities Inc. are not responsible for any contribution over a client's applicable registered plan limit in connection with this Offer. Clients should consult with a tax advisor to discuss any tax implications in connection with this Offer and clients are responsible for any required tax reporting.

All rates, fees, features and benefits are subject to change. All other terms and conditions of the Account and Smart Savings Tools Agreement continue to apply. The Offer is non-transferable and may not be duplicated. Offer may be changed, cancelled or extended at any time without notice and cannot be combined with any other offers on the Account, unless otherwise permitted by Scotiabank.

* To qualify, certain conditions must be met. Visit *See Account Provider's website for complete account details, terms and current offers. Reasonable efforts are made to maintain accuracy of information. ¹ For Scotiabank Ultimate Package: Conditions apply. Visit ² For Scotiabank Basic Plus Bank Account: Conditions apply. Visit here TM Trademark of Scene IP LP.®Registered trademarks of The Bank of Nova Scotia to learn more. here* Terms and conditions apply. ³ Conditions apply. Visit here for full offer details. to learn more. here for full terms.
†Interac e-Transfer is a registered trade-mark of Interac Corp. Used under license.

Best online bank for bundles

Best online bank for family bundles and newcomers

Best online bank for mobile app

Best online bank for seniors

The safety of online banks in Canada

All of the banks listed are credible financial institutions and are well established in Canada. The odds of them failing are extremely unlikely, but in the event that they do, you're covered up to $100,000 thanks to the Canada Deposit Insurance Corporation ( CDIC). This insurance applies to eligible deposits in your own name, joint accounts, trust accounts, TFSAs, RRSPs, and more. However, it does not cover your investment products such as stocks, bonds and mutual funds. As for the safety of your online account, security breaches are rare. Nonetheless you should take steps to protect your information, which includes ensuring your password and PIN are not easy to guess.

Types of online bank accounts

You can access as many types of bank accounts online as you can in a traditional brick-and-mortar bank, from savings to daily chequing accounts.

Online savings accounts

Basic savings accounts are widespread - you'll just need to link your online savings account with either an online or brick-and-mortar deposit account so as to manage deposits and withdrawals. Many online savings accounts offer mobile cheque deposit to make deposits faster and easier. Some online banks also offer kids' and youth savings accounts, money market accounts, CDs and high-interest savings accounts.

Online high-interest savings accounts (HISAs)

As the name suggests, high-interest savings accounts are accounts that pay a higher rate of interest than regular savings accounts. Interest rates for high-interest savings accounts vary widely, from little better than regular savings accounts at 0.50%, all the way up to 2.50%. Again, you'll often find higher interest rates from online-only banks than those offered by brick and mortar banks.

Most online high-interest savings accounts don't have any monthly fees, although you'll find that some have minimum balance requirements. The cost for transfers differs between banks, as well. Generally, you'll get free transfers to other accounts that you have within the same bank.

Online chequing accounts

You can get all of the same basic features when you open a chequing account including a debit card, use of ATMs, and paper cheques as well as extended options for making transfers and paying bills online, mobile cheque deposit, and better rates for international transactions. Online-only chequing accounts don't usually charge any monthly fees and charge only minimal or zero transaction fees.

Online-only banks also offer high-yield chequing accounts with higher interest rates than equivalent accounts with a traditional bank. Like at traditional banks, you'll be restricted about how often you write a cheque or use a debit card if you take out a high-yield chequing account. If you're looking to open a new chequing account, consider one of the most recommended chequing accounts in Canada.

Online TFSA accounts

Tax-Free Savings Accounts (TFSAs) can be managed online as easily as in a brick and mortar bank, as long as you use your TFSA for approved investments. Online TFSAs can be used to invest in the same range of investments like those in a traditional bank, and deposits can be made through Interac e-transfer, mobile cheque deposit, or transfer from a linked bank account.

Online Hybrid accounts

Hybrid accounts combine features that traditional banks would typically separate into different products. Examples include EQ Bank's Savings Plus Account-which combines a high 3.00%* savings interest rate with some chequing account-like functionality, including bill pay and electronic funds transfers-or KOHO and Stack, which offer prepaid cards that earn cash back or rewards like credit cards.

Though hybrid accounts are appealing because they generally have low fees and limit the number of accounts you need, they typically do not offer the full functionality of the traditional bank accounts they hybridize: For instance, payments with KOHO cannot improve a cardholder's credit score on its own (but it does offer an optional paid Credit Building by KOHO add-on).

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

Online youth accounts

Online youth accounts include both savings and chequing accounts, and are designated for Canadians up to the age of 19. Many youth chequing accounts come with unlimited free transactions and no monthly fee. Free Interac e-transfers are usually included too, and many online youth chequing accounts pay interest on the balance in the account.

Online student accounts tend to have some restrictions on the number of free transactions, but far fewer than for adult chequing accounts and without any minimum balance requirements. You'll usually find valuable rewards for online student accounts such as earning points for movie tickets. Youth online accounts generally offer contactless payments through Apple Pay or proprietary digital wallets.

Senior accounts

Online banking can be a great solution for seniors, especially those who are mobility-challenged. Online senior accounts cover all of the chequing and savings needs of older customers. Seniors can access low or no-fee chequing accounts that provide a debit card and chequebook, online transfers, online statements, online bill payments, and more.

Like senior accounts in brick-and-mortar banks, most online senior chequing accounts offer unlimited transactions and discounted fees on actions that are charged, such as Interac e-transfers. Senior savings accounts usually don't charge any monthly fees and offer higher interest rates than the equivalent accounts in brick and mortar banks.

The only downside to taking out a senior chequing or savings account online is that there is no one to speak with face to face about your options and you need to be reasonably technologically savvy to set up a senior account online. Some older customers might prefer to stick to a traditional senior account in exchange for the familiarity of dealing with a known banking system, or they might opt to go for the online-only senior account if they enjoy technology or have a close friend, family member or caretaker that can assist them in their use of the online-only account.

Comparison of the best online banks in Canada

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.

The bottom line on online banking in Canada

The best online bank account in Canada for you is the one that helps you save money by not charging you to access your own money while offering convenience and other features.

If you're looking for a trustworthy online bank without fees and an easy-to-use mobile app, you can't go wrong with EQ Bank or Tangerine. Although the banks don't have brick-and-mortar branches), they offer the benefit of 24/7 online or mobile access, superior pricing (can't beat no-fee!), and a complete feature set including unlimited transactions, paperless cheque deposits, and Interac e-Transfers®.

Ultimately, EQ Bank stands out as the best online bank in Canada. It's offering no-fee savings and joint savings accounts, TFSA and RRSP savings accounts, outstanding customer service, and innovative banking technology. With the best interest rates available, EQ 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.

Still can't decide? Take a look at best banks in Canada, the best chequing accounts and the best high-interest savings accounts.

Frequently asked questions about the best online banks in Canada

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.

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.
Pricing
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.

Keph Senett is a Canadian freelance writer whose areas of expertise include personal finance, travel and sports. When not writing, she spends her free time trying to figure out how to qualify for a soccer squad in Asia, Australia, or Antarctica.

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Best Online Banks in Canada | Who Needs Brick & Mortar?

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A comprehensive guide to the best online banks in Canada and how to find the best online bank account for your financial needs.

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This website starts off with a variety of different statistics to show how important banking is nowadays. 91% of Canadians actually believe that banking has become more convenient since new technologies have arrived. They also say that the change of different technology is rapidly changing how Canadians do their banking or switch over to online banking.  Although that online banking is on the boom, the ABMs are still very popular for withdrawals as people figure it is faster to just go to a machine instead of the teller.
This website was a very important choice because of the information that I had not seen in any other articles. It is also created by the Canadian Bankers Association, so they will have important facts about banking. The useful information in the website was the Methodology interview, which is when they interviewed a bunch of different generations to see which ones use online banking, and which ones do not.

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Fast Facts

The majority (91 per cent) of Canadians believe that banking has become a lot more convenient because of new technologies.

More than three-quarters (76 per cent) of Canadians are using digital channels, both online and mobile, to conduct most of their banking transactions.

About nine in 10 (88 per cent) Canadians reported using online banking in the last year, and more than half (53 per cent) say it is their most common banking method, making online banking the most common digital banking channel.

Mobile and app-based banking continues its ascent, led by Millennial uptake. More than one-third (36 per cent) of Millennials are mainly using banking apps, as opposed to 23 per cent for all demographics groups.

88 per cent of Canadians trust their bank to offer secure digital banking services, and 85 per cent feel confident about modern banking technologies.

In-branch banking, while declining in popularity, remains a valued method of conducting a wide variety of banking transactions.

The Bottom Line

Banks in Canada are meeting the evolving preferences of their customers as technology changes the way Canadians bank. Banking is transforming at a record pace, bringing innovation and new potential to empower people's lives in a digital world.

Now more than ever, Canadians value convenience through technology. To that end, Canada's banking industry is continuing its decades-long leadership in developing new innovations that make banking secure, convenient and accessible for all customers.

Canadians today have unprecedented access to safe and secure channels to meet all aspects of their banking needs. Banks have introduced fast and convenient banking and payments solutions, including online and app-based banking, mobile "Tap & Pay" payments, depositing cheques by taking a photo with a smartphone, and more. Indeed, that trend will continue as the pace of technological change accelerates.

Canadians are embracing technology-driven banking solutions. With a customer-first focus, banks in Canada are building on their strong track record of adapting to what their customers want - and what they want is access to banking services 24 hours a day, in real-time, from anywhere in the world, on a reliable and secure network.

These and other findings form the basis of How Canadians Banks, a biennial study by the Canadian Bankers Association and Abacus Data that examines the banking trends and attitudes of Canadians.

Technology is changing how Canadians bank, rapidly

As technology evolves, customers' digital expectations are rising. This is the leading catalyst for continued innovation as banks look for new, easier ways for Canadians to access their banking safely and securely. And Canadians clearly value the convenience of these innovations and feel better served as a result.

91 per cent of Canadians believe that new technologies have made banking a lot more convenient.

88 per cent of Canadians say their bank has improved service through technology, with that figure increasing to 98 per cent for Millennials, which is now the largest generation in Canada.

To be sure, Canadians are increasingly turning to tech-driven transaction methods. The average Canadian buys something with a credit card 9.2 times a month, followed by Tap & Pay 9.1 times a month, and uses a debit card 8.5 times month. Looking ahead five years, Canadians expect to increase their use of the following top three technologies: Tap & Pay (45 per cent), e-Transfer (40 per cent) and mobile app (40 per cent). In contrast, the use of cheques, while already in decline, is expected to continue trending downward, with only 38 per cent of Canadians expecting to write cheques in five years.

The top three benefits of new banking technologies were:

1. Saving money

2. Fitting my schedule and

3. Saving time.

Online banking is the most common way people bank

As banking technologies have come to the forefront, online banking has cemented its position as the most common form of banking for a majority of Canadians.

88 per cent of Canadians reported using online banking in the last year.

53 per cent of Canadians say that online banking is now their most common banking method - 30 per cent higher than mobile app-based banking, the second ranked method.

Two-thirds (65 per cent) of Canadians feel "very satisfied" with online banking.

Almost 40 per cent of Canadians are planning to increase their use of online banking, more than any other channel.

Not surprisingly, the average Canadian visits their bank's website three times as often as they do their branch. While differences emerge across generations, in-person banking is now the most common way to banks for only 12 per cent of Canadians and ABM at 10 per cent. This is a sharp change from CBA's first public survey 16 years ago when 40 per cent said they banked mainly at an ABM, 30 per cent banked in branches and only 16 per cent did most of their banking online.

The adoption of digital banking channels is particularly high among younger customers such as Gen X and Millennials, however this trend is apparent across generations.

Mobile app-based banking continues to rise, led by Millennial uptake

Every Canadian with a smartphone now has a bank in their pocket. As an increasing number of Canadians carry smartphones, banks offer mobile banking and payment services and apps that allow customers to perform a variety of transactions through their mobile devices. As a result, the number of Canadians banking on the go continues to rise, especially among younger customers.

56 per cent of Canadians reported using mobile banking in the last year, up considerably from 2016 and 2014 results, at 44 per cent and 31 per cent respectively.

32 per cent of financial transactions are done with a mobile device, which is expected to increase to 41 per cent in five years.

42 per cent of Canadians say they are "very satisfied" with app-based banking services.

More than one-third (36 per cent) of Millennials say apps are their leading banking method, as opposed to 23 per cent for all demographics groups, and more than half (54 per cent) of Millennials plans to increase its use of banking apps within five years.

Millennials are three times more reliant on mobile banking technology than their Boomer parents.

Overall, Canadians are satisfied with the mobile banking experience: Ease of use (78 per cent), convenience (77 per cent) and overall value (77 per cent) and feeling secure (73 per cent).

Millennials, however, show considerably higher levels of satisfaction as it relates to the security of mobile banking: Boomers (58 per cent), Gen X (80 per cent) and Millennials (87 per cent).

While satisfaction with banking apps has been improving over time, 19 per cent of Canadians reported being "not at all satisfied". This suggests that, as banks continue to introduce updates that improve reliability and simplicity of mobile banking experiences, satisfaction levels will rise in tandem to work on improvements in reliability and simplicity of apps, there is room to further improve satisfaction levels.

In-branch banking, while declining in popularity, remains a valued method of conducting a wide variety of transactions

Despite the steady growth and adoption of digital banking solutions, branches remain a vital part of the banking mix in Canada. Personal interaction will continue to play an important role in our online and mobile-first world as branches evolve into advice and information centres with a human dimension.

More than two-thirds (67 per cent) of Canadians used in-branch banking in the last year, including 20 per cent who did so frequently.

Over 93 per cent of customers were satisfied with in-person banking.

However, only 12 per cent of Canadians say their most common form of banking is in-person, and 27 per cent of customers plan to decrease their bank branch visits.

ABMs still popular for withdrawals

Canadians still rely on Automated Banking Machines (ABM) primarily to get cash, make deposits and pay bills. While online and mobile banking are rapidly gaining momentum, 10 per cent of customers say they use ABMs to conduct most of their banking. This trend is consistent across generations and income groups. That said, the use of ABMs is expected to trend downward over time.

In 2017, Canadians made approximately 445 million cash withdrawals, 158 million deposits, 34 million bill payments and conducted 19 million transfers at bank-owned ABMs.

Overall satisfaction with ABM banking is high, with 53 per cent of Canadians saying they are "very satisfied" with this method and only 3 per cent are "not at all satisfied"..

Looking ahead five years, 19 per cent of Canadians expect to increase their use of ABM withdrawal, whereas 21 per cent expect to decrease their reliance on ABM deposit as other tech-driven alternatives emerge.

Nearly nine in 10 (87 per cent) Canadians are satisfied with ABM withdrawals, while 73 per cent are satisfied with ABM deposit.

There are more than 70,000 ABMs in Canada, including 18,640 bank-owned ABMs.

The role of cash in a digital world

While Canadians, by and large, are increasingly turning to digital channels and electronic payment methods, the demand for and use of cash is still prevalent. Canada may be one of the most cashless societies in the world, but Canadians of all ages still carry cash in their pockets. And who carries the most cash may surprise you.

On average, Canadians carry $91 in cash on a typical day, however that amount is projected to decline to $77 in five years.

Interestingly, Boomers reported carrying an average of $69 a day today, while Millennials reported carrying an average of $143.

High levels of trust in banking innovation

With many digital services available today, trust in security of personal data and financial information has proven hard to sustain in many sectors of the economy. However, the opposite seems to be true for the banking industry.

88 per cent of Canadians trust their bank to offer secure digital banking services.

85 per cent of Canadians feel confident about online and digital banking technologies.

Banks in Canada have earned a strong reputation as pillars of stability, but they are also dynamic and continually anticipate and adapt to evolving customer preferences. Canadians place high trust in banks because they have delivered convenience through technology for decades - always with a focus on security and privacy.

Good value for cost of service

Most Canadians feel comfortable with the cost of different methods of transacting banking today. In most cases, large majorities feel the transactions are either free, a bargain or reasonably priced. Across the board - from accessing a bank's website, visiting a branch and using Tap & Pay, to using ABMs, debit cards, mobile apps and e-Transfer - Canadians feel good about the perceived value for money for the banking services they receive in our increasingly digital world.

Methodology

The bi-annual survey was conducted by Abacus Data in December 2018. A total of 4,000 adults were interviewed online, across four demographic groups: Millennials, Generation X, Boomers and Silent. The sample was designed and weighted to reflect Canada's population according to age, gender, education and region. A comparable probability sample would have a margin of error of +/- 1.8%, 19 times out of 20.

All data from: How Canadians Bank, Abacus Data, 2018, except ABM transactions statistics and number of ABMs (Source CBA, 2018).

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The majority (91 per cent) of Canadians believe that banking has become a lot more convenient because of new technologies. More than three-quarters (76 per cent) of Canadians are using digital channels, both online and mobile, to conduct most of their banking transactions.

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This video explains that Tangerine could simply be the best bank in Canada. They were one of the first banks to be a direct bank for Canadians and they give really good interest rates. They also have no fee chequing accounts which is very important for the younger generation because they do not like spending much on extra rates in banking.
I chose this video because it is talking about one of the best banks in all of Canada by just being online. I also shared a website that has Tangerine as the number one online bank in Canada as well. I thought that this would be a great way to show off their extra features. One thing that I found useful is that the video went over all of the credit card rates and features.

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Tangerine Bank Review 2020: Is Tangerine the Best Bank in Canada?

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Hackers Reveal How They Got Bank Information

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Hackers Reveal How They Got Bank Information

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This video is all about a customer that got him Simplii Financial account hacked right from his fingers. This bank is in fact an online bank only as well which just shows you're never 100% safe, especially with online banks. He simply just got an email from the bank saying that his account could of potentially been breached and could be caused for concern.
I chose this video because I thought it was important to show that it is still a terrifying factor that you can be hacked from just doing online banking. Online banking still frightens people because of not wanting to be hacked and all of their money to be stolen. The useful information in this video was when they showed an email from the hackers that explained how they got into accounts. They say that they used an algorithm to get account numbers, and then they pose as authentic customers that just forgot their password, so they can then just change the security questions and passwords.

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Hackers reveal how they got bank information

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In this video they are comparing two of the biggest Canadian online banks (Tangerine & Simplii Financial) to all of the branch banks that have several bank fees. They explain why the online banks have a lot of better rates then any of the big company banks that don't have any good interest rates and force you to pay annual fees.
This video was a good choice because of the explanations about all of the rates for each bank and all of the different deals that they have. They show that even though they are an online bank, you can still do a lot of the same things that you do at the branch. A useful item in the online banks are that you can still get and use checks. Most would think that there would be no checks since they're online, but the banks were thinking ahead.

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How Safe is Online Banking on a Smartphone?

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How Safe is Online Banking on a Smartphone?

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This video explains that there are scary flaws in using your smartphone for your online banking, especially in public. If you go to a store and they have free WIFI, that could be the danger. Some hackers can easily intercept your data while using the free WIFI since it has such weak security. Also, if you have really poor reception, it could be a sign that someone is trying to get onto your phone. Some hackers have skimmers that can switch out your reception with theirs and they can easily see all of your data.
I chose this video because it is important to understand all of the risks with online banking. A lot of people think that it is very safe but they do not know that there are still many flaws. All of tips to make sure for a safe online banking experience are very useful and it will definitely help me in the future.

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How Safe Is Online Banking On A Smartphone?

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This graphic shows what online banking on a computer looks like. It shows that all you need is an Access Number and your Password. Some could think that this isn't enough to login and that you should need something else to verify.

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This graphic expresses many different statistics. From 2012 - 2016 most of the percentages have all fallen from going into an actual bank and changing over to online banking. Throughout the more years, those numbers will continue to decrease.