Updated: January 30, 2023
EQ Bank, an online-only bank launched by Equitable Bank in 2016, is a great alternative to the big banks. It offers low-cost banking with no monthly fees and some of the best interest rates on savings accounts available today. Unlike other banks, there are no restrictions on minimum balance or mandatory monthly saving amount, and the great rates offered are not just promotional offers. With over $7 billion in customer deposits, EQ Bank is a trusted and reliable choice for those looking for a high-yield savings account.
As an online-only bank, they offer you the convenience and flexibility of managing your finances through their website and mobile app. You can pay your bills, transfer your money, and deposit cheques without needing to visit a physical branch, and you can also manage your EQ-related investments online.
EQ Bank offers one of the best interest rates on the market: 2.50%* on the saving account, 3.00%* on the TFSA and RRSP, and up to 5.00%* on their GIC. Meanwhile, you don’t need to worry about losing your money as your deposits at EQ Bank are insured by CDIC up to $100,000.
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Account types
EQ Bank offers multiple account types, but traditional checking accounts and credit cards are unavailable.
Everyday banking
- Savings Plus Account: 2.50%* interest rate and no monthly fee
- Joint Savings Plus Account: shared account with up to three people
- US Dollar Account: 2.00%* interest rate and super-low exchange rate
Investing accounts
- GICs: guaranteed returns, up to 5.00%* interest rate
- RSP Savings Account: tax-deferred retirement account with a 3.00%* interest rate
- TFSA Savings Account: tax-free account with a 3.00%* interest rate
Other services
- International money transfers: send money abroad with the best exchange rate, powered by Wise
- EQ Bank card: free withdrawals from any ATM in Canada, high interest, cashback, no fees
- Mortgages: find the best mortgage product for your needs
Fees
- Deposit: free
- Electronic Funds Transfer, bill payments, and transfers between linked accounts: free
- Sending and receiving Interac e-Transfers: free
- Non-Sufficient Funds: free
- Dormant account notice: free
Pros and Cons
Pros
- One of the best interest rates on the market for your savings
- No monthly fees, no everyday banking fees
- Unlimited day-to-day transactions
- Easy-to-use app and website
- CDIC insured deposits
Cons
- No checking account, no credit card account
- No physical branch might be difficult for some people
Comparison
We have compared EQ Bank to Simplii and Tagerine, two other online-only banks:
| EQ BANK | SIMPLII FINANCIAL | TANGERINE BANK | |
|---|---|---|---|
| Backed by a major bank? | Yes, EQ Bank is backed by Equitas Bank | Yes, Simplii Financial is backed by CIBC | Yes, Tangerine Bank is backed by Scotiabank |
| Are deposits insured? | Yes, by the CDIC | Yes, by the CDIC | Yes, by the CDIC |
| All standard account types are available? | No checking account, no credit cards | Yes | Yes |
| Pays high interest to all customers | Yes, 2.50%* on all deposits | No, high interest rate is offered only as a promotional offer to new customers | No, the highest available interest rate on saving account is 1.00% |
| Is cash-withdrawal free in all Canadian ATMs | Yes, EQ Bank reimburses the ATM fee that other banks charge | No, only at CIBC ATMs | No, only at Scotiabank ATMs |
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Frequently Asked Questions
Which bank owns EQ Bank?
EQ Bank is owned by Equitable Bank, Canada’s 7th biggest bank
Does EQ Bank charge fees?
The everyday banking at EQ bank is free, which means you can transfer funds, pay bills, send Interac e-Transfers, manage your investments, and withdraw cash for free
What is EQ Bank interest rate?
As of January 30th, 2023, EQ Bank pays 2.50%* interest on the balance of the Savings Plus Account and Joint Savings Plus Account, 2.00%* interest rate on US Dollar Account, 3.00%* interest rate on TFSA and RRSP accounts, and up to 5.00%* interest rate on GICs.
Can you use EQ Bank as a chequing account?
While EQ Bank does not offer traditional chequing account, most of the functions are available that a chequing account offers: you can pay bills, send transfers, withdraw cash.
Is EQ Bank insured?
Yes, EQ Bank is member of CDIC, and the deposits are insured up to $100,000
Can you withdraw cash from EQ Bank?
Yes, EQ Bank offers EQ Bank Card, a prepaid Mastercard. You can fund this card from your Savings Plus Account and withdraw cash from any Canadian ATMs for free (EQ Bank will refund you the fee that other banks will charge for the withdrawal).
What to read next
- Ontario tax brackets
- Read our EQ Bank review and find the best interest rate savings accounts