The Best Online Banks in Canada 2023

Ever since I started writing about Canadian online banks nearly two decades ago, the industry has grown in fits and starts. Just when it looked like real challengers were going to take market share from our “Big 6” Banks, they would get bought out or decide to fold.

Thankfully, over the last few years, EQ Bank and Canada’s online credit unions have really given the entire sector a badly-needed push forward. I’ve personally used nearly all of the options on our Best Online Banks in Canada for 2023 list. 

The comparison below illustrates how today’s Canadian online banks stack up when it comes to interest rates, account fees, transaction fees, and promo offers.

Best Online Canadian Bank Comparison

While reviewing my personal ranking of Canada’s online banks, please keep in mind that everyone’s requirements are different. Personally, I want the best interest rates for my high interest savings accounts and Canadian GICs. In order to get those elite rates, I’m willing to not have to visit a physical store in a strip mall.

EQ Bank Review

4.8 / 5

1 Year GIC Rate

5.75%

Interest Rate

2.5% + 0.5% Bonus

Plus 0.50% interest rate if you direct deposit your pay

Visit EQ Bank

Simply Canada's Best Online Bank. Excellent savings interest rates, reloadable EQ Bank Card for purchases, superb platform, incredible value.

Tangerine Review

4.3 / 5

1 Year GIC Rate

5.25%

Interest Rate

1%

5% interest on savings account for 5 months (then 1%) / Up to $400 cashback on eligible purchases from chequing account

Visit Tangerine

Runner up to EQ Bank. Used to have better rates. Good credit card options.

Scotiabank Review

4 / 5

1 Year GIC Rate

3.30%

Interest Rate

1.40%, with special promo rate of up to 4.60%

$400 Cash Back

Visit Scotiabank

Best Big Bank. Excellent chequing account and credit combination. Very nice welcome bonus.

Simplii Financial Review

3.8 / 5

1 Year GIC Rate

5.10%

Interest Rate

0.40% (5.25% Teaser)

$400 Cash Bonus

Visit Simplii

Best welcome bonus. Good no-fee chequing account and solid app

Motusbank Review

3.7 / 5

1 Year GIC Rate

4.50%

Interest Rate

2.50%

No Available Promotion

Visit Motusbank

Motive Financial Review

3.4 / 5

1 Year GIC Rate

5.60%

interest Rate

0.25% - 3%

No Available Promotion

Visit Motive

The best rates for chequing accounts: 0.25% in interest. Clunky platform and hefty transaction fees to withdraw from savings accounts.

2.9 / 5

1 Year GIC Rate

4.00%

Interest Rate

0.05% - 2.50%

No Available Promotion

Visit Alterna

Online investing partnership with Qtrade - the best broker in Canada.

2.4 / 5

1 Year GIC Rate

5.50%

Interest Rate

3.4%

No Available Promotion

Visit Oaken

Good option for Quebec residents. Only savings account and GICs.

Now, keep in mind that while virtual banks are competing with the big brick and mortar banks, they still vary quite a bit in their offerings. Some of the new online banks in Canada offer teaser rates (which I don’t love) while others have a lower, but consistent rate that hold steady over time.

Similarly, some digital banks are basic and only offer one or two account options while others are growing to add accounts other than chequing and savings including TFSAs and RRSPs. 

So if you are looking for the best online bank in Canada when it comes to your personal wishlist, read on to see which boxes our leading competitors check off.

Why Use an Online Bank?

When was the last time you walked into a bank? 

These days most Canadians use online banking to conduct and take care of their financial needs. The best online banks have made our lives substantially easier, to the point where it’s the norm rather than the shiny new toy.

I don’t know about you, but I definitely prefer being able to pay my bills from my couch while wearing sweatpants on a cold winter day rather than having to wait in line to see a teller.

Online Banking Cost

Big banks have overhead costs that trickle down to you, the client, which means you have to pay more for your accounts and frequently are offered lower interest rates. In comparison, online banks don’t have those big overhead costs which means they can offer you higher rates and, depending on the online bank, even free bank accounts.

Convenience

Another huge draw to online banking is the convenience. You can do everything from opening an account to paying a bill online anywhere; from the comfort of your home, to the gym, to the office. It doesn’t matter, your online banking is always available.

Online Banks are Time Savers

On top of being convenient, online banks actually save you time. No more waiting in line or worrying about bank hours. You can do whatever you need to with the push of a couple of buttons (or computer keys) at whatever time of day you want.

EQ Bank – My Pick For The Best Online Bank Account in Canada

Since 2016, EQ Bank has been dedicated to affordable, convenient digital banking. Its parent institution, Equitable Bank, was founded in 1970 and is Canada’s 7^th largest national bank. 

EQ Bank offers personal high-interest savings accounts (individual, joint, and USD) as well as competitive GICs, RRSPs, and TFSAs. Check out our full EQ Bank Review for more details.

EQ Bank just keeps getting better. In 2023 alone they have introduced the new EQ Bank Card AND continued their run as the #1 bank in Canada as judged by Forbes. The Bank Card is a huge leap forward for customers, as it removed one of the few friction points when it came to everyday uses. 

By giving Canadians a convenient way to pay for stuff, using the same crazy high-interest savings account that they earn a ton of interest on, EQ continues to separate themselves from the pack.

And best of all, EQ is now available in Quebec!

Best Feature: No fees, great rates, convenient purchasing power, and a fantastic app.

Tangerine — Runner Up for Best Online Bank in Canada

Tangerine, a digital-only subsidiary of Scotiabank, was originally ING Direct, a pioneer in branchless banking in the 1990s. Acquired by Scotiabank in 2012, Tangerine was considered Canada’s top online bank for years. 

Tangerine offers no-fee chequing and savings accounts, no-fee cashback credit cards, and GICs as well as mortgages and investment account options. You can read more in my full Tangerine review. 

Currently, when you open a new account with Tangerine you can get an interest rate of 5% in their high interest savings account, which is great. However, after 5 months that drops to 1% which is not as enticing.

Best Feature: Free ATM access in the US.

Motive Financial – Earn Interest on Online Chequing Account Balance

Motive Financial is one of the biggest online banks in Canada and is a division of the Canadian Western Bank.

Motive Financial offers a chequing account and a savings account, plus GICs, TFSAs, and RRSPs. New clients opening a Motive Savvy Savings Account will see an interest rate of 3% – a really good rate compared to many other online banks. Problem is, their overall fees make this service much less enticing.

Motive Financial lets you earn interest on your chequing account too. The Cha-Ching Chequing account will bring you 0.25% in interest. Check out my Motive Financial Review for full details.

Best Feature: Earning more than 0.01% interest on a chequing account.

Best Feature: A Qtrade partnership that gives you cashback.

Oaken Financial – Available in Quebec

Oaken Financial’s parent company is Home Trust, Canada’s largest independent trust company. It only has one savings account and some GIC options. However, what it lacks in product offerings it makes up for in value, with a standard interest rate of 3.4%.

The other thing that makes Oaken Financial a standout is that Quebec residents are able to open an account with them which is not the case for many other online banks in Canada.

Best Feature: The excellent standard interest rate and the availability in Quebec.

Canadians are Turning to Online Banking 

According to recent research by the Canadian Bankers Association (CBA) 78% of Canadians do most of their online banking digitally (via online and mobile banking). 

While pandemic lockdowns sped up the shift to online banking, the experts say that the change is here to stay. And that makes sense because online banking is just a lot easier and more convenient for most of us.

Of course, direct banking in Canada isn’t the only way to bank online. The big banks, the brick-and-mortar ones, are going digital too.

Advantages of Online Banking

1. Convenient and time saving, as everything can be done online or through a mobile app.
2. Higher interest rates than most brick and mortar banks.
3. Saves money because you’re not paying fees so the banks can pay rent.
4. Easy connectivity to other accounts, such as your investment account.
5. High levels of security, similar to credit unions, so you know your money is safe.

Now, we’ll have a look at the areas online banks might not be up to par with brick and mortar banks.

Disadvantages of Online Banking

1. Lacking in personal touch as you likely won’t be communicating with an actual person most of the time.
2. Fewer ATMs available, which means you could end up spending more on ATM fees.
3. Lacking in all-in-one packages that the bigger banks can offer.
4. Limitations in terms of types of services offered.

Are Online Banks Safe?

Yes, online banks are safe! Many online banks are insured by the Canada Deposit Insurance Corporation (CDIC), which means that your deposits up to $100,000 are protected. Every bank on my list is either a CDIC member in its own right, or is part of a larger institution which is CDIC-affiliated. 

In addition to the peace of mind you get from knowing your money is insured, you can also breathe easy knowing that online banks use the most up-to-date data encryption and other security measures to keep your accounts safe. 

Furthermore, features like two-step authentication and automatic alters can help you make sure your account access stays in your hands only.

Online Banking in Canada: FAQ

Virtual Banks in Canada – No Fees and the Right Fit

To choose the online bank that is right for you, use the Canadian online bank comparison chart we compiled above to compare interest rates and banking fees.

For me, as someone who has opened up numerous online banking accounts in order to test their user friendliness firsthand, I just think the value proposition offered by EQ Bank is unbeatable at the current time. They have a unique combination of the best website for usability, lowest fees (no fees at all), excellent customer service,  and are consistently at the top of the interest rate leaderboard (without teaser rates).

The one knock against EQ used to be that they didn’t have a card to go with their bank accounts. That all changed in 2023 with the launch of the EQ Bank Card, a prepaid card option that makes it easy to use your EQ account to buy directly from stores, etc.

Personally, I still think the combination of using an elite rewards credit card, and then auto-paying it with my EQ account gives the most bang for my bucks – but it never hurts to have more options.

Ultimately picking the best online bank for you comes down to your preferences.  If no fees and high interest rates for Savings Accounts and GICs are your primary goals then your choice might differ from someone who really needs to be able to pull cash out of debit machines each week.