Best Online Banks in Canada 2025

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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 and even mortgages.

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.

“The average Canadian visits their bank’s website five times as often as they do their branch. While differences emerge across generations, in-person banking is now the most common way to bank for only 10 per cent of Canadians”

Canadian Bankers Association, 2022

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.

Features

Online banks allow you to complete most of the same actions a teller would do for you. You can:

• Open new accounts
• View up-to-date account activity (transactions, balances)
• Transfer funds between accounts
• Make future-dated, or regular bill payments
• Connect to investment accounts
• Pay your credit card balance
• Deposit cheques
• Send e-transfers
• Apply for loans

Best of all, this can be done anytime, anywhere through an intuitive mobile banking app on your phone, or a mobile banking website on your computer. Additionally, most online banks are using 2 factor authentication or biometrics to ensure that your account remains secure.

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.

Case Study: How much will I save if I switch from RBC to EQ Bank?

	RBC Advantage Banking Chequing Account	EQ Bank Personal Account
Monthly Account Fee	$11.95 (although some discounts exist for students, seniors, and newcomers to Canada)	$0
Account Interest Rate	0%	4.00%
Unlimited free Interac e-transfers	Yes (well, 999 per month)	Yes
Does it have a bank card?	Yes – come with a debit card.	Yes – comes with a prepaid card.

Looking at the above table, it’s apparent that you are going to save much more money with EQ Bank, especially over the long term. But, let’s dive in a bit deeper to be sure, shall we?

Starting with the monthly account fee, over the course of the year you’ll be paying $143.40 for an account with RBC compared to… nada with EQ Bank.

Instead of spending that $143 on unnecessary monthly fees, with EQ Bank you can have that money (along with the rest of your account balance) gaining you 4.00% interest for the first year. Come year 2, the interest rate with EQ drops down to 1.25%, but that’s still a strong everyday interest rate. And besides, RBC isn’t offering you any interest with their chequing account.

Assuming you start with $10,000 and don’t add or spend any money besides on account fees, after one year that $10,000 with RBC will have decreased to $9856.60. Meanwhile, over at EQ Bank that money has been working for you and you have a sweet $10,400. Come the end of year 2, you’re down to $9,713.20 with RBC, and up to $10,660 with EQ Bank. This is all without even making deposits to your account and those amounts will only deviate further from one another over time!

In addition, if you’re considering locking away money in a one-year GIC, you’ll get a 3.45% return with EQ but only 3.00% with RBC. Again, being an online bank, EQ shows us how saving on overhead costs means passing down savings to the client!

There may be some bells and whistles available from RBC that you can’t get with EQ Bank, such as cheques and safety deposit boxes, but those don’t come for free! You’re going to be paying additional fees for those services, on top of the unavoidable monthly account fee.

Both accounts offer free unlimited e-transfers, and have many ATM options for cash withdrawals. But when it comes to year after year savings on account fees, and compounding growth via interest on your money, the EQ Bank Personal Account is the definite winner for increased savings. 

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.

Customer Support

Online banks have also become very forward-thinking with their customer support. Most banks can be reached by phone, email, social media, and online chat boxes on their websites. The hours of customer service for online banks tend to vastly overshadow those of brick-and-mortar locations.

You will find a variety of ratings for the quality of customer service for online banks, so that’s just another reason why we’ve done the work here for you by comparing them all.

What Online Banks Don’t Provide

There are a few areas where online banks are not up to par with brick and mortar banks. They are lacking in personal touch since you likely won’t be communicating face-to-face with an actual person. (Although, if you’re like me and prefer an online chat or brief email exchange to waiting in line at a bank, then you can still get person-to-person help – just in a non-traditional way.) 

Depending on the online bank, there may be fewer ATMs available – which could be a downside if you deal with cash frequently. If you regularly utilize ATMs, it would be worth choosing an online bank that has free-to-use ATMs that are conveniently located for you.

Online banks are often lacking in the all-in-one packages that many of the bigger banks can offer and there are sometimes limitations in terms of the types of services offered such as mortgages and investments. You also won’t be getting a safety deposit box with an online bank!

Are Online Banks Safe?

When it comes to the safety of online banks in Canada, the natural question for most of us, is are the digital-only banks as safe as the traditional brick-and-mortar banks like RBC, TD, BMO, etc. The good news? Canadian online banks are just as safe as their conventional counterparts.

There are multiple layers of protection in place to ensure the security of both your money and your personal information at all of the online banks in Canada (as they are Chartered Banks as defined by government regulations).

First, in regards to regulatory oversight these digital banks aren’t some fly-by-night operations. They operate under the supervision of the Office of the Superintendent of Financial Institutions (OSFI), which enforces high standards of financial security, risk management, and operational reliability across all Canadian financial institutions.

Every online bank must meet strict capital and liquidity requirements to prove they can withstand financial challenges. They are required to undergo regular audits and report financial statements, making it impossible for financial trouble to creep up unnoticed. Many of these banks, like EQ Bank and Tangerine (owned by Scotiabank), are backed by well-established financial institutions that publish their financials every quarter, adding yet another layer of transparency.

Most of Canada’s best online banks are Canada Deposit Insurance Corporation (CDIC) members. This means that deposits of up to $100,000 per insured account type are 100% protected – even in the highly unlikely event that an online bank were to fail.

That “per account” is interesting too, because that means you could theoretically have a $100,000 TFSA, Non-registered account, RRSP, etc. So could your spouse. So you could be fully insured by the Canadian government for a pretty large amount of money! To put your mind further at ease, Canada hasn’t had a major bank failure in decades. Our banking system is globally recognized as one of the safest in the world.

If you’re worried about online banking security, you should know that digital-first banks actually invest more in cybersecurity than most traditional institutions. Why? Because their entire business model depends on providing secure, seamless online services.

Here’s what they do to keep your money safe:

End-to-End Encryption – Your data is fully encrypted, making it almost impossible for hackers to intercept.

Two-Factor Authentication (2FA) – A second verification step (like an SMS code or authentication app) ensures that even if someone gets your password, they still can’t access your account.

Fraud Monitoring & AI-Based Threat Detection – Online banks continuously scan for unusual activity and can automatically freeze transactions if something looks suspicious.

Security Guarantees – Some banks, like EQ Bank, offer a full reimbursement if unauthorized transactions occur on your account.

So if security is your main concern, you can feel just as safe keeping your money in an online bank as you would at any of the Big Five.

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, TFSAs and FHSAs. They also offer a “Mortgage Marketplace” where you can compare mortgage products offered by lenders across the country. Check out our full EQ Bank Review for more details.

EQ Bank just keeps getting better. In 2023 they introduced the new EQ Bank Card. 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. The new addition coming this year is a business account, as well as the recently launched EQ Notice Account.

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.

Neo Financial — Runner Up for Best Online Bank in Canada

Neo Financial, a Canadian fintech company, was founded in 2019 and offers a variety of products. It has taken second place in our list of Best Online Banks in Canada.

Neo Financial offers a hybrid high-interest savings account combining a 3% everyday interest rate along with free transactions and point-of-sale availability of a chequing account. You can read more in my full Neo Savings Account review.

Its cash back Mastercard is the best credit card for the average Canadian. With the premium card you’ll receive an average of 5% cash back at all Neo Partner stores. The card has a unique user-friendly app, and a quick approval process and is available to Canadians with credit scores as low as 600.

Best Feature: excellent everyday interest rates of 3% and the Neo Financial Mastercard – Canada’s best credit card for cash back offers.

Tangerine — Best Long Term GICs

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, mortgages, and investment account options. Currently, they are offering the highest GIC rates in Canada: 5% for 3-5 Year Guaranteed Investments. 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 6% in their high interest savings account, which is great. However, after 5 months that drops to a measly 0.70% which is certainly nothing to write home about.

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 4.10% – a really good rate compared to many other online banks. While there is no monthly fee for this account, the other fees really add up and make their high interest rate less attractive.

Motive Financial lets you earn interest on your chequing account too. The Cha-Ching Chequing account will bring you 0.15% in interest. It has free Interac e-transfers, unlimited free transactions, no monthly fee, and 50 personalized cheques are included. 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.

Best Online Bank Mobile App

There’s no denying that Canada’s Big Banks – RBC, TD, BMO, Scotia, and CIBC – have put together some pretty polished banking mobile apps over the years. But when it comes to overall user experience, I’d happily stack EQ Bank’s app up against any of them.

You can immediately tell that EQ was built as a digital-first bank. This isn’t a legacy system that’s been dragged online with some duct tape and a redesign – it’s a mobile experience that’s been crafted from the ground up for Canadians who bank from their phone.

The interface is clean, intuitive, and straightforward. Whether you’re moving money between accounts, exchanging currency, sending an eTransfer (free, of course), or locking in a GIC inside your TFSA or RRSP, it all happens in a couple of taps.

Now, I’ll be the first to admit that I still do most of my banking on desktop – I’m in front of a computer all day anyway – but I know plenty of folks who use EQ exclusively through the app and love it.

The only real critique I’ve seen (mostly on the Canadian personal finance subreddit) is that biometric login could use some fine-tuning. I still use a good old-fashioned password, so I can’t speak to that personally – but it seems like a small nitpick in exchange for everything the app offers, especially when you factor in the zero monthly fees and elite interest rates.

Online Banking in Canada: FAQ

Canadian Virtual Banks in 2025 – No Fees and the Right Fit

The best online bank for you really comes down to what you value in a financial institution – and how much you’re willing to pay (or not pay) to get it.

Online banks have exploded in popularity over the last five years, and it’s no mystery why: zero monthly fees, solid interest rates, and user-friendly platforms that let you do just about everything from your couch.

These days, most Canadians can handle the full range of their day-to-day banking online – from bill payments and mobile cheque deposits, to e-Transfers and goal-based savings – all without setting foot in some strip-mall branch. Of course, if you like the idea of popping into a branch for a face-to-face chat, that’s completely fair… just know that this type of “personalized service” comes with a price tag in the form of lower interest rates and higher fees.

There are plenty of online banking options out there, but when you boil it down to the stuff that matters – fees, interest rates, account options, and user experience – EQ Bank continues to lead the pack in 2025.

With no monthly account fees, unlimited free transactions, and interest rates that put the big banks to shame, EQ Bank has built a digital-first banking experience that actually delivers. This isn’t just an online add-on slapped on top of a traditional bank – EQ is built for the online era, and it shows in the seamless mobile app and streamlined desktop interface.

What really sets EQ apart is their constant innovation. In 2023, they rolled out the EQ Bank Card with no foreign exchange fees – a game changer for Canadians who travel. Then in 2024, they launched both a corporate banking account for small businesses and the country’s first 30-day Notice Account – offering higher interest rates in exchange for a little extra planning.

Bottom line: If you want a no-nonsense, high-value banking platform that does everything you need without nickel-and-diming you, EQ Bank is tough to beat. It’s why it also tops the list when we look at some of the best low risk investments in Canada.

Of course, if in-person branch access is still a top priority for you, then one of the Big Six Banks might be a better fit – just go in with eyes open about what you’re trading off in terms of cost and features vs purely online Canadian bank options.