Tangerine vs EQ Bank Comparison 2024

If you’re in search of the Best Online Bank in Canada in 2024, the battle comes down to Tangerine vs. EQ Bank. Interest rates as high as 5% are being offered, which is great news for those looking for a place to park their cash during this period of soaring inflation.

In addition to their high interest rates, putting these two at the top is their ease of use and low fees. They are exceptional not only as online banks, but when compared to the Big Banks as well!

Here you’ll find how Tangerine and EQ Bank compare in terms of interest rates, account charges, product offerings, and more.

Tangerine vs EQ Bank Quick Comparison

Products	Chequing and savings accounts U.S. Dollar savings Credit cards GICs Mortgages RRSP TFSA RSP HELOC Business savings accounts	Hybrid Chequing/Savings accounts Reloadable EQ Bank card GICs RRSP TFSA Elite currency exchange
ATM/Interac transactions?	Yes, for free at POS and from Scotiabank ATMs.	Yes, with the reloadable EQ Bank card. Free withdrawals from any ATM in Canada, plus 0.5% cashback on every purchase.
Account transaction fees	$0	$0
Savings Account Interest Rate	0.7% base rate although promos currently exist with a short term 5 -teaser rate of 5.75%	2.5% + 1.5% with direct deposit for a total of 4%
GIC 1-Year Interest Rate	4.50%	5.05%
Sign Up	Visit Tangerine	Visit EQ Bank

Tangerine vs EQ Bank Interest Rates

When most people are comparing the best online banking options in Canada, the key number is the interest rate.  What interest rate can I get in a High Interest Savings Account (HISA)?

There is simply no comparison when it comes to the long-term interest rate.

EQ Bank = 2.50% +1.50% when you set up direct deposit

Tangerine – 0.70%

EQ has always prioritized their long term savings rate and made sure that it stays at the very top of the Canadian rankings or within spitting distance.  

Tangerine on the other hand used to be a market leader in this field back when they were ING Direct.  Here’s an old school ING Direct commercial that caused some serious nostalgia for me.

The claim in that commercial, “Your account pays the highest rate – always will!”

Needless to say, that has not been the case since ING was purchased by Scotiabank and became Tangerine. The interest rate has steadily edged downwards ever since that point. Now Tangerine relies on short-term teaser rates to try and get you in the door, and then relies on your inertia to keep you there. It must be a profitable strategy or they wouldn’t continue to do it.  I just don’t like the whole idea of “tricking people in the door”. 

Massive Winner: EQ Bank

GIC Rates for Tangerine and EQ Bank

It’s not just the high interest savings account, TFSA, and RRSP rates, plus the availability of a FHSA where EQ Bank beats Tangerine pretty soundly. Below is the comparison table for GICs.

Winner: EQ Bank

Tangerine vs EQ Bank Account Options

When it comes to RRSP and TFSA accounts you have choices with both Tangerine and EQ. Tangerine’s interest rate is the same as its Savings Account: 0.70% for both accounts.

EQ offers a superior interest rate of 3% for the Tax Free Savings Account and the Retirement Savings Account. 

In addition, EQ also offers a First Home Savings Account (FHSA) with an interest rate of 3%. Tangerine does not yet offer a FHSA.

For higher interest rates you can lock in growth with a TFSA or RRSP GIC. They are offered by both Tangerine and EQ, but as you’ll see in the table in the following section, EQ continues to lead with the highest rates.

Winner: EQ Bank

Tangerine vs EQ Bank: Fees and Account Charges

Both Tangerine and EQ Bank have built their brands on cutting fees to the bone. You won’t find any Big Bank account fees here. Both Tangerine and EQ have slashed the business expenses associated with branch locations, and have passed those savings on to their customers.  

While the Tangerine vs EQ bank fee battle is a close one, the edge again goes to EQ, as Tangerine charges an odd inactivity fee as well as a NSF fee, neither of which will probably won’t apply to many people – but nonetheless looks like a bit of a cash grab. 

Both companies offer complete freedom from monthly account fees, free unlimited Electronic Fund and Interac Money transfers, as well as free bill payments.

Winner: EQ Bank

Tangerine vs EQ Bank: Credit Cards and Cheques

When it comes to overall convenience provided by an online bank account, it used to be that Tangerine could not be beat. Their banking package allows clients to use debit cards, credit cards, and cheques.  However, in January 2023, EQ bank launched the EQ Bank Card, helping it catch up to Tangerine in the areas of convenience and making your money work for you.

The EQ Bank Card offers free withdrawals from any Canadian ATM, gives you 0.5% cash back on each purchase, earns customers 2.5% interest on their balance, and has perks like no foreign exchange fees. These benefits are on par with Canada’s best credit cards, which is pretty impressive for an online bank.

While these are all great offerings, it is not quite as varied as Tangerine’s offerings in terms of credit cards and cheques.

Winner: Tangerine

Editor’s note: If your primary focus is finding the best chequing account that comes with all the bells and whistles, Scotiabank is currently the best option by a wide margin. For as long as they have their $350 signup promo running for the Ultimate Package and the Preferred Package, they are clearly the best choice out there.

Read Kyle’s Scotiabank review for a deep analysis of how the current promo massively out values any other Canadian bank, including Tangerine and EQ.

Tangerine vs. EQ Bank Ease of Use

Being online-only banks, both Tangerine and EQ have prioritized easy-to-navigate websites and customer service.

Setting up an account and connecting external bank accounts is quick and easy on both sites. However, EQ bank allows you to connect up to 10 external accounts, while Tangerine only allows for 3.

When it comes to ATM access for Tangerine clients, you’re limited to Scotiabank’s ATM network. With EQ Bank you can use any ATM in Canada free of charge after transferring money from your EQ Bank account to an EQ bank card.

Another preferred characteristic of EQ Bank is that they do not charge an NSF fee (Non-Sufficient Funds Fee). An NSF fee is when you get penalized for not having enough money in your account when making a transfer. If this happens to you as a client on Tangerine, you’ll owe them $45!

If you need to talk to someone on the phone, you can call Tangerine 24 hours a day, 7 days a week. EQ Bank’s phone lines are more limited but are still open 8am to midnight EST, 7 days a week. Both banks have chatbots on their website that can provide answers to common questions.

Winner: EQ Bank

Tangerine vs. EQ Bank Mobile App Review

Tangerine’s mobile app has a bright and fresh design, making it visually appealing. The Tangerine bank app includes a wide range of banking options, including digital signup, enabling you to complete account creation right from your mobile device.

You’ll also be able to set up your mobile wallet, allowing you to make payments with ease. In addition, you’ll have access to money management tools, like their Goals tool to help you stay on track when it comes to saving money.

The Tangerine mobile app currently has an impressive 4.7 star rating on the Apple App Store and a 4.5 star rating on Google Play. Of the recent reviews, the majority are from users happy with the app. The 1 star ratings are varied, or in some cases vague (users didn’t actually say why they gave 1 star).

The EQ Bank Mobile Banking app allows you to complete all of your transactions in one convenient app. Everything from transferring funds, to paying bills, to purchasing GICs can be done on the app. 

The downsides are that the Android app appears to be buggy, and although the iOS version appears to be more functional, there are still signs of trouble. Users comment that while they love EQ bank, the app leaves much to be desired, especially as some of them can’t even seem to log in without the app crashing.

The EQ Bank mobile app rating is currently 4.7 on the Apple App Store and much lower on the Google Play Store at 3.1 stars. However, on Google Play, EQ customer service appears to have responded to every single review this year in an attempt to help users solve their issues.

Whether the issues were resolved or not, we’re not sure, but it’s encouraging to see.  Hopefully, the Android version will have some new updates shortly to improve its functionality.

Winner: Tangerine

International Banking With EQ Bank or Tangerine

I was quite surprised to learn that as a “full service online bank” Tangerine does not have the ability to receive payments from abroad.  Due to the fact that Tangerine does not have a SWIFT/BIC code, it is useless to people who want to transfer money.

EQ Bank on the other hand really shines when it comes to international banking.  As the first bank in Canada to partner with TransferWise (the leading international money transfer company in the world) EQ is able to offer its members the cheapest possible way to convert currencies.  

Most people don’t really understand how much banks charge them to convert one currency for another because it’s kind of hidden in the fine print.  The basic idea is that banks take a slice on either side of the “mid-market rate” – which is the actual exchange rate you’ll see if you look it up online. 

The size of those slices depends on the bank, and the currencies being exchanged, but the end result is that most customers end up paying more than 800% more when exchanging through their brokerage than they do with Transferwise!

Massive Winner: EQ Bank (with an assist from Transferwise)

Tangerine and EQ Bank Current Promotions and Referral Programs

When it comes to promotions, Tangerine loves to give new clients a high interest rate for a few months. This teaser rate inevitably drops off though, leaving EQ with the higher continuing interest rate. They both also offer referral programs. Here are the current offerings:

Tangerine:

• 5.75% savings rate for 5 months for new clients
• Earn up to $500 and 5.75% savings rate for new client student bank accounts
• Referrals: Receive a $50 bonus for every new client that uses your orange key to sign up (maximum 3 per year). The new client will also receive $50.

EQ Bank:

• 4% interest rate when you add direct deposit to your account
• Referrals: Earn up to $500. The more friends you refer, the higher your bonuses become. You’ll get $20 for each of your first 3 referrals, $30 for the next 4, and $40 for any subsequent referrals (up to a maximum of $500). The new client will receive $20.

Of course, these promos come with fine print and required actions in order to claim the money or activate the rate. For more promo offers, check out our list of Canada’s Best Bank Account Promotions.

FAQ

EQ Bank vs Tangerine: What’s Best for You?

We left no stone unturned when comparing EQ Bank to Tangerines. We put them head to head in terms of accounts, products on offer, fees, interest yield, mobile app quality, ease of use, promotions/referrals, and more.

So, who takes first place, EQ Bank or Tangerine Bank? 

While Tangerine was the winner in the category of credit cards and cheques, and might have a better app, it was not nearly enough to put them ahead of EQ Bank.

The clear winner in this competition is EQ bank. With their significantly higher interest yield on their high interest savings account, and their prepaid Mastercard bank card, they’ve become an even more attractive option. Plus, with EQ you can complete international money transfers and open an FHSA, actions you can not currently take with Tangerine.

All things considered, when comparing Tangerine vs. EQ Bank we recommend EQ as Canada’s #1 online bank. Read our full 2024 EQ Bank Review to find out why.