EQ Bank—trade name of the financial giant Equitable Bank—is a Canadian online-only institution seeking to innovate the traditional banking sphere. Featuring high interest and GIC rates, and an almost entirely feeless structure, EQ stands as a healthy option for everyday banking essentials.
Pros
- No monthly fees.
- Free e-transfers (sending and receiving.)
- No non-sufficient funds (NSF) fees.
Cons
- No chequing account offered.
- Fewer account and feature options offered in Quebec.
- Lack of promotional offers.
- Limited account types offered (e.g. RESPs, mutual funds).
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Table of Contents
Featured Partner Offer
1
EQ Bank Personal Account
APY
4%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
2
EQ Bank Joint Account
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Excess Transaction Fee
$0
3
EQ Bank Registered GIC
APY:
3.75% (3 month) to 4.60% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
EQ Account Basics
EQ Bank’s focus is about challenging traditional brick-and-mortar banking models and their fee structures. All of EQ Bank’s accounts boast no monthly fees and high interest rates—most notably their core offering: The Personal Account.
Though EQ does not offer a chequing account, their non-registered savings accounts allow for free unlimited transactions, which gives account holders the flexibility that comes with a chequing account.
Chequing Accounts
Currently, EQ does not offer a “true” chequing account. This isn’t surprising given EQ’s status as a challenger bank that “seeks to transform the way banking has always been done.”
As an alternative, EQ Bank offers highly flexible savings accounts with no fees.
Related: Best Chequing Accounts In Canada
Savings Accounts
EQ’s claim to fame is their collection of no-fee, high-interest savings accounts: The Personal Account, Joint Account, TFSA Savings Account, U.S. Dollar Account, Notice Savings Account and their Retirement Savings Plan (RSP) Savings Account.
Branded as an “everyday banking account” the Personal Account offers significant flexibility via its no-fee transactions (including Interac e-Transfers) and a soaring interest rate of 4%. The account requires no minimum balance either.
The Joint Savings Account comes with all the perks of the Personal Account but is designed for people looking to bank together. The account allows for up to three holders and has a contribution ceiling of $500,000 in the aggregate. Keep in mind that this threshold is measured across all accounts held per individual. Should you close your joint account, your contribution threshold drops to $200,000—unless you joined EQ before February 21, 2016.
The EQ Bank Notice Savings Account is unique in that it gives you access to high interest rates as long as you provide advance notice for withdrawals. In practice, that means that withdrawals will be held in your account for a duration of your choosing before the funds are released. You will receive a higher interest rate on your account balance in exchange for your patience. Accounts with 4.50% interest mean money will be held for 10 days before withdrawal, and accounts with 5.00% interest mean money will be held for 30 days before withdrawal. Other than its unique interest structure, this account is similar to its other EQ Bank savings accounts in that it has no fees or minimum deposit requirements.
EQ’s other high-interest accounts, the TFSA Savings Account and RSP Savings Account, boast impressive interest rates (3.00% for the TFSA Savings Account and 5.05% for the RSP Savings Account), no minimum required balance and no fees. Note: Opening an EQ Bank RSP Savings Account requires you to open a Personal Account beforehand.
For Canadians with U.S. funds, EQ’s USD Account has an unheard of 3.00% interest rate, coupled with no monthly fees and a “highly competitive exchange rate,” though the exact rate is not specified.
GICs
EQ’s guaranteed investment certificates are a solid option for Canadians wanting to lock in their funds in exchange for return rates as high as 4.60% on a one-year term.
The institution offers both registered (e.g. TFSA or RRSP) GICs and non-registered GICs. Both GIC types require a meager $100 to start investing. People interested in opening a registered GIC are required to open a TFSA or RRSP account first.
EQ Bank’s GICs are offered on a variety of term lengths and are non-redeemable.
GIC Interest Rates
The following are the GIC rates offered by EQ Bank (rates current as of Aug 9, 2024).
Non-registered GICs
RSP GICs
TFSA GICs
Other EQ Bank Products
Aside from their savings accounts and GICs, EQ offers few other products. These include:
- International money transfers (via Wise).
- The EQ Bank Card (a reloadable, no-fee credit card).
- Online mortgage marketplace for EQ customers to review mortgages offered by Canadian lenders.
Featured Partner Offer
1
EQ Bank Personal Account
APY
4%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
2
EQ Bank Joint Account
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Excess Transaction Fee
$0
3
EQ Bank Registered GIC
APY:
3.75% (3 month) to 4.60% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
Access on the Go
In place of physical branches, EQ offers a respectably-rated mobile app available for iOS and Android devices. With the app, users can:
- View their accounts.
- Sign up for an account.
- Purchase GICs.
- Deposit cheques.
- Transfer funds.
- Pay bills.
- Send funds via e-transfer.
Alternatively, EQ customers can complete the same functions on EQ’s website on a browser of their choice.
Customers looking for assistance can chat with a virtual assistant around-the-clock or call their help line at 1-844-437-2265. Hours are 8 a.m. to midnight (EST), all week.
How EQ Bank Stacks Up
EQ Bank vs. Simplii
Both of these digital-only institutions offer flexible, no-fee accounts that can be set up and accessed at the tap of a screen. However, EQ outperforms Simplii with its outstanding interest rates on both its savings accounts and GICs. The EQ Personal Account offers 2.5% interest with no relative rate, whereas Simplii requires an account balance of over $1 million to achieve a 0.10% rate.
Simplii has more to offer for both accounts, investments and credit opportunities than EQ. The CIBC trademark provides its customers a wide array of options like lines of credit, mutual fund accounts and student accounts.
While both banks offer free ATM usage, only EQ cardholders can access any ATM in Canada for free: Simplii cardholders must access CIBC terminals to avoid fees.
EQ Bank vs. Tangerine Bank
Both of these online institutions have similar footprints in their industry, but with different focal points in their offerings.
Tangerine focuses on a myriad of banking options including chequing, savings and business accounts. While its GIC rates are similar to EQ’s (up to4.60%), its 0.70% savings account interest rate leaves much to be desired in comparison.
Each brand highlights little-to-no fees as part of their model, but only EQ offers entirely no fees—Tangerine charges NSF and dormancy fees.
Related: EQ Bank vs. Tangerine Bank
EQ Bank vs. Motusbank
Both banks offer impressive interest rates on their savings accounts, with Motus offering a 1.85% rate on its High Interest Savings Account. Motus’ TFSA rate comes in similarly at 1.85%. Though Motus has a homogenous fee structure akin to EQ Bank, it does charge Interac e-transfer fees for any transfers out of a savings account or requested transfers that have been fulfilled.
Motus’ GIC rates rank high as well, with their highest rate currently locked in at 4.05% on an 18-month term. Their minimum deposit requirement is also $100. The Meridian Credit Union subsidiary company has access to 43,000 ATMs across North America, at no cost, with some of those being in the U.S. through the Allpoint Network.
Methodology
Forbes Advisor compared 20 nationally available banks—both traditional brick-and-mortar institutions and online-only banks—to find the best options available. To make this list, the bank had to be available to Canadians nationwide. They were rated out of five stars according to the following data points and formula out of 100%:
- Product Offerings – 11%
- APY – 25%
- Fees – 20%
- Minimum Deposit – 5%
- Minimum Balance – 5%
- Availability – 5%
- 3P Ratings – 5%
- Customer Reviews – 2%
- Live Chat – 2%
- Digital Experience – 10%
- ATM Network – 10%
Is EQ Bank Right for You?
With some of the highest interest rates in the industry and no fees, EQ Bank is a prudent choice for Canadians treading rough economic waters. With EQ’s 4.60% TFSA rate (one year), for example, your money will soon rival the 2.9% inflation rate—and that’s not accounting for any investments you make.
Conversely, EQ’s offerings aside from their core products are limited when compared to other competitors. People seeking to keep all their assets in the same full-service bank, or who require sophisticated investing options, may not find EQ’s model conducive.
Frequently Asked Questions (FAQs)
Is EQ Bank CDIC insured?
Yes. Equitable Bank, which owns the trademark EQ Bank, is insured by the Canada Deposit Insurance Corporation (CDIC). Any assets in EQ Bank are aggregately eligible for protection up to $100,000 per insured category, per depositor.
Who owns EQ Bank in Canada?
The trademark EQ Bank is owned by Equitable Bank, a wholly-owned subsidiary of EQB Inc. (EQB) Equitable Bank was founded in the 1970s as the Equitable Trust Company before becoming a full-fledged Schedule I Bank. It currently manages over $61 billion in assets.
Is EQ Bank legitimate?
Without question. Considering EQ Bank is owned by Canada’s seventh largest Schedule I Bank that is CDIC insured, you can rest assured your money is in reputable hands.
Does EQ Bank have no monthly fees?
EQ Bank does not have any monthly fees for owning a savings account, joint savings account or registered savings accounts (e.g. RRSPs, TFSAs). Their USD account also has no monthly fees.
Can I transfer my TFSA to EQ Bank?
Yes. You can easily transfer your existing TFSA to EQ using their website or mobile app. The process will take around six to eight weeks. Keep in mind, your current institution may charge a fee for this process.
Does EQ Bank offer the First Home Savings Account (FHSA)?
Yes. EQ Bank offers an FHSA. It offers 3.00% interest on the money in the account, so your money grows until your ready to use it to purchase a home. EQ Bank also offers an FHSA GIC that you can put exclusively in their FHSA which will give you even more interest on the money inside the account.
How does the EQ Notice Savings Account work?
The EQ Bank Notice Savings Account has no fees and no minimum deposits while offering some of the highest interest rates in Canada. The only slight catch is you have to give notice before withdrawing money from the account (hence the name). Here’s how it works:
Account holders simply select their desired interest rate at account opening, which is either:
- 4.50% interest per annum
- 5.00% interest per annum
Once you’ve deposited some money, you’ll start earning your selected interest rate. However, if you want to withdraw any amount, you’ll have to give the agreed-upon amount of notice. For the 4.50% interest rate, this would require 10 days, and for the 5.00% interest rate, this would be 30 days. Practically, this means any withdrawal will be held in your account for the predetermined length of time before being released.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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