EQ Bank review
Gorodenkoff / Shutterstock
What EQ Bank is best for
- High-interest rates
- No everyday banking fees
- No minimum balance
- Cheap international money transfers
- GIC investments
- High-interest personal accounts
- TFSA accounts
- RRSP accounts
What is EQ Bank?
Officially launched in January 2016, EQ Bank is an online-only bank in Canada, popular for its amazingly high-interest rates and no everyday banking fees.
Often considered among the best online banks in Canada, thanks in large part to its high interest rate and broad range of products.
EQ offers the Personal Account, Joint Savings Plus Account, TFSA Savings Account, RSP Savings Account and EQ Bank GICs. All the accounts are high-interest savings accounts that offer no everyday banking fees, no minimum balances, and outstanding everyday interest rates.
The Personal Account and Joint Savings Plus Account pay an outstanding everyday interest rate of 4.00%* on direct deposits.
(2.50% everyday interest* + 1.50% when you set up direct deposit with your paycheque)
- No monthly fees or minimum balance
- Free unlimited bill payments, Interac e-Transfers and more
- Free withdrawals from any ATM in Canada and cash back with the EQ Bank Card
You can also use these savings accounts to pay bills and move money instantly – just like a chequing account.
The TFSA Savings Account (4.00%*) and RSP Savings Account (4.00%*) pay just about the best rates you’ll find on a registered savings account at the moment all with the tap of a button. When you account for the fact that your interest income is tax-free (or tax-deferred, in the case of the RSP), both are excellent options for registered funds that you’d prefer to leave in cash, as opposed to being tied up in an investment account.
EQ Bank customer service
Wise Publishing's own VP of Marketing, Kris Bruyson is an EQ bank customer and would say "EQ Bank has the best customer service."
Well, we put it to the test.
All things considered, EQ Bank is an innovator in the banking world and is one of the best banks in Canada.
Key features
- No everyday banking fees: The EQ Personal Account and Joint Savings Plus Account offer no monthly account fees, free Interac e-Transfers® and bill payments, and free day-to-day transactions.
- Unique Hybrid Account: The EQ Personal Account and Joint Savings Plus Account function like a chequing account and can be used to pay bills and also transfer money instantly with no transaction or account fees.
- High-Interest Rate on Savings Accounts: EQ Bank currently offers a 4%* everyday interest rate for the EQ Personal Account and Joint Savings Plus Account (if you set up direct deposit). That’s one of the highest standard (i.e. it’s not a promotion rate that decreases significantly after a few months) interest rates in Canada.
- High-Interest Rate on Registered Savings Accounts: Both the TFSA Savings Account and RSP Savings Account offer 3.00%* and 3.00%* interest respectively. Plus, these accounts come with the same no monthly fee and no minimum balance terms as the EQ Personal Account.
- Free Transfers: The EQ Personal Account and Joint Savings Plus Account offer free Interac e-Transfers®, as well as free transfers to other EQ accounts and free bill payments.
- Cheap International Money Transfers: In 2019, EQ partnered with TransferWise (now Wise) giving banking clients international money transfers with zero markups or hidden fees, where the exchange rate online is what you'll pay, and the maximum wait time is 3 days (sometimes its instant) all from their EQ bank accounts. And yes, you'll continue to earn that 2.50% interest on your money until you hit send.The EQ Personal Account and the Joint Savings Plus Account offer speedy international money transfers in over 30 currencies.
- High-Interest EQ Bank GICs: EQ Bank is also well known for its generous GIC interest rates and is consistently ranked as some of the best GIC rates in Canada. Currently, GIC lengths range from 3-months to 10-year terms, starting at 3.75% interest for a 3-month GIC and a huge 5.35% for a 1-year registered GIC. To open a GIC account, you will first need to open an EQ Personal Account, Joint Savings Plus Account, TFSA Savings Account or RSP Savings Account to purchase the GIC. A GIC must be a minimum of $100, with an investment limit of $100,000 and a maximum of 20 GICs per customer.
- Zero minimum balance: For the EQ Personal Account, there is no minimum balance requirement, giving you the ultimate flexibility to stash your cash whenever and wherever you want. However, there is a maximum balance of $200,000 per customer.
- Handy mobile app: EQ Bank have an impressive mobile app that’s compatible with both Android and iOS. Now, with the click of a few buttons, you can pay bills, transfer money, deposit cheques, set and track financial goals, and more – all from your mobile device. It has some savvy safety features too: use fingerprint authentication or facial recognition to securely access your accounts.
Pros and cons
Pros and cons of EQ Bank
Pros
-
Excellent interest rates — 2.50%* everyday interest rate for the EQ Personal Account + 1.50% with direct deposit of your pay for 4% interest.
-
Excellent GIC Investments — Terms range from 3 months to 10 years, all offering high-interest rates up to 5.50%
-
TFSA and RSP Savings Accounts — The rate is hard to beat, but if you want a guaranteed rate of interest you can lock in by purchasing GICs within these registered accounts.
-
No everyday banking fees
-
Free Interac e-transfers
-
Cheap international money transfers with TransferWise
-
Intuitive mobile app and website
Cons
-
No investment services are offered
-
Entirely online: no physical branches— No physical banks (although some people may prefer this because it reduces costs)
EQ Bank: reviews of account types
If you're thinking of switching banks, you want to know what you're getting into and out of. If you need a branch you can walk into and speak to a teller where they chain pens to their desks, EQ is not for you. If you're a digital nomad that hates fees and wants to access cash wherever you are, read on.
EQ Bank personal account
Do you still write cheques? Or are you ready to move onto a hybrid account where you can spend and save in the same place all is with zero fees?
Set up your payroll deposits with EQ bank and start earning 4.00% interest. Your EQ Bank personal account charges no monthly fees, gives you unlimited transactions, including e-transfers, bill payments, and electronic funds transfers without requiring a minimum balance.
For anyone wondering if EQ Bank is safe, know that they're backed with CDIC deposit insurance of up to $100,000.
With your account, you'll get the EQ Bank Card—it's a prepaid Mastercard that gives you freee withdrawls from any ATM in Canada (they'll reimburse any fees), give you 0.5% cash back on every purchase, and all without charging any fees (including foreign transaction fees).
EQ Bank credit card
EQ Bank Card
0.5% cash back on purchases
2.5% interest on your balance
$0 Annual Fee
0.00% Purchase APR
0.00% Foreign Transaction Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
In 2023, EQ Bank launched their EQ Bank card which is a prepaid Mastercard that offers free withdrawals from any ATM in Canada and 0.5% cash back on every purchase. The card does not charge foreign exchange fees, monthly fees, or inactivity fees. You'll also earn the same high interest as your Personal Account account on your loaded balance until you spend it, so you're never missing out.
EQ Joint Account
Much like the personal account, the joint account gives you the same high 4.00% interest on everyday banking for up to 3 people without any monthly fees.
You'll get the same unlimited bill payments, Interac e-transfers and fund transfers. With the joint account, you can deposit up to $500,000.
EQ Bank TFSA Savings account
You can earn 4.00% Tax free with a TFSA. But, TFSAs are better for retirement investments, not just savings. Your money will do better with a roboadvisor like Wealthsimple or Questrade that will do all the investing for you.
Read more: Best roboadvisors in Canada
If you need a place for your emergency fund, rainy day funds, or sinking funds, look at a separate account where you don't see that money unless you need it or you hit a savings goal. Check out products like Tangerine bank or KOHO financial which may suit your needs for no-fee banking.
EQ Bank US Dollar account
If you shop in the U.S., in-person or online, it can be valuable to hold a U.S. Dollar account. EQ gives you 4.00% interest on your balance with no monthly fees and one of the best exchange rates in the Canadian banking market. You can transfer USD to USD around the world with their inexpensive international money transfers and save on currency exchanges by making purchases in USD when you need.
EQ Bank GICs
On the investment products side of things, EQ Bank's GIC Rates are some of the best in Canada.
Right now, you can get a 1-year GIC with a 5.35% return. If you're already banking with them, that's a pretty sweet "guaranteed investment." Now, if you want to earn that money tax-fee, you'll need to use EQ Bank's TFSA or RRSP account—where the GIC will earn 5.50%. You can get started with as little as $100.
FHSA Savings account
If you're looking to buy a house, a first home savings account can help. Unfortunately, EQ Bank only gives you 4.00% on your money held with their FHSA whereas BMO, CIBC, and Scotiabank are giving you 5%. Now, you can use a GIC inside your FHSA so you can use the EQ Bank's GIC at 5.50% for that, but you can't continue investing when you open a GIC. The best way to use EQ Bank's FHSA is to contribute the maximum amount of $8,000 at the start of the year with a 9-month GIC, while you keep saving your next $8,000 to deposit the next year.
EQ Bank RRSP account
Much like the TFSA, EQ Bank's RRSP account gives you 4.00% interest, but you can do much better with a roboadvisor. An RRSP is a registered retirement savings plan, so you shouldn't touch it until you retire. A roboadvisor like Moka.ai invests into the S&P 500 which has typically returned over 10%—your retirement is looking better already.
Get started with Moka.aiHow does EQ Bank compare?
When compared to other high-interest savings accounts, EQ Bank with 3% savings rate wins hands down on rates. Tangerine Savings is currently paying 0.7% by comparison.
EQ Bank doesn’t offer a chequing account. However, the lack of a chequing account (which usually has dismal interest rates anyway) is no great loss given that EQ Personal Account functions as a hybrid chequing and savings account: you can make Interac® e-Transfers, pay bills, and transfer money immediately and still get an excellent interest rate.
Another account worth comparing to EQ Personal Account is Wealthsimple Save – a hybrid account for saving and spending that offers a 0.7% interest rate. There are no fees, and you’ll get the benefit of a saving and spending account rolled into one. Soon you’ll be able to pay your bills, set up a direct deposit for your paycheque, and send free Interac e-Transfers®. Wealthsimple’s interest rate is not as high as EQ Bank’s and does not offer GICs – a solid saving tool for those looking to park their money safely in a high-interest investment vehicle.
Additionally, even though EQ Bank has TFSA, RSP, and joint accounts, you have other options with opening a TFSA or RRSP account with a robo advisor like Wealthsimple, or an online brokerage like Questrade.
| Best savings accounts compared | EQ Bank | Tangerine | Wealthsimple |
|---|---|---|---|
| Base interest rate on savings account | 4% (with direct deposit) | 0.7% base rate (6% special bonus for 5 months) | 1.5% |
| Interac e-transfer fee | $0 | $0 | $0 |
| 1-year GIC rate | 5.35% | 5.25% | N/A |
| Savings account sign up | Sign up | Sign up | Sign up |
EQ Bank GIC rates
When it comes to getting the highest GIC interest rates in Canada, EQ Bank is certainly at the top, but it does have competitors like Oaken Financial.
They also each have appealing interest rates. For example, Oaken Financial offers 5.40% for a 1-year non-registered GIC compared to 5.35% registered GIC with EQ Bank. And Oaken requires a minimum investment of $1,000 for its GICs (as compared to EQ Bank’s $100). This means EQ Bank comes out ahead on both points if you want consistently high-interest rates and no fees for both your non-registered/registered savings and GIC accounts.
Signing up for EQ Bank
As a fully digital bank, you can only join EQ Bank via your computer or the mobile app. You must be a Canadian resident, meet your province’s age of majority and have a Social Insurance Number. In December of 2022, EQ Bank officially launched in Quebec.
The first step is to set up your email and password, after which you’ll be asked for more detailed information and will need to provide your SIN number and occupation. EQ Bank then does a soft credit check to confirm your identity. Note that because it’s a “soft” credit check your credit score will not be affected.
Once your identity is confirmed you can go on to set up linked bank accounts. To confirm your linked bank accounts EQ Bank will send several tiny (under $1) deposits to your external bank accounts to confirm they belong to you. Once confirmed, you can transfer money into your EQ Bank account.
Though filling out the initial information form takes only minutes, it can take on average between five to seven days to set up an external bank link and receive funds into your EQ Bank. Once set up, however, funds should only take about two days on average to arrive in your EQ Personal Account account.
EQ Bank FAQs
Final call: Should you use EQ Bank?
EQ Bank is a great option for Canadians willing to embrace streamlined services for superb interest rates. It’s ideal for clients who don’t need to have all their financial accounts with a single institution and don’t consider it a hassle to manage multiple accounts between different banks. It’s important not to approach EQ Bank as though it will be your only financial institution because you will need options for investments.
Start saving with EQ Bank* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
EQ Bank GICs: Rates are calculated on a per annum basis and are subject to change at any time.
Latest Articles
Alberta government announces plan to protect consumers from power price swings
High interest rates threaten rollout of green economy: Wood Mackenzie report
'No immediate risk' from 2.5-million-litre effluent spill from B.C. fibreboard plant
Virtual-only meetings erode shareholder democracy, institutional investor group warns
Most actively traded companies on the Toronto Stock Exchange
Drivers in Eastern Canada see gas prices spike as refineries switch to summer blends
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.