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*Disclaimer: This offer is not available for residents of Quebec.
Have you heard the breaking news? Canada’s fastest growing credit union, Meridian, has just launched their new digital bank, motusbank. Consumers were given a preview back in February 2019, but now we know the full details since the bank has been accepting applications since early April.
Although motusbank is fully digital, they’re still offering full-service. You can easily get assistance by making a phone call, but activating any additional products such as a home equity line of credit, mortgage, line of credit, or savings account can all be done online.
There’s also a handy app, which allows you to do all your online banking using your phone. Deposit cheques with your phone, set up mobile alerts, check your balance, pay bills, move money – it’s all possible once you install the motusbank app.
About motusbank – a Full-Service Online Bank
Right away, we can tell you that motusbank’s products are highly competitive to what’s available on the market. The high-interest savings account is currently paying an interest rate of 2.25%. That’s slightly below EQ Bank’s rate of 2.30% and it’s worth noting that Tangerine has a promotion where new customers earn 2.75% on their first Tangerine Savings Account, TFSA or RSP Savings Account for 6 months. This may matter to some people, but motusbank is appealing to customers who aren’t interested in chasing the highest interest rate. What they’re offering is fair rates and a wide range of products that will appeal to people in different financial situations.
|Account Type||Interest Rate||More Info|
|No-Fee Chequing Account||0.50%||Learn More|
|High-Interest Savings Account||2.25%||Learn More|
|TFSA Savings Account||2.50%||Learn More|
|RRSP Savings Account||2.25%||Learn More|
A High-Interest Savings Account – With No Fees
Even though their high-interest savings account doesn’t come with the highest interest rate in Canada, it’s still highly competitive: at 2.25%, the interest rate is more than double of what the big banks offer. Also, with big banks, you typically get a set amount of transactions each month, unless you have a premium account or you meet the minimum balance requirement. But with motusbank, you get unlimited transactions with no monthly account fees and no minimum balance required. To find out more or to apply click here.
A No-Fee Chequing Account With a Decent Interest Rate
motusbank will pay you 0.50% interest on every dollar you deposit. This may seem low, but most of the big banks don’t pay any interest at all, so it’s actually a great rate. There are no monthly fees or a minimum balance requirement and you get additional benefits such as unlimited Interac e-Transfers, mobile cheque deposits, and access to 3,700 EXCHANGE Network – one of Canada’s largest ATM networks. If you need to access your cash abroad, you can get cash in the US through the Accel and Cirrus networks, or the Cirrus network if you’re travelling internationally. You can find out more here.
Great Investment Accounts
What may also interest potential clients is that motusbank offers a variety of investment products. Their Tax-Free Savings Account (TFSA) pays 2.5% interest while the RRSP savings account has a rate of 2.25%. You only have access to savings accounts if you decide to set up an RRSP or TFSA with motusbank. That means you won’t be able to invest in things such as stocks, ETFs, or mutual funds, like you would with a robo advisor or discount brokerage. This may not matter to some savers who are looking for a place to stash their cash, but for people who are planning for the long term, they may want to consider additional options.
As for their guaranteed investment certificates (GICs), the rates are currently at 3.10% for an 18-month TFSA or RRSP GIC. You can earn 3.25% but it needs to be within your RRSP and it gets locked in for 5 years. These rates are higher compared to other digital banks so it’s likely a promotional rate.
Competitive Mortgage Rates
Looking for a mortgage? No problem! If you like predictability when it comes to your finances, motusbank offers a range of 1-5 year fixed-rate mortgage rates, with some as low as 2.49%. If you prefer a variable rate mortgage, motusbank currently has its 5-year variable rate at 2.74%. You can find out more here.
“We believe that every Canadian deserves a shot at owning a home,” says Dave Baldarelli, COO of motusbank. “Because we’re committed to offering a truly tailored and personalized approach, we’re giving our members an opportunity to choose what mortgage term fits their needs best. motusbank is a simple and hassle-free way to bank with a seamless and exceptional digital experience. There’s the added comfort in knowing that knowledgeable and professional staff are just a phone call away to help people make important decisions that require customized solutions.”
Whenever a new digital bank comes online in Canada, many consumers are rightfully concerned about the security of their money. motusbank may be a new digital bank, but they’re also a Canada Deposit Insurance Corporation member – which means your eligible deposits are insured up to $100,000.
Remember, motusbank is a fully owned subsidiary of Meridian, which currently has more than 300,000 members and $20 billion under management. So your money is in good hands!
The Bottom Line
For Meridian, opening a new online bank was a good move, as they were looking to expand their brand outside of Ontario. By introducing motusbank, Meridian will be able to reach more Canadians while offering a suite of products that are high in demand.
“This is a truly momentous and exciting day, not only for our organization but also for the millions of Canadians who have told us they are eager for an attentive, competitive and digitally-friendly alternative to the Big 5 banks,” says Bill Maurin, President and CEO of Meridian and motusbank.
We couldn't agree more.