Jarrod Suda
Guide
Byron Mühlberg
Reviewer
Jan 8, 2024
Advertiser disclosure
Online banks in Canada, sometimes referred to as virtual banks, have become very popular alternatives to traditional banking. They provide online-only banking services, which include chequing, savings, bank transfers, investments, mortgages, and more.
Even though they have no physical brick-and-mortar branches, you can sign up online easily, access your funds with a debit card that they ship to you, and manage your money instantly 24/7 with their dedicated smartphone app.
To help you decide which Canadian virtual bank account will fit your needs best, we've introduced seven of the best online banks and fintech platforms in Canada, including KOHO, Neo Financial, and Tangerine. When we review virtual banks, we always pay close attention to their credibility, fees, service quality, and customer satisfaction.
Control your finances and track your budgets with KOHO's virtual everyday account. KOHO offers unlimited e-Transfers, zero-interest overdraft protection, and a user-friendly mobile app to track your spending.
The account earns you interest and also comes with a credit card that offers cash back and a tool to help you build a strong credit history.
Open your KOHO account ❯
or read the in-depth review
How Monito Scores Canada Online Banks
To determine which online banks scored better than others in Canada, we used a consumer-first framework to analyse several key factors. To begin with, we weighed a number of concrete metrics relating to factors such asfees and rates, ease of use, credibility, service and coverage, transparency, and customer satisfactionto piece together a reliable all-around picture of which top digital banks offer the savviest solutions to Canadian residents.
Next, we explored these results and presented our findings in the form of a series of key takeaways that we believe you should know about the digital banks that ranked highest.
While we ranked these online banks on an overall list, bear in mind that this list does not mean that our choice for Canada's best virtual bank account is necessarily the best choice for you. As you'll see, each online bank comes with its own unique set of pros and cons that may impact its overall relevance to you.
Without further ado, let's go through our rankings for the top virtual bank accounts in Canada in 2024 —
List of the 7 Best Online Banks in Canada
- 01. Best overall online chequeing account — KOHO scroll down
- 02. Best suite of financial services — Neo Financial scroll down
- 03. Best to access mortgages and loans — Tangerine scroll down
- 04. Best for savings — EQ Bank scroll down
- 05. Best free ABM access — Simplii Financial scroll down
- 06. Best for foreign currency spending — Wise scroll down
- 07. Best credit union account — Motusbank scroll down
Key Facts About Online Banks in Canada
| 🏦 Accounts Compared | KOHO, Tangerine, Neo Financial, EQ, Simplii, Wise, Motusbank |
|---|---|
| 🔎 Features Compared | ATM fees, Virtual Service, App & more |
| 🏆 Best Monito Score | 8.9/10 |
| 💰 Most Expensive Monthly Fee | $0 |
| 💻 Easiest Account to Open Online | KOHO |
| 💳 Instant Debit Card | Wise |
KOHO: Best Overall Virtual Account
KOHOoffers a high-quality interest-earning chequing accounts with a direct deposit setup and a credit card, providing 1% cash back on several select categories. Utilize their optionalcredit buildertool to improve your credit history, and as of April 2024, 5% interest on your balances.
The smartphone app tracks your spending and offers a RoundUp feature to move your spare change into your interest-bearing savings account. KOHO offers overdraft protection at no interest, and their paid plans offer one freeinternational ABMwithdrawal per month.
- Total cost: $4 per month for Essential Account ($0 per month if you set up recurring direct deposits or deposit $500 per month).
- Noteworthy features: Up to 5% cash back, up to 5% savings rate, optional credit building tool.
- More info: Read our in-depth review or visit their website.
KOHO in Short
With KOHO, you can have a virtual or physical card at your disposal. The account offers unique benefits like earning interest on your entire balance, including the spendable amount. Depending on your chosen plan, you can earn 5% interest. Up to $100k of your funds are eligible for CDIC protection, giving you peace of mind.
You can also set aside funds as a secured line of credit in your KOHO account, ranging from $30 to $500. This up-front repayment system helps build credit history and improve your credit score. This can be a great benefit down the line when you apply for loans for cars, mortgages, and other large purchases. With a strong credit score, you can be offered lower interest rates on your future loans — keeping costs down.
KOHO Advantages
- Cash back credit card;
- Unlimited free e-Transfers;
- Zero-interest overdrafts;
- Earns interest on balances.
KOHO Disadvantages
- No FX fees only available on Extra and Everything plans;
- No free ATM network;
- No international money transfer capability.
Final Word
In conclusion, KOHO is an excellent choice due to its high interest rates on balances and the unique credit builder credit card, which is a rarity in Canada. Additionally, the app's tracking feature for purchases and balances further enhances your financial management experience, making KOHO a compelling and user-friendly option.
Open a KOHO account ❯
Neo Financial — Best Suite of Financial Services
Neo Financial is a comprehensive Canadian fintech platform that offers multiple financial tools with no monthly fees. It comes integrated with a Neo Everyday account and card, budget tracking software, bill payment capabilities, and a credit builder.
Most impressive is its suite of other financial services, which you can access as a Neo Financial account holder. The Neo Money card comes with an average of 5% cash back and provides 1% interest on every dollar in your account balances (rates are subject to change without notice). In addition to the Money card, you can access a no annual fee cashback credit and a secured credit card, which can help you build a positive credit history.
Total cost: $0 per month.
Noteworthy features: Average 5% cash back, high interest, investment portfolios, mortgages.
More info: Visit their website.
Neo Financial in Short
Founded in 2019, Neo Financial gives Canadians access to far more financial services than your average fintech platform: namely a no annual fee cashback credit and secured credit card, high interest savings account, investing, mortgage financing, and credit building.
Their Neo Everyday™ account is a great option for everyday banking because it waives monthly maintenance fees, has free send & receive Interac e-Transfers®, free Bill Pay transfers, no charges for insufficient funds, no domestic ATM fees, and no minimum balances. Neo will deliver the card to you free of charge as well. The Neo Everyday™ account is provided by People's Bank of Canada, Member CDIC, to ensure that you have deposit protection over your balances.
As a digital-first account, Neo Financial will serve you best if you conduct all of your finances electronically. For example, they charge fees to send you paper statements. However, the Neo Financial app has an insights tool in their app that helps you keep track of your cash back, understand your spending by category, and compare your spending month-to-month. Neo also offers a secured credit builder card to help improve your credit history.
Neo Financial does not operate brick-and-mortar branches so their customer service will be available online or over the phone. They are easiest to reach by live chat from 7 AM to 8 PM MT.
Neo Financial Advantages
- Free cash back Neo Money™ card;
- Free everyday transfers;
- No monthly maintenance fee;
- Earns 1% interest on balances.
Neo Financial Disadvantages
- Customer support not 24/7;
- 2.5% foreign transaction fee;
- No multi-currency capability.
Final Word
Overall, we think Neo Financial is a great fintech option for Canadians who are looking to conveniently manage their domestic finances online and with a mobile app. With their Neo Everyday™ account, you can enjoy no fees on everyday transactions — from transfers to ATM withdrawals — and explore their entire suite of other financial services.
Open a Neo Financial account ❯
Tangerine — Best to Access Mortgages and Loans
Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts with zero monthly maintenance fees. In place of brick-and-mortar locations, Tangerine runs spaces that they call "cafes" in Toronto, Vancouver, Calgary, and Montreal to provide financial advice and showcase Tangerine's services (and serve coffee).
What really sets them apart is their access to loans, mortgages, and other debt services. They even offer a low-fee investment platform design for long-term wealth building. Tangerine's interest rate (up to 1%) is much higher than the high-street bank average. They also offer savings accounts with even high interest rates, with terms and conditions that require you to hold the money for a specified time period.
Tangerine also comes with a credit card, which Monito recommends for those users looking for a credit card and cash back.
8.5
Monito Score 2024
- Customer Satisfaction 9.5
Go to Tangerine ❯
Total cost: $0 per month.
Noteworthy features: 2% cash back, 1% savings rate, tax-free investment account.
More info: See our full Tangerine review.
Tangerine in Short
Tangerine offers an impressive array of free virtual bank account services. Their chequing account has no monthly fees, overdraft protection, free ATM access, and a mobile app to manage your spending.
Tangerine has also partnered with Canadian international money tranfer company Interac e-Transfer to provide international money transfers (although we recommend you compare fees before using Interac).
Milesopedia
In addition to their chequing account, you can sign up for Tangerine's savings account for a 1% interest rate. They have many investment accounts to choose from too, such as a TFSA (Tax-Free Savings Account) or a guaranteed interest rate account. You can access home equity lines of credit and credit cards with 2% cash back. This list of products consists of just the tip of the iceberg.
Tangerine Advantages
- A secure Canadian current account backed by Scotiabank;
- Cash deposits and cheques are offered;
- 44,000 free ABMs worldwide via Scotiabank’s Global ATM Alliance;
- 0.1% interest rate for chequing or 1% for savings account.
Tangerine Disadvantages
- Interac e-Transferintegration for (not the cheapest) international transfers;
- A high foreign transaction fee of 2.5% per transaction.
Final Word
Tangerine's free online-only banking has an incredible range of options for not just chequing and savings, but also investments, loans, and credit. Plus, it boasts award-winning customer service. Because it is one of the most complete virtual banks in Canada that we've found, we recommend Tangerine without reservation.
Open a Tangerine account ❯
or read the full review
EQ Bank — Best for Virtual Savings
EQ Bank, like Tangerine, runs 24/7 online only banking. However, EQ Bank works best as a great saving account supplement to a separate main chequing account. That's because EQ Bank does not offer a debit card or ABM access.
EQ Bank's virtual bank account allows you to pay bills and transfer money while profiting from their industry-high savings interest rate of 1.25% to 2%. However, it does not function as a chequing account for day-to-day spending.
Total cost: $0 per month.
Noteworthy features: No monthly fees, unlimited free transactions, no minimum balance, up to 2% savings rate.
EQ Bank in Short
EQ Bank works as a chequing-savings hybrid, which gives clients to basic online banking services like bill pay and money transfers while also applying an incredible 1.25% to 2% interest rate on their money. EQ Bank also offers high-interest guaranteed investment certificates (GICs) with terms that range from 1 to 5 years.
Betakit
EQ Bank Advantages
- High-interest rate virtual savings account;
- Link your account to your main Equitable Bank account;
- Free electronic fund transfers (EFTs);
- Customer service from 8 am to midnight daily (EST).
EQ Bank Disadvantages
- Does not offer a chequing account or credit card;
- No debit card or ABM withdrawals;
- Interac e-Transferintegration for (not the cheapest) international transfers.
Final Word
If you already have a bank account with Equitable Bank, then EQ Bank (their online banking arm) may be an easy option for you. Even if you decide to go with Tangerine or another Canadian online bank for day-to-day chequing, we still recommend EQ Bank's savings features as a beneficial supplement.
or compare online banks
Simplii Financial — Best Free Domestic ABM Access
Simplii Financial is an online banking arm of CIBC and offers a complete package of banking services, including a chequing account, GICs, mutual funds, RRSPs (Registered Retirement Savings Plan), and TFSAs.
Customers have noted that the smartphone app, available on Android and iOS, is simple but gets the job done. Perhaps Simplii's most appealing factor is its access to CIBC's ABM network, which is one of the largest in Canada.
Total cost: $0 per month.
Noteworthy features: Unlimited transactions, CIBC-branded ABM access, 0.4% savings rate.
Simplii Financial in Short
Simplii Financial is a rebrand from PC Financial when it was acquired by CIBC. Clients benefit from no-fee daily banking, Interac transfers, and high-interest savings rates. Account holders can use the Simplii Financial debit card to withdraw money for free from CIBC's network of 4,000 ABMs across Canada.
Simplii Financial and Tangerine offer quite similar products, although customers have found Tangerine's app to be more user-friendly.
Simplii
Simplii Financial Advantages
- No-fee chequing account and interest-bearing savings account;
- Cash back credit cards available;
- Access to three loan products, including a personal loan.
Simplii Financial Disadvantages
- Not available in Quebec;
- Interac e-Transferintegration for (not the cheapest) international transfers;
Final Word
No list of online banks in Canada would be complete without Simplii Financial. It offers a full range of banking products that you can access on the internet, from chequing to savings to investments. It may not have the best smartphone app in Canada, but it still remains a convenient alternative to high street banking.
Learn more about Simplii Financial
or compare online banks
Wise — Best Multi-Currency Account
Many know Wise for offering some of the cheapest international transfers to and from Canada. However, they also offer the powerful Wise Multi-Currency Account, which gives you access to Canadian bank account details and bank accounts from 9 other countries.
This means that you could use those Canadian bank details to receive your paycheck from your Canadian employer. Ideal for travel and foreign purchases, the account even allows you to hold 50+ foreign currencies and access them from the Wise debit card or Wise's digital app.
8.8
Monito Score 2024
- Customer Satisfaction 9.4
Go to Wise ❯
Total cost: $0 per month.
Noteworthy features: International money transfers, multiple account details, multi-currency balances.
More info: See our full Wise Multi-Currency Account review.
Wise in Short
Applying for a Wise Account is fast and easy and can be done using proof of residence in Canada (or most other countries worldwide). Once you're signed up and your card has arrived (which takes up to two weeks to be delivered to Canada), you'll be able to take advantage of the following unique features:
- Local bank details in the US, Eurozone, UK, Australia, New Zealand, Singapore, Romania, Canada, Hungary, and Turkey;
- Hold, exchange, and top-up up to 56 currencies;
- A multi-currency Visa debit card that's handy for paying in foreign currencies without the hidden fees;
- Access toWise's powerful international money transfer service right from your account balance.
Wise Advantages
- Account details in as many as 10 currencies;
- Hold money in 50+ currencies;
- Send money to 80+ countries from your account;
- Some of the lowest money transfer fees available on the market;
- Pricing is accessible and transparent;
- Mid-market exchange rate offered for currency transfers;
- Wise card can be used to avoid foreign transaction fees;
- No setup fees or monthly charges.
Wise Disadvantages
- Cash or cheque payments aren't supported;
- Overdraft and loans aren't available;
- Negative interest on large Euro account balances;
- No interest on holdings;
- Fees to top up the account via debit and credit card;
- Fee-free international ABM withdrawals with limits.
Final Word
Wise is one of the best online multi-currency account available in Canada and around the world — full stop. Whether you are looking for an Interac e-Transfer alternative or are looking to spend money abroad, we firmly recommend the Wise Multi-Currency Account for holidaymakers, online spenders, and Canadian expats alike.
Open your Wise account ❯
or read the full review
Motusbank — Best Credit Union Virtual Account
Motusbank is not backed by one of Canada's top-five large banks but by the country's second-largest credit union: Meridian Credit Union. Like the other virtual bank accounts on this list, Motusbank offers chequing accounts without maintenance fees, unlimited domestic transfers, and access to Interac e-Transfer.
Total cost: $0 per month.
Noteworthy features: ABMs in the United States, 1.85% savings rate.
Motusbank in Short
Motusbank members access ABMs not from one Canadian bank network but from the EXCHANGE network, which consists of about 3,500 of surcharge-free ABMs in Canada and over 43,000 units in North America. It also offers TFSA and RRSP savings accounts, loan products, an investment platform, and low-cost professional portfolio management.
Unlike the others on this list, Motusbank does not currently offer credit cards to its clients.
David Correira
Motusbank Advantages
- Credible and federally-authorized online bank;
- High savings interest rates;
- 43,000 ABMs in North America.
Motusbank Disadvantages
- No credit cards offered;
- Interac e-Transferintegration for (not the cheapest) international transfers.
Final Word
Motusbank's interest rates for its savings accounts compete well with and even surpass other large online bank accounts in Canada. However, it lacks a credit card offer and its range of other financial products are relatively limited. If you're looking for a more local feel with Ontario-based Meridian Credit Union, then this virtual chequing account will still let you control your finances 24/7 with online banking.
or compare online banks
The Best Online Banks in Canada Compared
To wrap things up, let's take a look at how the product, service, and pricing of Koho, Neo Financial, Tangerine, EQ Bank, Simplii Financial, the Wise Multi-Currency Account, and Motusbank compare to one another in Canada.
Koho | Neo Financial | Tangerine | Wise | ||||
Monthly Fee | $4 | $0 | $0 | $0 | $0 | $0 | $0 |
Free Intl. ATM Access | ✘ | ✔ | ✔ | ✘ | ✘ | ✔ | ✔ |
Intl. Transaction Fee | Varies by plan | 2.50% | 2.50% | ✘ | 2.50% | 0% | 2.50% |
Intl. Transfer Fee | N/A | N/A | 0.35%-3.6%¹ | 0.35%-3.6%¹ | 0.35%-3.6%¹ | 0.35%-2.85% | 0.35%-3.6%¹ |
Card Delivery Fee | $0 | $0 | $0 | ✘ | $0 | $0 | $0 |
Contactless | ✔ | ✔ | ✔ | ✘ | ✔ | ✔ | ✔ |
Google Pay | ✔ | ✔ | ✔ | ✘ | ✔ | ✔ | ✔ |
Apple Pay | ✔ | ✔ | ✔ | ✘ | ✔ | ✔ | ✔ |
3D Secure | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
Deposit Options | EFT, PayPal, Stripe | EFT, Interac e-Transfer | EFT, cash, cheque, debit/credit card | EFT, cash, cheque | EFT, cash, cheque, debit/credit card | EFT, debit/credit card | EFT, cash, cheque, debit/credit card |
Overdraft | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ | ✔ |
Platforms | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet | Mobile, internet |
CDIC Deposit Insurance | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $250,000 (by U.S. FDIC) | $100,000 |
No. of Customers | 500,000 | 2 million | 2 million | 250,000 | 2 million | 10 million | 360,000 |
Customer Service | Email, telephone, live chat | Live chat or call 1-855-636-2265 | Email, telephone, live chat | Email, telephone | Email, telephone, live chat | Email, live chat | Email, telephone, live chat |
| Try Koho | Try Neo Financial | Try Tangerine | Learn More | Learn More | Try Wise | Learn More |
1 Uses international fee schedule from Interac e-Transfer
Still Making International Payments With Your Bank?
When you send money abroad, you will often encounter high fixed fees and poor exchange rates. This is why we recommend using an online money transfer specialist over high-street banks.
Even so, not all online money transfer specialists offer good rates. For example, KOHO, Neo Financial, Tangerine, EQ Bank, Simplii Financial, Motusbank, and many other Canadian banks partner with Interac e-Transfer to send international wire transfers, but Interac e-Transfer is usually not the cheapest service.
Instead, compare online money transfer specialists and their rates in real-time with Monito's comparison engine:
Find a Cheaper Interac e-Transfer Alternative:
FAQ About Canada Virtual Bank Accounts
🔐 Are online-only banks safe in Canada?
Yes, online-only banks in Canada are safe and secure financial institutions. They are authorised and regulated by the central bank of Canada and have deposit protection from the Canada Deposit Insurance Corporation (CDIC), which insures up to $100,000 of your holdings.
🏛 Are online banks considered non-banks?
Yes and no. An 'online bank' is a new kind of financial institution that places digital solutions over brick-and-mortar branches. Online banks that also have a banking license, such as Tangerine, EQ Bank, Simplii Financial, and Motusbank, are able to provide a full suite of financial products. Wise, on the other hand, is considered an electronic money institution.
👨⚖️ Are online banks regulated?
Yes, online banks are regulated by the same laws and regulations that govern all other financial services providers in Canada, such as high-street banks and credit unions.
🇨🇦 Which Canadian bank has the best online banking?
KOHO took the top spot as the best overall online-only bank account in Canada.
📱 Which bank has the best app in Canada?
KOHO, Tangerine, EQ Bank, Simplii Financial, Wise, and Motusbank all have excellent mobile apps although Wise has one of the most user-friendly yet powerful interfaces we have seen.
🏦 What online banking is available in Canada?
KOHO, Tangerine, EQ Bank, Simplii Financial, Wise, and Motusbank all offer great virtual bank accounts in Canada. The neobank industry in Canada is young, but new companies are rising.
Compare Online Only Virtual Banks in Canada and Worldwide
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Wise Multi-Currency Account Monito Score 8.8
Monito Score
- Trust & Credibility
- Service & Quality
- Fees & Exchange Rates
- Customer Satisfaction
- Languages
English +21
- Country availability
Austria +38
- Services
Multi-currency account
- Monthly fee
Very low
- Card delivery time
Mid
- Best for
Spending while abroad
- Bank details
Euro IBAN +11
- Supported currencies
US dollar +50
- Overdraft No
- Annual interest rate
None
- Supports cash deposits No
- International transfers Yes
Read the full review Go to Wise Multi-Currency Account
- Trust & Credibility
Tangerine Chequing Account Monito Score 8.5
Monito Score
- Trust & Credibility
- Service & Quality
- Fees & Exchange Rates
- Customer Satisfaction
- Languages
English +1
- Country availability
Canada
- Services
Full bank account
- Monthly fee
Very low
- Card delivery time
Slow
- Best for
Everyday banking
- Bank details
Canadian account +2
- Supported currencies
Canadian dollar
- Overdraft Yes
- Annual interest rate
Low
- Supports cash deposits Yes
- International transfers No
Read the full review Go to Tangerine Chequing Account
- Trust & Credibility
Koho Monito Score 8.3
Monito Score
- Trust & Credibility
- Service & Quality
- Fees & Exchange Rates
- Customer Satisfaction
- Languages
English +1
- Country availability
Canada
- Services
All-in-one finance app
- Monthly fee
No monthly costs
- Card delivery time
Mid
- Best for
Everyday banking +2
- Bank details
Canadian account +2
- Supported currencies
Canadian dollar
- Overdraft Yes
- Annual interest rate
Moderate
- Supports cash deposits No
- International transfers No
- neobank.metadata.label.new_value
neobank.metadata.enum.new_value.value 1
Go to Koho
- Trust & Credibility
Read More About the Top Canadian Online Bank Accounts and Internet Banks
Why You Can Trust Us
You’re probably all too familiar with the oftenoutrageous cost of sending money abroad. After facing this frustration themselves back in 2013, Monito co-founders François, Laurent, and Pascal launched a real-time comparison engine to compare the best money transfer services worldwide.
Today, Monito’s award-winning comparisons, reviews, and guides (no longer just about money transfers but also digital accounts, travel cards, eSIMs, and travel insurance) are trusted by millions each year. Our recommendations are backed by our comparison data and dozens of expert tests, allowing you to confidently make the savviest decisions.
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