EQ Bank is a Canadian online bank that offers a high-interest savings account and one of the best savings interest rates available today.
If you are tired of earning rock-bottom interest rates at the big banks, EQ Bank makes a difference with non-promotional high savings rates.
I have used this bank for years for my CAD and USD emergency fund savings and have had a positive experience.
GET YOUR BEST SAVINGS RATE AT EQ BANK
Table of Contents Show
EQ Bank Accounts Summary
EQ Bank Overview
- Account fees
- Financial products
- Savings rate
- Ways to bank
Overall
4.8
Summary
EQ Bank’s Savings Plus Account offers one of the best non-promotional savings rates in Canada. With its hybrid features including unlimited debit transactions and a Mastercard for online and in-store purchases, you can save on chequing fees at your traditional bank. If looking for a short-term investment product, EQ Bank offers GICs of various terms and competitive interest rates.
My EQ Bank review covers all you need to know about the bank, including why I believe it is safe and legit.
Pros
- Free bank bank account with unlimited transactions
- Earn high interest rates on savings and GICs
- No minimum balance requirement
- Available throughout Canada
- Offers CDIC deposit insurance
- Prepaid card offers cash back and free ATM withdrawals in Canada
- Offers international money transfers
Cons
- Some products are not available in Quebec
- No in person support
- Visit EQ Bank
EQ Bank Accounts and Products
EQ Bank offers several accounts (registered and non-registered) that customers can use to earn better-than-average interest rates on their cash deposits.
They are:
1.EQ Bank Savings Account Plus Account
This is the high-interest savings account offered by EQ Bank, with acurrent interest offer ofup to 4.00%*.
EQ Bank’s interest rate of 4.00%* significantly beats rates on savings accounts offered by the big banks and also easily ranks as one of the highest savings interest rates among their online-only banking competitors.
Some great features of the EQ Savings Plus Account:
- High-Interest Rates: Currently 4.00%* (if you set up a direct deposit or pre-authorized payments; otherwise, 2.50%). Interest is calculated daily and paid out monthly.
- Zero Minimum Balance
- Zero Monthly Fees
- Unlimited FreeInterace-Transfers®
- Unlimited Bill Payments
- Free Electronic Funds Transfer
- Free and Unlimited Day-to-Day Transactions
- Free EQ Bank Card (prepaid Mastercard)
- 10 Free Linked Accounts
- Free Mobile Cheque Deposits
- Mobile Banking App
- Customer Servicethat is available7 days a week (8am – midnight EST)
- Cheap international money transfers
A major feature I like aboutEQ Bank’s savings accountis its versatility. Although they do not offer a chequing account, you can use their savings accounts in many similar ways.
And the new EQ Bank Card converts this savings account into an excellent spending account with free ATM withdrawals, no FX fees, and 0.50% unlimited cash back on purchases.
From my experience, you can easily pay bills, transfer money between accounts at different banks, set up recurring or pre-authorized debits, deposit cheques, use electronic fund transfers, etc.
EQ Bank also offers joint savings accounts you can co-own with a spouse or friend.
VISIT EQ BANK FOR A HIGH SAVINGS RATE
2. EQ Bank TFSA Savings Account
EQ Bank’s TFSA account offers one of the best interest rates on TFSAs in Canada. Interest earned on your TFSA is tax-free for life, and you can withdraw at any time without penalties.
For 2024, the TFSA contribution limit is $7,000.
Benefits of an EQ Bank TFSA include:
- High-interest rate of 3.00%*
- Zero account fees
- No minimum account balance
- CDIC protection up to $100,000
- Easy online sign-up
- Free withdrawals and tax-free returns
- It supports recurring automatic contributions
If you have been eligible to contribute to a TFSA since its launch in 2009, your total contribution room in 2024 is $95,000.
EQ Bank also offers TFSA GICs, which are discussed in detail below.
OPEN AN EQ BANK TFSA
3. EQ Bank Non-Registered GICs
EQ Bank GICs are available in both registered and non-registered accounts.
A Guaranteed Investment Certificate (GIC) is similar to a savings account and offers you a fixed percentage of interest that is paid on pre-determined dates.
One of the main differences between a savings account and a typical GIC is that for a GIC, you may not be able to withdraw your funds until maturity.
GICs are a great way to save towards short-term goals since they come with very low risk and offer guaranteed returns. You may also earn a bit more than when you just park your money in a savings account.
EQ Bank GIC rates are very competitive and beat what is currently offered by many of the competition. Here are their current GIC offers:
- 3 months: 3.75%
- 6 months: 4.50%
- 9 months: 4.75%
- 1 year: 5.00%
- 2 years: 4.60%
- 3 years: 4.45%
- 4 years: 4.30%
- 5 years: 4.25%
Some of the perks offered by EQ Bank’s GICs include the following:
- Competitive High-Interest Rates
- No-Fee Banking
- A Versatile Mobile Banking App
- Real-Time Updates and a Contact Center that is available7 days a week (8 am-midnight EST)
OPEN AN EQ BANK GIC ACCOUNT
4. EQ Bank TFSA and RSP GICs
You can choose to hold GICs in your RSP and TFSA accounts instead of cash. EQ Bank’s TFSA and RSP GIC rates are:
- 3 months: 4.00%
- 6 months: 4.75%
- 9 months: 5.00%
- 1 year: 5.00%
- 2 years: 4.60%
- 3 years: 4.45%
- 4 years: 4.30%
- 5 years: 4.25%
OPEN A REGISTERED EQ BANK GIC
5. EQ Bank Retirement Savings Plans
EQ Bank’s Retirement Savings Plans (RSPs) are great if you are looking for a low-risk place to park some retirement savings.
Similar to an RRSP, taxes are deferred on your account until you start making withdrawals. You also get tax deductions for contributions you make to your RSP.
Your RRSP contribution room is determined by your earned income and any unused contributions you have carried forward from previous years.
The annual RRSP contribution limit for 2024 is 18% of your income, up to $31,560.
Some of the great features of an EQ Bank RSP Savings Account are:
- High-interest rate of 3.00%*
- Zero monthly account fees
- No minimum balance requirement
- CDIC protection up to $100,000
- Easy online sign-up and access to a versatile mobile app
- Supports recurring contributions
OPEN AN EQ BANK RSP ACCOUNT
6. EQ Bank Joint Account
EQ Bank has ajoint savings accountthat allows you to team up with up to 3 other people.
This option is great for those who want to track and manage their finances with a friend, partner, spouse, or roommate while earning high-interest rates.
Your joint account enjoys the same benefits and features as the individual savings account, including a 2.00% interest rate, free and unlimited bill payments, Interac e-Transfers, and electronic fund transfers.
In addition, you can have up to a $500,000 maximum balance per customer.
7. EQ Bank US Dollar Account
You can earn a high-interest rate on your USD funds through the EQ Bank US Dollar Account.
Like its other offerings, this account has no monthly fees. It pays 3.00% interest on every dollar, and you can use it in conjunction with Wise to send cheap international money transfers.
The USD account can be used to transfer funds between Canadian bank accounts (both USD and CAD).
Fund transfers between the EQ Bank US Dollar Account and a US dollar account held abroad are also possible using the Wise service.
Learn more about what the US account offers in this detailed review.
8. EQ Bank First Home Savings Account (FHSA)
EQ Bank now offers the new FHSA registered account. You can use it to save money tax-free toward a home purchase using savings or GICs.
Learn more here.
How To Open an EQ Bank Savings Account
Toopen an account, you must be a Canadian resident, meet the minimum age of the majority in your province (at least 18 or 19), and have a Social Insurance Number (SIN).
You will need to provide a government-issued ID such as a driver’s license, passport, or permanent resident card.
If your government-issued photo ID does not show your current address, proof of address documents such as a recent utility bill, income tax assessment, or Canada Child Benefit statement may be required.
EQ Bank conducts a “soft” credit check during the sign-up process. This check does not affect your credit score.
Signing up for an account with EQ Bankis pretty easy, and you should be ready to start saving within a few minutes.
After opening your account, you can request an EQ Bank Card and enjoy free ATM withdrawals and 0.50% cash back on all purchases.
EQ Bank savings and GIC accounts are now available to residents of Quebec.
Is EQ Bank Safe?
Is EQ Bank safe for your money?
EQ Bank is a trademark of Equitable Bank. Equitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC), which means your funds are eligible for deposit insurance, subject to maximum coverage limitations.
This coverage is generally up to $100,000 per insured category and per depositor.
CDIC insures GICs as well as long as they do not exceed a maturity term of 5 years. This coverage also extends to TFSA and RSP accounts.
The bank also uses 2-factor authentication to protect your account information.
Pros and Cons of EQ Bank
Pros
Free online bank account with unlimited transactions
Pays high interest rates on savings and GICs
CDIC deposit guarantee
Owned by a Tier 1 Canadian bank
Now in Quebec
Prepaid card offers cash back
Excellent customer service
No minimum balance is required
Cons
Prepaid card is not available in Quebec
No physical branches for in-person support
EQ Bank Overview
EQ Bank is a trademark of Equitable Bank, a federally regulated Schedule I bank with over 1,000 employees and $63 billion in assets under management. Equitable Bank was founded in 1970.
As an online-only bank,EQ Bankhas no brick-and-mortar locations, resulting in lower operating costs. These savings translate into the high interest rates and no-monthly-fee accounts they can offer their customers.
EQ Bank has more than $7 billion in deposits.
EQ Bank vs. Tangerine vs Other Banks – Rates Comparison
When Canadians decide to bank with a digital bank, it is usually because they seek higher returns on their savings and/or they are fed up with paying ever-increasing chequing account fees.
Here’s a quick look at some of the best regular savings rates being offered by big banks and online-only banks as of January 19, 2024:
- EQ Bank: Up to 4.00%*
- Neo Financial: 4.00%
- Tangerine Bank: 1.00%
- Wealthsimple Save: 1.50%
- ICICI Bank: 1.00%
- Simplii Financial: 0.40% to 5.5% (6.00% promotional rate – see below)
- RBC: 1.70%
- Scotiabank: 1.40%
- CIBC: 1.90%
- TD: 0.05%
For short-term promotional rates, you can get higher rates for 5 months from Simplii as follows:
Simplii High-Interest Savings Account
6.00%* rate for 5 months
Unlimited debits and bill payments
Unlimited Interac e-Transfers
$400 cash bonus offer with a free chequing account
Rating
VISIT SIMPLIIRead review
EQ Bank and Wise (Formerly TransferWise)
EQ Bank recently partnered with Wise so it could offer its customers access to cheaper international money transfer options.
Canadians lose billions of dollars annually in fees they pay to transfer money abroad. Using your EQ Bank Savings Plus account, you can now easily send money in 17 currencies to 46+ countries for less.
The real (mid-market) exchange rate is used, and the small upfront fee you pay to Wise is often up to 8 times cheaper than what you would pay to the big banks.
You can transfer up to $9,500 every 24 hours usingEQ Bank and TransferWise.
What About Your Other Banking Needs?
There are other reasons why you use a bank. For example, you may want to open a mutual fund account or trade stocks and ETFs. As such, EQ Bank is not a replacement for all your traditional banking needs.
The idea is to ensure your money is always working for you and that you can maximize your returns.EQ Bank is a great option for competitive savingsand GIC interest rates for registered and non-registered accounts.
Saving up an emergency fund? Saving for a home down payment, wedding, or vacation? Want to invest the conservative portion of your investment portfolio in a GIC while getting the best returns possible? These are all scenarios where an EQ Bank account could serve you well.
Conclusion
Depending on your banking needs, banking with EQ Bank has its downsides. These downsides include a lack of access to a brick-and-mortar location if you are old school and a lack of a debit card.
None of these should concern you if you plan to use EQ Bank mainly for your general, TFSA, or RRSP savings. With EQ Bank Savings Plus, you get unlimited free transactions, and bill payments and this feature can help you save on banking fees.
EQ Bank Canada FAQs
Who Owns EQ Bank?
EQ Bank is owned by Equitable Bank, a federally regulated Schedule I Bank with over 1,000 employees and over $63 billion in total assets under management. Equitable Bank is a wholly-owned subsidiary of Equitable Group and is listed on the Toronto Stock Exchange as EQB.
Does EQ Bank Offer a TFSA Account?
Yes, EQ Bank has a TFSA savings account that holds both cash and GICs.
Does EQ Bank Offer Mortgages?
You can apply for a mortgage via the EQ Bank mortgage marketplace and get fixed and variable-rate mortgages at competitive rates.
What is the current EQ Bank Promotion?
EQ Bank’s cashback bonus promotion is no longer available. That said, you could get a $20 bonus when you sign up using a valid personal EQ Bank promotional referral link and make the required deposits.
Does EQ Bank have a Debit Card?
EQ Bank now offers a prepaid Mastercard that works like a debit card. The EQ Bank Card has no monthly fees, and it waives ATM and FX fees.
Does EQ Bank Offer a Credit Card?
No, EQ Bank does not offer a credit card.
Does EQ Bank have bank drafts?
No, EQ Bank does not offer bank drafts.
Does EQ Bank have cheques?
While you can deposit cheques to your EQ Bank savings account using the mobile app, EQ Bank does not offer its own cheques.
Does EQ Bank offer business accounts?
You cannot open a business savings or investment account with EQ Bank.
Does EQ Bank have an App?
Yes,EQ Bank has an appthat makes your online banking easy on the go. They recently relaunched the app onApp StoreandGoogle Play with new and innovative features, including fingerprint ID and facial recognition sign-in and an overhauled user-friendly dashboard.
What are EQ Bank’s GIC Rates?
They offer some of the best GIC rates available in Canada today. You cancheck them out.
Does EQ Bank have a Referral Program?
EQ Bank occasionally offers its customers an opportunity to earn cash bonuses when they refer friends to sign up. For example, they may offer $20 cash bonuses per friend or family member who signs up using your code.
Does EQ Bank Offer an RRSP?
EQ Bank recently introduced Retirement Savings Plan Accounts you can use to save towards retirement, similar to an RRSP. It holds both savings and GICs.
How is EQ Bank Able to Offer Higher Interest Rates?
The same reason that other digital banks can offer better rates than the big banks – lower overhead costs. Since they do not have to build or manage branches across the country, overhead costs are greatly reduced. These savings are passed on to customers through higher interest rates and no monthly fees.
Is EQ Bank in Quebec?
Yes, EQ Bank launched in Quebec in December 2022.
Related:
- EQ Bank vs Tangerine
- EQ Bank vs Wealthsimple
- EQ Bank vs Simplii Financial
- EQ Bank vs Neo Financial
As an enthusiast with first-hand experience using EQ Bank for years, I can attest to its reliability and the benefits it offers. I've utilized EQ Bank for both my CAD and USD emergency fund savings, and my overall experience has been positive. Now, let's delve into the key concepts mentioned in the article:
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EQ Bank Overview:
- EQ Bank is a Canadian online bank offering high-interest savings accounts.
- It provides one of the best savings interest rates available today.
- The author has used EQ Bank for years and emphasizes its non-promotional high savings rates.
-
EQ Bank Accounts and Products:
- EQ Bank offers various accounts, both registered and non-registered, to earn better-than-average interest rates on cash deposits.
- The EQ Bank Savings Plus Account is highlighted as offering one of the best non-promotional savings rates in Canada.
- Features of the EQ Savings Plus Account include high-interest rates (currently up to 4.00%), zero minimum balance, unlimited free Interac e-Transfers, and a prepaid Mastercard for online and in-store purchases.
- The article mentions the versatility of EQ Bank's savings account, serving similar functions to a chequing account.
-
TFSA and GICs:
- EQ Bank offers a TFSA (Tax-Free Savings Account) with a high-interest rate of 3.00%, tax-free returns, and no account fees.
- GICs (Guaranteed Investment Certificates) with various terms and competitive interest rates are available, catering to short-term investment goals.
-
Registered GICs and Retirement Savings Plans:
- EQ Bank provides registered GICs for both TFSA and RSP (Retirement Savings Plans) accounts, with competitive interest rates.
- Features of EQ Bank's RSP Savings Account include a high-interest rate of 3.00%, zero monthly fees, and easy online sign-up.
-
Joint Account and USD Account:
- EQ Bank offers a joint savings account for up to 4 people with the same benefits as individual savings accounts.
- The EQ Bank US Dollar Account provides a high-interest rate of 3.00% on USD funds and supports cheap international money transfers.
-
First Home Savings Account (FHSA):
- EQ Bank introduced the FHSA registered account for tax-free savings toward a home purchase.
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Account Opening Process:
- To open an EQ Bank account, one must be a Canadian resident, meet the minimum age requirement, and have a Social Insurance Number (SIN).
- The article outlines the required identification documents and mentions a "soft" credit check during the sign-up process.
-
Safety and Security:
- EQ Bank is deemed safe, being a member of the Canada Deposit Insurance Corporation (CDIC), providing deposit insurance up to $100,000 per insured category and per depositor.
- The bank utilizes 2-factor authentication to protect account information.
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Pros and Cons:
- Pros include free online bank accounts, high-interest rates on savings and GICs, CDIC deposit guarantee, and excellent customer service.
- Cons involve the absence of physical branches for in-person support and some limitations on products in Quebec.
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Comparison with Other Banks:
- A comparison with other banks is made, highlighting EQ Bank's competitive rates compared to big banks and online-only banks.
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Partnership with Wise:
- EQ Bank has partnered with Wise for cheaper international money transfer options, allowing customers to send money in 17 currencies to 46+ countries.
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FAQs:
- Frequently Asked Questions cover topics such as ownership, TFSA, mortgages, promotions, debit cards, credit cards, app availability, GIC rates, referral programs, and EQ Bank's ability to offer higher interest rates.
In conclusion, EQ Bank is presented as a reliable online banking option in Canada, offering competitive interest rates and a range of accounts to meet various financial needs. The author provides a comprehensive overview based on personal experience and a detailed understanding of EQ Bank's features.
