EQ Bank Review
EQ Bank overview
🏦 EQ Bank launched in 2016 and has more than $8 billion in customer deposits.
EQ BANK ACCOUNT OPTIONS
Hybrid chequing and savings account
Savings account
Registered accounts and GICs
U.S. dollar account
OTHER EQ BANK SERVICES
Mortgages
International money transfers
Canadians in search of a no-frills, fee-free online banking experience that offers competitive interest rates.
EQ Bank may not offer the same variety of accounts or financial products as some of its competitors, but sometimes less is more. EQ’s accounts, which allow unlimited transactions, provide customers with an inexpensive way to handle their daily banking needs while helping them earn a competitive interest rate.
PROS AND CONS
There’s plenty to like about EQ Bank, but no bank or credit union is without its drawbacks. Here’s what to consider before you open an account.
Pros
- High interest rates on an ongoing basis, not just as introductory offers, including on US dollar accounts.
- Not only no monthly fees, but hardly any fees at all.
- Straightforward website and easy-to-use app should make online banking easy, even for the less tech-savvy.
- The EQ Bank Card, offers cash back, free ATM withdrawals, and no foreign exchange fee on international spending
Cons
- Account offerings may feel limited for some customers.
- No true debit card; the EQ Bank Card must be loaded by transferring money from your Personal Account, which may not be convenient.
- Online-only banking, with no physical branches, may not be right for everyone.
EQ Bank full review
EQ Bank was launched by its parent company, Equitable Bank, in 2016 as a low-cost digital alternative to traditional banking. Its account and investment offerings are somewhat limited compared to other financial institutions, but its competitive interest rates and lack of monthly fees have attracted more than $8 billion in customer deposits.
WHAT ONLINE BANKING FEATURES DOES EQ BANK OFFER?
As an online-only bank, EQ Bank provides tools for customers to do all of their banking digitally, either through the company’s website (eqbank.ca) or the EQ Bank mobile app. Deposits, money transfers and bill payments can all be done online, as can the management of EQ Bank registered accounts.
IS MY MONEY SAFE AT EQ BANK?
Even though it’s an online institution, EQ Bank safeguards customers’ savings the same way bigger banks do, by purchasing protection through Canada Deposit Insurance Corporation, or CDIC.
CDIC insures deposits up to a maximum of $100,000 per account, so if EQ Bank suddenly becomes insolvent, customers there will get up to that amount of their money back.
🚩 Customer ratings
We gather consumer feedback to understand how users feel about banking with EQ Bank. While the bank performs well on mobile app stores, its score remains below average on the consumer review platforms and forums.
As of this writing, EQ Bank had the following ratings:
4.8 stars on the Apple App Store and 4.1 stars on the Google Play Store.
1.8 out of 5 possible stars, based on more than 200 customer reviews on Trustpilot.
What Reddit users are saying
EQ Bank often gets grouped with the top digital banks on Reddit. Popular user comments praise its higher savings rates and the nearly fee-free daily conveniences the EQ Bank Card offers.
Reddit discussions include:
Note: Consumer review platforms tend to reflect a higher volume of negative feedback as satisfied users are less likely to leave comments. Additionally, individual reviews may not reflect the full experience of these users. That said, public forums can offer a helpful starting point for understanding how the financial institution handles account issues, customer service and overall support.
EQ Bank account types
EQ Bank offers a relatively stripped-down selection of accounts. The bank’s Personal Account reportedly “acts like chequing, earns like savings” and it offers a savings account with a high interest rate in exchange for notice before you make any withdrawals.
The bank also offers registered savings accounts for retirement, down payment savings and other needs.
Most notably absent are credit cards and other common borrowing options.
NerdWallet's picks for EQ’s best banking products include:
NerdWallet's take
NerdWallet's take- EQ Bank’s Personal Account is the digital-first bank’s flexible hybrid chequing and savings account. It features a high interest rate, no monthly fees, and free and unlimited transfers.
- The bank also offers joint accounts, US dollar accounts, TFSAs, RRSPs, and GICs. Read our review of EQ Bank for more information.
Product details
Product details- Customers who add and maintain qualifying recurring direct deposits of at least $2000/month to a Personal Account or Joint Account are eligible to earn a bonus interest rate of 2.75% (the Base Rate plus an additional 1.75%) for the eligible accounts (the Personal Account, Joint Account, and the EQ Bank Card balance). Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details.
- 1.00% interest rate*.
- No monthly fee.
- This hybrid account gives you the benefits of savings with the flexibility of chequing.
- Mobile Cheque Deposit is available through the EQ Bank mobile app.
- Zero monthly banking fees.
- No transaction or service fees. EQ Bank does not charge account fees, fees for sending or receiving Interac e-Transfers®, fees for bill payments, overdraft fees, or dormant account fees.
- No minimum balance, but a $200,000 maximum balance.
- Access your money immediately through the mobile app and online banking website, where you can deposit or transfer funds using Interac e-Transfers® or Electronic Funds Transfer (EFT) to linked accounts.
- Eligible for CDIC deposit insurance.
- The Personal Account is available in Quebec. However, some features, such as EQ-to-EQ transfers, are not available in the province.
- *Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
NerdWallet's take
NerdWallet's take- Each EQ Bank GIC starts with a minimum deposit of $100, making it convenient for a new investor to explore these GICs at a competitive fixed rate.
- EQ Bank, a trademark of Equitable Bank, is an online bank based in Toronto that offers chequing and savings accounts, GICs and registered plans. Read our review of EQ Bank for more information.
Product details
Product details- Non-registered and non-redeemable.
- Must have an EQ savings account in order to get an EQ GIC.
- When the term ends and your GIC reaches the maturity date, the funds will be placed in your Savings Plus Account (the one from which your initial investment was funded). You will receive an email or SMS alert notifying you of the GIC maturity.
- Term options range from 3-months to 10-years. You’re the one in charge of your savings, that includes choosing whether short or long term GICs are right for you.
- RSP and TFSA GICs are also available. Before you buy, you’ll need to open an RSP Savings Account or TFSA Savings Account.
- GIC options let you lock in any of our amazing rates, so no matter what happens, that rate is yours.
- Low minimum deposit. So you can start investing in GICs with as little as $100.
- You choose how your interest is paid out, either at maturity or annually.
- A GIC in seconds. As long as you have available funds in your Savings Plus Account, you can literally buy a GIC in seconds.
- You can buy up to 20 GICs. Each GIC purchase must be for at least $100, and can be up to a maximum of $100,000. Customers can hold up to $500,000 in GICs, excluding interest earned.
- *EQ Bank GICs are non-redeemable.
- For GIC terms of less than one year, simple interest is calculated on a per diem basis and paid at maturity. For GIC terms equal to one year, simple interest is calculated on a per annum basis and paid at maturity. For GIC terms of over one year, not including 15 and 27 month terms, interest is calculated on a per annum basis and paid either annually (simple interest) or at maturity (compounded annually).
- For GIC terms of 15 and 27 months, interest is calculated on a per annum basis, compounded annually and paid solely at maturity. In all cases, interest is accrued for the entire GIC term.
- Maximum 20 GICs per customer. Per GIC investment limit of $100,000. Aggregate GIC investment limit of $500,000.
- Rates are calculated on a per annum basis and are subject to change at any time.
- Equitable Bank is a member of CDIC. EQ Bank is a trade name of Equitable Bank.
EQ Bank accounts
🤓 OUR TAKE
EQ Bank accounts combine high-interest savings of up to 3.00% and no-fee everyday banking services. Most transactions take place online or with the EQ Bank Card, so you may miss the branch services that Big 6 Banks traditionally provide.
Explore EQ Bank accounts
Personal Account: Previously referred to as the Savings Plus Account, this is a basic chequing account with no monthly fees, unlimited transactions and the ability to earn interest — an uncommon feature among chequing accounts at traditional banks — at a rate higher than that of many savings accounts.
Joint Account: Similar to the Personal account, but able to be shared with up to three other people, with a $500,000 deposit limit. The account was formerly known as the Joint Savings Plus Account.
Notice Savings Account: Earn a high interest rate on deposits when you commit to giving at least 10 or 30 days’ notice of any withdrawals.
US Dollar Account: A no-monthly-fee USD account that earns a high rate of interest and offers competitive exchange rates.
EQ Bank registered accounts
🤓 OUR TAKE
EQ Bank's registered cash account lineup is limited but usually earns decent base interest rates, up to 1.75%. You can also hold GICs in these registered accounts. If you’re after a full slate of plans and investments for the family, you might have more luck at a traditional bank or credit union.
Explore EQ Bank registered accounts
» MORE: Read our in-depth review of the EQ Bank TFSA
Other EQ Bank services
🤓 OUR TAKE
EQ Bank isn't a full-service bank, but you get online support, low-cost global money transfers, and mortgage options. You may still want to maintain an account at a traditional bank or credit union for in-person services.
Explore other services
Mortgage marketplace: Offers search tools and access to brokers.
International money transfers through Wise: Transparent fees and exchange rates.
Business bank accounts and GICs.
EQ Bank fees
One of EQ Bank’s selling points is its lack of monthly fees, but it’s one of the few that also avoids charging customers a range of other common fees.
Fees you should know about
Non-sufficient funds: $0.
Dormant account fee: $0
RRSP or TFSA transfer to another institution: $0
» MORE: Read the EQ Bank vs. Tangerine features and differences.
How EQ Bank compares to other online banks
ATM ACCESS | ARE DEPOSITS INSURED? | |
|---|---|---|
N/A | Yes, by the Canada Deposit Insurance Corporation. | |
Free at any ATM in Canada (fees are reimbursed). | Yes, by the Canada Deposit Insurance Corporation. | |
Free at any CIBC ATM. | Yes, by the Canada Deposit Insurance Corporation. | |
Free at any Scotiabank or Global ATM Alliance ABM. | Yes, by the Canada Deposit Insurance Corporation. |
» MORE: Read our Banking Reviews of other Big Banks, credit unions and online-only banks.
Frequently asked questions
Who owns EQ Bank?
EQ Bank is an online-only offshoot of Equitable Bank, Canada’s seventh-largest independent Schedule 1 bank.
How much interest does EQ Bank pay?
EQ Bank's interest rates on personal bank accounts and registered and non-registered GICs are usually higher than traditional banks. Account holders earn a decent base rate with a chance to earn additional interest by making direct deposits of at least $2,000 per month. Customers can also earn an attractive interest on deposits in the U.S. Dollar savings account.
DIVE EVEN DEEPER
Siddhi Bagwe
Siddhi Bagwe
