Digital banks continue to grow in popularity among Canadian consumers due to their low monthly fees, high interest rates and streamlined mobile and online apps. As two of the most popular online banks in Canada, EQ Bank and Tangerine have a lot to offer in this domain.
Learn more about the features and financial products on offer from these reputable digital banks and delve into how they compare and contrast to decide on the best fit for your unique financial situation.
EQ Bank vs Tangerine: A quick review
EQ Bank is a popular digital banking provider in Canada that has over 639,000 clients. It acts as the online banking arm of Equitable Bank, which was founded in 1970 but began offering savings products in 2013. EQ Bank offers chequing, savings, US dollar, business, RSP and GIC accounts, along with a prepaid debit card for purchases and cash withdrawals. It also works with Wise to save you money on international money transfers. EQ doesn’t offer products such as lines of credit, credit cards or mortgages.
Tangerine is an online-only digital bank that has nearly 2 million clients and over $40 billion in managed assets. Originally called ING Direct, Tangerine was acquired by Scotiabank in 2012 and was re-labelled as Tangerine in 2014. This bank offers a wide range of financial products such as chequing and savings accounts as well as GICs, loans, mortgages and credit cards.
Why should I choose a digital bank?
Unlike brick and mortar establishments, digital banks like EQ Bank and Tangerine operate exclusively online. This means they don’t have to pay overhead costs for rent, office supplies, in-branch personnel or other expenses.
Those savings then get passed onto customers in the form of fee-free accounts, high interest rates, unlimited withdrawals and free e-transfers (among many other benefits). The only downside is that you can’t visit a physical branch in-person to do your banking.
EQ Bank vs Tangerine: Products offered
Product
EQ Bank
Tangerine
Chequing accounts
No account fees
No transaction fees
Free Interac e-Transfers
Free ATM withdrawals across Canada
Interest rate of up to 4%
No account fees
No transaction fees
Free Interac e-Transfers
Free access to 3,500 ATMs
Overdraft protection
Interest rate of up to 0.1%
Savings accounts
No account fees
No transaction fees
Interest rate of 4.50% - 5.00%
$0 maximum balance
No account fees
Free transactions
Interest rate of 6% for 5 months, then 0.60% thereafter
Frequent ongoing promotional interest rates
Guaranteed investment certificates
5.05% for 1 year, up to 4.35% for 5 years
4.9% for 1 year, up to 4% for 5 years
Other products
GICs, TAFSAs, FHSAs, RSP, business account and US dollar account
Credit cards, mortgages, secured and unsecured lines of credit, GICs, mutual funds, RRSPs, TFSAs, US savings and more
Compare some of the main features for accounts offered by EQ Bank and Tangerine. This should give you a better idea of which one might be the best fit for your financial situation.
Feature
EQ Bank
Tangerine
Monthly fees
No monthly fees
No monthly fees
Interest rates
Up to 4% for chequing
4.50% - 5.00% for savings
Up to 0.6% for chequing
6% for 5 months, then 0.60% thereafter for savings
Debits and withdrawals
Unlimited for free
Unlimited for free
ATM withdrawals
No charge from any ATM with ATM surcharge fee reimbursement
Free from any Scotiabank ATMs
Interac e-Transfers
Unlimited for free
Unlimited for free
Automatic deposits
Yes
Yes
Overdraft protection
Yes
Yes
Global money transfers
Yes
Not available
Mobile app
Yes, iOS and Android
Yes, iOS and Android
Branches
Not available
Tangerine Cafes in Toronto, Montreal and Vancouver
Debit card
No, but you can get a prepaid Mastercard
Yes (Visa Debit)
Free cheques
Not available
Yes (50 for free)
Compare EQ Bank and Tangerine chequing accounts
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EQ Bank vs Tangerine: Pros and cons
EQ Bank
EQ Bank is the digital arm of Equitable Bank, which is one of Canada’s largest independent banks. It offers high-interest savings accounts and guaranteed investment certificates but has a limited selection of other financial products.
The EQ Bank Personal Account is fee-free and come with unlimited transactions, free Interac e-Transfers, cheap global money transfers and up to a 4% interest rate.
The EQ Bank Notice Savings Account let’s you earn one of the highest ongoing savings interest rates in Canada of 4.50% - 5.00%. Guaranteed investment certificates offer higher interest rates than what you can typically get from similar-term GICs elsewhere.
The downside of EQ Bank is that it doesn’t offer chequing accounts or ATM withdrawals, and you won’t get a welcome bonus when you sign up. That said, this account could be a good fit for you if you want a high interest rate on your savings or you send money overseas regularly.
Pros
Cons
No monthly fees and unlimited transactions
Higher interest rates on savings and GICs
Cheap global money transfers
Free ATM access within Canada
Can earn cash back with the EQ Bank prepaid card
CDIC insured
Limited selection of financial products
No full suite of banking products, like mortgages, loans or lines of credit
All of Tangerine’s chequing and savings accounts come with no monthly fees, unlimited transactions, free Interac e-Transfers and a welcome bonus when you sign up. You’ll also be able to withdraw cash for free from Scotiabank ATMs.
The downside of Tangerine is that it offers a lower ongoing interest rate on your savings and GICs than you would with EQ Bank (although customers are frequently offered bonus interest rates for months on end).
That said, this bank could be a good fit for you if you want all of your financial products (e.g. chequing savings, credit card and mortgages) under one roof, or you want to get a welcome bonus for signing up.
Pros
Cons
No monthly fees and many financial products available
Welcome bonus: Earn $250
Access to 3,500+ Scotiabank ATMs in Canada and 44,000 ATMs internationally with Scotiabank’s Global ATM Alliance
A near full suite of banking products, including credit cards, mortgages, lines of credit, mutual funds and more
CDIC insured
Lower ongoing savings rate
No money transfer or foreign currency services
Tangerine vs EQ Bank: Which one is better?
Deciding which is the better option between EQ Bank and Tangerine really depends on your financial priorities and how you want to manage your money. Here are some key factors to consider and which bank pulls ahead for each.
Feature
Winner (EQ Bank vs Tangerine)
Financial products
Tangerine offers a wider range of financial products than EQ Bank.
Interest rates
EQ Bank offers higher ongoing savings rates than Tangerine (but Tangerine bonus rates are competitive).
Promo offers
Tangerine will give you an accelerated interest rate and a bonus credit when you sign up (while there’s typically no promo offer from EQ Bank).
International money transfers
EQ Bank is partnered with Wise to provide international money transfers for a low rate (while Tangerine doesn’t have this feature).
Physical branches
Tangerine offers a couple of physical Tangerine cafe locations in major cities while EQ Bank has no branches at all.
Network of ATMs
Tangerine offers a full network of ATMs while EQ Bank doesn’t have its own ATM network, and does not offer free international ATM withdrawals.
Bottom line: EQ Bank vs Tangerine
EQ Bank and Tangerine are quite different in terms of product offerings. As a baseline, EQ Bank could be a better fit for you if you send regular money transfers overseas or you’re interested in maximizing the interest you earn on your savings or GICs. Tangerine may be a better option if you want the convenience of a digital bank with access to the range of financial products offered by the bigger banks.
EQ Bank offers a higher standard, ongoing interest rate on its savings account compared to Tangerine, but Tangerine's bonus rate is often on par or higher than EQ Bank's.
The mobile apps for EQ Bank and Tangerine are fairly similar. They both receive positive reviews on both the Apple App and Google Play stores, and come with a number of features and tools that let you manage your account quickly and easily using your mobile phone.
You'll need to claim any interest you earn on your taxes if you keep your money with EQ Bank since it doesn't offer registered accounts. With Tangerine, you'll have to pay taxes on the interest you earn on cash accounts, but it won't be an issue if you hold your funds in a registered account like a TFSA.
Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio
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Tangerine is an online-only digital bank that has nearly 2 million clients and over $40 billion in managed assets. Originally called ING Direct, Tangerine was acquired by Scotiabank in 2012 and was re-labelled as Tangerine in 2014. This bank offers a wide range of financial products such as chequing and savings accounts as well as GICs, loans, mortgages and credit cards.