Looking for an online bank with no monthly fees, competitive interest rates or just something more convenient than waiting in branch queues?
To help you find the perfect financial partner, check out this overview of the best online banks in Canada for May 2024. Use our rundown to compare products, fees, interest rates and more to see what each online bank can do for you and your hard-earned money.
Annual percentage yields (APYs) and account details are accurate as of November 21, 2023.
We’ve compared 42 nationally available banks and credit unions to find some of the best options available. Out of those, only those banks and credit unions that were online only, with no physical branches, were considered. See below to learn more about why we picked each online bank, the pros and cons, as well as any other benefits.
To create this list, Forbes Advisor analyzed online and branchless banks across Canada. We ranked each online bank on 17 data points within the categories of fees, access, customer experience, digital experience, annual percentage yield, plus the minimums and balance needed to avoid monthly fees.
The following is the weighting assigned to each category:
Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.
Online banks offering high interest and offering no or very low fees scored the highest, as did those offering low minimum requirements and high customer service and digital experience scores. To appear on this list, the online banks had to be nationally available.
Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motusbank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, Home Bank, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union, Wealth One Bank of Canada, Innovation Credit Union.
Online banking enables financial transactions over the internet instead of visiting a physical bank or credit union. Most online banks have a range of chequing, savings and investment accounts. Some also provide debit or credit cards to use at ATMs and for everyday spending.
Online banking works similarly to traditional banking. Once you register for an online bank account, you can view your account balance, transfer funds between accounts, pay bills and even deposit cheques using your smartphone.
Since online banks don’t have physical branches, they can pass these cost savings to customers in a variety of ways:
Most online banks don’t charge fees for monthly account maintenance, require no minimum balances to waive those fees and offer unlimited Interac e-Transfers for free. Some also offer free ATM withdrawals and unlimited free transactions in general.
Online banks generally offer higher annual percentage yields (APYs) since they have fewer overhead costs. They also have some of the best interest rates on money deposited into their savings and chequing accounts.
Mobile cheque deposits come standard with most online bank accounts. Simply take a picture of the front and back of the cheque and upload it to the mobile app to deposit it into your account.
Online banks make it easy to schedule automatic payments for recurring bills. This eliminates the hassle of manually paying bills each month and helps avoid late payments.
Some online banks can process paycheques faster than big banks. Sign-up for direct deposit with your employer and you could get paid up to two days earlier at some online banks.
When it comes to choosing the best online bank, here are a few things to consider:
While the registration process varies, here are some general steps you can follow to open an online bank account:
1. Visit the online bank’s website or mobile app.
2. Select an account and fill out an application form.
3. Provide details or documents to verify your identity (e.g., photo ID, utility bill, etc.).
4. Deposit a minimum amount if required.
5. After the deposit clears, start using your account.
Online banks provide similar services to traditional banks, but without physical branches. Customers can open chequing and savings accounts, access GICs and sometimes apply for loans or credit cards all online. Traditional banks generally have more financial products and options for investments, loans and business accounts.
Cheque deposits and accessing cash can be more convenient at a branch or bank-owned ATM. Most online banks can offer the same level of convenience with a third-party ATM network and mobile cheque deposits. Ultimately, the choice between online banks vs. traditional banks depends on your banking needs and preferences. If you prefer a more hands-on or in-person approach to customer service or the ability to withdraw cash from readily available ATMs, then online banking may not be for you. However, if you’re looking for high-interest on your deposits, low fees and unlimited free transactions, then online banking may be exactly what you’re looking for.
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The best online banks will have the services and features you need. If you’re paying for debit purchases or sending money, consider an online bank with unlimited transactions and Interac e-Transfers. To earn more interest, find a savings account with a high APY. Make sure you look at the fee schedule and breakdown before choosing an online bank.
Any reputable, federally regulated financial institutions, including online banks, have CDIC membership to insure eligible accounts up to $100,000. This information will be on the banking website.
Online banks typically don’t have their own ATMs. Instead, they partner with other banks or third-party networks to provide surcharge-free ATM access.
All bank accounts have fees in some form or another. However, there are online banks with savings and chequing accounts that have no monthly fees. They also may have no transaction fees or ATM withdrawal fees
Yes, online banking is safe. Online banks with CDIC insurance insure your accounts up to a maximum of $100,000 for a covered reason and all transactions are encrypted to prevent unauthorized access.
To get a bank statement online, log in to your online banking account and navigate to the section that has account statements.
An online bank account can lock if you try logging in with the wrong username or password too many times or if there is suspicious activity. Another reason could be unpaid debts to creditors or the government. To get your account unlocked, speak to customer service by phone, email or live chat.
You can’t open a bank account online if the bank can’t verify your identity or if you have a history of unpaid fees and negative balances.
If your online bank accepts cash deposits, you can deposit cash at an in-network ATM. Alternatively, you can transfer money from another bank into your online bank account.
