EQ Bank Review 2024: Under The Hood Of A Leading Challenger Bank

EQ Bank’s focus is about challenging traditional brick-and-mortar banking models and their fee structures. All of EQ Bank’s accounts boast no monthly fees and high interest rates—most notably their core offering: The Personal Account.

Though EQ does not offer a chequing account, their non-registered savings accounts allow for free unlimited transactions, which gives account holders the flexibility that comes with a chequing account.

Chequing Accounts

Currently, EQ does not offer a “true” chequing account. This isn’t surprising given EQ’s status as a challenger bank that “seeks to transform the way banking has always been done.”

As an alternative, EQ Bank offers highly flexible savings accounts with no fees.

Related: Best Chequing Accounts In Canada

Savings Accounts

EQ’s claim to fame is their collection of no-fee, high-interest savings accounts: The Personal Account, Joint Account, TFSA Savings Account, U.S. Dollar Account and their Retirement Savings Plan (RSP) Savings Account.

Branded as an “everyday banking account” the Personal Account offers significant flexibility via its no-fee transactions (including Interac e-Transfers) and a soaring interest rate of 4%. The account requires no minimum balance either.

The Joint Savings Account comes with all the perks of the Personal Account but is designed for people looking to bank together. The account allows for up to three holders and has a contribution ceiling of $500,000 in the aggregate. Keep in mind that this threshold is measured across all accounts held per individual. Should you close your joint account, your contribution threshold drops to $200,000—unless you joined EQ before February 21, 2016.

EQ’s other high interest accounts, the TFSA Savings Account and RSP Savings Account, boast an impressive 3.80% interest rate, no minimum required balance and no fees. Note: Opening an EQ Bank RSP Savings Account requires you to open a Personal Account beforehand.

For Canadians with U.S. funds, EQ’s USD Account has an unheard of 3.00% interest rate, coupled with no monthly fees and a “highly competitive exchange rate,” though the exact rate is not specified.

GICs

EQ’s guaranteed investment certificates are a solid option for Canadians wanting to lock in their funds in exchange for return rates as high as 5.35% on a one-year term.

The institution offers both registered (e.g. TFSA or RRSP) GICs and non-registered GICs. Both GIC types require a meager $100 to start investing. People interested in opening a registered GIC are required to open a TFSA or RRSP account first.

EQ Bank’s GICs are offered on a variety of term lengths and are non-redeemable.

GIC Interest Rates

The following are the GIC rates offered by EQ Bank (rates current as of March 23, 2024).

Non-registered GICs

RSP GICs

TFSA GICs

Aside from their savings accounts and GICs, EQ offers few other products. These include:

• International money transfers (via Wise).
• The EQ Bank Card (a reloadable, no-fee credit card).
• Online mortgage marketplace for EQ customers to review mortgages offered by Canadian lenders.

In place of physical branches, EQ offers a respectably-rated mobile app available for iOS and Android devices. With the app, users can:

• View their accounts.
• Sign up for an account.
• Purchase GICs.
• Deposit cheques.
• Transfer funds.
• Pay bills.
• Send funds via e-transfer.

Alternatively, EQ customers can complete the same functions on EQ’s website on a browser of their choice.

Customers looking for assistance can chat with a virtual assistant around-the-clock or call their help line at 1-844-437-2265. Hours are 8 a.m. to midnight (EST), all week.

EQ Bank vs. Simplii

Both of these digital-only institutions offer flexible, no-fee accounts that can be set up and accessed at the tap of a screen. However, EQ outperforms Simplii with its outstanding interest rates on both its savings accounts and GICs. The EQ Personal Account offers 2.5% interest with no relative rate, whereas Simplii requires an account balance of over $1 million to achieve a 0.10% rate.

Simplii has more to offer for both accounts, investments and credit opportunities than EQ. The CIBC trademark provides its customers a wide array of options like lines of credit, mutual fund accounts and student accounts.

While both banks offer free ATM usage, only EQ cardholders can access any ATM in Canada for free: Simplii cardholders must access CIBC terminals to avoid fees.

EQ Bank vs. Tangerine

Both of these online institutions have similar footprints in their industry, but with different focal points in their offerings.

Tangerine focuses on a myriad of banking options including chequing, savings and business accounts. While its GIC rates are similar to EQ’s (up to 5.35%), its 0.70% savings account interest rate leaves much to be desired in comparison.

Each brand highlights little-to-no fees as part of their model, but only EQ offers entirely no fees—Tangerine charges NSF and dormancy fees.

EQ Bank vs. Motus

Both banks offer impressive interest rates on their savings accounts, with Motus offering a 2.25% rate on its High Interest Savings Account. Motus’ TFSA rate comes in similarly at 2.25%. Though Motus has a homogenous fee structure akin to EQ Bank, it does charge Interac e-transfer fees for any transfers out of a savings account or requested transfers that have been fulfilled.

Motus’ GIC rates rank high as well, with their highest rate currently locked in at 4.25% on a one-year term. Their minimum deposit requirement is also $100. The Meridian Credit Union subsidiary company has access to 47,000 ATMs across North America, at no cost, with some of those being in the U.S. through the Allpoint Network.

Forbes Advisor compared 20 nationally available banks—both traditional brick-and-mortar institutions and online-only banks—to find the best options available. To make this list, the bank had to be available to Canadians nationwide. They were rated out of five stars according to the following data points and formula out of 100%:

• Product Offerings – 11%
• APY – 25%
• Fees – 20%
• Minimum Deposit – 5%
• Minimum Balance – 5%
• Availability – 5%
• 3P Ratings – 5%
• Customer Reviews – 2%
• Live Chat – 2%
• Digital Experience – 10%
• ATM Network – 10%

With some of the highest interest rates in the industry and no fees, EQ Bank is a prudent choice for Canadians treading rough economic waters. With EQ’s 5.35% TFSA rate (one year), for example, your money will soon rival the 2.9% inflation rate—and that’s not accounting for any investments you make.

Conversely, EQ’s offerings aside from their core products are limited when compared to other competitors. People seeking to keep all their assets in the same full-service bank, or who require sophisticated investing options, may not find EQ’s model conducive.