EQ Bank TFSA Review 2024: The Best TFSA Account In Canada

The EQ Bank TFSA (Tax-Free Savings Account) offers an annual percentage yield (APY) of 3%, providing a competitive tax-free interest rate on your savings. This account also stands out for its $0 minimum balance or deposit requirement, making this TFSA highly accessible to savers of any income level. EQ Bank customers can enjoy the convenience of opening their account online and benefit from unlimited free transfers, too.

However, the account is exclusively digital—since EQ Bank does not offer branch access. While there are no monthly maintenance fees, users should be aware of the fees associated with domestic wire transfers: $50 for incoming and $75 for outgoing transfers. They should also keep in mind that the EQ Bank TFSA is just for savings and GICs, not other investments.

Overall, the EQ Bank TFSA Savings Account is designed for savers who prefer online banking and are looking for a high-yield, tax-free saving option across eligible Canadian provinces.

With the EQ Bank TFSA Savings Account, customers can easily manage withdrawals online or via the EQ Bank mobile app.

To make a withdrawal, you simply log into your account, navigate to the TFSA Savings Account section and select the withdrawal option. Enter the amount you wish to withdraw and specify where you would like the funds to be transferred—either to another EQ Bank account or an external bank account linked to your EQ Bank profile.

The withdrawal process is designed to be user-friendly and efficient, with unlimited free transfers, giving you the flexibility to access your funds without incurring fees.

Depositing funds into your EQ Bank TFSA Savings Account is a straightforward, convenient online process. You can transfer money into your TFSA from your EQ Bank Savings Plus Account or from an externally linked bank account.

To make a deposit, log into your EQ Bank account, select your TFSA Savings Account and choose the option to deposit funds. You will need to enter the amount you wish to deposit and confirm the source of the funds.

The EQ Bank TFSA Savings Account supports automated transfers, so you can set up recurring deposits to consistently grow your savings. Since there’s no minimum deposit requirement, you have the flexibility to deposit any amount in line with your financial goals and contribution limits.

Personal Accounts

EQ Bank’s Personal Account acts like a chequing account but earns interest like a savings account. With a 4% interest rate, it combines the best features of both account types. This account comes with unlimited transactions, high interest and no monthly fees, providing a comprehensive banking solution that maximizes your money’s potential.

Joint Accounts

The EQ Bank Joint Account allows you to enjoy the benefits of the Personal Account with up to three other individuals. This account offers 4.00% interest on everyday banking without monthly fees. It is ideal for couples or groups who want to manage their finances together while earning a competitive interest rate.

Related: Best Joint Savings Accounts

FHSA Savings Accounts

EQ Bank’s FHSA Savings Account is designed to help first-time homebuyers save for their down payment, offering 3.00% tax-free interest. This account helps accelerate your savings journey towards homeownership, with the added benefit of tax efficiency.

US Dollar Accounts

For Canadians who hold or deal with U.S. dollars, EQ Bank’s US Dollar Account offers an attractive 3.00% interest rate and no monthly fees. This account is ideal for maximizing your earnings on U.S. dollar funds, with the convenience of free USD to USD transfers within Canada.

Related: Best U.S. Dollar Chequing Accounts

GICs

EQ Bank provides Guaranteed Investment Certificates (GICs) with competitive interest rates, such as 5.35% for a one-year term. GICs are an excellent option for savers seeking guaranteed returns on their investments over a fixed period.

EQ Bank Cards

The EQ Bank Card offers a unique banking experience with perks like free ATM withdrawals across Canada, cash back on purchases and no foreign transaction fees. This card is a solid choice for anybody seeking a straightforward, fee-free banking solution.

International Money Transfers

EQ Bank’s international money transfer service allows you to send money abroad quickly, easily and at a lower cost compared to traditional banks. This service is designed for cost-effective international transactions.

Mortgage Marketplace

Through EQ Bank’s Mortgage Marketplace, customers have access to a wide range of mortgage products from Canadian lenders. This platform simplifies the process of finding and applying for mortgages, ensuring you get competitive rates tailored to your needs.

EQ Bank, as a digital-first institution, offers many convenient ways for customers to access and manage their personal banking needs:

Via Browser

Customers can access their EQ Bank accounts through any web browser. The online banking platform provides a comprehensive suite of services, allowing users to check balances, transfer funds, pay bills, open new accounts and manage their investments.

Mobile App

The EQ Bank mobile app is designed for banking on the go, offering a secure and intuitive interface. With a high rating on the App Store, the app allows users to perform a variety of banking tasks, such as checking account balances, transferring money, depositing cheques via their device’s camera and more. The app also sends real-time notifications for transactions and other important account activities, ensuring users stay informed about their finances.

Over the Phone

While EQ Bank emphasizes its digital channels, customers can also access support and certain banking services over the phone. This provides a personal touch and assistance for anyone who prefers speaking to a representative or needs help with services that might not be fully manageable online.

In Person or at an ATM

As EQ Bank is a direct bank without traditional brick-and-mortar branches, in-person banking services are not available. However, for certain transactions that require physical interaction, like depositing or withdrawing cash, EQ Bank customers can use ATMs. While EQ Bank does not have its own ATM network, the EQ Bank Card provides the convenience of free withdrawals at any ATM in Canada, with EQ Bank refunding fees that the ATM operator might charge.

EQ Bank TFSA vs. Simplii TFSA

The EQ Bank TFSA offers a solid 3% interest rate, which is significantly higher than Simplii’s 0.40%.  Both accounts also have no minimum balance requirements and no monthly fees, making them accessible to savers of all income levels. Both accounts are digital first, meaning that they do not offer branch access, and the Simplii account is unavailable to residents of Quebec.

Essentially, EQ Bank’s TFSA is the superior choice due to its significantly higher APY.

EQ Bank TFSA vs. Manulife Bank TFSA

The EQ Bank TFSA offers 3% interest, no monthly fees and no minimum deposit requirements. On the other hand, the Manulife Bank TFSA has a lower interest rate of 2.10%, but it offers a range of investment options, including tax-free GICs. Manulife does not require a minimum balance and offers fee-free deposits and withdrawals, adding to its appeal. It also provides the option to work with an advisor, which might be important to anyone seeking personalized financial advice.

Bottom line: If your primary goal is to secure the highest possible interest rate on your cash savings, EQ Bank’s TFSA is the superior choice. However, if you’re looking for a tax-free account to invest in— with the option for personalized advice through an advisor—Manulife Bank’s TFSA might be more suitable.

EQ Bank TFSA vs. Tangerine Bank TFSA

The EQ Bank TFSA offers a substantial interest rate of 3%, significantly higher than Tangerine’s 0.70%.EQ Bank also promotes ease of use with no minimum balance, no monthly fees and the ability to open and manage the account entirely online.

The Tangerine Bank TFSA provides a lower interest rate at 0.70%, but like EQ Bank, it does not charge monthly fees or require a minimum balance.

If your primary goal is to earn the highest interest possible on your savings, the EQ Bank TFSA is the better choice due to its significantly higher interest rate.

To review this account, Forbes Advisor Canada analyzed 123 savings accounts at 39 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 17 data points within the categories of fees, access, customer experience, digital experience and annual percentage yield, plus the minimums and balance needed to avoid monthly fees.

The following is the weighting assigned to each category:

• Fees: 50%
• Branch and ATM access: 15%
• Customer experience: 10%
• Digital experience: 10%
• Minimums: 10%
• Balance to avoid monthly fee: 5%

Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, the bank’s ATM network, branch access, 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.

Accounts 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 account must 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, Motus Bank, 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.

Choosing whether EQ Bank’s TFSA is right for you depends on your banking preferences, geographical location and how you plan to use this account.

Opt for the EQ Bank TFSA if:

• You prioritize high interest rates
•  You are comfortable with digital banking
• You seek fee-free banking

Don’t opt for the EQ Bank TFSA if:

• You prefer in-person banking services
• You frequently need to conduct wire transfers