EQ Bank review
Gorodenkoff / Shutterstock
4.5
4.5
Fees5
Ease-of-use4
Interest rates 5
Overall value proposition5
As a millennial looking to save money and simplify my banking, I’m a huge advocate for online banks. While the idea of online banks may cause some skepticism for those who are used to Canada’s big traditional banks, the fact is that many of these online banks are CDIC members and offer the same levels of security, and oftentimes with better rates, lower (or no) fees and easy to use apps. That is exactly why I chose EQ bank.
When shopping around for a HISA several years ago, EQ Bank offered the best rate. In the time since, I’ve expanded my use of EQ Bank products as they best fit my lifestyle as a digital nomad who frequently travels outside of the country.
So, if you are looking to switch banks, save some money and take advantage of great rates, then this EQ Bank review is for you.
What is EQ Bank?
EQ Bank Canada is one of the country’s top-performing online banks. It was originally launched in 2016, hitting the market with the best rate for a HISA (high interest savings account) in the country. While the HISA is still a top-performing product, EQ Bank has since expanded and offers several financial products, ranging from savings accounts to mortgages, all at competitive rates.
One of the stand-out features of EQ Bank is that their rates are not promotional - they are standard. So, while you may come across better rates from other Canadian banks or financial institutions, make sure to double-check. Chances are, these lower rates from other institutions are promotional and will decrease significantly after a couple of months.
EQ Bank reviews
| Product | What it is | Who it's for |
|---|---|---|
| EQ investing products | RRSP, GIC | Individuals looking for low-risk investing for retirement or other savings goals. |
| EQ chequing accounts | EQ personal account, EQ joint account | Individuals look for everyday banking with no fees that allows you to earn interest. |
| EQ savings accounts | TFSA, HISA, FHSA, USD account, Notice Savings Account | Individuals looking for no-fee savings account options that earn interest. |
| EQ credit cards | EQ Bank Card | Individuals looking for a no-fee prepaid card that waives forex fees. |
| EQ mortgages | Mortgage marketplace | Individuals looking to purchase a home. |
Pros and cons of EQ Bank
Pros
-
Excellent interest rates — 2.50%* everyday interest rate for the EQ Personal Account + 1.50% with direct deposit of your pay for 4.00% interest.
-
Excellent GIC Investments — Terms range from 3 months to 10 years, all offering high-interest rates up to 5.05%
-
TFSA and RSP Savings Accounts — The rate is hard to beat, but if you want a guaranteed rate of interest you can lock in by purchasing GICs within these registered accounts.
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No everyday banking fees
-
Free Interac e-transfers
-
Cheap international money transfers with TransferWise
-
Intuitive mobile app and website
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No foreign exchange fees for the EQ Bank card, making it ideal for travelling abroad or shopping online in a different currency
Cons
-
No investment services are offered
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Entirely online: no physical branches— No physical banks (although some people may prefer this because it reduces costs)
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Transferring money to your EQ Bank account from another institution can take up to five business days
How to open an EQ bank account in Canada
Opening an EQ Bank in Canada is easy and can be done in a matter of minutes. To open an EQ Bank account, you must be a Canadian resident and meet the age of majority in the province in which you live. You will also need a Canadian mobile phone number to sign up online and make sure to have your social insurance number handy. Since this is an online application, you will also need to upload a photo ID and take a selfie to verify your identity.
If EQ Bank is unable to verify your identity over the online process, you may be asked to visit a designated Canada Post location to verify your identity that way. In this case, you will need to bring one piece of government-issued ID, one proof of address document and your Canada Post DSS number.
Opening your EQ bank should only take a few minutes, however, it may take several days for the funds to transfer over.
Required documents:
- Social insurance number
- Government-issued photo ID such as a passport or driver’s license
- Proof of address (a bill or bank statement will do if it’s not on your ID)
Note that EQ Bank does do a soft credit check, however, it will not impact your credit score.
Should you need any help during the application process, you can contact an EQ Bank representative by phone or use the online chat option.
Open an account with EQ BankEQ Bank reviews of account types
If you're thinking of switching banks, you want to know what you're getting into and out of. If you need a branch you can walk into and speak to a teller where they chain pens to their desks, EQ is not for you. If you're a digital nomad that hates fees and wants to access cash wherever you are, read on.
EQ Bank personal account
Do you still write cheques? Or are you ready to move onto a hybrid account where you can spend and save in the same place all is with zero fees?
Set up your payroll deposits with EQ bank and start earning 4.00% interest. Your EQ Bank personal account charges no monthly fees, gives you unlimited transactions, including e-transfers, bill payments, and electronic funds transfers without requiring a minimum balance.
For anyone wondering if EQ Bank is safe, know that they're backed with CDIC deposit insurance of up to $100,000.
With your account, you'll get the EQ Bank Card—it's a prepaid Mastercard that gives you free withdrawals from any ATM in Canada (they'll reimburse any fees), give you 0.5% cash back on every purchase, and all without charging any fees (including foreign transaction fees).
Who’s it for: Canadians who want a day-to-day bank account that allows them to earn interest without having to pay any fees
The Personal Account and Joint Savings Plus Account pay an outstanding everyday interest rate of 4.00%* on direct deposits.
(2.50% everyday interest* + 1.50% when you set up direct deposit with your paycheque)
- No monthly fees or minimum balance
- Free unlimited bill payments, Interac e-Transfers and more
- Free withdrawals from any ATM in Canada and cash back with the EQ Bank Card
EQ Bank credit card
EQ Bank Card
3.0
Fair
Suggested credit scoreto receive the latest news, tips and offers by email
Eligibility
Fair
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Fair
Required Annual Personal Income
$0
Required Annual Household Income
$0
0.5%
cash back on purchases
2.5%
interest on your balance
cash back on purchases
0.5%
interest on your balance
2.5%
0.00%
Purchase APR
$0
Annual Fee
0.00%
Foreign Transaction Fee
Purchase APR
0.00%
Annual Fee
$0
Foreign Transaction Fee
0.00%
Eligibility
Fair
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Recommended Credit Score
Fair
Required Annual Personal Income
$0
Required Annual Household Income
$0
0.5%
cash back on purchases
2.5%
interest on your balance
cash back on purchases
0.5%
interest on your balance
2.5%
0.00%
Purchase APR
$0
Annual Fee
0.00%
Foreign Transaction Fee
Purchase APR
0.00%
Annual Fee
$0
Foreign Transaction Fee
0.00%
In 2023, EQ Bank launched their EQ Bank card which is a prepaid Mastercard that offers free withdrawals from any ATM in Canada and 0.5% cash back on every purchase. The card does not charge foreign exchange fees, monthly fees, or inactivity fees. You'll also earn the same high interest as your Personal Account account on your loaded balance until you spend it, so you're never missing out.
Who’s it for: Canadians who are happy with a no-fee prepaid card rather than a traditional credit card and are looking to avoid annual fees and foreign exchange fees
EQ Bank Joint Account
Much like the personal account, the joint account gives you the same high 4.00% interest on everyday banking for up to 3 people without any monthly fees.
You'll get the same unlimited bill payments, Interac e-transfers and fund transfers. With the joint account, you can deposit up to $500,000.
Who’s it for: Canadians looking to share a bank account with up to three other people and earn interest while avoiding fees
EQ Bank TFSA Savings account
You can earn 3.00% Tax free with a TFSA. But, TFSAs are better for retirement investments, not just savings. Your money will do better with a roboadvisor like Wealthsimple or Questrade that will do all the investing for you.
Read more: Best roboadvisors in Canada
If you need a place for your emergency fund, rainy day funds, or sinking funds, look at a separate account where you don't see that money unless you need it or you hit a savings goal. Check out products like Tangerine bank or KOHO which may suit your needs for no-fee banking.
Who’s it for: Canadians looking to earn tax-free interest on their TFSA while keeping their account flexible and avoiding paying any bank-related fees.
EQ Bank U.S. Dollar account
If you shop in the U.S., in-person or online, it can be valuable to hold a U.S. Dollar account. EQ gives you 3.00% interest on your balance with no monthly fees and one of the best exchange rates in the Canadian banking market. You can transfer USD to USD around the world with their inexpensive international money transfers and save on currency exchanges by making purchases in USD when you need.
Who’s it for: Canadians looking for a no-fee USD account that allows them to earn interest.
EQ Bank GICs
On the investment products side of things, EQ Bank GIC Rates are some of the best in Canada.
Right now, you can get a 1-year GIC with a 5.05% return. If you're already banking with them, that's a pretty sweet "guaranteed investment." Now, if you want to earn that money tax-fee, you'll need to use EQ Bank's TFSA or RRSP account—where the GIC will earn 5.05%. You can get started with as little as $100.
Who’s it for: Canadians looking for registered and non-registered GICs with high rates and terms ranging from 3 months to 5 years.
FHSA savings account
If you're looking to buy a house, a first home savings account can help. Unfortunately, EQ Bank only gives you 3.00% on your money held with their FHSA whereas BMO, CIBC, and Scotiabank are giving you 5%. Now, you can use a GIC inside your FHSA so you can use the EQ Bank's GIC at 5.05% for that, but you can't continue investing when you open a GIC. The best way to use EQ Bank's FHSA is to contribute the maximum amount of $8,000 at the start of the year with a 9-month GIC, while you keep saving your next $8,000 to deposit the next year.
Who’s it for: Canadians looking to save for their first home in stages to maximize the earning potential of balancing a GIC inside their FHSA.
EQ Bank RRSP account
Much like the TFSA, EQ Bank's RRSP account gives you 3.00% interest, but you can do much better with a roboadvisor. An RRSP is a registered retirement savings plan, so you shouldn't touch it until you retire. A roboadvisor like Moka invests into the S&P 500 which has typically returned over 10%—your retirement is looking better already.
Who’s it for: Canadians later on in life looking for a low-risk way to invest for their retirement.
EQ Notice Savings Account
The Notice Savings Account offers Canadians a unique way of banking that rewards them with higher interest rates for planning ahead. Account holders will choose to lock away their funds and agree to a withdrawal notice period of either 10 or 30 days. Each time period comes with its own interest rate (4.5% and 5%, respectively) that will be earned on the locked-in funds. When you have a plan for the funds, you can give notice for a withdrawal and the money will then be available in either 10 or 30 days, depending on which option you chose. Like other EQ Bank accounts, this is a no-fee account.
Who’s it for: Canadians who are able to plan out their withdrawals in return for maximizing earned interest.
EQ Bank customer service
Wise Publishing's own VP of Marketing, Kris Bruyson is an EQ bank customer and would say that EQ Bank has "the best customer service."
Well, we put it to the test.
EQ web and app insights
As an online bank, you will be using the EQs website and/or app for all of your banking needs. From a user standpoint, I find both interfaces are easy to use and the app also has extra security features built in, such as two-factor authentication. Navigation and transferring funds is quick and easy since everything is clear and streamlined. That being said, like with all apps and websites, there are occasional updates which can be incredibly frustrating when trying to transfer funds - especially when it usually takes five business days to transfer funds from another financial institution at the best of times.
The EQ Bank app has nearly 35,000 reviews on Apple App store and an overall rating of 4.8 stars out of 5. It has nearly 8,000 reviews on Google Play and a rating of 3.1 stars out of 5.
How does EQ Bank compare?
When compared to other high-interest savings accounts, EQ Bank with 4.00% savings rate wins hands down on bank rates. Tangerine Savings is currently paying 0.60% by comparison. Though KOHO has 5% interest on money held in their account, it's not a bank.
EQ Bank GIC rates
EQ Bank doesn’t offer a chequing account. However, the lack of a chequing account (which usually has dismal interest rates anyway) is no great loss given that EQ Personal Account functions as a hybrid chequing and savings account: you can make Interac® e-Transfers, pay bills, and transfer money immediately and still get an excellent interest rate.
Another account worth comparing to EQ Personal Account is Wealthsimple Save – a hybrid account for saving and spending that offers a 4% interest rate (or more if you have money invested with them). There are no fees, and you’ll get the benefit of a saving and spending account rolled into one. Soon you’ll be able to pay your bills, set up a direct deposit for your paycheque, and send free Interac e-Transfers®. Wealthsimple’s interest rate is not as high as EQ Bank’s and does not offer GICs – a solid saving tool for those looking to park their money safely in a high-interest investment vehicle.
Additionally, even though EQ Bank has TFSA, RSP, and joint accounts, you have other options with opening a TFSA or RRSP account with a robo advisor like Wealthsimple, or an online brokerage like Questrade.
EQ Bank now offers several products, so it’s worth comparing with the competition to see if they offer the best option for you. That being said, here are a few things to keep in mind.
- EQ Bank rates are standard, not promotional. So, while you may find higher rates elsewhere, they tend to be temporary. Make sure to compare EQ Bank’s interest rates with the standard, not promotional, rate of the competition.
- EQ Bank waives most fees that other traditional banks charge.
- Many EQ Bank products earn interest- this includes the personal bank account, EQ bank card, and USD account. Many other financial institutions do not offer interest-earning abilities on these products.
- EQ Bank does not offer the same investment options for RRSP and TFSA accounts. The earned interest rate is quite low and chances are you can do better with a robo-advisor, such as Wealthsimple or an online brokerage like Questrade.
*As of June 13th, 2024
When it comes to getting the highest GIC interest rates in Canada, EQ Bank is certainly at the top, but it does have competitors like Oaken Financial.
They also each have appealing interest rates. For example, Oaken Financial offers 5.35% for a 1-year non-registered GIC compared to 5.05% registered GIC with EQ Bank. And Oaken requires a minimum investment of $1,000 for its GICs (as compared to EQ Bank’s $100). This means EQ Bank comes out ahead on both points if you want consistently high-interest rates and no fees for both your non-registered/registered savings and GIC accounts.
What's the best part of EQ Bank?
The best part about EQ Bank is that when they say no fees, they really mean no fees. That means no monthly or annual account fees, no e-transfer fees, no dormant account fees etc. Plus, for me as a digital nomad who spends several months a year travelling, this really adds up when it comes to using my EQ Bank card abroad, since the card waives foreign transaction fees.
What's the worst part?
Some users may be put off by the lack of face-to-face interaction. As an online bank, you cannot get in-person support and need to rely on online chats or phone calls. For me, the most frustrating thing about EQ Bank is that it takes at least five business days to transfer funds from another financial institution. As mentioned above, I travel a lot so I am frequently transferring money between accounts to minimize fees. Five days can be a long time to wait to have access to my money.
How much does it cost?
One of the biggest draws of EQ bank is that there are no fees and Canadians can have access to free bank accounts and other financial products. Typical expenses, like monthly or annual fees, fees for e-transfers, dormant account fees etc. don't exist. Of course, always read the fine print of any financial product to fully understand the terms and conditions.
Bottom line: How good is EQ Bank?
I’ve been a fan of EQ Bank for several years now, however, like with every other financial institution, not every product is good for everyone. In terms of HISAs, GICs, the everyday banking account and EQ Bank Card, I think EQ Bank is a great pick with competitive rates and advantages. However, when it comes to investment products like an RRSP and TFSA, there are much more lucrative options on that market that can help you earn more.
EQ Bank FAQs
Start saving with EQ Bank* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
EQ Bank GICs: Rates are calculated on a per annum basis and are subject to change at any time.
Hannah Logan is a Canadian freelancer writer and blogger who specializes in personal finance and travel. You can follow her adventures on her travel blog EatSleepBreatheTravel.com or find her on Instagram @hannahlogan21.
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