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Best Debit Card in Canada

Comparing the Best Debit Cards in Canada

Cameron Smonk

By Cameron Smonk

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Updated: September 26, 2024

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Ah, the humble debit card. Probably the first piece of plastic that entered your wallet, and a staple of your lineup today. Sure, if you’re like me you’re more inclined to reach for your point-collecting credit card these days, but when it comes to withdrawing cash, shopping at your local convenience store or dodging debt, your debit is where it’s at.

But, debit cards have changed a heck of a lot over the years, and their value varies considerably. In fact, many “debit” cards are really just pre-paid credit cards, combining the best of both worlds and really levelling up the debit game. But that leaves a question: What’s the best debit card on the market for you?

Best debit card

Wealthsimple Cash card

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Poor

Suggested credit score

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Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn at least 4% on your account balance

4%

Get 1% cash back on all purchases

1%

There are no foreign exchange fees

0%

Annual Fee

$0

Foreign Transaction Fee

0%

It’s the opinion of this reviewer that it’s never worth paying fees for a chequing account, especially if the interest you earn is sub 1%. So, when it comes to picking the best no-fee card with high interest and a variety of perks, my vote is for the Wealthsimple Cash Account.

The account has no fees, a 4% interest rate with no minimum deposit, a card that waives ATM fees from any institution and no FX fees for crying out loud! And you can earn cash back that you can optionally have reinvested in your Wealthsimple investing account or as crypto currency. Neat! You do have to be wary of usage limits ($5000 spending, $3000 ATM withdrawal), but having never approached them myself, I’d just say be wary.

Pros

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

Cons

  • No insurance

  • Relatively low spending and transaction limits

Best Canadian debit card for international travel

EQ Bank Card

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3.0

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Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Cash back on purchases

0.5%

Interest on your balance

2.25%

Annual Fee

$0

Foreign Transaction Fee

0%

I could put Wealthsimple here again, but for sake of variation I’ll give a shoutout to EQ’s Bank Card. Another pre-paid credit card dressed up as a debit, the EQ card waives FX fees (up to 2.5%),just like the Wealthsimple card, making it equally tempting to travel with. 

Though the EQ Bank Card does waive FX fees, you will pay ATM fees to withdraw money when travelling abroad. If you are taking money out in Canada, however, that fee is also waived.

↳ Read our EQ Bank review.

Pros

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Best debit card for cash back

Neo Money Card

3.0

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Pros

  • No account fee

  • Competitive cash back rates with high balance in Neo Everyday account

  • Cash back potential with Neo partners

  • Tiered cash back system

Cons

  • Low cashback rates when low balance in Neo Everyday account

  • Foreign transaction fee

  • Low interest rate earnings on account balance (0.1%)

  • ATM withdrawals are charged like a cash advance

Eligibility

Recommended Credit Score

Good

Pros

  • No account fee

  • Competitive cash back rates with high balance in Neo Everyday account

  • Cash back potential with Neo partners

  • Tiered cash back system

Cons

  • Low cashback rates when low balance in Neo Everyday account

  • Foreign transaction fee

  • Low interest rate earnings on account balance (0.1%)

  • ATM withdrawals are charged like a cash advance

Eligibility

Recommended Credit Score

Good

Up to 3% cashback on gas and grocery

3%

everywhere else

1%

Earn up to $460 in cashback annually

$460

Annual Fee

$0

If you’re chasing cashback – consider a credit card. But if you insist on debit (or at least prepaid), Neo probably has the most compelling offer. They have a tiered earning system which levels up your cashback according to how much money you keep in your Neo financial account. 

Starting with $0? You get 1% back on gas and groceries and that’s it. Keep $10k plus in cash in your bank account? Now you’re looking at 3% back on gas and groceries plus 1% back on everything else.

↳ Read our best credit cards for gas and our best credit cards for groceries.

Pros

Pros

  • No account fee

  • Competitive cash back rates with high balance in Neo Everyday account

  • Cash back potential with Neo partners

  • Tiered cash back system

Cons

Cons

  • Low cashback rates when low balance in Neo Everyday account

  • Foreign transaction fee

  • Low interest rate earnings on account balance (0.1%)

  • ATM withdrawals are charged like a cash advance

Best bank debit card

BMO logo

Never in my life did I think I’d be recommending a debit card and associated chequing account that costs neary $20 per month – but I’m about to (with reservations). The BMO Performance Chequing Account card is pretty awesome: unlimited transactions, $40 credit card fee rebate, great signup bonus, family bundling – the list goes on.

Still, I would never, ever, EVER pay a bank for a chequing account…and BMO Premium lets you do that. If you maintain a balance of $4000 you can have all the associated perks, plus the wide ATM network of a Big 6 Bank without a fee. Not bad – as long as you can maintain that balance.

Pros

Pros

  • No monthly fee with a $4,000 balance

  • Wide ATM network across Canada

  • Unlimited transactions

Cons

Cons

  • Wildly high $17.85 monthly fee without minimum balance

Best debit card from a bank that’s not the big six

Tangerine bank logo

Tangerine may not have the flashiest debit product, but they have one t that’s simple, useful and free. And hell – it’s the one I use! Because I spend almost exclusively with credit cards, I don’t need a flashy debit card, and Tangerine’s has very little flash indeed.

It’s a no-fee, low-interest chequing card and due to its parentage (Scotiabank), it can be used to withdraw within their massive ATM network in Canada for free. You’ll be charged to use it at other ATMs in Canada ($1.50) and abroad ($3).

Pros

Pros

  • No fee banking

  • Big ATM network with free withdrawals

Cons

Cons

  • Not a ton of perks

  • Low interest chequing (0.10%)

Best debit card for students

TD Bank logo

I think if a bank offered me beer money for the month to open a no-fee account I would have leapt for it. And, while there’s a few half-decent offers kicking around out there, the TD Student Chequing Account debit card is probably the best.

For signing up, you get a $125 bonus, plus no fees until you turn 23. There’s unlimited transactions, no transfer fees, no BS of any kind. Simple, straightforward, big TD ATM network and the aforementioned beer money bonus. Kinda makes me wish I was 20 again!

Pros

Pros

  • Generous sign up bonus

  • Big ATM network

  • No fees

Cons

Cons

  • For a student card? None.

Best debit card for no fees

Simplii Financial™ Debit Mastercard®

2.5

Good

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Pros

  • No fees

  • Large welcome bonus

  • Big ATM Network

Cons

  • Lacks perks of the prepaid cash cards

Eligibility

Recommended Credit Score

Good

Pros

  • No fees

  • Large welcome bonus

  • Big ATM Network

Cons

  • Lacks perks of the prepaid cash cards

Eligibility

Recommended Credit Score

Good

Since I consider “no fees” the defacto baseline for a good debit card, I’d probably once again recommend Wealthsimple here. But, if you need a proper debit card without the weirdness of a prepaid credit card, Simplii offers a compelling product.

Simplii’s no fee card comes with a lovely $500 bonus for new clients who maintain an eligible direct deposit of at least $100 for three months (e.g. your paycheque, government benefits and dividends) and the card can withdraw money for free from any CIBC ATM. There’s no minimum balance needed either. 

↳ Read our Simplii Financial review.

Pros

Pros

  • No fees

  • Large welcome bonus

  • Big ATM Network

Cons

Cons

  • Lacks perks of the prepaid cash cards

Best debit card rewards program

This is a tough one. The simple 0.5% cashback you get with Wealthsimple that can be immediately reinvested is a pretty sweet reward. But, if you really want to play the game (and don’t mind maintaining a large liquid cash pool in your chequing account), I think the Neo card wins this category by a hair.

Neo customers who maintain a $10,000 balance are eligible for a whopping 3% cashback on gas and groceries, not to mention 1% back on everything else. If you’re dedicated to making the most of a rewards program, I think Neo could be your best bet.

Pros

Pros

  • Tiered reward system

  • High cash back at the upper levels of account balance

Cons

Cons

  • Need to maintain $10k balance to make the most of the rewards

Open a Neo account

Why it’s important to compare debit cards

Debit cards (and the chequing accounts they come attached to) are one of the great scams left in banking in that you really should never have to pay any sort of fee at all to use your chequing account. Banks make all the money they need to (and more) by investing your deposits or lending them to other customers. They charge fees as a victory lap.. Yet so many people are still using a debit card they pay monthly for without a perk in sight.

By comparing cards, you quickly see that there are tons of options that not only do you not pay for, but they’re willing to reward you just for using them. There are plenty of options out there depending on your needs, so make sure you’re getting one that’s right for you and your banking and spending habits.

How to pick the best debit card for you

The best debit card for you comes down to three things:

1. Is it fee-less? If yes proceed.

2. Does it reward you for using it, or have associated chequing/saving perks? Please, go on.

3. Does it meet your banking needs? This includes things like withdrawal limits and access to ATM networks.

If the card you're considering meets all three above qualifiers, it’s the right card for you.

  • What is the best debit card?

    +

    The best debit card may not be a debit card at all, but a prepaid credit card. The prepaid credit cards offered by Wealthsimple and EQ are both compelling options.

  • What is the best prepaid debit card?

    +

    Technically, it’s a prepaid credit card that acts like a debit card, and saves like a savings account – but it’s the Wealthsimple cash card.

  • Which bank debit card is best?

    +

    The Tangerine or Simplii debit cards are both solid, no-fee cards that let you withdraw from their parent bank ATMs (Scotia and CIBC respectively).

  • Which bank has no monthly fees in Canada?

    +

    Most banks offer no-fee options for chequing, including TD, Tangerine, Simplii and more, but you likely have to maintain a minimum balance. Wealthsimple, EQ and Neo charge no monthly fees.

  • Is it better to use a debit or credit card in Canada?

    +

    If you really want to avoid debt, use a debit card. But if you can manage it, credit cards offer better rewards every time – just make sure to pay them off monthly.

Cameron Smonk Freelance Writer

Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.

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