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Table of contents
What counts as an online bank in Canada
What to compare when choosing an online bank
Online banks and financial institutions in Canada
Other online financial institutions in Canada
Benefits and drawbacks of online financial institutions
How to switch banks without missing a bill
Have questions about switching to an online bank
Frequently asked questions about online banks in Canada
What counts as an online bank in Canada
What to compare when choosing an online bank
Online banks and financial institutions in Canada
Other online financial institutions in Canada
Benefits and drawbacks of online financial institutions
How to switch banks without missing a bill
Have questions about switching to an online bank
Frequently asked questions about online banks in Canada
At this point, a vast majority of our daily lives are carried out digitally. We find dates on apps, order food through delivery services, shop for vintage handbags and leather jackets on the internet — and more people are choosing to do their daily banking that way, too.
To help you consider which online bank might be right for you, we've rounded up a list (in alphabetical order) of Canada's online-only banks and financial institutions with chequing and spending accounts. We'll also explain what "online bank" actually means, what to compare, and how to switch without accidentally missing a bill.
All statistics are verified as of March 2026. We're not going to say which one is the best for your needs — that's for you to determine — but we've tried to make it easier for you to make an informed decision.
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What counts as an online bank in Canada
An online bank in Canada is a financial institution that operates primarily through digital platforms without physical branches. In Canada, 'online bank' usually refers to one of two models:
Schedule I banks: These are federally regulated banks that operate without branches (for example, Tangerine or EQ Bank). They have their own Canada Deposit Insurance Corporation (CDIC) deposit insurance, similar to the large banks.
Schedule I banks: These are federally regulated banks that operate without branches (for example, Tangerine or EQ Bank). They have their own Canada Deposit Insurance Corporation (CDIC) deposit insurance, similar to the large banks.
Fintech companies: These platforms partner with regulated banks to hold your money. You get the same deposit protection, but the company focuses on building better digital tools and lower fees.
Fintech companies: These platforms partner with regulated banks to hold your money. You get the same deposit protection, but the company focuses on building better digital tools and lower fees.
Both can handle your daily money — the plumbing underneath is just slightly different.
What to compare when choosing an online bank
When comparing online banks, focus on these key factors:
Fees: One common reason people choose online banking is to reduce or avoid monthly fees. If an account charges one, check if the perks (like cash-back) actually outweigh the cost.
Fees: One common reason people choose online banking is to reduce or avoid monthly fees. If an account charges one, check if the perks (like cash-back) actually outweigh the cost.
Interest rates: Look for competitive interest on everyday balances, not only money locked into investments like a guaranteed investment certificate (GIC).
Interest rates: Look for competitive interest on everyday balances, not only money locked into investments like a guaranteed investment certificate (GIC).
ATM access: Most online banks belong to an ATM network (for example, The Exchange Network) that lets you withdraw cash at no charge.
ATM access: Most online banks belong to an ATM network (for example, The Exchange Network) that lets you withdraw cash at no charge.
Features: Do not assume every account includes a chequebook, bank drafts, or unlimited Interac e-Transfer (a Canadian email money transfer service) transactions. If you need those, check the fine print.
Features: Do not assume every account includes a chequebook, bank drafts, or unlimited Interac e-Transfer (a Canadian email money transfer service) transactions. If you need those, check the fine print.
Safety: Ensure your deposits are eligible for coverage through the Canadian Deposit Insurance Corporation (CDIC), either directly or through a partner bank.
Safety: Ensure your deposits are eligible for coverage through the Canadian Deposit Insurance Corporation (CDIC), either directly or through a partner bank.
Online banks and financial institutions in Canada
The chart shows typical (non-promotional) rates and features, which may change over time:
Bank | Account types offered | Student/ youth accounts | Monthly fees | Minimum account balance | Base interest rate, savings | Investments EQ Bank | Hybrid chequing and savings account, standalone savings accounts | No | None | None | 1% (on hybrid chequing/ savings account) | GICs Koho | Hybrid chequing and savings accounts (three tiers) | No | Free for Essential tier if you set up direct deposit, $12/month for Extra tier, $14.75/month for Everything tier | None | 2% for Essential, 2.5% for Extra, 3.5% for Everything | None Manulife Bank | Hybrid chequing and savings account, standalone savings account, and US dollar (USD) savings account | No | None | None | 1.5% | GICs Neo Financial | Chequing and savings accounts | Yes | No | None | 2.25% for High Yield Savings Account | ETFs Simplii | Separate chequing and savings accounts, plus USD savings account, newcomer, and student accounts | Yes | None | None | 0.30% for savings accounts with balances of $50,000 or less | GICs, mutual funds Tangerine | Chequing and five types of savings accounts | No | None | None | 0.30% for Savings Account | GICs, ETFs, mutual funds Wealth One | Savings account | No | None | None | 2.60% for High Interest Savings Account | GICs, stocks, mutual funds, bonds Wealthsimple | Hybrid chequing and savings account | No | None | None | 1.25% minimum for Core clients | Index funds, ETFs, stocks, bonds, options, crypto
Other online financial institutions in Canada
As online banks have grown, so have alternative financial institutions that offer savings and investment accounts without actually being a bank. Here are the main benefits and drawbacks:
Specialised focus: They concentrate on specific needs (for example, investing) and may offer tailored services with lower fees.
Specialised focus: They concentrate on specific needs (for example, investing) and may offer tailored services with lower fees.
Innovative products: Many offer hybrid chequing/savings accounts that combine everyday banking with interest on balances.
Innovative products: Many offer hybrid chequing/savings accounts that combine everyday banking with interest on balances.
Lower barriers: They may make it easier to start saving or investing without large minimum balances or complex requirements.
Lower barriers: They may make it easier to start saving or investing without large minimum balances or complex requirements.
Benefits and drawbacks of online financial institutions
While many users value the history and ability to actually walk into a brick-and-mortar bank, online banks have become increasingly popular because of the convenience they offer. Here are the main benefits and drawbacks:
Benefits of online financial institutions
Low to no fees: most online banks don't charge monthly account maintenance fees or require minimum balances to avoid them, unlike traditional banks.
Low to no fees: most online banks don't charge monthly account maintenance fees or require minimum balances to avoid them, unlike traditional banks.
Lower overhead costs: without physical branches, tellers, or security staff, online banks save money and pass those savings to customers.
Lower overhead costs: without physical branches, tellers, or security staff, online banks save money and pass those savings to customers.
Higher interest rates: online institutions typically offer 1.5% to 3.75% on savings, compared to 1% to 2% at traditional banks. Just check if it's a promotional rate that expires.
Higher interest rates: online institutions typically offer 1.5% to 3.75% on savings, compared to 1% to 2% at traditional banks. Just check if it's a promotional rate that expires.
Drawbacks of online financial institutions
Less flexibility for special requests: unusual transactions or edge cases are harder to resolve without in-person support.
Less flexibility for special requests: unusual transactions or edge cases are harder to resolve without in-person support.
No personal relationships: you won't have a familiar teller who might let the occasional overdraft fee slide or expedite a loan application.
No personal relationships: you won't have a familiar teller who might let the occasional overdraft fee slide or expedite a loan application.
Fewer services: most online banks focus on chequing accounts and savings, while traditional banks offer comprehensive retirement planning, mortgages, and investment advice under one roof.
Fewer services: most online banks focus on chequing accounts and savings, while traditional banks offer comprehensive retirement planning, mortgages, and investment advice under one roof.
How to switch banks without missing a bill
One common reason people delay switching from a high-fee bank is the perceived hassle of moving payments and deposits. A simple way to approach it is to follow this five-step checklist.
Open the new account: This usually takes about five minutes on your phone.
Open the new account: This usually takes about five minutes on your phone.
List your automatic payments: Review your last three months of statements and note every pre-authorised debit (for example, streaming, gym, electricity) and direct deposit (for example, payroll, Canada Revenue Agency (CRA) payments).
List your automatic payments: Review your last three months of statements and note every pre-authorised debit (for example, streaming, gym, electricity) and direct deposit (for example, payroll, Canada Revenue Agency (CRA) payments).
Move your payroll: Give your employer your new direct deposit form. This is the most important step.
Move your payroll: Give your employer your new direct deposit form. This is the most important step.
Switch the bills: Log in to your subscription services and update your payment information. For utilities, set up the new pre-authorised debits.
Switch the bills: Log in to your subscription services and update your payment information. For utilities, set up the new pre-authorised debits.
Close the old account: Once everything has cleared and your pay is being deposited into the new account, transfer the remaining balance. Leave a small buffer for 1 month in case a forgotten bill tries to go through.
Close the old account: Once everything has cleared and your pay is being deposited into the new account,
transfer the remaining balance. Leave a small buffer for 1 month in case a forgotten bill tries to go through.
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Have questions about switching to an online bank
If you decide to make an online bank your primary account, here are common features to look for:
Spending (cash) account: look for a competitive interest rate, optional rewards (if offered), and no monthly fees.
Spending (cash) account: look for a competitive interest rate, optional rewards (if offered), and no monthly fees.
Investment transfers: check whether the institution offers transfer support and whether it reimburses transfer-out fees (often subject to minimum transfer amounts).
Investment transfers: check whether the institution offers transfer support and whether it reimburses transfer-out fees (often subject to minimum transfer amounts).
If you're ready to switch, compare a few options and follow the checklist above to move your deposits and payments.
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Frequently asked questions about online banks in Canada
Are online banks safe?
Yes, legitimate online banks use bank-level encryption and offer CDIC coverage that insures eligible deposits up to $100,000. Fintechs provide this protection through partner banks, so your money is as safe as it would be at a traditional bank.
Can I open a bank account online instantly?
Yes, most online banks let you verify your identity by taking a photo of your driver's licence or passport in the app. It takes a few minutes and requires no branch visit.
How do I deposit cash with an online bank?
Some online banks accept cash deposits through specific ATMs or through third-parties like Canada Post, but some don't accept cash at all.