EQ Bank is a Canadian online bank that offers a high-interest savings account and one of the best savings interest rates available today.
If you are tired of earning rock-bottom interest rates at the big banks, EQ Bank makes a difference with non-promotional high savings rates.
I have used this bank for years for my CAD and USD emergency fund savings and have had a positive experience.
EQ Bank Accounts Summary
EQ Bank Overview
-
Account fees
-
Financial products
-
Savings rate
-
Ways to bank
Overall
Summary
EQ Bank’s Personal Account offers one of the best non-promotional savings rates in Canada. With its hybrid features including unlimited debit transactions and a Mastercard for online and in-store purchases, you can save on chequing fees at your traditional bank. If looking for a short-term investment product, EQ Bank offers GICs of various terms and competitive interest rates.
My EQ Bank review covers all you need to know about the bank, including why I believe it is safe and legit.
Pros
- Free bank bank account with unlimited transactions
- Earn high interest rates on savings and GICs
- No minimum balance requirement
- Available throughout Canada
- Offers CDIC deposit insurance
- Prepaid card offers cash back and free ATM withdrawals in Canada
- Offers international money transfers
Cons
- Some products are not available in Quebec
- No in person support
EQ Bank Accounts and Products
EQ Bank offers several accounts (registered and non-registered) that customers can use to earn better-than-average interest rates on their cash deposits.
They are:
1. EQ Bank Personal Account
This is the high-interest savings account offered by EQ Bank, with a current interest offer of up to 4.00%*.
EQ Bank’s interest rate of 4.00%* significantly beats rates on savings accounts offered by the big banks and also easily ranks as one of the highest savings interest rates among their online-only banking competitors.
Some great features of the EQ Personal Account:
- High-Interest Rates: Currently 4.00%* (if you set up a direct payroll deposit; otherwise, 2.25%). Interest is calculated daily and paid out monthly.
- Zero Minimum Balance
- Zero Monthly Fees
- Unlimited Free Interac e-Transfers®
- Unlimited Bill Payments
- Free Electronic Funds Transfer
- Free and Unlimited Day-to-Day Transactions
- Free EQ Bank Card (prepaid Mastercard)
- 10 Free Linked Accounts
- Free Mobile Cheque Deposits
- Mobile Banking App
- Customer Service that is available 7 days a week (8am – midnight EST)
- Cheap international money transfers
A major feature I like about EQ Bank’s personal account is its versatility. Although they do not offer a chequing account, you can use their savings accounts in many similar ways.
And the new EQ Bank Card converts this savings account into an excellent spending account with free ATM withdrawals, no FX fees, and 0.50% unlimited cash back on purchases.
From my experience, you can easily pay bills, transfer money between accounts at different banks, set up recurring or pre-authorized debits, deposit cheques, use electronic fund transfers, etc.
EQ Bank also offers joint savings accounts you can co-own with a spouse or friend.
2. EQ Bank Notice Savings Account
You can now earn a much higher interest rate of up to 4.25% on your savings deposit by opening the EQ Bank Notice Savings Account.
This account requires a 10-day or 30-day notice when you make a withdrawal and offers higher rates in exchange. Compared to GICs, the notice period is much shorter, and there is no minimum balance.
Top features include:
- 4.00% interest rate for the 10-Day Notice account
- 4.25% interest rate for the 30-Day Notice account
- No monthly fees
- CDIC deposit insurance eligibility
- You can open both accounts
Here’s a detailed EQ Bank Notice Savings Account review with more details.
3. EQ Bank TFSA Savings Account
EQ Bank’s TFSA account offers one of the best interest rates on TFSAs in Canada. Interest earned on your TFSA is tax-free for life, and you can withdraw at any time without penalties.
For 2024, the TFSA contribution limit is $7,000.
Benefits of an EQ Bank TFSA include:
- High-interest rate of 2.75%*
- Zero account fees
- No minimum account balance
- CDIC protection up to $100,000
- Easy online sign-up
- Free withdrawals and tax-free returns
- It supports recurring automatic contributions
If you have been eligible to contribute to a TFSA since its launch in 2009, your total contribution room in 2024 is $95,000.
EQ Bank also offers TFSA GICs, which are discussed in detail below.
4. EQ Bank Non-Registered GICs
EQ Bank GICs are available in both registered and non-registered accounts.
A Guaranteed Investment Certificate (GIC) is similar to a savings account and offers you a fixed percentage of interest that is paid on pre-determined dates.
One of the main differences between a savings account and a typical GIC is that for a GIC, you may not be able to withdraw your funds until maturity.
GICs are a great way to save towards short-term goals since they come with very low risk and offer guaranteed returns. You may also earn a bit more than when you just park your money in a savings account.
EQ Bank GIC rates are very competitive and beat what is currently offered by many of the competition. Here are their current GIC offers:
- 3 months: 3.75%
- 6 months: 4.10%
- 9 months: 4.15%
- 1 year: 4.30%
- 2 years: 4.10%
- 3 years: 3.95%
- 4 years: 3.85%
- 5 years: 3.85%
Some of the perks offered by EQ Bank’s GICs include the following:
- Competitive High-Interest Rates
- No-Fee Banking
- A Versatile Mobile Banking App
- Real-Time Updates and a Contact Center that is available 7 days a week (8 am-midnight EST)
5. EQ Bank TFSA and RSP GICs
You can choose to hold GICs in your RSP and TFSA accounts instead of cash. EQ Bank’s TFSA and RSP GIC rates are:
- 3 months: 3.75%
- 6 months: 4.10%
- 9 months: 4.15%
- 1 year: 4.30%
- 2 years: 4.10%
- 3 years: 3.95%
- 4 years: 3.85%
- 5 years: 3.85%
6. EQ Bank Retirement Savings Plans
EQ Bank’s Retirement Savings Plans (RSPs) are great if you are looking for a low-risk place to park some retirement savings.
Similar to an RRSP, taxes are deferred on your account until you start making withdrawals. You also get tax deductions for contributions you make to your RSP.
Your RRSP contribution room is determined by your earned income and any unused contributions you have carried forward from previous years.
The annual RRSP contribution limit for 2024 is 18% of your income, up to $31,560.
Some of the great features of an EQ Bank RSP Savings Account are:
- High-interest rate of 2.75%*
- Zero monthly account fees
- No minimum balance requirement
- CDIC protection up to $100,000
- Easy online sign-up and access to a versatile mobile app
- Supports recurring contributions
7. EQ Bank Joint Account
EQ Bank has a joint savings account that allows you to team up with up to 3 other people.
This option is great for those who want to track and manage their finances with a friend, partner, spouse, or roommate while earning high-interest rates.
Your joint account enjoys the same benefits and features as the individual savings account, including up to a 4.00% interest rate, free and unlimited bill payments, Interac e-Transfers, and electronic fund transfers.
In addition, you can have up to a $500,000 maximum balance per customer.
8. EQ Bank US Dollar Account
You can earn a high-interest rate on your USD funds through the EQ Bank US Dollar Account.
Like its other offerings, this account has no monthly fees. It pays 2.75% interest on every dollar, and you can use it in conjunction with Wise to send cheap international money transfers.
The USD account can be used to transfer funds between Canadian bank accounts (both USD and CAD).
Fund transfers between the EQ Bank US Dollar Account and a US dollar account held abroad are also possible using the Wise service.
Learn more about what the US account offers in this detailed review.
9. EQ Bank First Home Savings Account (FHSA)
EQ Bank now offers the new FHSA registered account. You can use it to save money tax-free toward a home purchase using savings or GICs.
Learn more here.
How To Open an EQ Bank Personal Account
To open an account, you must be a Canadian resident, meet the minimum age of the majority in your province (at least 18 or 19), and have a Social Insurance Number (SIN).
You will need to provide a government-issued ID such as a driver’s license, passport, or permanent resident card.
If your government-issued photo ID does not show your current address, proof of address documents such as a recent utility bill, income tax assessment, or Canada Child Benefit statement may be required.
EQ Bank conducts a “soft” credit check during the sign-up process. This check does not affect your credit score.
Signing up for an account with EQ Bank is pretty easy, and you should be ready to start saving within a few minutes.
After opening your account, you can request an EQ Bank Card and enjoy free ATM withdrawals and 0.50% cash back on all purchases.
EQ Bank savings and GIC accounts are now available to residents of Quebec.
Is EQ Bank Safe?
Is EQ Bank safe for your money?
EQ Bank is a trademark of Equitable Bank. Equitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC), which means your funds are eligible for deposit insurance, subject to maximum coverage limitations.
This coverage is generally up to $100,000 per insured category and per depositor.
CDIC insures GICs as well as long as they do not exceed a maturity term of 5 years. This coverage also extends to TFSA and RSP accounts.
The bank also uses 2-factor authentication to protect your account information.
Pros and Cons of EQ Bank
Pros
Free online bank account with unlimited transactions
Pays high interest rates on savings and GICs
CDIC deposit guarantee
Owned by a Tier 1 Canadian bank
Now in Quebec
Prepaid card offers cash back
Excellent customer service
No minimum balance is required
Cons
Prepaid card is not available in Quebec
No physical branches for in-person support
EQ Bank Overview
EQ Bank is a trademark of Equitable Bank, a federally regulated Schedule I bank with over 1,000 employees and $63 billion in assets under management. Equitable Bank was founded in 1970.
As an online-only bank, EQ Bank has no brick-and-mortar locations, resulting in lower operating costs. These savings translate into the high interest rates and no-monthly-fee accounts they can offer their customers.
EQ Bank has more than $7 billion in deposits.
EQ Bank vs. Tangerine vs Other Banks – Rates Comparison
When Canadians decide to bank with a digital bank, it is usually because they seek higher returns on their savings and/or they are fed up with paying ever-increasing chequing account fees.
Here’s a quick look at some of the best regular savings rates being offered by big banks and online-only banks as of September 2024:
- EQ Bank: Up to 4.25%*
- Neo Financial: 4.00%
- Tangerine Bank: 0.70%
- Wealthsimple Save: 1.50%
- ICICI Bank: 1.00%
- Simplii Financial: 0.40% to 5.5% (6.25% promotional rate – see below)
- RBC: 1.70%
- Scotiabank: 1.40%
- CIBC: 1.90%
- TD: 0.05%
For short-term promotional rates, you can get higher rates for 5 months from Simplii as follows:
Simplii High-Interest Savings Account
6.25%* rate for 5 months
Unlimited debits and bill payments
Unlimited Interac e-Transfers
$500 cash bonus offer with a free chequing account
EQ Bank and Wise (Formerly TransferWise)
EQ Bank recently partnered with Wise so it could offer its customers access to cheaper international money transfer options.
Canadians lose billions of dollars annually in fees they pay to transfer money abroad. Using your EQ Bank Personal Account, you can now easily send money in 17 currencies to 46+ countries for less.
The real (mid-market) exchange rate is used, and the small upfront fee you pay to Wise is often up to 8 times cheaper than what you would pay to the big banks.
You can transfer up to $9,500 every 24 hours using EQ Bank and TransferWise.
What About Your Other Banking Needs?
There are other reasons why you use a bank. For example, you may want to open a mutual fund account or trade stocks and ETFs. As such, EQ Bank is not a replacement for all your traditional banking needs.
The idea is to ensure your money is always working for you and that you can maximize your returns. EQ Bank is a great option for competitive savings and GIC interest rates for registered and non-registered accounts.
Saving up an emergency fund? Saving for a home down payment, wedding, or vacation? Want to invest the conservative portion of your investment portfolio in a GIC while getting the best returns possible? These are all scenarios where an EQ Bank account could serve you well.
Conclusion
Depending on your banking needs, banking with EQ Bank has its downsides. These downsides include a lack of access to a brick-and-mortar location if you are old school and a lack of a debit card.
None of these should concern you if you plan to use EQ Bank mainly for your general, TFSA, or RRSP savings. With the EQ Bank Personal Account, you get unlimited free transactions, and bill payments and this feature can help you save on banking fees.
EQ Bank Canada FAQs
EQ Bank is owned by Equitable Bank, a federally regulated Schedule I Bank with over 1,000 employees and over $63 billion in total assets under management. Equitable Bank is a wholly-owned subsidiary of Equitable Group and is listed on the Toronto Stock Exchange as EQB.
Yes, EQ Bank has a TFSA savings account that holds both cash and GICs.
You can apply for a mortgage via the EQ Bank mortgage marketplace and get fixed and variable-rate mortgages at competitive rates.
EQ Bank’s cashback bonus promotion is no longer available. That said, you could get a $20 bonus when you sign up using a valid personal EQ Bank promotional referral link and make the required deposits.
EQ Bank now offers a prepaid Mastercard that works like a debit card. The EQ Bank Card has no monthly fees, and it waives ATM and FX fees.
No, EQ Bank does not offer a credit card.
No, EQ Bank does not offer bank drafts.
While you can deposit cheques to your EQ Bank personal account using the mobile app, EQ Bank does not offer its own cheques.
You cannot open a business savings or investment account with EQ Bank.
Yes, EQ Bank has an app that makes your online banking easy on the go. They recently relaunched the app on App Store and Google Play with new and innovative features, including fingerprint ID and facial recognition sign-in and an overhauled user-friendly dashboard.
They offer some of the best GIC rates available in Canada today. You can check them out.
EQ Bank occasionally offers its customers an opportunity to earn cash bonuses when they refer friends to sign up. For example, they may offer $20 cash bonuses per friend or family member who signs up using your code.
EQ Bank recently introduced Retirement Savings Plan Accounts you can use to save towards retirement, similar to an RRSP. It holds both savings and GICs.
The same reason that other digital banks can offer better rates than the big banks – lower overhead costs. Since they do not have to build or manage branches across the country, overhead costs are greatly reduced. These savings are passed on to customers through higher interest rates and no monthly fees.
Yes, EQ Bank launched in Quebec in December 2022.
Related:
Excited to invest funds with EQ.
What is the procedure to add beneficiaries to a TFSA GIC?
Pat
@Pat: As far as I am aware, you can add a beneficiary to a registered inevstment account e.g. RSP/TFSA GIC by contacting the bank and completing a form. Not too sure how it works for non-registered accounts.
Hello,
Why does EQ not allow international people (with no PR) – students and/or workers – open a TFSA ?
@gaye: This is the info from the government’s website: “Who can open a TFSA. Any individual that is a resident of Canada who has a valid SIN and who is 18 years of age or older is eligible to open a TFSA . Any individual that is a non-resident of Canada who has a valid SIN and who is 18 years of age or older is also eligible to open a TFSA.”
Hello.
My name is Carol. I just found out about EQ Bank, from a FB group where I was asking where can I put some money in a savings account with a high interest return, and someone mentioned EQ. I currently do the traditional banking with TD Canada Trust.
There interest rate is garbage.
I would like to start seeing some type of return on my money.
Example: I have $1000 to put in a savings account for a rainy day, so I would not be pulling out the money anytime soon, but would like the option if I need it, it is still available and is not completely locked in. Any suggestion where to start.
I hope this all makes sense.
Thank you for your time.
@Carol: A high interest savings account (HISA) at an online bank like EQ Bank, Motive Financial, Saven Financial (if in Ontario), etc., can help you earn a more competitive interest rate. You may need to connect an existing account at another bank or credit union to facilitate transfers from the online bank. With the new EQ Bank card, ATM withdrawals at any bank are free, making for an easy-to-use online bank account. And you can withdraw funds without penalty anytime if the account is a HISA. Alternatively, you can put funds you don’t need soon in a GIC to earn a higher interest rate; however, GICs are often locked in for a length of time, such as 6 months, 1,2,3 or more years.
is this bank available to new brunswick ppl ?
@P Cook: Yes, it is now available throughout Canada.
Hello – at the date of your post (Nov 4, 2022), EQ Bank was offering 5.1% for a one year GIC. But I just noticed today (November 17, 2022), EQ’s rates have gone done to 5.05% for a 1 year or longer GIC. I wonder why that is?
@Karen: The GIC rates do change…sometimes even weekly. Whatever rate you lock in is what you get for the term.