Online banks like EQ Bank and Alterna Bank do not charge monthly fees for everyday banking, and you get better rates on your savings and GIC investments.
In some cases, digital banks even offer loans, credit cards, global money transfers, and even business banking, making it easier than ever to ditch your traditional bank.
This EQ Bank vs. Alterna Bank review compares their product and service offerings, rates, and more, so you can choose which one is best for you.
Who is EQ Bank?
EQ Bank is the online banking division of Equitable Bank. It was launched in 2016 and has more than $7 billion in deposits.
EQ Bank is known for offering one of the best non-promotional high-interest rates in Canada.
It also offers a robust suite of banking products, including:
- Hybrid account (savings + chequing features)
- US Dollar account
- TFSA savings and GICs
- RSP Savings and GICs
- International money transfer mortgages
Learn more about EQ Bank in this review.
Who is Alterna Bank?
Alterna Bank is owned by Alterna Savings and Credit Union Limited, the third-largest Credit Union in Ontario.
It offers several banking products:
- No-Fee Chequing
- Savings accounts
- TFSA savings and GICs
- RRSP Savings and GICs
- Mortgages
- Business accounts
Its customers can access thousands of free ATMs via The EXCHANGE Network.
This Alterna Bank review provides more details.
EQ Bank vs. Alterna Bank: Chequing and Savings Accounts
While EQ Bank does not offer a “chequing” account, its Savings Plus Account provides many of the conveniences you look for in a chequing account.
Both banks do not charge a monthly fee, and their savings interest rates far exceed that of the big banks.
EQ Bank: Savings and Chequing
The EQ Bank Savings Plus Account is a hybrid account with many perks you would normally expect to see in a premium chequing account.
These include unlimited debit transactions, Interac e-Transfers, bill payments, and electronic fund transfers.
Even better is the high-interest rate you earn on every dollar. This rate is several times what some banks currently offer on deposits.
There is no minimum balance required, and you can deposit cheques using the EQ Bank mobile app.
EQ Bank’s savings accounts can also be opened for couples (joint accounts), US dollars, TFSA, and registered savings plans.
One downside to note for the Savings Plus Account is that it does not offer cheques or a debit card.
EQ Bank Personal Account
Up to 4.00%* interest rate
Unlimited debits and bill payments
Unlimited Interac e-Transfers
No monthly account fees
Alterna Bank: Chequing and Savings
Alterna Bank’s no-fee chequing account provides unlimited debit transactions and Interac e-Transfers.
Customers can use 3,300 ATMs for free across Canada, and they also earn a 0.05% interest rate on their balances.
It also has a High-Interest eSavings Account, and you can use this account for unlimited transactions (bill payments, debits, and Interac e-Transfers).
eSavings accounts are available for TFSA and RRSP accounts as well.
Verdict: If you need access to cheques and ATMs, Alterna Bank wins. In general, EQ Bank tends to have a higher savings rate.
EQ Bank vs. Alterna Bank: Investments
Both online banks offer Guaranteed Investment Certificates, and you can hold these in both registered and non-registered investment accounts.
EQ Bank: Investments
EQ Bank GICs are offered with terms ranging from 3 months to 10 years.
The minimum purchase amount is $100, and you can buy up to 20 different GICs. These GICs are non-redeemable and, at maturity, are paid back into your Savings Plus Account.
Alterna Bank: Investments
Alterna Bank has term deposits and GICs with 1-5 year terms. The minimum investment is $500.
This bank also has a partnership with Qtrade if you are looking to invest directly in stocks, ETFs, and mutual funds, or you can have professionals manage your investments on your behalf via VirtualWealth.
Verdict: Both EQ Bank and Alterna offer similar investment options. That said, the GIC rates for EQ Bank were significantly higher as of this writing.
EQ Bank vs. Alterna Bank: Mortgages
Both Alterna Bank and EQ Bank provide access to mortgage loans.
The EQ Bank Mortgage Marketplace features over 2,000 mortgage products from Canadian lenders.
Alterna Bank offers fixed and variable-rate mortgages; however, this service is unavailable in Quebec.
Neither EQ Bank nor Alterna Bank offers credit cards or personal loans.
Verdict: EQ Bank = Alterna Bank.
EQ Bank vs. Alterna Bank: Convenience
Both banks are branchless and offer their services through online banking and mobile apps.
If you are an Alterna Bank customer, you may be able to conduct a few transactions in-person at an Alterna Savings and Credit Union branch (these are not available for eChequing and eSavings accounts).
You also get a debit card for use at POS terminals and ATMs.
All EQ Bank transactions are done online using the website or app.
Both Alterna Bank and EQ Bank provide support by email, chat, and phone.
Verdict: Both banks are convenient, but if you need a debit card, i.e. don’t have another chequing account elsewhere, Alterna Bank wins.
EQ Bank vs. Alterna Bank: Safety?
Your deposits in both banks are protected through the Canada Deposit Insurance Corporation (CDIC) up to specific limits.
Also, both banks are owned by reputable financial institutions.
EQ Bank’s parent, Equitable Bank, was founded in 1970 and has $63 billion in assets. And Alterna Bank’s parent, Alterna Savings, has been around for more than 110 years.
Verdict: Alterna Bank = EQ Bank.
EQ Bank vs. Alterna: Summary
Both EQ Bank and Alterna Bank are worth checking out if you are looking to save on bank fees.
For overall better rates on your savings accounts and term deposits, EQ Bank’s Savings Plus Account and GIC rates win.
For a no-fee chequing account, Alterna Bank works well, and you get a debit card you can use for in-person transactions or ATM withdrawals.
You can open both free accounts or combine EQ Bank’s hybrid account with another free chequing account like the one offered by Simplii.
Related:
Love your site and it’s saved me money and helped me invest . Very educational for the general public regarding finances and saving money.
@G. Frank Power: Glad to hear this was useful. Cheers.