Motive Financial is an online-only bank in Canada that offers chequing, savings, GIC, RRSP, and TFSA accounts. Similar to other digital banks like Tangerine and EQ Bank, Canadians are starting to get used to banking without branches.
This review of Motive Financial details what you can expect if you choose to bank with them.
Motive Financial Overview
Motive Financial is the direct banking arm of the Canadian Western Bank.
The Canadian Western Bank is a Schedule I bank. It was founded in 1984 and is based in Edmonton.
Motive Financial is an online bank with no branches you can walk into. With this online presence, your banking can be done anywhere using your computer, tablet, or phone.
The savings from lower overhead cost is how clients can get free chequing accounts and high interest rates on their savings. Also, unlike the big banks, it can offer free chequing accounts.
Related reading: EQ Bank: Is this the best savings account in Canada?
Motive Financial Accounts
Motive Financial offers many traditional services you expect to get at your bank, including chequing, savings, and registered accounts.
1. Motive Cha-Ching Chequing Account
This chequing account comes with the following freebies:
- Zero monthly fees
- Unlimited transactions
- Unlimited Interac e-Tranfers
- 0.25% interest earned on your account balance
- Your first 50 personalized cheques are free
- Free access to THE EXCHANGE Network of ATMs (over 2,400 ATMs across Canada)
- 2 free withdrawals from non-network ATMs and $1.50 after
- Link up to 5 external bank accounts
Related reading: The Best High-Interest Savings Accounts in Canada
2. Motive Savvy Savings Account
This is the high-interest savings account offered by Motive Financial. The different features (from the basic savings account) include the following:
- High-interest rate on balances up to $5 million
- 2 free transactions per month, with additional transactions incurring a $5 fee. This savings account is meant for medium to long-term savings, which is why there are limited free transactions.
3. Motive GIC
If you do not need your funds quickly, a Guaranteed Investment Certificate can be used to generate higher returns.
Motive GICs offer a high interest rate.
4. RRSP and TFSA Accounts
They also offer the two most popular registered accounts:
An RRSP account that you can use to save or invest for retirement while deferring taxes until you make withdrawals in the future. Both regular and spousal RRSPs are available.
A TFSA account is a universal savings account that remains tax-free for life.
Related reading: Tangerine vs. EQ Bank.
How To Open a Motive Financial Account
It is easy to sign-up for new savings or chequing accounts. Simply visit their website and apply. You will be required to:
- Answer some pre-qualifying questions
- Provide your basic personal and employment information
- Select your desired accounts, etc.
The application process takes roughly 10 minutes to complete.
To set up an RRSP or TFSA account, you will need to complete the forms available online, print, sign, and mail the forms to them at Motive Financial, Suite 3000, 10303 Jasper Avenue NW, Edmonton, AB T5J 3X6.
Online banking with Motive Financial is great. Their app is user-friendly, and all you need for day-to-day banking is your phone. Simply download the app, log in, and you should be good to go.
The app allows you to:
- View your account balances and activity
- Pay bills and send transfers
- Check the prevailing interest rates
- Find ATMs that are close by
- Contact customer service, e.g. via phone (1-877-441-2249 or 1-866-673-3918), email ([email protected]), or send a direct message using the app.
- Access multiple financial calculators, e.g. retirement planner, TFSA calculator, FOREX calculator, mortgage affordability, and loan calculators.
Motive Financial Fees
While they do not charge monthly account fees, additional services will cost you, similar to any other bank, including:
Other fees may apply – check their website for the full list.
Is Motive Financial Safe?
Motive Financial is a division of Canadian Western Bank, which is a member of the Canada Deposit Insurance Corporation (CDIC).
This means your deposits are insured up to $100,000 per account (GIC that is 5 years term or less, savings and chequing accounts).
Motive Financial vs. EQ Bank and Others – Rates Comparison
One of the main reasons why Canadians use online-only banks like Motive Financial is to earn better returns on their money.
Some of the rates offered on high-interest savings accounts by the competition are as follows:
EQ Bank Personal Account
Earn up to 4.00% interest
No monthly account fees or minimum balance
Unlimited debit transactions and e-Transfers
Free cashback card & no ATM fees
Supports mobile cheque deposits
Neo Everyday Account (formerly Neo Money)
Earn cash back on purchases
No monthly fees
Unlimited free transactions
Get a Mastercard for payments online and ATMs
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
Other Motive Financial competitors:
- Alterna Bank
- People’s Trust
- Wealthsimple Save
Is Motive Financial For You?
Online-only banks like Motive Financial have their pros and cons. Their benefits include a free chequing account that earns interest, competitive rates on savings, a user-friendly mobile app, and more.
The main downside to banking digitally is a lack of in-person support. A digital bank may not be for you if you prefer to walk into a branch to talk to cashiers or if you conduct a lot of atypical banking transactions (e.g. bank drafts and international money transfers).
Also, you may want access to registered and non-registered accounts that are more versatile, e.g. mutual funds, ETFs, and index funds. One option for your investments is to combine your online bank with a robo-advisor like Wealthsimple that offers automated low-cost investing.
If you want to start saving on your banking fees by using an online-only bank, EQ Bank, Tangerine, and Motive Financial are great options!
Motive Financial Review
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Ease of use
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Financial products
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Savings rate
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Fees
Overall
Summary
Motive Financial is an online bank with chequing, savings, GIC, RRSP, and TFSA accounts. This Motive Financial review covers all you need to know.
Pros
- High-interest rates on savings
- High-interest rates on GICs
- No monthly fees
Cons
- Lacks in-person support
- Limited array of financial products
When did Motive reduce their Savvy Savings Account interest rate to 1.25%? I thought it was 1.55%.
As of today, it is 1.25%.
Motive lowered TFSA to 2.05 in May/20. Still the best full time but I’m tired of fluctuating interest and would like to invest in a safe alternative with 3.5->5% minimum interest.
Motive has been great for me – no issues at all (started in October 2019). There was some paperwork to do but I made sure to completely and correctly fill it in (it took me longer on my end compared to their end). Once the Savvy account was opened it took only 3 days to activate a new RRSP using minimum $50 from the Savvy account. Subsequent transfers between my regular bank and Motive only takes a day maybe two (incoming/outgoing) when the cash is cleared.
Motive is a pain to setup. Very strange process asking for mail in etc. Then they just opened mine … before I sent anything in. Apart from that I dont really care about the ugly interface etc as I want interest not pretty things.
Laurentian just upped the game with 3.3% offering.
Sadly, effective 1 March 2020 Laurentian lowered their savings rate from 3.3 down to 2.8 per cent.
Motive may be giving a high-interest rate however there service sucks. I applied for an account on the 28 of October. I filled out the forms and included the bank account I wanted to transfer my funds from. Since this is an internet bank that is the only way I can deposit my funds. Finally, I received my codes to access my account on the 21 of November so that’s more than 3 weeks. They say they have a lot of people applying well maybe hire a few more people to process the info.
So I logged in thinking I could transfer my funds, as I had already given my information for the account I wanted to transfer from. Guess again I now need to fill out a form with this information and sign it. I understand signing, ok, however, why fill out the information online, to begin with. Better why not fill out the form and sign it and send it to them with the original application. Wait, it gets even worse. I try to download the PDF form to fill it out and print it. The site won’t let me, customer service had to email another form to me. So I fill out the form and send it in. It is now the 23 of November and I am still waiting to be able to transfer my funds. I am sure it will take another 3 weeks for them to process this form.
So just for fun, I tried to access their other forms on the site. Well, guess what none of them are assessable just like the transfer form. It just seems they are not really interested to have me as a client. Now Lise is saying the site freezes up I really don’t know if I should actually deposit any money in this bank I may end up making a bit more interest but never be able to get it out.
Motive’s online system is brutal. Every time I log in it locks me out and you have to wait 24 hours to reset it. They can keep my money at 2.8% but they make it too annoying to give them more.
How long do transfers take between a motive account and one of the big banks or visa versa?
Do you know if motive will pay the transfer fee to transfer a registered account from one of the big banks?
Thanks!