motusbank is a digital (online-only) bank in Canada offering its customers zero-fee chequing accounts that earn interest, high-interest savings accounts, and competitive personal loans and mortgage rates.
Launched in 2019 by Meridian Credit Union, motusbank continues the fee-cutting trend and digitization of Canada’s banking landscape.
This motusbank review covers its account offerings, benefits, pros, cons, challenges of online-only banking, and more.
Who Is Motusbank?
motusbank is a full-service digital bank owned by Meridian Credit Union which has been around for over 75 years and is based in Ontario.
Meridian Credit Union is the largest credit union in Ontario and the third-largest in Canada, with more than 337,000 members and over $20.6 billion in assets under management.
motusbank is a federally chartered bank in Canada and a member of the Canada Deposit Insurance Corporation (CDIC).
As a digital bank, it does not have any brick-and-mortar locations. Customers can conduct their banking online and reach customer service by phone when required.
Motusbank Account Offerings
motusbank launched with a variety of eye-popping offers and accounts that rivalled or beat some of the best offers available in Canada at the time.
While the rates are now lower, they are still fairly competitive.
1. Motusbank No-Fee Chequing Account
Similar to Tangerine, motusbank offers a chequing account that has no monthly fees. Its features are:
- $0 monthly account fees
- No minimum balance requirement
- Free and unlimited Interac e-Transfers
- 0.15% interest earned on your account balance
- Unlimited debit purchases, bill payments, and withdrawals
- Access to over 3,700 free ATMs across Canada
- Mobile cheque deposits
- Your first order of 25 cheques is free
- Deposit insurance up to $100,000 by CDIC
2. Motusbank Savings Accounts
They offer a high-interest savings account (2.10%), a TFSA savings account (2.10%), and an RRSP savings account (2.10%).
These are fairly competitive rates compared to some of the standard interest rates big banks offer on deposits.
Alternatively, on general savings interest rates, TFSAs, and RRSPs, the EQ Bank Savings Plus Account also offers a 2.50% interest rate.
Its smart savings accounts offer the following features:
- Competitive high-interest rates
- Zero monthly fees and no minimum balance requirement
- Unlimited debit purchases and withdrawals
- Access to over 3,700 FREE ATMs across Canada
- Deposit insurance up to $100,000 by CDIC
- Automated savings feature that allows you to round up your purchases and save your spare change
3. Motusbank Mortgages
motusbank’s rates for its 1-5 year mortgage terms are as follows:
- 5 year fixed mortgage rates: 6.29%
- 4 year fixed mortgage rates: 5.89%
- 3 year fixed mortgage rates: 5.79%
- 2 year fixed mortgage rates: 5.89%
- 1 year fixed mortgage rates: 5.99%
Low competitive rates are also available for variable mortgage terms.
In addition to motusbank’s low mortgage rates, the mortgages come with some great features which can save you money and/or make your life easier:
20% Lumpsum Prepayments: You can pay down up to 20% of your original principal every year without a penalty.
20% Regular Payment Increase: This allows you to increase your normal monthly payments by up to 20% without a penalty.
Skip-a-payment: You can skip up to one month of mortgage payments per year.
Flexible payment schedule: Choose to pay your mortgage weekly, bi-weekly, monthly, or semi-monthly. You can also save on interest fees by making accelerated weekly or bi-weekly payments.
If you are not sure about how much house you can afford, the bank has various calculators that can be of help:
- Mortgage Affordability Calculator
- Mortgage Payment Calculator
- Mortgage Prepayment Calculator, and more.
4. Motusbank GICs
motusbank has GICs you can use inside registered (RRSP, TFSA, or RRIF) or non-registered accounts. GIC rates as of today (November 27, 2022) are:
- 1-year GIC: 4.90%
- 2-year GIC: 4.85%
- 3-year GIC: 5.15%
- 4-year GIC: 4.95%
- 5-year GIC: 5.25%
For long-term non-redeemable GICs eligible for non-registered accounts, the rates are 1-year GIC: 4.85%, 2-year GIC: 4.80%, 3-year GIC: 5.10%, 4-year GIC: 4.90%, and 5-year GIC: 5.20%.
The bank also has escalator GICs which have varying and increasing interest rates depending on their terms, as well as short-term 30 to 270-day GICs.
Click for a list of the Best GIC Offers available in Canada.
5. Motusbank Personal Loans
It offers various credit facilities, including:
- Personal Loans: You can borrow up to $35,000. Loan terms range from 1 month to 5 years.
- Personal Line of Credit
- Secured Line of Credit (HELOC): Easily tap into the equity on your home when you need to take out a large loan for as low as a 6.45% interest rate.
The minimum amount you can borrow is $5,000, and the online application is easy to complete in just a few minutes. You can also easily obtain an initial rate quote that does not impact your credit score.
Here are some options for a personal loan with bad credit.
As you can imagine, some transactions you conduct with motusbank attract fees. Some of them are:
You can also find other applicable fees, e.g. NSF, wire transfers, overdraft, stop payments, inactive account fees, etc., on their website.
Is Motusbank Safe and Legit?
motusbank is just as safe as your bank and is a member of the Canada Deposit Insurance Corporation (CDIC).
CDIC membership means your deposits in savings, chequing, term deposits, and bank drafts are insured up to $100,000 per category. This coverage is available to customers in all provinces and territories in Canada.
Also, motusbank is owned by Meridian Credit Union, which is the third-largest credit union in Canada, and it has been around for more than 75 years.
Pros and Cons of Motusbank
Online-only banks have their advantages and disadvantages when compared to big banks.
Lower Fees: You can save $15 or more in fees charged on the basic unlimited transaction chequing accounts available at your traditional brick-and-mortar bank.
High-Interest Savings: The funds you keep in your savings earn interest at a competitive rate.
Earn Interest on Chequing: Some digital banks pay you interest on your chequing account balance. Motusbank pays 0.15%.
CDIC Insurance: Similar to the Big 5 banks, Motusbank is a member of CDIC, which means that your eligible deposits (TFSA, Savings, RRSP, Chequing, etc.) are protected up to $100,000 per category.
Mobile App: Their innovative mobile app allows you to conduct transactions easily, including cheque deposits. The app is available on Android and iOS (iPhones).
Customer Support: Phone support is available from 8:00 am to 12:00 am (EST) Monday to Sunday at 1-833-696-6887. You can also email [email protected]
The main challenge you will face when you bank with an online-only bank is the lack of a physical branch you can easily walk into if you prefer face-to-face banking.
Also, motusbank does not offer credit cards.
- EQ Bank vs. Tangerine Bank: High-Interest Savings in Canada
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- Best No Fee Cash Back Credit Cards in Canada
- Best Student Credit Cards in Canada
- Best TFSA Account Savings Rates in Canada
Digital banks provide bank customers with lower-fee options for their everyday banking. Whether savings, chequing, mortgages, or investments, there are options to pay less and earn better returns.
The jury is still out on what impact digital banks will have on the outrageous bank fees charged by the Big 5. Perhaps another entrant into this banking space will increase competitiveness and lead to an overall decrease in monthly bank fees?
We can only hope!