While online banking may have seemed like a foreign concept just a few years ago, it is now normal for many Canadians, so many are choosing to leave their traditional financial institutions and switch to online banks.
Top-Rated Online Banks in Canada
There are plenty of online banks in Canada that offer a variety of options to suit your needs. Some of these may be more familiar than others, but let’s take a look at some of the best online banks in Canada.
EQ Bank
EQ Bank is one of Canada’s most popular online banks. It’s a division of Equitable Bank that offers online-only accounts, and it offers:
- Everyday Banking
- High-interest Savings Accounts
- Joint Accounts
- GICs
- US Dollar Accounts
- TFSAs (Tax-Free Savings Accounts)
- FHSAs (First Home Savings Accounts)
- RRSPs
- International Banking Transfers
- Mortgages
As you can see, there is quite a variety of financial products available, so it’s no surprise it’s considered to be one of the best online bank accounts. Plus, you can earn 2.75% interest on your everyday account when you set up direct deposits of your pay (1.00% without), pay no everyday banking fees with the EQ Bank personal account, and make unlimited transactions at no charge. No minimum balance is required. All you have to do to sign up is join online. From there, you’ll then receive an EQ Bank card in the mail.
If you’re looking for one of the best savings accounts to earn interest in, then look no further than the Notice Savings Account. It pays a higher rate in exchange for giving notice before you withdraw: 2.35% with 10 days’ notice or 2.75% with 30 days’ notice.
Tangerine
Tangerine is another online bank in Canada that offers a variety of services. They’re actually a subsidiary of the Bank of Nova Scotia, more commonly known as Scotiabank, and it was ranked #1 in Canada on Forbes’ World’s Best Banks list in both 2025 and 2026. Actually, if you haven’t heard of Tangerine before, it’s probably because it used to be called ING DIRECT. The products they offer are:
- GICs
- Chequing and savings accounts
- Credit Cards
- TFSAs
- RRSPs
- RRIFs
- Non-Registered Investment Accounts
- Mortgages
- Lines of Credit
- HELOCs (Home Equity Lines of Credit)
- Student Bank Accounts
Some awesome features of a Tangerine account include no-fee daily banking and up to 0.10% interest on the No-Fee Daily Chequing Account. The Tangerine Savings Account pays 0.30%, and new clients can get a higher promotional rate (see Current Online Bank Promotions below). Plus, with this Canadian bank account, you can get unlimited monthly transactions, no ATM fees with over 3,500 different ATMs, and full access online and through the bank’s mobile app without having to go to brick-and-mortar branches.
Simplii Financial
Simplii Financial is a division of CIBC (Canadian Imperial Bank of Commerce) that offers strictly online banking. They offer no-fee daily banking and won 2026 Ipsos Financial Service Excellence Awards in two categories:
- Online Banking Excellence
- Live Agent Telephone Banking Excellence
They offer a wide range of online banking services, including:
- Credit Cards
- Mortgages
- Personal Loans
- Lines of Credit
- Registered Investment Accounts
- Non-Registered Investment Accounts
- Tax-Free Savings Accounts (TFSAs)
On their website, you have access to some awesome features, including:
- International money transfers
- Mobile payment
- Interac e-Transfers
- Sending digital Visa gift cards
Using the online bank account’s secure server and features, you can do just about every type of banking online.
KOHO
A good option for an online bank if you’re just looking for a spending account is KOHO. While they don’t offer lending options like traditional financial institutions, their online-only account can help you save money. You can also earn money on everyday purchases, and you have the option to register for credit building if you’re looking to improve your credit score.
Even though the KOHO account is a spending account, it’s also considered to be a reloadable Mastercard. Depending on which plan you choose, your monthly fee will range from $0 to $14.75, or your annual fee will range from $0 to $177. Here’s how each plan works.
Essential
With the Essential account, you can start at $0 per month. With this account, you can get 1% cash back on groceries, transportation, food and drinks. You can also earn 2% interest on your balance.
Extra
With the Extra account, you can start earning for as little as $12 per month. You can get 1.5% cash back on groceries, transportation, food and drinks. You can also earn 2.5% interest on your balance.
Everything
The Everything account starts at just $14.75 per month. You can get 2% cash back on groceries, transportation, food and drinks. You can also earn 3.5% interest on your balance.
Neo Financial
As an online institution that offers virtual bank accounts, Neo Financial doesn’t offer as many options as some other online banks. That said, the products that they offer do have some awesome, unique features.
- Neo Money: The Neo Money account and card allow you to spend and save at the same time. You earn 1% cash back on gas and groceries (up to a monthly spending limit), and Neo Savings pays 2.0% to 2.75% interest, depending on your membership plan. There are no monthly fees or transaction limits, and you can set up automatic payments.
- Neo Credit: This particular Neo card is unsecured and offers some great perks. You can earn cash back at thousands of Neo partners, including up to 15% on your first purchase with a partner. You have full online access to freeze your cards when you need to, and you can get a virtual card for your mobile wallet, as well as a physical card.
- Neo Secured Credit: If you’re looking for a good credit card but need to build your credit score, then the secured card is the way to go. There are no monthly fees, and you can earn unlimited cash back. The minimum security deposit is $50, and your deposit sets your credit limit, so you can choose an amount that best fits your budget.
In addition to these three amazing accounts, Neo offers investing and mortgage services. There are low investment fees, and mortgages are processed fully online at competitive rates.
PC Financial
PC Financial, also known as President’s Choice Financial, offers digital banking and online accounts for daily banking and credit cards. Specifically, they offer the PC Money Account and three different PC Mastercards. As of July 2026, PC Financial is owned by EQB, the parent company of EQ Bank, and the PC Money Account will move to the EQ Bank brand over time.
With the PC Money Account, you get:
- No monthly transaction fees
- No minimum balance requirement
- Free e-Transfers
- Unlimited free transactions
You also earn PC points, which you can use to buy groceries.
Alterna Bank
Alterna Bank is also a virtual bank. This online bank offers the same products as traditional brick-and-mortar banks. The products include:
- Online chequing accounts
- Online savings accounts
- High-Interest eSavings Accounts
- TFSAs
- RRSPs
- Mortgages
- Direct Investing
- Wealth and Investment Planning
- Eterm Deposits
One of the main differences between Alterna Bank and traditional banks is that Alterna Bank offers no-fee Chequing Accounts. You also get unlimited transactions, no minimum balance requirements, and a 0.05% annual interest rate.
Outlook Financial
Outlook Financial is a little different from most virtual banks because it’s part of a credit union. Outlook Financial’s services are strictly online, but financial advisors can be reached via phone during their business hours.
With Outlook, you have access to a variety of different financial products, including:
- High-Interest Savings Accounts
- GICs (Guaranteed Investment Certificates)
- TFSAs
- RRSPs
- RRIFs
To become a member of Outlook, all you need to do is fill out the form on their website.
Achieva Financial
Achieva is another top-rated virtual bank that prides itself on offering some of the highest interest rates in Canada. Plus, they don’t charge any monthly fees. Some of the products they offer include:
- GICs
- High-Interest Savings Accounts
- Everyday Savings Accounts
- TFSAs
- RRSPs
- RRIFs
Another great thing about Achieva is that they offer multiple ways for you to contact customer service. You can do so through phone, email, secure message and chat. You can also save even faster with a Daily Savings Account rate of 2.10%.
Advantages of Online Banks
While banking online may seem strange, it’s actually quite popular and comes with many advantages. The first advantage is that you don’t have to go into a branch to complete your transactions, plus you can even get loans and lines of credit directly from your home. That’s just the beginning, though. When you use online banking, you have access to:
- 24/7 banking
- No or low banking fees
- Higher interest rates on savings accounts
Access to 24/7 banking isn’t just available to those who bank strictly online, though. Most financial institutions offer online banking even if they still have physical branches. That said, because online-only banks have no branches to run, they can offer competitive fee rates, which are usually zero. The interest rates on their high-interest savings accounts are also higher. They usually range from 1% to 2%, while traditional banks tend to offer 0.02% to 0.05%, sometimes a little higher.
Disadvantages of Online Banks
While there are plenty of advantages to online banking in Canada, there are also a few disadvantages. Most of these disadvantages center around the fact that you aren’t dealing with a human. For day-to-day transactions, online banking is great. When complex situations arise, though, online banks aren’t as flexible as traditional financial institutions. They also don’t always offer business accounts; they mainly specialize in personal banking.
Because there’s a lack of human interaction in online banking, financial options are also limited. Not all online banks offer a wide variety of financial options, but some do. A good majority of them stick to daily banking operations. This can lead to going to another financial institution for more lending options.
Account Types Offered Through Virtual Banks
Here’s a quick guide to the account types mentioned above and what they’re used for. Knowing what each account does and how it works can make a big difference in where you decide to put your money.
- Chequing Account: A chequing account is essentially your main bank account. It’s where you make all of your daily transactions, pay bills and deposit cheques. These accounts have no or low fees and allow you to spend your money however you like.
- Savings Account: Savings accounts are similar to chequing accounts, except they have more limitations. There’s usually a monthly transaction limit and stipulations on what you can withdraw. These accounts are intended to limit spending and to help you save your money.
- GICs: GICs, also known as Guaranteed Investment Certificates, are accounts where you lock up money for a set period to guarantee a return. These are low-risk investments that allow you to make money as long as you can lock your funds from spending.
- TFSA: A Tax-Free Savings Account is essentially an account where you can save money with some tax benefits. There are limitations on how much you can invest yearly in these accounts without penalty. These amounts are adjusted yearly and can be carried over from year to year.
- High-Interest Savings Account: These types of accounts are just what they sound like. They’re savings accounts that allow you to save money while earning a higher interest rate. With these accounts, it’s best to leave your money in there as long as you can without touching it to earn the most interest. These savings account interest rates vary by financial institution.
- RRSP: RRSPs, or Registered Retirement Savings Plans, are investment accounts that let your money grow tax-deferred until you withdraw it, usually in retirement. There are some programs associated with RRSPs where you can access your funds early with no penalty, but you do need to return the funds within an allotted time frame.
- RRIF: RRIFs, or Registered Retirement Income Funds, are what you receive once you reach retirement age and start using your RRSPs. It’s often referred to as a tax-deferred retirement plan because even though you paid no taxes on that money during your earning years, you do have to pay taxes on any of the funds you receive from RRIFs. They essentially act as your income.
- Lines of Credit: Lines of credit are a type of revolving credit that allows you to borrow money as long as you have room available. With most LOCs, you only need to ensure interest payments are made monthly, and you can pay off the principal whenever you want. They essentially work the same as credit cards, except you have a much lower interest rate.
- HELOCs: HELOCs, or Home Equity Lines of Credit, are lines of credit that are given based on the value of your home. This is a secured line of credit. With a federally regulated lender, your HELOC and mortgage combined can be up to 80% of your home’s value, and the HELOC on its own is capped at 65%.
- Non-Registered Investment Accounts: Non-registered investment accounts don’t offer tax-free growth or tax deferral. You can invest in these however you choose, but tax will have to be paid on any income you earn from these accounts. Some examples of Non-Registered Investments are mutual funds, ETFs, stocks and bonds.
These are just some of the main accounts that many online banks offer. Many of them also offer mortgages, though, which are just loans used to purchase a home. For mortgages, you do need to have the required down payment, and it will be approved based on your financial situation and credit history.
The Easiest Bank Account to Open Online
Essentially, all of these bank accounts are simple to open, but the easiest is EQ Bank. You can apply directly online and open your account within minutes. Once you’ve received your bank card in the mail, you can start using your account. It’s easy to transfer your money and direct deposits to your new bank account.
Best Online Bank Account
It’s really difficult to determine which digital bank account is the best overall. This is because each one has different features, and the one that works best for you may not be the one that works best for everyone.
That said, one online bank account stands out a little more than the rest, making it the best in Canada. This is the Simplii no-fee chequing account. They also offer many other financial products available through the website or the app. They have no account fees, and there’s no minimum balance or account balance required.
Best New Online Bank in Canada
When it comes to choosing the best new online bank in Canada, there really are quite a few to choose from. That said, Tangerine is a top pick. While it isn’t new (it launched as ING Direct in 1997), it was ranked #1 in Canada on Forbes’ World’s Best Banks list in 2025 and 2026. While many larger banks, like National Bank, also offer online accounts, they can’t match the low fees and high savings rates of banks like Tangerine.
Tangerine has no-fee banking and offers competitive rates. They also offer much lower fees than traditional banks. They also have access to customer service, even though they’re online, and you have access to almost every financial product that you would with a traditional bank. If you want to have more control over your finances, then they’re a really popular option.
Can You Deposit Cash at an Online Bank?
Just like with a traditional bank, you can deposit cash at an online bank. That said, how you can deposit that cash depends on which bank you use. Common ways to deposit with online financial institutions include:
- Partner ATMs
- Retail Networks (this is commonly used for hybrid chequing accounts and online platforms)
- Transfers from a traditional bank account
- Money orders
How Are Cheques and Bank Drafts Handled?
One of the most common ways to deposit cheques and bank drafts with online banks is via mobile cheque deposit. This is an easy feature: just take pictures of the front and back. That said, there are usually hold periods for these amounts. While the amount will show in your account right away, there will be a security hold until the funds clear.
The biggest hurdle with online banks is issuing a bank draft. This is difficult when there is no physical branch. Sometimes you can request them via mail, or you can use alternative methods like Interac e-Transfer, wire transfers, or using a secondary traditional bank account.
The Online Banks With the Best Mobile Apps
In Canada, there are plenty of mobile banks that have great apps. Some of these include:
- Tangerine
- Wealthsimple
- EQ Bank
- KOHO
- Neo Financial
All of these apps offer budgeting tools and more. They even include services offered by the Big Six banks, such as deposit protection, wealth management, investment management, online chat, security features, and more.
What are the Differences Between Fintechs and Online Banks?
While fintechs and online banks are similar, there are three main differences: regulatory oversight, legal status, and how they handle your money.
Fintechs are seen as technology companies rather than traditional banks. Many don’t actually have a banking license and run through a third-party company. The protection of your funds is based on the structure of the third-party company, and not the fintech itself. They also tend to specialize in specific financial cases rather than all of them, as a bank would.
Online banks are licensed deposit-taking institutions. Most are federally regulated CDIC members that protect eligible deposits, while online divisions of credit unions are covered by provincial deposit insurance instead. They also offer a wide selection of banking products, including savings and chequing accounts.
Having an Online Bank as Your Primary Account
If you’re looking at using an online bank for your primary account, there are plenty of reasons why this is a good idea, including:
- Promotional rates
- Free access to partner ATM networks
- No minimum account balance requirement
- No monthly account fees
- Low foreign exchange fees
- Low withdrawal fees, transfer fees, and NSF fees
- User-friendly apps
That said, there are some things to consider before you commit. First, there’s no in-branch banking. This can make some things with Canadian virtual banks difficult, like bank drafts and certified cheques. It can also make cash deposits more difficult unless you use an ATM, as you would to withdraw cash.
Some available options include:
- Wealthsimple Chequing
- Saven Financial
- Oaken Financial
- Manulife Bank
- Alterna Bank
- Tangerine Savings Account
- Neo Chequing Account
US Dollar Accounts Offered at Online Banks
While the big banks offer US dollar accounts, the most notable account from online banks is the EQ Bank US Dollar Account. It offers an interest rate of 2.50%, with no monthly fee and no minimum balance requirement.
Wise powers the international money transfers with this account, and there are low foreign transaction fees. That said, it’s not available to Quebec residents and doesn’t support US-dollar cash withdrawals.
Online Banks and Overdraft Protection
Just like with many traditional banks, online banks also offer overdraft protection.
You’ll need to apply and be approved first, since overdraft protection can’t be added without your consent. Once it’s in place, the bank automatically covers withdrawals that go over your balance, up to your approved limit. When a new deposit hits your account, the overdraft amount will be automatically repaid.
How Do You Verify Your Identity?
When it comes to online bank accounts, there are methods available to prove your identity. The first is to log in to your existing account with a bank that participates in the Interac verification service. This includes CIBC, RBC, TD or Scotiabank.
Another method is to take a photo of your government-issued ID and a selfie. Automatic facial recognition software will then use this information to verify your identity. However, you can also use one-time passcodes, which will validate the personal information you provided against credit bureau or public records.
Can You Get a Joint Account?
Just like with a traditional bank, you can get a joint account with an online bank. However, ID will need to be provided for both parties on the account.
Switching Your Bank Without Missing a Bill
When you’re switching to the best online savings or chequing account, it’s important to review your automatic bill payments to ensure you don’t miss any. There are some steps you can take to prevent this from happening, including:
- Moving your direct deposits first
- Updating your bills and preauthorized debits
- Leaving a buffer in both accounts
- Closing the old account
Current Online Bank Promotions
In Canada, many online accounts offer bonus interest rates and/or promotional interest rates when you become a new customer. Here are some of the current offers available.
| Bank | Current Promotion | How to Qualify | Offer Deadline |
| EQ Bank | 2.75% interest on the Personal Account | Set up recurring direct deposits of your pay to earn 2.75% (1.00% otherwise) | No end date stated |
| Tangerine | $250 cash bonus on the No-Fee Daily Chequing Account, plus a 4.50% promotional savings rate for 5 months | Payroll direct deposits of at least $200/month for 2 consecutive months; open the savings account within 60 days of becoming a client | Chequing: client number created by April 30, 2027; Savings: sign up by November 30, 2026 |
| Simplii Financial | $350 cash bonus on the No Fee Chequing Account, plus 5.00% interest for 5 months on a new High Interest Savings Account (up to $100,000) | Set up direct deposits of at least $100/month for a minimum of 4 months | January 31, 2027 |
| KOHO | $40 sign-up bonus | Sign up with a referral code and make a purchase of $20 or more within 30 days | No end date stated |
| Neo Financial | Up to $35 in sign-up bonuses | Apply through a referral link; get approved for a Neo Credit or Neo Secured card and deposit a minimum of $50 | No end date stated |
| PC Financial | 150,000 bonus PC Optimum points (worth $150) with a new PC Money Account | Direct deposit at least $1,500/month for 3 consecutive months; must happen within 60 days of opening | No end date stated |
What is the Best Online Bank Account for Students?
When it comes to online accounts for students, there are quite a few different accounts to choose from. That said, some of the best include:
- EQ Bank
- Simplii Financial
- Wealthsimple
- KOHO
Each of these accounts has low or no monthly fees and the ability to earn interest on your balance.
