Canada's online banking sector has matured significantly. In 2025, digital banks offer virtually everything a traditional bank does — except physical branches. In exchange, they typically charge lower or no fees and offer more competitive savings rates. Here are Canada's best online banks.
Best for: Savings rates and everyday banking
EQ Bank is a Schedule I Canadian bank (owned by Equitable Bank) that consistently offers among Canada's highest savings rates on everyday deposits. The Personal Account functions as both a chequing and savings account, earning competitive interest on every dollar while offering free transactions, e-Transfers, and bill payments. EQ Bank also offers TFSA, RRSP, and GIC products.
Best for: Free chequing with cashback rewards
KOHO is Canada's most popular banking app alternative. The free plan includes no monthly fees, a Visa prepaid card with cashback on purchases, budgeting tools, and early payroll deposits. KOHO's premium tiers (Essential, Extra, Everything) add higher cashback rates, credit-building tools, and more perks. Deposits held at People's Trust, a CDIC member.
Best for: Free unlimited chequing
Simplii Financial is CIBC's no-fee digital banking division. It offers a free chequing account with unlimited transactions, competitive savings rates, and access to CIBC's ATM network. Fully CDIC-insured. Excellent for straightforward, no-frills free banking.
Best for: All-in-one free banking
Tangerine (Scotiabank subsidiary) provides free chequing, savings with promotional rates, and cash-back credit cards — all in one place. Fully CDIC-insured. Tangerine is one of Canada's oldest and most trusted digital banks.
Best for: Rewards and innovative features
Neo Financial offers a high-interest savings account, a rewards credit card, and a growing banking platform. Neo has partnered with retailers to offer elevated cashback rates at partner merchants. Its fintech approach appeals to digitally-native banking customers.
Best for: Wealthsimple investment clients
Wealthsimple Cash offers free everyday banking integrated with Wealthsimple's investment and tax products. No fees, Visa card, and seamless integration with your Wealthsimple investment accounts.
| Feature | Online Banks | Big 5 Banks |
|---|---|---|
| Monthly fees | Usually $0 | $4–$30 |
| Savings rates | Competitive to high | Low |
| Branch access | None | Nationwide |
| Mortgage products | Limited/none | Full suite |
| ATM access | Partner networks | Own + partner ATMs |
| Customer service | Phone/chat/email | Phone/chat/branch |
Many Canadians use both: Keep a free digital bank (KOHO or Simplii) for everyday spending to avoid fees, and maintain a Big 5 bank account for mortgage, investments, and in-person service when needed.
Yes. EQ Bank is a federally regulated Schedule I bank. Simplii and Tangerine are subsidiaries of CIBC and Scotiabank. KOHO deposits are held at People's Trust. All major Canadian online banks are either CDIC members or hold deposits at CDIC members, providing government-backed deposit protection up to $100,000 per category.
EQ Bank leads for savings. KOHO leads for free chequing with rewards. Simplii and Tangerine are reliable free alternatives with major bank backing. The best approach for most Canadians is combining a free digital bank for daily spending with EQ Bank for savings maximization.
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