Expert-reviewed digital banks compared by fees, rates, features & cash back
After reviewing every Canadian online bank, KOHO is our #1 pick for everyday banking. Free forever, cash back on purchases, no hidden fees. Over 1 million Canadians use it.
Get KOHO Free — Code 45ET55JSYACanada's Big 5 banks — RBC, TD, Scotiabank, BMO, and CIBC — charge an average of $16.95/month for a basic chequing account. That's over $200/year just to access your own money. Online banks and neobanks have disrupted this model entirely, offering zero monthly fees, higher savings rates, and better digital experiences.
In 2026, over 4 million Canadians now use a digital-first bank as their primary financial institution, up from 1.2 million in 2020. The pandemic accelerated adoption, but competitive rates and genuine zero-fee banking are keeping customers loyal.
| Bank | Monthly Fee | Cash Back / Interest | Best For | CDIC Insured |
|---|---|---|---|---|
| KOHO | $0 (free tier) | 0.5–2% cash back | Everyday spending | Yes (via Peoples Trust) |
| EQ Bank | $0 | 3.00% HISA | Savings | Yes |
| Wealthsimple Cash | $0 | 3.25% (Premium) | Investing + banking | Yes (CDIC) |
| Tangerine | $0 | Up to 2% cash back | Credit card rewards | Yes (Scotiabank) |
| Simplii Financial | $0 | 0% (chequing) | CIBC ATM access | Yes (CIBC) |
| Neo Financial | $0 | Up to 4% at partners | Retail cash back | Yes (Concentra) |
KOHO launched in 2017 and has grown to over 1 million customers. Unlike traditional banks, KOHO is built entirely around what Canadians actually need: zero fees, instant spending notifications, cash back on every purchase, and tools to help you save automatically.
KOHO plans: Essential (free) — 0.5% cash back; Extra ($9/mo) — 1% cash back + more; Everything ($19/mo) — 2% cash back on groceries/transport.
EQ Bank, owned by Equitable Bank, consistently offers among the highest savings rates in Canada. Their Savings Plus Account earns 3.00% with no minimum balance. They also offer GICs at competitive rates and a hybrid chequing/savings account that earns interest on every dollar.
EQ Bank is ideal for Canadians who want to maximize returns on cash savings without locking money into a GIC. CDIC-insured up to $100,000.
Wealthsimple started as a robo-advisor but their Cash account now competes directly with banks. Premium members earn 3.25% on cash balances. The killer feature: everything lives in one app — your investments, RRSP, TFSA, and daily spending account.
If you already use Wealthsimple for investing, their cash account is a natural complement. CDIC insured through Wealthsimple Bank.
Tangerine, owned by Scotiabank since 2012, was Canada's original digital bank. Their no-fee chequing and Money-Back Credit Card offering up to 2% cash back in chosen categories remain competitive. Tangerine customers also have access to Scotiabank ATMs at no charge.
Simplii Financial is CIBC's direct banking brand, offering no-fee chequing with full access to CIBC's 3,400+ ATMs. Great if you need physical ATM access without monthly fees. Mortgage and personal loan products available through CIBC. Savings rates are below EQ Bank but the ATM network is unmatched.
Our editorial team evaluated 14 Canadian online banks across 8 criteria: monthly fees, interest rates, cash back potential, mobile app quality, ATM access, CDIC insurance status, customer support, and extra features. We created test accounts where possible and reviewed hundreds of verified customer reviews.
The Canadian banking landscape has changed significantly in 2026. Open banking legislation is advancing, credit unions are improving digital offerings, and fintech players are adding credit products. The best bank for you depends on whether you prioritize savings yield, spending rewards, or integration with investment accounts.
Yes. Most major online banks are CDIC-insured (Canada Deposit Insurance Corporation) for up to $100,000 per depositor category. KOHO deposits are held at Peoples Trust, which is CDIC-insured. EQ Bank, Wealthsimple, and Tangerine are also CDIC members.
Absolutely. Millions of Canadians use digital banks as their sole banking institution. You can set up direct deposit, pay bills, send e-Transfers, and use your debit card globally — all without a physical branch.
KOHO's Essential account is genuinely free forever — no minimum balance, no monthly fee, with 0.5% cash back on purchases. It's our top pick for everyday banking.
After reviewing every Canadian online bank, KOHO is our #1 pick for everyday banking. Free forever, cash back on purchases, no hidden fees. Over 1 million Canadians use it.
Get KOHO Free — Code 45ET55JSYARelated: Neobank Guide Canada | KOHO Review 2026 | Best HISA Canada 2026 | EQ Bank Review | CDIC Insurance Guide