Canada's top online-only banks ranked by fees, savings rates, and features — the definitive guide for 2025.
KOHO gives you free banking + cash back. Use code 45ET55JSYA to get a $20 bonus.
Try KOHO Free — Code 45ET55JSYAA digital bank (also called an online bank or neobank) is a financial institution that operates exclusively or primarily through digital channels — no physical branches. Digital banks typically have lower overhead costs than traditional banks, allowing them to pass savings to customers in the form of lower fees, higher interest rates, and better rewards.
In Canada, digital banks fall into three categories: full chartered banks with their own CDIC membership (EQ Bank, Motusbank), subsidiaries of traditional banks (Tangerine, Simplii), and fintech apps that partner with chartered banks to hold deposits (KOHO, Neo Financial, Wealthsimple Cash).
| Bank | Type | Monthly Fee | Best Feature |
|---|---|---|---|
| KOHO | Fintech (via Peoples Bank) | $0 | Cash back on all spending |
| EQ Bank | Chartered bank (Equitable) | $0 | 2.5–3% savings rate |
| Wealthsimple Cash | Fintech (via CWB) | $0 | 4% cash back + 4% interest |
| Neo Financial | Fintech (via ATB) | $0–$4.99 | Up to 4% at Neo partners |
| Tangerine | Scotiabank subsidiary | $0 | Full bank + no fees |
| Simplii Financial | CIBC subsidiary | $0 | CIBC ATM access free |
| Motusbank | Meridian Credit Union bank | $0 | Mortgages + full banking |
| Oaken Financial | Home Bank brand | $0 | Top GIC rates |
Canada's Big Five banks (RBC, TD, BMO, Scotiabank, CIBC) charge $15–$30/month for their standard chequing accounts. Many Canadians pay over $300 per year in basic bank fees. Digital banks eliminate these fees entirely while offering superior savings rates and, in many cases, cash back rewards.
The main trade-off is access to physical branches. If you regularly need in-person banking services, a digital bank may require you to maintain a separate account at a traditional bank for those occasions. However, most Canadians rarely visit a branch — making digital banking a straightforward win.
Yes. All reputable Canadian digital banks hold deposits through CDIC-member institutions. The Canada Deposit Insurance Corporation (CDIC) insures eligible deposits up to $100,000 per depositor per category. This protection is identical to what you receive at any Big Five bank.
Digital banks also use the same encryption standards (256-bit TLS), fraud monitoring systems, and regulatory oversight as traditional Canadian banks. Some, like EQ Bank and Motusbank, are themselves chartered banks with direct CDIC membership.
Absolutely — and many Canadians do. A popular combination is KOHO for daily spending (earning cash back on every purchase) paired with EQ Bank for savings (earning 2.5–3% ongoing). There are no fees to maintain both accounts, and both offer free Interac e-Transfers so moving money between them is free and fast.
Opening a digital bank account in Canada takes 5–15 minutes from your smartphone. You'll need a Social Insurance Number, government-issued photo ID, and a Canadian address. Most accounts are approved instantly or within one business day.
Start with KOHO for a no-risk introduction to digital banking. The free plan has no monthly fees, earns cash back on every purchase, and comes with a $20 welcome bonus when you use code 45ET55JSYA.
Join KOHO — no monthly fees, cash back on purchases, save automatically. Code 45ET55JSYA = $20 bonus.
Open KOHO Account Free