Updated: March 2025 • 10 min read

Best Neo Banks in Canada 2025: KOHO vs EQ Bank vs Tangerine vs Simplii

Canada's digital banking landscape has matured significantly. Four institutions dominate the neo bank space: KOHO, EQ Bank, Tangerine, and Simplii Financial. Each serves different needs. This guide helps you figure out which one (or which combination) is right for you.

Our Top Pick: KOHO

KOHO is Canada's best all-in-one no-fee bank account with built-in budgeting, cash back, and interest on your balance. Use code 45ET55JSYA for a sign-up bonus.

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Quick Profiles

KOHO

No-fee Visa prepaid account with automatic spending tracking, cash back on purchases, and interest on balance. Built-in budgeting tools. No credit check required.

Best for: everyday spending + budgeting

EQ Bank

High-interest savings account (~4%+) that also functions as a chequing account. Best savings rates in Canada. GICs, TFSA, RRSP, and FHSA available.

Best for: savings, GICs, maximizing interest

Tangerine

Scotiabank subsidiary. No-fee chequing, Scotiabank ATM network access, competitive credit card (2% cash back on chosen categories). Promotional savings rates.

Best for: ATM access + credit card rewards

Simplii Financial

CIBC subsidiary. No-fee chequing, CIBC ATM network, excellent Cash Back Visa (4% restaurants), global money transfers.

Best for: restaurant cash back + CIBC ATM access

Head-to-Head Comparison

Feature	KOHO	EQ Bank	Tangerine	Simplii
Monthly fee	$0 free plan	$0	$0	$0
Interest on balance	3–5%	~4%+ consistent	Promo only	Promo only
Cash back (debit)	1–2%	None	None	None
Credit card	No	No	2% chosen cats	4% restaurants
ATM network	Select ATMs	Visa debit ATMs	Scotiabank (3,500+)	CIBC (3,400+)
Budgeting tools	Excellent	Basic	Basic	Basic
GICs	No	Excellent rates	Yes	Yes
Mortgage	No	Yes	Yes	Yes
Credit building	Yes (paid)	No	No	No
No credit check	Yes	No	No	No
Parent company	Independent	Equitable Bank	Scotiabank	CIBC
Deposit insurance	CDIC	CDIC	CDIC	CDIC

Who Should Choose KOHO

Anyone who wants automatic budgeting without a separate app
People with no credit history who can't open a traditional account
Canadians who want cash back on debit spending
Anyone paying monthly fees at their current bank
Those building credit (Credit Building feature on paid plans)

Who Should Choose EQ Bank

Anyone with significant savings earning low interest at a big bank
GIC investors seeking best-in-class rates
TFSA and RRSP savers wanting high interest on contributions
First-time homebuyers using an FHSA

Who Should Choose Tangerine

People who need free Scotiabank ATM access across Canada
Those who want a flexible cash back credit card (choose your categories)
Canadians who want a full banking relationship under one digital roof

Who Should Choose Simplii

Frequent restaurant and bar visitors (4% credit card cash back)
People who send international money transfers
CIBC customers wanting a free secondary account

The Optimal Canadian Neo Bank Setup

You don't have to choose just one. Many financially savvy Canadians use a combination:

KOHO as the everyday spending account (cash back on debit, automatic budgeting)
EQ Bank as the savings and GIC home (maximum interest on stored money)
Simplii or Tangerine credit card for additional cash back on specific spending categories

This combination covers all bases — spending rewards, savings maximization, and fee elimination — without paying a cent in monthly fees.

Final Verdict

For a single account, KOHO is our top pick for most Canadians: it eliminates bank fees, earns cash back on spending, pays interest on your balance, and includes budgeting tools that make money management effortless. Pair it with EQ Bank for savings and you have Canada's best no-fee banking setup in 2025.