Canada's Big 5 banks — RBC, TD, BMO, Scotiabank, and CIBC — have dominated Canadian banking for generations. But in 2025, online-only banks offer most of the same services with dramatically lower fees and better savings rates. Should you switch? Here's the complete comparison.
The most significant difference between Big 5 banks and online banks is price. Big 5 banks typically charge $10–$30 per month for a standard chequing account. Online banks charge nothing. Over a decade, that's $1,200–$3,600 in fees — money that could have been compounding in a savings account.
| Feature | Big 5 Banks | Online Banks |
|---|---|---|
| Monthly chequing fee | $10–$30 | $0 |
| Savings rate (standard) | 0.01%–0.05% | 0.5%–4%+ |
| e-Transfer fees | Often included, sometimes extra | Free |
| NSF fees | $45–$48 | $0–$25 |
| Overdraft fee | $5–$8/month + interest | Varies |
| Physical branches | Extensive network | None |
| ATM network | Own ATMs + Interac | Partner networks or limited |
| Mortgage products | Full suite | Most offer mortgages |
| Credit cards | Extensive lineup | Limited (some) |
| CDIC insured | Yes | Yes (most) |
If you regularly need in-person banking — depositing cash, accessing a safety deposit box, complex mortgage discussions, or business banking — Big 5 banks remain the only option. Online banks have no physical locations.
Big 5 banks offer every financial product under one roof: chequing, savings, mortgages, credit cards, investment accounts, business banking, foreign currency, safe deposit boxes, and more. Online banks offer a narrower product range, though it covers most Canadians' everyday needs.
For business owners who need merchant services, business lines of credit, payroll, or complex business accounts, Big 5 banks still have the most comprehensive offering.
RBC has been operating since 1864. TD since 1852. For some Canadians, particularly older generations, the institutional history and branch presence provides peace of mind that newer online banks can't replicate.
The average Canadian pays $185–$360 per year in bank account fees. Every major online bank charges $0. This alone justifies switching for most Canadians.
EQ Bank typically pays 3–4%+ on savings. The Big 5 pay 0.01%–0.05% on standard savings accounts. On a $100 balance, that's $350–$400 extra per year from EQ Bank versus perhaps $5 from a Big 5 savings account.
Most online banks offer unlimited free Interac e-Transfers. Big 5 banks include them on premium plans but may charge on basic accounts.
Online banks like KOHO require no credit check and can be opened entirely on a smartphone in minutes. Big 5 banks require in-person visits or more complex application processes for some accounts.
Yes, for deposits. The key protection is CDIC insurance. All Big 5 banks and most major online banks (EQ Bank, Tangerine, Simplii) are CDIC members. Your deposits up to $100,000 per category are equally protected whether you bank with RBC or EQ Bank. KOHO deposits are held at Peoples Bank of Canada, also a CDIC member.
You don't have to choose one or the other. The smartest approach is to use online banks for their strengths and keep a Big 5 account only where specifically needed:
KOHO is the easiest first step to eliminating bank fees. No credit check, no minimum balance, instant approval. Use code 45ET55JSYA for a signup bonus.
Open KOHO Free — Use Code 45ET55JSYAFor the vast majority of Canadians in 2025, online banks offer better value than Big 5 banks on fees and savings rates with equivalent deposit safety. The case for keeping a Big 5 bank as your primary account is shrinking every year. Start by opening a free KOHO account or EQ Bank savings account — you can always keep your Big 5 account alongside it while you transition.