Neo-Banks Canada 2025

KOHO, EQ Bank, Tangerine, Wealthsimple & more — Canada's best fintech banking options compared side by side.

KOHO — Canada's #1 Neo-Bank for Cash Back

No monthly fee, up to 5% cash back, and savings that actually grow. Use code 45ET55JSYA for a $100 welcome bonus.

What Is a Neo-Bank?

Neo-banks (also called challenger banks or fintech banks) are financial technology companies that offer banking-like services entirely through mobile apps and websites — no physical branches. In Canada, the term covers a spectrum:

What they all share: zero or low fees, app-first experience, higher savings rates, and none of the overhead of branch networks.

Canada's Top Neo-Banks Compared (2025)

Neo-BankMonthly FeeSavings RateKey FeatureCDIC?
KOHO$0–$192.50%+Up to 5% cashbackVia Peoples Trust
EQ Bank$03.00%Free unlimited e-TransfersYes (direct)
Tangerine$0Promo 5.25%Full banking productsYes
Simplii Financial$0Promo 4.75%Free CIBC ATMsYes
Wealthsimple Cash$04.00%Instant stock tradingVia CDIC partners
Stack$0–$9.99N/ATravel-friendly, no FX feesVia partner banks

Detailed Neo-Bank Profiles

KOHO — Best for Everyday Spending & Cashback

CashbackBudgetingCredit BuildingNo Monthly Fee

KOHO is Canada's leading fintech bank app with over 1 million users. Its free plan offers 1% cashback on groceries and transportation, while the KOHO Everything plan ($19/month) unlocks up to 5% cashback on categories you choose, a 2.50% savings rate, and credit-building features.

The standout feature: KOHO's Cover feature provides a small interest-free cash advance if you're short before payday. Combined with real-time spending insights and automatic saving roundups, KOHO is arguably the most complete fintech banking app in Canada.

Use code 45ET55JSYA to earn a $100 bonus when you sign up and meet spend requirements.

EQ Bank — Best for High Savings Rates

3.00% SavingsTFSA/RRSPFree InteracCDIC Member

EQ Bank (Equitable Bank) is a Schedule I chartered bank — not just a fintech wrapper. This means your deposits are insured directly by CDIC. Their savings account pays a consistent 3.00% with no minimum balance and no monthly fees. Their mobile app is clean and functional, though less feature-rich than KOHO's.

EQ Bank also offers TFSA and RRSP savings accounts, GICs, and international money transfers via Wise. They recently launched a debit card giving them a more complete everyday banking solution.

Wealthsimple Cash — Best for Investors

4.00% SavingsInstant TransfersStock TradingNo Fees

Wealthsimple Cash is primarily aimed at Wealthsimple's existing investment customers — but it's excellent on its own merits. The 4.00% savings rate is one of the highest available without a promotional gimmick. The app integrates seamlessly with Wealthsimple Trade (stocks/ETFs) and Crypto, making it a powerful financial hub for younger Canadians.

Tangerine — Best Neo-Bank for a Full Relationship

No Monthly FeeMortgagesCredit CardsScotiabank Backed

Tangerine is technically the online banking arm of Scotiabank, but it operates independently with its own brand and products. It's the neo-bank to choose if you want a complete banking relationship — chequing, savings, mortgages, credit cards, and GICs — all fee-free online.

Frequently Asked Questions

Are neo-banks in Canada safe?
Yes. Neo-banks in Canada are safe. Those that are CDIC members (like EQ Bank, Tangerine) directly insure deposits up to $100,000. Others like KOHO hold funds at CDIC-member partner banks (Peoples Trust), so your money is still CDIC-insured.
Can I use a neo-bank as my primary bank in Canada?
Absolutely. Millions of Canadians now use KOHO, EQ Bank, or Tangerine as their primary banking solution. These neo-banks support bill payments, e-Transfers, direct deposit, and debit purchases — everything you need day-to-day.
What's the difference between KOHO and EQ Bank?
KOHO focuses on everyday spending (cashback, budgeting, Visa prepaid card), while EQ Bank focuses on savings and simple banking (highest rates, GICs, TFSA/RRSP). Many Canadians use both — EQ for savings, KOHO for spending.
Do neo-banks in Canada have credit cards?
KOHO offers a prepaid Visa (not a credit card, but works the same way for purchases). Tangerine and Simplii both offer real Mastercard credit cards. EQ Bank and Wealthsimple Cash do not currently offer credit cards.
Can I get a mortgage from a neo-bank in Canada?
Tangerine, Simplii Financial, and EQ Bank all offer mortgages. KOHO and Wealthsimple Cash do not. EQ Bank's mortgage rates are often competitive with or better than the Big 5.