Best Online Banks Canada 2025

Top Online Banks in Canada Compared

Bank	Monthly Fee	Savings Rate	e-Transfers	CDIC
EQ Bank	$0	3.00%	Free unlimited	Yes
KOHO	$0 (free plan)	2.50%+	Free	Via Peoples
Tangerine	$0	Up to 5.25%*	Free unlimited	Yes
Simplii Financial	$0	Up to 4.75%*	Free unlimited	Yes
Oaken Financial	$0	3.40%	Free	Yes
Wealthsimple Cash	$0	4.00%	Free	Yes (via CDIC)

*Promotional rate for new deposits. Regular rates apply after promotional period.

Why Canadians Are Switching to Online Banks

Online banking in Canada has grown dramatically. With savings rates at big banks hovering near 0.01%–0.50% and monthly fees of $15–$30, many Canadians are choosing digital-only banks that offer dramatically better value.

The Numbers Don't Lie

On a $20,000 savings balance:

Where you bank	Annual interest earned	Annual fees paid	Net annual gain
Big 5 bank (typical)	$10 (0.05%)	$180 ($15/mo)	-$170
EQ Bank	$600 (3.00%)	$0	+$600
KOHO (with cashback)	$500 (2.50%)	$0	+$500+

How to Open an Online Bank Account

Choose your bank — Compare rates, fees, and features above. Most Canadians do well with EQ Bank for savings and KOHO for everyday spending.

Gather your information — You'll need your SIN (Social Insurance Number), government-issued ID, and Canadian address.

Apply online — The entire application takes 5–10 minutes. No branch visit required. Identity is verified digitally.

Fund your account — Link your existing bank account via your void cheque or institution/transit/account numbers. Transfer funds electronically.

Start earning — Your account is live. Interest begins accruing from day one at your bank's stated rate.

Online Banking Safety in Canada

One of the most common concerns about online banking is security. Here's what protects you:

CDIC insurance — All banks listed above (except credit unions) are CDIC members. Deposits insured to $100,000 per category.
256-bit SSL encryption — All reputable online banks use bank-grade encryption for all transactions.
Two-factor authentication (2FA) — Login requires both your password and a one-time code sent to your phone.
Zero-liability fraud protection — If someone makes unauthorized transactions, you're not held responsible as long as you report promptly.
Real-time alerts — Instant push notifications for every transaction let you catch fraud immediately.

Bottom line: Online banks in Canada are just as safe as big branch banks. The security infrastructure is identical — you're just accessing it via app instead of a teller.

Frequently Asked Questions

What is the best online bank in Canada?

For pure savings, EQ Bank (3.00%) and Oaken Financial (3.40%) offer the best rates with no fees. For an all-in-one everyday banking solution with cashback, KOHO is the top choice. For those who want a full banking relationship online, Tangerine is a strong pick.

Do online banks in Canada have ATMs?

Most online banks in Canada partner with ATM networks. EQ Bank offers a debit card that lets you withdraw from ATMs (fees may apply). KOHO works with any ATM that accepts Visa. Simplii gives access to CIBC ATMs free of charge.

Can I get a mortgage from an online bank?

Yes. Tangerine, Simplii Financial, and EQ Bank all offer mortgages. Online mortgage rates are often lower than big banks because of reduced overhead costs.

How long does it take to open an online bank account?

Most accounts can be opened in 5–15 minutes online. You'll need your SIN, a government-issued photo ID, and your address. Some banks may require a brief identity verification step that takes 1 business day.

Is Wealthsimple Cash a real bank account?

Wealthsimple Cash is a hybrid account offering 4.00% interest on deposits. While Wealthsimple itself is not a bank, deposits are held at CDIC-member institutions and are fully insured.