Canada's best online banks offer everything the Big 5 charge you for — chequing, savings, GICs, mortgages, and credit cards — at zero or near-zero fees, and often with significantly better interest rates. Here's the complete guide to Canada's best online banks for 2025, ranked and compared across every major category.
| Bank | Monthly Fee | Savings Rate | Cash Back | TFSA/RRSP | Mortgage | Parent |
|---|---|---|---|---|---|---|
| EQ Bank | $0 | 3.00%+ | None | Yes (savings/GICs) | No | Equitable Bank |
| Simplii | $0 | 0.10% + promos | 4% dining (Visa) | Yes | Yes | CIBC |
| Tangerine | $0 | 0.10% + promos | 2% categories (MC) | Yes | Yes | Scotiabank |
| KOHO | $0–$19/mo | 3%–5% | 0.5%–5% | No | No | Peoples Trust (CDIC) |
| Neo Financial | $0 | 4.00% | 1%–5%+ | Yes | Yes | ATB Financial (CDIC) |
EQ Bank is the gold standard for Canadian savers. Owned by Equitable Bank (Canada's 7th largest bank, CDIC insured), EQ Bank offers:
Best for: Savings, GICs, and anyone who wants to earn real interest on their money. EQ Bank is not a complete bank — no credit cards, no mortgages — but as a savings vehicle, nothing beats it.
At $50,000: Big 5 bank earns ~$5/year. EQ Bank earns ~$1,500/year. Annual difference: $1,495.
Simplii Financial is CIBC's digital banking brand. It offers everything a primary bank account needs — completely free:
Best for: Anyone who wants to replace their Big 5 chequing account and save $130–$200/year, especially restaurant-heavy spenders who want 4% dining cash back.
Tangerine is Scotiabank's digital banking brand. Like Simplii, it offers free unlimited chequing — but its key differentiator is the Tangerine Money-Back Mastercard:
Best for: Customizable cash back on everyday spending. Choosing groceries + gas as your two 2% categories gives most Canadian households significant annual cash back with no annual fee.
See: TD vs Tangerine | RBC vs Tangerine
KOHO is Canada's leading fintech challenger bank with over 1 million users. It combines no-fee banking with cash back rewards and meaningful interest on balances:
Best for: Canadians who want cash back on all purchases (not just one category), meaningful interest on their balance without locking anything in, and powerful savings/budgeting tools. The free tier is better than most paid bank accounts.
Neo Financial is Canada's fastest-growing fintech, founded by SkipTheDishes entrepreneurs in 2019:
Best for: Credit building, registered account savings (TFSA/RRSP), and shoppers who frequent Neo partner stores for 5%+ cash back. The only challenger bank in Canada that offers a true Mastercard credit card.
| Goal | Best Online Bank | Why |
|---|---|---|
| Highest savings rate (daily) | EQ Bank | 3.00%+ on all balances, no lock-in |
| Best GIC rates | EQ Bank or Oaken | Both consistently beat Big 5 GIC rates |
| Free chequing (dining focus) | Simplii | 4% on restaurants with no annual fee |
| Free chequing (groceries/gas) | Tangerine | 2% in chosen categories |
| Cash back on everything | KOHO | Up to 5% on all purchases |
| Highest interest + cash back combo | KOHO Everything | 5% interest + 5% cash back |
| Credit building | Neo Financial | True Mastercard builds credit automatically |
| TFSA/RRSP at high rate | EQ Bank or Neo | Both offer 3%–4% in registered accounts |
| Mortgage | Tangerine or Simplii | Both offer competitive digital mortgages |
| Students | KOHO or EQ Bank | Free, high interest, no hidden fees |
| Newcomers to Canada | KOHO or Simplii | Easy digital setup, no credit check for KOHO |
KOHO is Canada's highest-rated challenger bank — over 1 million users, up to 5% cash back, 3%–5% interest on balances, and zero monthly fees. Use referral code 45ET55JSYA to get a cash back bonus when you sign up.
Get KOHO Free — Use Code 45ET55JSYANo credit check required. Referral code 45ET55JSYA applied automatically.
There's no single "best" online bank — the right choice depends on what you need:
The optimal Canadian banking setup in 2025:
This four-bank setup costs nothing and can earn $2,000–$3,000+ per year more than keeping everything at a Big 5 bank.