Best Online Bank Accounts in Canada for 2024

According to the Canadian Banking Association[1], 77% Canadians conduct their banking virtually and among them 30% use app banking. As Canadians get more comfortable with digital banking, more people may choose online bank accounts.

While online banks may not offer as many services as brick-and-mortar banks, they are often convenient to use for daily banking.

Our selections focus on the online chequing and hybrid accounts that charge lower (or no) monthly fees and offer higher interest rates on your deposits.

Summary of the best online bank accounts

Hybrid bank accounts

• Best bonus on a high-interest hybrid account, EQ Bank Personal Account.
• Best tiered cash-back on a high-interest hybrid account, KOHO Spending and Savings Account.
• Best high-interest hybrid account, Wealthsimple Cash Account.
• Best prepaid Mastercard with tiered cash-back, Neo Everyday Account.
• Best for bonus reward points, The PC Money Account.
• Best high-interest hybrid account, Manulife The All-In Banking Package.

Online chequing accounts

• Best cash-back and students offers, Simplii Financial No Fee Chequing Account.
• Best no-fee chequing account with cash-back offer, Tangerine No-Fee Daily Chequing Account.
• Best no-fee chequing account with a modest interest rate, motusbank Chequing Account.
• Best premium chequing account with student offers, National Bank The Connected Chequing Account.

Best online bank accounts

Best hybrid bank accounts

Best bonus on a high-interest hybrid account

EQ Bank Personal Account

• Bonus Offer
  N/A
• Monthly Fee
  $0
• Number of Transactions
  Dollar limits apply*

  Up to $20,000 outbound <i>Interac</i> e-Transfer® monthly maximum; Up to $250,000 EQ to EQ Transfers Daily Maximum; $25,000 per <i>Interac</i> e-Transfer® Inbound transaction.

Apply Now

Our Take

Why we like it

• EQ Bank’s Personal Account is the digital-first bank’s flexible hybrid chequing and savings account. It features a high interest rate, no monthly fees, and free and unlimited transfers.
• The bank also offers joint accounts, US dollar accounts, TFSAs, RRSPs, and GICs.

Product Details

• Customers who set up direct deposit on their EQ Bank account will also get a bonus interest on recurring pre-authorized debits.
• Here’s how to get the bonus interest: (a) Set up $500/month or more in either direct deposit for your pay or recurring pre-authorized debits. (b) Applies to your Personal Account, Joint Account and EQ Bank Card¹ balance. (c) Once set it up, they’ll be eligible for the increased rate of 3.75%* for 12 months! (d) Those who already set up the above automatically qualify for bonus interest!
• 3.75% interest rate*.
• No monthly fee.
• This hybrid account gives you the benefits of savings with the flexibility of chequing.
• Mobile Cheque Deposit is available through the EQ Bank mobile app.
• Zero monthly banking fees.
• No transaction or service fees. EQ Bank does not charge account fees, fees for sending or receiving Interac e-Transfers®, fees for bill payments, overdraft fees, or dormant account fees.
• No minimum balance, but a $200,000 maximum balance.
• Access your money immediately through the mobile app and online banking website, where you can deposit or transfer funds using Interac e-Transfers® or Electronic Funds Transfer (EFT) to linked accounts.
• Eligible for CDIC deposit insurance.
• As of December 2022, EQ Bank is available to Québec residents.
• *Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

Best tired cash-back on a high-interest hybrid account

KOHO Spending and Savings Account

• Bonus Offer
  30-day free trial

  All KOHO subscription plans come with a free 30 day trial.
• Monthly Fee
  $0-$19

  Monthly fee waived if a direct deposit for paycheques or government benefits is set up or a monthly contribution of $1,000 or more.
• Number of Transactions
  Dollar limits apply*

  Daily limits include store payments of $9,000, ATM withdrawals of $1,010 and e-transfers of $3,000.

Apply Now

Our Take

Why we like it

• This hybrid chequing-savings account earns up to 5.00% interest on savings and up to 5.00% cash back on purchases depending on the subscription plan selected.
• KOHO is a virtual bank that also offers cash back prepaid Mastercards cards

Product Details

• Interest Rate varies by selected subscription plan. Essential Plan: 3.5%, Extra Plan: 4%, Everything Plan: 5%.
• Monthly Fee varies by selected subscription plan. Essential Plan: $4, Extra Plan: $9, Everything Plan: $19.
• The account comes with the KOHO prepaid Mastercard that earns up to 5% instant cash back on spending (depending on the selected subscription plan).
• The mobile app comes with spending pattern analysis, budgeting, automated savings and a RoundUp! feature that helps you save money on every purchase.
• No minimum balance.
• Immediate access to your money through free withdrawals, e-Transfers, and more.
• Eligible for up to $100k CDIC deposit insurance.
• Boost Your Credit Score by Simply Paying Rent! With KOHO’s Rent Reporting, your rent payments can now help build your credit history. Here’s how:
• a. Choose any KOHO paid plan OR subscribe to Credit Building.
• b. Pay rent using your KOHO account via e-Transfer, pre-authorized debit, or your KOHO card.

Best high-interest hybrid account

Wealthsimple Cash Account

• Bonus Offer
  N/A
• Monthly Fee
  $0
• Number of Transactions
  Spending and usage limits apply*

  Daily spending limits include store payments of $5,000, ATM withdrawals of $3000 and direct transfers of $100,000. Daily transaction limits include store payments of 20, ATM withdrawals of 10 and direct transfers of 10.

Our Take

• The Wealthsimple Cash account provides a no-fee way to handle your everyday spending needs while earning earning 1% back in cash, stock or cryptocurrency when you pay with your Wealthsimple card.
• Wealthsimple is a Canadian online investment management service that offers stocks, ETFs, crypto and managed investing, spending and saving accounts, tax services and a peer-to-peer money transfer Cash App.

Product Details

• No monthly fees.
• No foreign exchange fees.
• No ATM fees.
• No minimum balance required.
• Manage your rewards, spending, and send and receive money from friends using the mobile Wealthsimple Cash App.
• Use your Wealthsimple Cash account to pay bills, make e-transfers and directly deposit your paycheque.
• The Wealthsimple card can be used anywhere Visa is accepted, in store or online.
• Digital and physical Wealthsimple Cash Visa debit card provided.
• Card can be added to Apple Pay and Google Pay digital wallets and used at ATMs Canada-wide. Standard ATM fees will apply.
• Get 1% back in cash, stock or crypto whenever you spend using your account.
• CDIC protection for eligible deposits.

Best prepaid Mastercard with tired cash-back

Neo Everyday Account

• Bonus Offer
  N/A
• Monthly Fee
  $0-$9.99

  The base plan is $0; Premium plan is $9.99/month.
• Number of Transactions
  Dollar limits apply*

  Interac e-transfer daily/weekly maximum is $10,000, and the monthly maximum is $20,000.00; Electronic fund transfer limits per transaction is $30,000 max outbound to an external bank and $100,000 max inbound from an external bank. The maximum bill payment limit is $25,000.

Apply Now

Our Take

Why we like it

• Neo offers a digital-first banking experience and a fee-free account with one of the highest interest rates available in Canada.
• Comes with a prepaid Neo Money™ Card that links to your account and earns instant, unlimited cashback at over 10,000 partners.

Product Details

• One account to spend, save and earn 0.1% interest
• No fees, up to 3% cashback on gas and grocery and 1% everywhere else.
• Earn up to $460 in cashback annually
• Get a free Neo Money card that links to your account and start earning instant, unlimited cashback at over 10,000 partners
• Make bill payments, send and receive Interac e-Transfers®, and make bank to bank transfers to and from existing bank account – all with no monthly fees or minimum balances and unlimited free transactions.
• Available Canada-wide.
• Manage everything from the phone app, whenever and wherever. Desktop/web banking is also available.
• Much like any bank account at a traditional bank, the Neo Everyday Account is eligible for CDIC deposit protection, and provided by People’s Bank, a CDIC member institution. Deposits held in Neo Everyday Accounts are combined with eligible deposits held at People’s Bank, for up to $100,000 of deposit protection, per category, per depositor.

Best for bonus reward points

The PC Money™ Account

• Bonus Offer
  150,000 bonus PC Optimum points.*

  Earn bonus PC Optimum points with a welcome offer when you open a new PC Money Account. Additionally, you must set up a payroll or pension direct deposit of at least $1,500 for three consecutive months. The first deposit must be made within 60 days of account opening. Offer ends Nov. 30, 2024.
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• The PC Money Account with the optional savings feature makes it an attractive high-interest paying no-fee hybrid account. Aside from the chequing and savings account features, it has a unique rewards program.
• President’s Choice Financial is part of Loblaw Companies Limited with millions of account holders across Canada that save bank fees and earn rewards through the PC Optimum points system.

Product Details

• Only new PC Money™ Account cardholders can receive the bonus points.
• To qualify, you must deposit at least $1,500 per month via payroll or pension direct deposits for three consecutive months. Other deposits, such as Interac e-transfers, do not qualify.
• Standard points are awarded within 2-7 business days after each qualifying deposit, with bonus points awarded 4-6 weeks after requirements are met.
• Option to earn a high rate of interest with the savings feature.
• The savings feature is not available in Quebec. Residents can still open a PC Money Account and start earning points.
• No monthly fee.
• No minimum balance required.
• Free unlimited everyday transactions online and in-store, including electronic fund transfers, withdrawals at PC Financial bank machines, self-serve bill payments and purchases in Canadian dollars.
• Free Interac e-transfer services.
• The PC Money Account card, provided by Mastercard, is compatible with Apple Pay and Google Pay digital wallets and can be used anywhere Mastercard is accepted.
• PC Financial provides Mastercard Zero Liability Promise for unauthorized purchases.

Best high-interest hybrid account

Manulife The All-In Banking Package

• Bonus Offer
  N/A
• Monthly Fee
  $10

  Save $100 per month to waive monthly fee
• Number of Transactions
  Unlimited

Our Take

• The All-in Banking Package combines unlimited chequing features, high-interest savings and other financial features through online banking.
• Manulife Bank has provided Canadians with branchless banking since 1993. Services include chequing and savings, credit cards, mortgages, loans, and investment accounts.

Product Details

• Unlimited daily transactions include e-transfers, ATM withdrawals and debit purchases.
• Free ATM withdrawals with THE EXCHANGE Network across Canada.
• Automate your savings and earn more interest with Savings Sweeps, which automatically moves excess money into your savings account each night.
• Travel insurance with an annual limit to cover travel disruption.
• Manage your money and see account insights by phone, through online banking and a mobile app.
• Eligible for CDIC deposit insurance.

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Best online chequing accounts

Best cash-back and students offers

Simplii Financial™ No Fee Chequing Account

• Bonus Offer
  $500

  Welcome offer: Earn $500† when you become a new client and open a No-fee Chequing Account by February 28th, 2025. Add an eligible direct deposit of at least $100 a month for 3 straight months. Offer ends February 28th, 2025.
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Apply Now

Our Take

• With no monthly fee, unlimited debit purchases and free access to more than 3,400 ATM machines across Canada, Simplii Financial’s No Fee Chequing Account is a low-cost way to handle your day-to-day banking.
• Simplii Financial is an online bank owned by CIBC that offers savings and chequing accounts, credit cards, mortgages, loans, lines of credit, registered plans, GICs, and mutual fund accounts. Read our review of Simplii Financial for more information.

Product Details

• Welcome offer: Earn $500† when you become a new client and open a No-fee Chequing Account by February 28th, 2025. Add an eligible direct deposit of at least $100 a month for 3 straight months. Offer ends February 28th, 2025.
• No monthly fees.
• No minimum balance.
• Unlimited debit purchases, bill payments and withdrawals.
• Free access to over 3,400 CIBC ATMs across Canada.
• Shop online and in-store with the Simplii Financial Debit Mastercard, which can be used anywhere Mastercard is accepted.
• Direct payroll and pension deposit.
• Optional overdraft protection for $4.95 a month.
• Pre-authorized bill payments.
• Account-to-account transfers, including automatic transfers.
• Send personalized gift cards.
• Earn $50 by referring a friend who opens a No Fee Chequing Account or other eligible account.
• Interest rate: 0.01% on balances of $25,000 or less; 0.05% on balances greater than $25,000.
• CDIC protection for eligible deposits.

Best no-fee chequing account with cash-back offer

Tangerine No-Fee Daily Chequing Account

• Bonus Offer
  $250

  (1) Become a Client. (2) Open your Chequing Account. (3) Switch your payroll deposits to earn $250 by moving your paycheques to your Tangerine Chequing Account for 2 consecutive months.
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• Tangerine’s No-Fee Daily Chequing Account offers free access to 44,000 ABMs worldwide, overdraft protection, financial monitoring tools and a secure way to shop both online and in person.
• Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

Product Details

• Switch your payroll deposits and you could get $250.
• No monthly fee.
• Interest rate: up to 0.1%.
• Free online daily banking, including debit purchases, bill payments, pre-authorized payments, Interac e-Transfers and ABM transactions that use Scotiabank’s ABM network.
• ABM withdrawals with other banks in Canada: $1.50.
• ABM withdrawals on other networks worldwide: $3.00.
• Free first cheque book (50 cheques). $50 for each additional cheque book.
• Tangerine Client Card with Visa Debit can be used anywhere Visa is accepted, and can be added to Apply Pay, Google Pay and Samsung Pay.
• Card is covered by Interac and Visa Debit Zero Liability protection, so you won’t have to pay for unauthorized purchases.
• Access to tools and alerts that help monitor spending activity.
• CDIC protection for all eligible deposits.

Best no-fee chequing account with a modest interest rate

motusbank Chequing Account

• Bonus Offer
  N/A
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• motusbank isn’t the only financial institution offering a chequing account with no monthly fee and unlimited debit payments, but it ups the ante with a stylish vertical debit card, the ability to deposit cheques by taking a picture and a few other useful perks.
• motusbank is an online division of Meridian Credit Union and offers chequing and savings accounts, mortgages, registered plans, GICs, investing, and a home equity line of credit loan.

Product Details

• Earn interest at a 0.15% rate.
• $0 monthly fee.
• No minimum balance required.
• Free, unlimited Interac e-Transfers®.
• Unlimited debit purchases, bill payments and withdrawals, including transfers between accounts, Interac Direct Payment purchases, pre-authorized debit, ATM withdrawals and cheques.
• No-fee access to THE EXCHANGE Network of ATMs in Canada and the Allpoint Network in the U.S.
• Deposit Anywhere: deposit a cheque by taking a photo.
• First order of 25 cheques is free.
• Free, unlimited use of motusbank’s Price Drop feature, which hunts for cheaper prices when online shopping.
• Foreign debit transaction surcharge: $2.50.
• Paper statement fee per month: $2.
• ATM international transaction fee: $5.
• ATM US transaction fee (non-Allpoint Network): $3.
• Deposits protected by Canada Deposit Insurance Corporation, up to a maximum of $100,000.

Best premium chequing account with student offers

National Bank The Connected® Chequing Account

• Bonus Offer
  N/A
• Monthly Fee
  $15.95

  Waive the monthly fee by maintaining a $4,500 minimum balance.

  Waived with minimum balance
• Number of Transactions
  Unlimited

Our Take

• You get unlimited digital transactions, free unlimited e-transfers and a $30 discount on eligible credit cards when you open The Connected chequing account.
• National Bank of Canada, or NBC, is headquartered in Montreal, Quebec, and is one of Canada’s Big Six banks offering bank accounts, lending and investment solutions, and wealth management services. Read our review of National Bank of Canada for more information.

Product Details

• Unlimited access to all digital transactions.
• Unlimited and free Interac e-transfers.
• Make international payments with Mastercard Send by Mastercard and Interac.
• $30 off after enrolment of an eligible credit card.
• Mobile or contactless payment with Apple Pay, Google Pay and Interac Debit contactless payments.
• Access to cheque images and mobile cheque deposits.
• Free online statements.
• Special rate for online trading.
• Access to ABMs in THE EXCHANGE network at no additional cost.
• Eligible deposits are covered by CDIC.
• Banking products are available only to those aged 18 and over.

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What to know about online bank accounts

By Janine DeVault

Online bank accounts are those offered by online-only banks. Some are digital subsidiaries of major banks, such as Tangerine Bank (Scotiabank), or credit unions, such as motusbank (Meridian Credit Union) in Canada. Online banks do not offer in-branch services. 

What are online bank accounts?

Online bank accounts are usually low or no-fee accounts and are an appealing feature of many online banks. These online chequing, savings and hybrid accounts generally don’t have minimum balance requirements or impose limits or fees on daily transactions, making them very flexible for account holders.

Types of online bank accounts in Canada

Online banks offer several different types of accounts to meet your banking needs.

Online chequing accounts

Online chequing accounts are convenient for everyday banking. You can set up direct deposit to receive your paycheque into the account, use it to pay bills, move money to other accounts and make store purchases using a debit card.

But, online chequing accounts may have some limitations for those with more complex banking needs.

Unless it’s associated with a major bank, you may not be able to deposit cash or cheques into your online account from an ATM. Additionally, online chequing accounts may not let you deposit cheques in foreign currencies. You’ll likely also pay a fee to withdraw cash.

Online savings accounts 

Virtual banks have lower overhead costs because they do not offer physical locations. They can pass those savings on to their customers through higher interest rates and low (or no) banking fees. 

Through virtual banks, you can access many types of online savings accounts, including:

• High-interest savings accounts (HISAs).
• Tax-free savings accounts (TFSAs).
• Registered retirement savings plans (RRSPs).
• USD Savings accounts and more.

Hybrid bank accounts 

Many online banks offer hybrid accounts that allow you to earn interest on the same account balance used for daily transactions. 

These accounts can be attractive for saving towards travel, home renovation, or a wedding. You can squirrel the funds away and earn interest. Then, you can spend freely without needing to transfer the funds back to your primary chequing account.

How online bank accounts work 

Online bank accounts usually have unique banking features, fewer fees and streamlined banking solutions. Understanding how these factors differ from standard bank accounts is crucial in determining the best fit for your daily banking needs.

• Fees: Online banks tend to offer low or no account fees. These banks generally don’t impose fees for basic transactions, such as e-transfers. Traditional banks often charge a monthly account fee and may charge additional fees for transactions, statements, ATM use and overdrafts.  

• Minimum balance requirements: Online banks don’t typically have minimum balance requirements or monthly account fees. Traditional banks may waive monthly account fees, but only for customers who maintain a balance above a certain threshold.  

• Transaction limits: Many virtual accounts offer unlimited monthly transactions, even on savings accounts. Traditional banks often have monthly limits on free transactions unless you pay a high monthly account fee. 

• Interest rates: Online banks often offer more competitive interest rates than traditional banks. But remember to read the fine print to determine whether additional requirements exist to access the best rates. Some banks require a certain minimum balance before the best rates kick in.  

• Account options: Online banks may be limited regarding advanced investing products, loan options, or the savings accounts they offer. Some online accounts may not offer wire transfers or bank drafts, either. In contrast, traditional banks offer more services but may not offer convenient products like hybrid accounts or low-cost international money transfers. 

• Ways to bank: In-person banking services are reserved for traditional banks and credit unions and are unavailable for online-only banks. Instead, virtual banks typically offer customer service through online portals and telephone. 

• Access to ATMs: Some online banks are digital subsidiaries of brick-and-mortar institutions and offer their customers access to the parent institutions’ ATM network. While you can use your debit card at an ATM, there may be a fee unless the bank has an affiliate. In contrast, traditional banks typically offer customers free access to their network of ATMs.

Key considerations when choosing an online bank account

Before opening a new bank account, it’s essential to evaluate your banking needs and priorities to ensure your online bank account will help you meet your goals. Here are some key considerations:

• Your financial goals: Do you want to reduce monthly costs by using a low- or no-fee account with unlimited transactions? Do you want to capitalize on high interest rates to boost your savings?

• Daily banking requirements and conveniences: Do you prefer to bank online or in person? Do you frequently need ATM access? What types of banking, investment or loan products do you plan to use?

• Do you feel digitally savvy? Are you comfortable performing your daily banking tasks online or do you prefer in-person assistance? Is the convenience of banking online a strong enough trade-off to forgo in-branch banking services? 

• Deposit insurance and trust factors: You should feel confident in where you place your money. Investigate whether your prospective bank is a Canada Deposit Insurance Corporation (CDIC) member and if your deposits are eligible for protection. Look into the account’s security features, too. Do they offer multi-factor authentication? Will the account alert you of suspicious activity? Do they have a zero liability policy to protect against unauthorized purchases?

• Promotions, rewards and perks: Some banks offer promotional interest rates, cash bonuses, or gifts for new account holders who deposit a certain amount of money. Many banks run seasonal promotions, like increased interest rates on new deposits or discounts on purchases through brand partners. Ask yourself if these perks align with your spending and saving goals.

Key benefits and drawbacks 

Once you review your banking habits, weigh the pros and cons of online bank accounts to decide if an online chequing account or a hybrid account would work best for you.

How to open an online bank account

You can open an account with a virtual bank through their website or proprietary app. Usually they will ask you to provide:

• Personal information: Name, email, phone number and home address.
• Photo identification: A valid passport, Canadian driver’s licence, or other government-issued photo ID.
• Proof that you reside in Canada.
• Social Insurance Number (SIN).

Generally, you must be a Canadian resident at or above the age of majority in your province of residence to be eligible to open an account.

Approval for online bank accounts is usually swift. But, before you can use your account, the online bank will verify your identity based on the documents you provide. The approval process could take a few minutes to a couple of days.

Alternatives to newcomer bank accounts

Many of the features common to online bank accounts can be found in other kinds of bank accounts. These accounts include:

About the Author

Siddhi Bagwe

Siddhi Bagwe is a content management specialist at NerdWallet Canada. Treating content marketing as an educational medium for readers, Siddhi believes in empowering them with the knowledge of personal finance…

Read more about Siddhi Bagwe and explore their articles

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