Best Online Bank Accounts in Canada for 2025
Dec 18, 2024Compare the top online bank accounts to find the best account that offers chequing privileges, charges low or monthly fees, and earns higher interest rates on your deposits.
According to the Canadian Banking Association, 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
- Click to see the best hybrid bank accounts
Best interest-earning hybrid account: EQ Bank Personal Account.
Best for cash-back on a high-interest hybrid account: KOHO Spending and Savings Account
Best regular online account: Neo Everyday Account.
Best high-interest hybrid account: Wealthsimple Cash Account.
Best hybrid account with bonus reward points: The PC Money Account.
Best interest-earning hybrid account: Manulife The All-In Banking Package.
- Click to see the best online chequing accounts
Best cash-back and student 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 that earns interest: motusbank Chequing Account.
Best premium chequing account with student offers: National Bank The Connected Chequing Account.
Best online bank accounts in Canada
Best hybrid bank accounts
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Product detailsBest online chequing accounts
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BACK TO TOPNerdWallet selects the best online bank accounts based on several criteria including annual percentage yields, minimum balances, fees, digital experience and more. Only chequing and hybrid accounts from online-only banks that are available in more than one province are considered for this list.
What to know about online bank accounts
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:
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.
Pros
- Pay low or no transaction fees on most online bank accounts.
- Earn higher interest rates on savings and hybrid accounts.
- Get standard account features with online chequing accounts.
- No need to maintain minimum balance for most online bank accounts.
Cons
- You may need to have an active account with another bank to open and fund the new online bank account.
- Access to customer service is limited to phone, chat or email for most online bank accounts.
- Generally get no chequing features, branch banking, or ATM access with hybrid accounts.
- Limited services and financial products with most hybrid accounts.
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.
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 online bank accounts
Many of the features common to online bank accounts can be found in other kinds of bank accounts. These accounts include:
Account Type | Pros | Cons |
|---|---|---|
Some hybrid accounts include chequing privileges. Choose to earn a high interest rate in a non-registered HISA, RRSP or TFSA. Usually, there are no fees. | You may need to keep a minimum account balance. Typically, there is no in-person service. | |
Typically used to earn a high interest rate in a non-registered HISA, RRSP or TFSA. Usually, there are no fees. | You may need to keep a minimum account balance. The highest rates are typically only found at online banks. | |
No monthly fees. Unlimited transactions are common. | Rarely offers access to branch banking. Low to no interest. | |
In-person and online service. Ability to link other accounts, sometimes with bonus offers included. | Most accounts charge a monthly fee. Risk of other costs, like non-sufficient funds (NSF) or dormant account charges. |
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Canadian Bankers Association. How Canadians Bank: 2024 survey of Canadians. Accessed Jan 1, 2025.
Frequently asked questions
Are online bank accounts secure?
Are online bank accounts secure?
Depends on the deposit insurance and security features of the online bank account. Always verify that your chosen bank account is protected by the Canada Deposit Insurance Corporation (CDIC) to ensure your deposits are safe. Also, check for built-in security features like multi-factor authentication, purchase protection and suspicious activity monitoring.
What is a hybrid bank account?
What is a hybrid bank account?
Hybrid accounts combine chequing and savings account features. They typically offer unlimited monthly transactions and allow you to earn high interest rates on your balance.
Which is the best online bank account?
Which is the best online bank account?
The best online bank account for you depends on your financial goals and banking preferences. How you’d use the account can help you find an ideal one from our list of top online bank accounts.
Can I open a virtual bank account in Canada?
Can I open a virtual bank account in Canada?
Yes. However, some virtual banks require account holders to:
Be a Canadian resident.
Be the age of majority in their province or territory.
Have an active account with another bank.
Provide their Social Insurance Number (SIN).
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Canadian Bankers Association. How Canadians Bank: 2024 survey of Canadians. Accessed Jan 1, 2025.
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Siddhi Bagwe
Siddhi Bagwe