Tired of low-interest rates from the bank you’ve been using?
For instance, the Royal Bank of Canada gives you a 1.00% interest rate in its high interest savings account. Toronto-Dominion Bank also has a 1.00% interest rate on its high-interest savings account.
Enter EQ Bank as the solution to your problem of dealing with low-interest rates.
I think EQ Bank has the potential to be a welcome change for anybody looking to get reasonably exciting interest rates compared to what the traditional Big Five banks offer.
There is an increasing trend of adopting digital banks among Canadians. EQ Bank offers a high-interest savings account and one of the best savings interest rates in the market right now.
Considering how low savings account interest rates have been since the market crash in 2008, EQ Bank presents itself as a possible sigh of relief.
Modern digital banking solutions are becoming popular for a reason.I am going to give you a more in-depth look with this EQ Bank review so you can check out if it can work for your savings account needs.
Use: Online Bank
Wealthawesome Score: 4.8/5
- Free signup: It’s entirely free to open an account
- One of the best interest rates in Canada
- Flexible maturity terms— from 30 days to 5 years
- No everyday banking fees: Zero fees for everyday banking transactions
- No minimum balance: You can have a $0 account balance
- No physical branches: Bank is entirely online with no human or face-to-face banking
- No cards: You get no physical debit card or checkbook
- Non-registered accounts only: You cannot open a TFSA Savings Plus Account or an RRSP
- No debit cards or checkbooks: You don’t need a debit card or a checkbook with an EQ Bank account
- Unlimited fund transfers: Unlimited fund transfers allow the bank to operate like high-interest checking account making checkbooks and debit cards useless
- International money transfers: You can make international transfers of funds with 17 currency options available
- Mobile interface: Completely digital interface can work on your phone through an app and online
- Customer service: EQ Bank offers reliable 24/7 online customer service
Free High-Interest Savings Account
EQ Bank Review: What is EQ Bank Canada?
EQ Bank is a trademark of and owned by Equitable Bank. Equitable Bank is the ninth largest Schedule I bank in Canada. It introduced EQ Bank as its digital banking subsidiary four years ago.
As of today, EQ Bank already has more than 60,000 customers and $2 billion in deposits.
EQ Bank Accounts
EQ Bank offers two primary accounts that customers can leverage and earn higher interest rates on their cash deposits in savings accounts:
- EQ Bank Savings Plus Account
- EQ Bank Guaranteed Investment Certificate (GIC) Account
Let’s take a look at the two bank account types EQ Bank offers.
EQ Bank Savings Plus Account Review
The EQ Bank Savings Plus Account is its high-interest savings account. Currently, the EQ Bank interest rate is 2.45% as of February 29, 2020.
The high-interest rate offered through this account beats the market figures based on the interest rates provided by the Big Five.
It also makes EQ Bank’s rate count as the highest among the online-only banking solutions right now.
The EQ Bank Savings Plus Account has plenty of features I liked, including:
- Free electronic funds transfer
- Free mobile check deposits
- Ten free linked accounts
- Unlimited Free Interac e-Transfers
- Unlimited and free daily transactions
- Mobile banking app
- Always available customer service
- Low-rates on international transfers
- Zero minimum balance
- Zero monthly fees
- High-interest rates of 2.45%
- Unlimited bill payments
A significant feature of this account is how versatile it is. EQ Bank does not offer a checking account, but you can use your savings account at the bank similar to how a checking account operates.
It includes the ability to transfer money between accounts at different banks, setting up recurring transfers and bill payments, you can deposit checks, and also pay your bills.
There is no dedicated tax-free savings account offered by EQ Bank currently.
EQ Bank GIC Review
EQ Bank also offers a Guaranteed Investment Certificate (GIC) Account. It operates similar to a savings account. You can get fixed-percentage interest rates paid to you on scheduled dates. The primary difference between the GIC and the savings account is that you cannot withdraw your funds from the account until it reaches maturity.
GICs generally provide you a fantastic opportunity to work towards your short-term savings goals. You stand to earn slightly more through a GIC than you would if you stored the same money in a savings account. GICs offer you low risks and guaranteed returns.
The EQ Bank GIC rates are market-competitive. Its interest rates are better than the immediate competition: (Rates as of February 29, 2020)
- Three months: 2.33%
- Six months: 2.35%
- Nine months: 2.38%
- One year: 2.40%
- Two years: 2.45%
- Three years: 2.50%
- Four years: 2.55%
- Five years: 2.65%
Some of the advantages you can leverage through EQ Bank’s GIC includes:
- Zero-fee banking
- Market-beating interest rates
- Mobile banking app
- Real-time updates and a Contact Center available 8 am to midnight all seven days of the week
EQ Bank vs. Tangerine and Other Online Banks
The trend for Canadians opting to use digital banks is that they look for higher returns on their savings. Another reason could be that they’re just tired because of the continually increasing checking account fees they have to deal with.
EQ Bank isn’t the only digital banking option that offers you a high-interest savings account. Perhaps its closest competitor is Tangerine.
Let’s take a quick look at the best savings rates that a few big banks and other digital banking solutions offer as of writing (February 27, 2020):
|EQ Bank||2.45% (best all-year rate)|
|Tangerine Bank||1.05% (Promotional rate of 2.75% for the first five months)|
You might be wondering about your credit score while reading this. After all, your savings, debt, and credit score are interlinked.
If you’re curious about using a resource for finding out your credit score, Borrowell could be a great option to consider. It’s a good idea to know your credit score regardless of if you have a fantastic or poor credit score.
EQ Bank Login and Opening an Account
One thing I like about EQ Bank is that opening an account with the bank or buying a GIC is convenient and easy. If you are the age of maturity in your province in Canada and you’re a Canadian resident, all it takes is going to the EQ Bank website and clicking the option to “Join Now”.
That will lead you to the page where you can enter your details and get started.
The EQ Bank transit number is 19682.
Is EQ Bank Safe and Legit?
In the digital age, banking seems potentially risky, especially when you hear about cases of fraud, identity theft, hacking, etc. A crucial aspect you need to consider about the bank is whether or not it is safe.
EQ Bank is owned by Equitable Bank. Its parent is a member of the Canada Deposit Insurance Corporation (CDIC). It means your funds stored in an EQ Bank account are insured and subject to maximum coverage limitations.
CDIC is also responsible for insuring the GICs purchased at EQ Bank as long as they do not go beyond the five-year maturity term. The maximum GIC term EQ Bank offers is five years, so you don’t need to worry about that either.
Is there a EQ Bank TFSA or RRSP?
Currently, EQ Bank offers you only non-registered accounts. It means you cannot open a tax-free savings account or a registered retirement savings plan account at EQ Bank.
EQ Bank FAQ
Here are answers to a number of frequently asked questions about EQ Bank that can shed light on things you might be wondering about.
Q. Who owns EQ Bank?
A. EQ Bank is a subsidiary of Equitable Bank. Its parent company is a federally regulated Schedule I Bank. It is the ninth-largest Schedule I Bank in Canada with over 900 employees and more than $32 billion in assets under management. The Equitable Bank is owned by Equitable Group, listed on the Toronto Stock Exchange.
Q. Does EQ Bank offer a TFSA?
A. Currently, EQ Bank does not offer any registered accounts. It means you cannot open a TFSA or an RRSP at EQ Bank.
Q. Does EQ Bank have a mobile app?
A. EQ Bank is an online-only bank that has an app on both the Google Play and on the Apple App Store. It has an easy-to-use user interface, includes biometric verification capability, and a minimalist and user-friendly dashboard.
How to Delete EQ Bank Account
If you want to delete or close your savings account at EQ Bank, you can simply call the EQ Bank Customer Care Team at 1-844-437-2265 or through their Live Chat at any time.
EQ Bank Contact and Customer Service
Getting in touch with EQ Bank is quite easy and convenient. You can contact the bank through the EQ Bank Customer Care that is available on all seven days of the week from 8 am to midnight. EQ Bank’s Live Chat is available 24/7.
You can also call the bank on their toll-free number at 1-844-437-2265 in North America from 8 am to midnight on all seven days of the week.
Is EQ Bank Right For You?
There are several positive points about EQ Bank. Some qualities might not be suitable for your needs. You can consider going for EQ Bank if:
- You want high-interest rates on a savings account
- You want to park your money for a short time for excellent interest
- You are simply tired of traditional low-interest savings account
- You are tired of everyday banking fees
I would give it a rating of 4.8 out of 5 stars for the convenience it offers and its remarkable interest rates. It has the best high-interest rate savings account right now.
EQ Bank – Who This App is NOT for
The EQ Bank is not suitable for the needs of someone:
- Looking to open a registered savings account like a TFSA or RRSP
- Who is not currently a non-resident living in Canada
- Looking for long-term savings goals
The EQ Bank certainly does offer you a significant advantage over other digital banks and traditional Big Five banks for its high-interest rate savings account. Its 2.45% interest rate is yet to be matched by its closest peers, and it offers you decent interest rates on GICs.
The bank offers you the chance to save up to 8x on international fund transfers. You can use it for unlimited transactions, zero minimum balance, and no everyday banking fees. It gives you plenty of reasons to consider signing up.
I find it troublesome that such a fantastic offer by the bank does not extend to registered accounts. I would certainly want to enjoy these interest rates for long-term holdings in TFSAs or RRSPs.
If I think only about parking my money short-term and enjoying remarkable interest rates, EQ Bank does seem like an attractive option for me.
Do you think you will give EQ Bank a try? If you do, I would love to hear what you have to say about your experience with the bank.
Be sure to leave a comment below and let me know!