Tangerine Vs Desjardins 2022: Which Bank Has The Edge?

It’s never easy to choose between two banks. In this matchup, I’ll compare the fairly new and completely online Tangerine with one of the oldest credit unions in Canada – Desjardins.

Both offer similar services, but the small differences between them make one stand out. So, how did I make my decision?

I compared the following three categories and came up with a winner from each.

  • Accounts and Features
  • Fees
  • Access

After reviewing my analysis, you should be able to figure out which one works best for you.

Tangerine Vs Desjardins

Is Tangerine a Reputable Bank?

Tangerine logo

Tangerine is a subsidiary of Scotiabank and one of Canada’s most popular online banks. With a no-fee chequing account and competitive interest rates, Tangerine helped pave the way for a new banking experience.

The company offers a wide range of financial products for all needs. In addition to chequing accounts, you can open savings accounts, credit cards, investment accounts, mortgages, lines of credit, and more.

Because Tangerine doesn’t have brick and mortar buildings, they save money on overhead costs. Those savings get passed down to the customer in the form of higher interest rates and no-fee accounts.

Pros
  • No monthly fees for chequing accounts and free Interac e-Transfers.
  • Higher interest rates than big banks.
  • Access to over 3,500 Scotiabank ATMs.
Cons
  • No brick and mortar branches

About Desjardins

Desjardins is the oldest credit union in Canada. It’s popular in Quebec and Ontario but doesn’t really have a presence outside of those two areas.

Desjardins offers many financial products – chequing and savings accounts, credit cards, loans, and insurance. In addition, they have a whole online investment brokerage, Disnat, where you can trade stocks and ETFs.

One of the big advantages to Desjardins is that it’s a one-stop shop. You can have a chequing and savings account as well as your investments and insurance all in one place.

Pros
  • Bilingual services since the majority of their customers live within Quebec.
  • Lower fees than banks since it is a credit union.
  • Have all your financial accounts in one place.
Cons
  • Limited service outside of Quebec and Ontario
  • Higher fees than online banks

Tangerine vs Desjardins – Benefits Comparison

Finding out which financial institution comes out on top requires comparing its account features, fee structure, and ease of access.

Tangerine vs Desjardins – Accounts and Features

Tangerine vs Desjardins - Accounts and Features

Both companies feature a variety of different accounts. But does either one have the edge? Let’s find out.

Tangerine Accounts and Features

Most big bank accounts in Canada come with monthly account fees and low-interest rates. Tangerine changed all that – their no-fee chequing account is one of the most popular options throughout the country.

Here’s what else they have to offer.

No-Fee Chequing Account

  • No monthly fees
  • Unlimited debit transactions
  • Interest earnings on your chequing account balance
  • Cheque deposit via the mobile app

Tangerine Savings Accounts

Tangerine offers a wide array of savings accounts. One is sure to fit your needs.

Savings Accounts

Investment Accounts

Tangerine offers Tax-Free Savings Accounts and Retirement Plans that have low fees and are easy to use. You can pick from a range of different portfolios.

Whether you’re looking for ETFs or a socially responsible fund, Tangerine has something to fit your financial goals.

Credit Cards

There are two credit card options to choose from. Both offer cashback rewards and have no annual fee. The World Mastercard has a few extra perks, including mobile device insurance, Global Wi-Fi, and car rental insurance.

Loans

Tangerine offers fixed and variable rate mortgages, lines of credit, and home equity loans. Rates are competitive, and the whole application process starts and finishes online.

Desjardins Accounts and Features

Desjardins features similar accounts, but are there any major differences? Here’s a breakdown of what they have to offer.

Chequing Accounts

There are three different chequing accounts to choose from at Desjardins. The basic personal chequing account, a U.S.

Build-Up account to keep your U.S. dollar transactions in, and a High-Yield account where you can earn a higher rate of interest based on your balance.

Savings Accounts

Similar to Tangerine, Desjardins offers a regular savings account, as well as a high-yield one.

There’s also a Tax-Free Savings Account and an Enhanced Investment Account that helps grow your money through flexibility and high returns.

Investments

Desjardins has its own self-directed investment platform, Disnat, as well as a full-service brokerage for customers looking for a more hands-off approach.

Credit Cards

Desjardins offers a slew of credit cards – many featuring cashback rewards, low to no annual fees, travel rewards, and mobile device insurance.

Loans

In addition to the standard personal loans, mortgages, and lines of credit, Desjardins also offers student financing and vehicle loans.

Other Features

Desjardins also offers a whole branch of insurance services. You can get coverage for just about anything from your car and home to your life and motorcycle.

The Verdict – Tangerine vs Desjardins – Accounts and Features

Both financial institutions offer similar features, but I’ll give the edge to Desjardins simply because they have a whole insurance and investment platform as well as a wider selection of credit cards.

Tangerine vs Desjardins – Fees

Tangerine vs Desjardins - Fees

Banks always claim they have the lowest fees around, but when you actually dig into the nitty-gritty, which is the better deal? Let’s find out.

Tangerine

Tangerine built its brand on its no-fee chequing account and tries to make banking as affordable as possible.

There are very limited fees associated with the chequing account, mainly just NSF charges and withdrawals from ATMs not in the Scotiabank network.

The savings account is similar. There are no fees or service charges and no minimum balance required.

Both of Tangerine’s featured credit cards have no annual fees. However, to qualify for the World Mastercard, you need an income of $60,000 or more.

Desjardins

Desjardins offers four different fixed-rate monthly plans. Each costs a monthly fee ranging from $3.95 to $21.95. Paying this gives you access to a certain number of free transactions depending upon your chosen plan.

For example, the lowest level basic plan allows its users 12 monthly transactions for the cheapest price. Customers can save on the fee by maintaining a minimum balance of $1,500.

Going over your allotted number of transactions results in additional fees, which could end up being costly.

Desjardins FEES 2

As for savings accounts, the High-Interest Savings Accounts is one of your best bets if you’re looking for no fees. This account includes no monthly fees and lets you earn interest on your overall balance.

The regular savings account includes monthly services charges unless it’s a transaction from another Desjardins account.

The variety of credit cards you can get through Desjardins really guarantees that there’s one right for you. While some have annual fees, there are at least four that don’t, making it easy to choose an affordable option.

The Verdict -Tangerine vs Desjardins – Fees

Tangerine is the runaway winner in this category. With no fees on the majority of their accounts, it’s a much more affordable option.

Tangerine vs Desjardins – Access

Tangerine vs Desjardins - Access

The next category to compare focuses on access. How easy is it for customers to access their accounts, ATMs, and customer service?

Tangerine

Tangerine is a full-fledged online bank, meaning they don’t have any branches you can physically visit.

There is a Tangerine Cafe located in Toronto where staff can help you out while answering any questions, but that’s a limited option if you don’t live in the area.

Otherwise, you can fulfill all your banking needs online and even contact customer service through phone, email, or online chat.

In addition, you have access to over 3,500 ATMs through the Scotiabank network. All of those are free of charge.

Desjardins

With branches located throughout Quebec and Ontario, you can visit a local office in person for all your financial needs.

However, the downside to banking with Desjardins is that they’re only available in those two areas. If you move or live outside the area, access to a local office is nonexistent.

Members can use online or telephone banking, if they wish, to keep their accounts. Also, because the financial institution is part of the EXCHANGE Network, its customers can access ATMs throughout the world.

The Verdict – Tangerine vs Desjardins – Access

Tangerine is the clear winner in this category. You can take care of any customer service needs online, and there’s access to ATMs throughout the country.

Desjardins’s limited exposure outside of Quebec and Ontario makes the choice obvious.

Overall Verdict – Tangerine vs Desjardins

While both offer similar services, the edge goes to Tangerine. They offer no-fee chequing and savings accounts and have ATMs located throughout the country.

Desjardins charges monthly fees for similar services, and although they have in-person branches, they’re only available throughout Quebec and Ontario.

Use Tangerine if:

  • You’re looking for no-fee banking.
  • You aren’t concerned with visiting local branches.

For more information, visit Tangerine’s website.

Use Desjardins if:

  • You live in Quebec and value in-person service.
  • You’re looking for a one-stop-shop. You can have savings and chequing accounts, an investment portfolio, and all your loans and credit cards at one institution.

For more information, visit Desjardins’ website.

There are pros and cons to each bank, but Tangerine edges out Desjardins in our comparison. It’s hard to top their no-fee cost structure. Plus, customers can use any of Scotiabank’s ATMs located throughout the country.

Ultimately, the decision on where to bank will come down to what’s most important to you and how cost-effective it is.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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