At this point, a vast majority of our daily lives are carried out digitally. We find dates on apps, order food through delivery services, shop for vintage handbags and leather jackets on the internet — and more people are choosing to do their daily banking that way, too.
To help you consider which online bank or financial institution might be right for you, we've rounded up a list (in alphabetical order) of Canada's online-only banks and financial institutions with chequing and spending accounts. We'll also explain what "online bank" actually means, what to compare, whether your money is safe, and how to switch without accidentally missing a bill.
We won't say which one is right for your needs — that's for you to decide — but we've tried to make it easier to compare. Rates and features are current as of July 2026.
What counts as an online bank or a financial institution in Canada
In Canada, "online bank" gets used loosely, but it usually covers two different kinds of company:
Banks — like Tangerine or EQ Bank. These are federally regulated Schedule 1 banks that hold their own banking licence under the Bank Act and carry their own CDIC (Canada Deposit Insurance Corporation) coverage, just like the big banks.
Financial technology companies ("fintechs") — these partner with regulated banks to hold your money and offer chequing- and savings-style accounts, but they don't hold a banking licence of their own. Your eligible deposits still get CDIC deposit protection through the partner bank, while the company focuses on better digital tools and lower fees.
Where does Wealthsimple fit? Wealthsimple is a financial technology company, not a bank. We partner with Schedule 1, CDIC-member, regulated Canadian financial institutions to hold your money, so your eligible deposits are covered by CDIC through those partners.
Both can handle your everyday money. For simplicity, we'll refer to both as online financial institutions throughout this article.
What to compare when choosing an online bank or financial institution
When comparing online financial institutions, focus on these key factors:
Fees: one common reason people choose online financial institutions is to reduce or avoid monthly account fees. If an account charges one, check whether the perks (like cash-back) actually outweigh the cost.
Interest rates: look for competitive interest on everyday balances, not only money locked into investments like a guaranteed investment certificate (GIC).
ATM access: most online financial institutions belong to an ATM network (for example, The Exchange Network) that lets you withdraw cash at no charge.
Features: do not assume every account includes a chequebook, bank drafts, or unlimited Interac e-Transfer* (a Canadian email money transfer service) transactions. If you need those, check the fine print.
Safety: ensure your deposits are eligible for coverage through the CDIC, either directly or through a partner bank.
Are online financial institutions safe in Canada?
Online financial institutions in Canada are usually regulated in the same way traditional banks are, and your deposits get the same protection. What changes is how you access support, not how safe your money is.
Deposit insurance: eligible deposits are covered by the CDIC up to the standard limit, whether the institution is a federally regulated bank or a fintech holding your money through a partner bank. Confirm coverage before you open an account.
Security features: reputable online financial institutions use encryption, two-step verification, and real-time transaction alerts. These tools often flag suspicious activity faster than waiting for a paper statement.
Your responsibilities: keep your password, PIN, and security answers private, and review your account regularly. Report anything you did not authorise to the institution right away.
The main trade-off is not safety but service — you resolve issues by phone, chat, or app rather than at a branch counter.
Online financial institutions in Canada
The table below shows typical (non-promotional) rates and features, which may change over time:
Online financial institution | Account types offered | Student/ youth accounts | Monthly account fees | Minimum account balance | Base interest rate, savings | Investments |
|---|---|---|---|---|---|---|
| EQ Bank | Hybrid chequing/savings, Notice Savings Account, USD savings | No | None | None | 1% base; 2.75% with $2,000+/mo direct deposit | GICs, Managed Portfolios |
| Koho | Hybrid chequing/savings (three tiers: Essential, Extra, Everything) | No | Free for Essential with direct deposit; $12/mo Extra; $14.75/mo Everything | None | Essential: 2%; Extra: 2.5%; Everything: 3.5% | Crypto trading (tiered) |
| Manulife Bank | Hybrid chequing/savings, standalone savings, USD savings | No | None | None | Advantage: 3.00%; TFSA: 1.05%; USD: 0.20% | GICs |
| Neo Financial | Chequing and savings accounts | Yes | No | None | 2.25% High Yield Savings Account | ETFs (Neo Invest managed portfolios) |
| Simplii | Separate chequing/savings, USD savings, student accounts, newcomer accounts | Yes | None | None | Tiered 0.30%-1.00% (CAD); USD Savings: 2.80% | GICs, mutual funds |
| Tangerine | Chequing and five types of savings accounts (registered & non-registered) | No | None | None | Savings/TFSA/RSP: 0.30%; USD: 0.10%; RIF: 0.35%; promotional rate of 4.50% for 5 months | GICs, ETFs, mutual funds |
| Wealth One | Savings account | No | None | None | 2.60% for High Interest Savings Account | GICs, Canadian/US/global stocks and bonds, Mutual Funds |
| Wealthsimple | Hybrid chequing and savings (chequing) | Coming Soon | None | None | 1.25% Core; 1.75% Premium ($100K+); 2.25% Generation ($500K+); +0.50% interest boost on chequing with $2,000+ direct deposit in 30 days (Core & Premium only) | Managed investing, Trade(stocks, ETFs, options), crypto |
Other online financial institutions in Canada
As online banks have grown, so have alternative financial institutions that offer savings and investment accounts without actually being a bank. Here's what sets them apart:
Specialised focus: they concentrate on specific needs (for example, investing) and may offer tailored services with lower fees.
Innovative products: many offer hybrid chequing/savings accounts that combine everyday banking needs with interest on balances.
Lower barriers: they may make it easier to start saving or investing without large minimum balances or complex requirements.
Benefits and drawbacks of online financial institutions
While many users value the history and ability to actually walk into a brick-and-mortar branch, online financial institutions have become increasingly popular because of the convenience they offer. Here are the main benefits and drawbacks:
Benefits of online financial institutions
Low to no fees: most online financial institutions don't charge monthly account maintenance fees or require minimum balances to avoid them, unlike traditional banks.
Lower overhead costs: without physical branches, tellers, or security staff, online financial institutions can save money and pass those savings to customers.
Higher interest rates: online institutions typically offer 1.5% to 3.75% on savings, compared to 1% to 2% at traditional banks. Check whether it's a promotional rate that expires.
Drawbacks of online financial institutions
Less flexibility for special requests: unusual transactions or edge cases are harder to resolve without in-person support.
No personal relationships: you won't have a familiar teller who might let the occasional overdraft fee slide or expedite a loan application.
Fewer services: most online financial institutions only focus on chequing accounts and savings, while traditional banks offer comprehensive retirement planning, mortgages, and investment advice under one roof.
How to switch institutions without missing a bill
One common reason people delay switching from a high-fee bank is the perceived hassle of moving payments and deposits. A simple way to approach it is to follow this five-step checklist.
Open the new account: this usually takes about 5 minutes on your phone.
List your automatic payments: review your last 3 months of statements and note every pre-authorised debit (for example, streaming, gym, electricity) and direct deposit (for example, payroll, Canada Revenue Agency (CRA) payments).
Move your payroll: give your employer your new direct deposit form. Get this one right first.
Switch the bills: log in to your subscription services and update your payment information. For utilities, set up the new pre-authorised debits.
Close the old account: once everything has cleared and your pay is being deposited into the new account, transfer the remaining balance. Leave a small buffer for 1 month in case a forgotten bill tries to go through.
Making an online financial institution your primary account
If you decide to make an online financial institution your primary account, here are common features to look for:
Spending (chequing) account: look for a competitive interest rate, optional rewards (if offered), and no monthly account fees.
Investment transfers: check whether the institution offers transfer support and whether it reimburses transfer-out fees (often subject to minimum transfer amounts).
If you're ready to switch, compare a few options and follow the checklist above to move your deposits and payments.
