EQ Bank Review for 2024

This review will cover everything you need to know about EQ Bank, its financial services and its features, as well as the benefits this online-only bank offers. You’ll have a chance to read about its fees and accounts and learn more about its drawbacks.

What Is EQ Bank? 

EQ Bank is a fully digital bank that operates exclusively online. There are no queues and no cards - all you need is an internet connection.

Founded in 2016, EQ Bank has seen substantial growth and gained popularity among a wide base of customers, as evident from the predominantly positive reviews.

It’s important to note that EQ Bank is open for business only to Canadian residents, so if you’re from another country and want to open an account, you’ll have to wait until the company hopefully expands its operations.

Is EQ Bank Safe? 

The fact that EQ Bank operates without any ATMs or physical branches makes some potential clients apprehensive, which is understandable. But though it might be unconventional, EQ Bank is perfectly safe and adheres to all security standards.

One of the factors contributing to its reliability is the fact it is owned by Equitable Bank, which has been around since the 1970s. Equitable Bank is a member of the Canada Deposit Insurance Corporation, which means that clients who decide to invest money at this bank will have their funds insured up to a maximum balance of $100,000. 

Types of EQ Bank Accounts 

One of the reasons EQ Bank is favoured by its customers is the wide choice of high-interest savings accounts. EQ Bank offers Personal accounts, Joint Personal accounts, tax-free savings accounts, US dollar accounts, and retirement savings plan accounts.

Personal Account 

With the Personal account, you’ll have a great chance to save money with zero hassle. No minimum balance is required, and the maximum is $200,000. With no banking fees and 2% interest + 1.75% bonus interest for 12 months when you direct deposit your pay, you’ll be able to save more compared to the typical 0.05% offered by most competitors. 

With this account, you can deposit cheques and pay your bills online. The Personal account also uses Interac e-Transfer, which makes transferring money to and from different EQ Bank accounts, between banks, and sending money abroad effortless.

Joint Personal Account

This account can be shared with up to three people, and it features all the perks and benefits of the Personal account.

As with the latter, there are no fees, and you’ll be earning 2% interest + 1.75% bonus interest for 12 months when you direct deposit your pay. Transactions are free of charge for everyone, with no minimum balance required, and the maximum deposit is $500,000. 

Like with other EQ accounts, you can pay your bills with the Joint Savings account using online banking without having to deal with any paperwork.

US Dollar Account

The US dollar account is an excellent opportunity for you to save money if you own USD that you don’t want to convert to CAD. The interest rate of 3.00% is quite high, so you can save a significant amount of money. The exchange rates can be seen upon registering, as they always fluctuate, but they’re usually competitive. 

With EQ Bank, an international transfer is quick and easy, as you can transfer your US dollars worldwide using Wise. Everything can be done in only a couple of clicks, and your money will reach the desired destination in no time.

TFSA Savings Accounts

With a TFSA account, you can enjoy tax-free saving with a 3.00% interest rate with no annual withdrawal or account fees.

To open an EQ Bank TFSA account, you’ll first have to open the Personal account. Similarly, if you want to deposit money into the TFSA account, you’ll also have to deposit it into your Personal account first.

No fees will be charged to the TFSA account unless you contribute more than $6,000 annually, and all deposits are eligible for CDIC protection. 

RSP Savings Account 

Similar to the TFSA account, you’ll have to have a Personal account if you want to open an RSP savings account, and you will enjoy the competitive 2.50% interest rate.

An RSP account helps you save money for old age, and the funds are not taxed until you start using them, i.e., only after you retire. The deposits are also eligible for CDIC protection. With savings account options like this one, interest will accrue on every dollar from the moment you activate the account, and it is calculated daily and paid monthly.

FHSA Savings Account

If you are a first-time homebuyer, EQ Bank offers a no-fee FHSA Savings Account with an excellent interest rate of 2.50%¹. This is Canada's first fully digital savings account specially designed for the first-timers looking to save for a tax-free down payment on a qualifying home. Similar to RSP saving accounts, FHSA account deposits are eligible for CDIC deposit insurance².

FHSA is tax-advantaged registered plan that helps first-time homebuyers save while purchasing their first home. You can contribute $8,000 annually and a maximum of $40,000. If you contribute less than $8,000 in a year, the spare amount will carry over into the next year, meaning you will be able to contribute more. Most importantly, contributions are tax-deductible and withdrawals are tax-free and you don't need to pay them back.

1 - Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

2 - EQ Bank is a trade name of Equitable Bank. Equitable Bank is a member of CDIC. Deposits made under EQ Bank and Equitable Bank are aggregately eligible for CDIC protection up to $100,000, per insured category, per depositor.

EQ Bank Fees and Services 

With EQ Bank, there are no monthly fees, but there are also no fees charged on overdraft, nonsufficient funds, RSP or TFSA transfers to other banks, or Interac e-Transfer. 

Regarding services, EQ Bank offers guaranteed investment certificates, international money transfers, and mortgages. 

International money transfers are conducted with the help of EQ Bank’s partner Wise, directly through EQ Bank’s app. The maximum daily limit is $9,500, and the latest exchange rates can be seen on the website. 

GICs are one of EQ Bank’s key products. With them, you can gain significant returns, but you’ll have to “lock” your money for a specific time. EQ Bank GIC rates are among the best on the market. The bank offers both registered and nonregistered GICs, and the minimum deposit is $100 in either case.

GICs rates range from 3.00% to 4.00%. You’ll be able to use TFSA and RSP GICs, and you can lock your funds for a period ranging from three months to 10 years. To do this, however, you’ll need to have an EQ savings account. 

As for mortgages, the application process is highly convenient. It starts with filling out an online questionnaire, after which the algorithm will recommend the best mortgage option for you based on your answers. You’ll talk to a broker in charge of reviewing your application, and they will preapprove or submit your application to a lender. 

EQ Bank Mobile App

The app is available for both Android and iOS. It’s very user-friendly, as everything can be done in just a few clicks. It allows you to efficiently make use of all the features of this online-only bank, from depositing money and completing transfers to sending money abroad. 

EQ Bank Customer Support

EQ Bank’s customer support can be reached via phone from 8 a.m. to 12 a.m. ET, seven days a week. You can also contact them via email or live chat, or talk to a chatbot. 

The customer service representatives are polite and knowledgeable, and will answer all of your questions and help with any doubts you might have. There is also a dedicated number for questions regarding mortgages.

EQ Bank Security

The bank’s security is multilayered, combining security questions, data encryption, strong password requirements, as well as fraud monitoring and detection. All of this makes the bank exceptionally safe. Still, it’s always a good idea to take all the common security precautions.

Room for Improvement  

While the EQ Bank offer is rich with excellent services and products, there are things that could be improved for it to be more accessible to everyone and provide a broader range of options for its users. 

One of the most notable drawbacks is the complete lack of physical locations, so if you want to talk to a representative, you won’t be able to do it in person. Customer support is readily available, but some simply prefer live contact.

Other than that, EQ Bank has no ATMs, and that can be a deal-breaker for many who want to have the option of easily withdrawing cash whenever they need it. Similarly, there are no debit or credit cards, so you wouldn’t be able to use your account to pay for goods or services directly.

Conclusion

Overall, EQ Bank is an excellent choice for almost anyone who is looking for an online-only bank. It offers a variety of products and services, the customer support is excellent, and the app has a wide range of features that make banking easy and convenient. The interest rates are highly competitive: There aren’t many Canadian banks that will be able to match this offer.