Tangerine Review: 2024 Edition

If you are looking for a new banking institution, you should check out Tangerine. This Canadian online bank offers a wide variety of services that are perfect for anyone looking for a reliable and convenient banking experience.

Tangerine Overview

There’s a cash advance APR of 19.95% and your annual income must be at least $12,000 to qualify for this card.

Tangerine Money-Back Credit Card comes with no annual fees. You’ll earn 2% rewards on purchases in two 2% categories of your choice. You’ll also get 0.50% money-back rewards on all the other purchases. 

There are ten purchase categories to choose from:

• Furniture
• Groceries
• Restaurants
• Drug stores
• Recurring bills
• Gas
• Public transit and parking
• Hotels
• Entertainment
• Home improvement

You can combine those categories based on where your other credit cards don’t earn cash back, thus organizing your rewards and enjoying all the perks of customizable banking. You can also switch your chosen categories every 90 days. 

However, it’s important to read the specifics about each category because sometimes you might spend at a hotel restaurant, but that purchase will not be sorted into the “restaurant” category. This depends on the merchant category code (MMC), so you should always check to see if your purchase will be counted within one of your chosen categories.

Your rewards are paid monthly, and you can apply them to your credit card balance or redeem them into your savings account. 

What’s more, there are no limits on money-back rewards. The required credit score of 670 is reasonable, and if you don’t know your credit score, you can quickly check it online.

With the Tangerine Money-Back Credit Card, you’ll get the Mastercard Zero Liability protection and purchase insurance that covers the loss, damage and theft for up to 90 days.

Additionally, the warranty is extended up to one extra year. You’ll also have an option to get free cards for the users you authorize on your account. 

Tangerine Mortgage

Tangerine offers various options for fixed mortgage terms ranging from one to 10 years, with interest rates starting at 5.49% and going up to 6.24%. If you decide to move and take your mortgage along, you won’t be paying any penalties.

For property purchases of $500,000 or less, there’s a 5% down payment. If you plan to spend between $500,000 and $1 million, you’ll pay 5% on the first $500,000 and 10% on the balance. Any mortgage over $1 million will require a down payment of 20%.

At the time of writing, there is a bonus offer of $5,000 if you apply for a mortgage by August 31, 2022. Additionally, getting approved for an eligible mortgage between $350,000 and $749,999 will earn you $2,000.

It’s always wise to do a bit of reading before deciding on a mortgage. For instance, understanding the difference between open and closed mortgages is essential before getting a loan. Checking the provider’s website for current offers is another good practice.   

What Is Tangerine? 

Headquartered in Toronto, Tangerine is an online direct bank subsidiary of Scotiabank. Before 2014, it operated under the name ING Direct. Tangerine users can do all of their banking online or through iOS and Android apps. 

Tangerine Bank Customer Service

Tangerine customer support can be reached by phone, mail, and live chat. Before getting in touch with the representatives, you can read the extensive FAQ section and look for an answer to your issue there. 

You can also chat with the bot and find tax information on the website. There are dedicated phone lines for everyday banking, mortgage, and investment funds. 

Assistance can also be found on social media, and you can usually talk to someone from Tangerine in person if you visit one of Tangerine Cafes. However, at the moment of writing, all physical cafes where users could get one-on-one service are closed. 

Tangerine User Reviews 

Tangerine’s score on the Trustpilot is 1.3, which is fairly low. However, Tangerine representatives are reaching out to consumers who left poor reviews on Trustpilot, intending to improve their services by addressing the most pressing reviews.

While there are positive comments from users who say they had a great experience with the bank, most negative comments revolve around the long wait times when contacting customer support. 

Tangerine Saving 

Regardless of whether you plan on buying a house, simply saving more, or investing in your retirement, Tangerine has an option for you. Clients can choose between multiple savings accounts to find the one that suits them best. 

Savings Accounts

All savings accounts come with no monthly fees and minimum balance requirements. At the same time, the interest rates range from 0.10% for the US dollar savings account to 0.45% on other available options. You can also choose a savings account, tax-free and RSP savings account. 

Guaranteed Investment (GIC)

Depositing money in the guaranteed investment account (GIC) allows you to earn interest on the deposited amount. You’ll have to “lock” your money for a specific period, and as long as your funds are in the bank, you’ll be earning interest. 

There are no service charges or fees, and you’ll get up to 4.65% interest rate. Offered GIC accounts you can choose from are GIC account, RSP GIC, tax-free GIC, US dollar GIC and RIF GIC account. 

Business Savings Accounts

Tangerine offers you a chance to grow your business and save money at excellent rates. Designed as a complimentary account to a chequing account you have somewhere else, the Tangerine business savings account comes with no service charges and no unfair fees. 

Annual interest rates range from 0.45% to 1.10%, depending on the amount. Besides having a chequing account with another provider, you’ll need to submit an enrollment request to get your business savings account. 

Tangerine Spending 

With Tangerine, you can make the most of your spending. Tangerine offers the following options to ensure that your money doesn’t go to waste, even when you’re spending it. 

No-Fee Daily Chequing Account

No-fee daily chequing account comes with an interest rate of up to 0.10%, no daily chequing fees, and a Tangerine Visa debit card. Interac and Visa Debit Zero liability protection protect you and your data from unauthorized purchases as they are one of the vital elements of security.

Additionally, this account gives you access to more than 3,000 Scotiabank ABMs across Canada and 44,000 ABMs around the world. 

Tangerine World Mastercard®

Besides the Tangerine Money-Back Credit Card, there’s a Tangerine World Mastercard available to all Tangerine clients. This Mastercard will also earn you 2% money-back rewards for two 2% categories you choose and you’ll get rewards of 0.50% for your remaining everyday purchases. 

However, there are additional perks too. Tangerine World Mastercard gives you Boingo Wi-Fi for Mastercard, travel rewards, rental car insurance for collision and loss, and other benefits. 

To be eligible for this card, you must be a permanent resident of Canada with no bankruptcies in the past seven years. You also must have one of the following: gross yearly income above $60,000, gross household income above $100,000 or over $250,000 in savings or investment fund accounts. 

For purchases, the interest rate is 19.95%, and the balance transfer fee is 3% on the transferred amount or a minimum of $5, whichever is applicable. The promotional balance transfer fee for the initial six months is 1.95%.  

Tangerine Investing 

Those clients looking to invest can do so with Tangerine using the provider’s low fees, automatic contributions, and investment amounts as low as $25. You can choose between a multitude of investment accounts and portfolios.

Investment Portfolios

Tangerine investment portfolios are available to all Canadians over 18, and investments start at $25. There are five different types of investment portfolios: “balanced growth,” “balanced income,” “dividend,”  “equity growth,” and “balanced.” They use different allocation models and various Canadian bonds and US and Canadian international stocks.

Investment Accounts

You can choose from RIFs (retirement income funds),  RSPs (retirement savings plan), TFSAs (tax-free savings accounts), and non-registered investments (non-reg). The fees are low, and the minimum requirement for saving is $25, except for RIFs. 

Tangerine Borrowing 

Additional products include their borrowing offer. Apart from mortgages, Tangerine also offers lines of credit and home equity lines of credit.

If you’re looking to borrow money, Tangerine could be a good choice because these lines of credit come with relatively low-interest rates, so you can manage to pay down your debt quickly and focus on saving. 

Let’s take a closer look:

Home Equity Line of Credit (HELOC)

Home equity line of credit, abbreviated as HELOC, you can borrow money against your home’s equity. The interest rate is currently set at 4.60%, and there’s an option to set regular fixed payments, making paying off the principal a breeze. This line of credit comes with 24/7 online access, so you can pay off the balance and make payments and withdrawals at any time. 

Line of Credit

Tangerine offers lines of credit with a low variable interest rate and no annual fee. Some consumers find a line of credit more useful than credit cards or loans. You can apply online within minutes and pay it off at your own pace making minimum payments. 

Bottom Line 

Tangerine is a great online bank for those looking for convenience and a wide variety of banking services. While there are some cons to consider, such as the lack of physical branches, the pros far outweigh the cons.