Canada EQ Bank vs Tangerine: Which Digital Bank is Right for You?

Choosing the right bank has always been a big decision, but with the rise of digital banking, the choices have become more versatile and, at times, overwhelming. Gone are the days when you had to walk into a physical branch to manage your finances. Today, online banks like EQ Bank vs Tangerine are reshaping how Canadians approach banking, offering convenience, competitive interest rates, and zero-fee accounts. But here’s the catch: while both EQ Bank and Tangerine promise to simplify banking, they aren’t the same. Each offers unique features, benefits, and drawbacks, catering to different kinds of users. So, how do you decide which fits your lifestyle, financial habits, and goals?

This blog will discuss a comprehensive comparison between EQ Bank vs Tangerine. From savings accounts and fees to user experience and mobile app performance, we will break down the key differences to help you make an informed choice. From high-interest savings accounts to mortgage options, we will help you determine which digital bank aligns best with your financial goals and lifestyle.

Canadian Online EQ Bank Explained

Introduced in 2016, EQ Bank has rapidly gained popularity as one of Canada’s top online banks, largely due to its consistently competitive interest rates. Despite being a newer player in the market, EQ Bank is the digital arm of Equitable Bank, a well-established financial institution with over 50 years of experience in Canada. It is now recognised as the country’s seventh-largest independent Schedule I bank.

Since EQ Bank operates entirely online with no physical branches, customers manage deposits and withdrawals by linking their EQ account to an external bank account. While EQ Bank does not have its ATMs, customers can use their EQ Bank Card to withdraw money from any ATM across Canada, with EQ Bank reimbursing any fees incurred.

EQ Bank: Account Options and Offerings

EQ Bank offers a variety of account and product types tailored to meet different financial needs. Here’s a breakdown of their key offerings:

• • Personal Account: This hybrid account combines the benefits of chequing and savings. It offers unlimited transactions, pays interest on your balance, and has no monthly fees.
    
  • U.S. Dollar Account: EQ Bank’s U.S. Dollar Account provides a competitive interest rate without any monthly charges. It also allows you to transfer USD to other U.S. dollar accounts within Canada at no cost.
    
  • RSP Savings Account: You can open a Registered Retirement Savings Plan (RRSP) through EQ Bank, helping you reduce your taxable income with each contribution. Additionally, you can invest in high-interest Guaranteed Investment Certificates (GICs) within your RRSP.
    
  • TFSA Savings Account: EQ Bank’s Tax-Free Savings Account (TFSA) enables you to save up to your annual contribution limit while earning tax-free interest. You can choose to hold either cash savings or GICs within your TFSA.

EQ Bank provides a variety of additional products, including:

• • EQ Bank Card: This prepaid card allows free withdrawals from any ATM in Canada. While it functions similarly to a debit card, it offers cash back on every purchase, earns high interest on the funds you load, and comes with no monthly or foreign transaction fees.
    
  • Guaranteed Investment Certificates (GICs): EQ Bank offers GICs with terms ranging from 3 months to 10 years, which can be started with a minimum investment of just $100.
    
  • Mortgage Marketplace: EQ Bank partners with Nesto, a digital mortgage brokerage, to offer homebuyers access to over 2,000 mortgage products.

Customer Support at EQ Bank

EQ Bank provides multiple ways for customers to reach their support team, ensuring assistance is always accessible:

Phone Support:

• • Toll-Free (Within North America): Call 1-866-407-5859 to speak with a customer service representative.
    
  • International Calls: If you are outside North America, you can reach them at 1-416-515-7001.
    
  • Hours of Operation: The phone lines are open from 8 a.m. to midnight ET, seven days a week, allowing for flexible support options across different time zones.

Chatbot Assistance:

• • 24/7 Availability: For quick, automated help, EQ Bank offers a chatbot that is accessible anytime, day or night. You can interact with this service through their website or the mobile app.
    
  • Use Cases: The chatbot can assist with common inquiries, provide account information, and guide you through basic banking tasks when you need immediate support outside regular phone hours.

EQ Bank’s Referral Rewards

EQ Bank offers a rewarding referral program that benefits both the referrer and the referred. If you invite someone to open an EQ Bank account, and they meet the specified conditions, you could earn up to $500. Here’s a detailed breakdown of how the program works:

1. Benefits for the Referred Person:
   The individual accepting your referral will receive $20 as a bonus, provided they deposit at least $100 into their new account within 30 days of activation.
   
2. Earnings for the Referrer:
   As the referrer, you can earn a cumulative bonus for each successful referral, up to a maximum of $500. The program incentivises you to refer more people with tiered rewards based on the number of successful referrals. Here’s how the earnings are structured:
   
   • $20 for each of your first three referrals.
   • $30 for each of your fourth to seventh referrals.
   • $40 for each of your eighth to fifteenth referrals.
     
3. Maximum Referral Cap:
   After your fifteenth referral, the program offers no additional bonuses, regardless of how many more people you refer.

What Makes Banking with EQ Bank Unique?

What sets EQ Bank apart is its consistent value with a competitive everyday interest rate, unlike banks that offer temporary promotions. With no monthly fees or minimum balance requirements, it’s a straightforward option for long-term savers. The EQ Bank prepaid card adds convenience, offering free ATM withdrawals across Canada and 0.5% cash back on all purchases. Deposits are protected up to $100,000 through CDIC, ensuring security.

Ranked #1 on Forbes’ 2023 World’s Best Banks list, EQ Bank is known for its simplicity, reliability, and strong customer service.

Canadian Tangerine Bank Explained

Tangerine Bank, a direct banking service in Canada and a subsidiary of Scotiabank simplifies banking through a range of digital financial products. It offers no-fee chequing, savings accounts, and investment options like Guaranteed Investment Certificates (GICs), mortgages, and mutual funds. Many of these products are eligible for tax-advantaged accounts such as the TFSA, RRSP, and RRIF, making Tangerine Bank a convenient choice for online financial management.

Founded as ING Bank of Canada in 1997 by the Netherlands-based ING Group, it gained popularity for its fee-free services under the ING Direct brand. Scotiabank acquired ING Direct in 2012 and rebranded it to Tangerine Bank in 2014. Despite being owned by Scotiabank, Tangerine Bank operates independently with its institution number, offering a distinct customer experience backed by one of Canada’s largest banks.

Tangerine Bank Account Options and Offerings

Tangerine Bank offers various banking products, including accounts, investment options, and credit cards, to cater to diverse customer needs.

• • No-Fee Daily Chequing Account: This account offers unlimited transactions without monthly fees. Additionally, it provides a small interest on your balance, and the included debit card allows for free cash withdrawals at Scotiabank ATMs.
    
  • Savings Account: Tangerine’s savings account often features special promotional interest rates for new deposits. You will earn interest without monthly charges even after the promotional period ends.
    
  • U.S. Dollar Savings Account: This account lets you earn interest on your U.S. dollar holdings with no monthly fees or minimum balance requirements.
    
  • Business Savings Account: Designed for businesses, this account comes with no monthly fees, but you’ll need to maintain a chequing account with another institution.
    
  • RSP Savings Account: Maximize the tax advantages of a Registered Retirement Savings Plan (RRSP) while earning interest on your contributions.
    
  • Tax-Free Savings Account (TFSA): Any interest earned within your TFSA is tax-free, making it a smart way to save and grow your money.
    
  • RIF Savings Account: Convert your savings into a Retirement Income Fund (RIF) upon retirement. This allows you to withdraw while earning slightly higher interest than a standard savings account.

Customer Support at Tangerine Bank

Tangerine Bank offers comprehensive customer service across various banking needs:

Everyday Banking Support:

• • Available 24/7 for all your everyday banking queries.
  • Contact: 1‑888‑826‑4374

Mortgage Specialist Support

• • For mortgage-related assistance, reach out from Monday to Friday between 10 a.m. and 8 p.m. ET.
  • Contact: 1‑888‑826‑4374

Investment Support Line

• • The support line is available Monday to Friday from 8 a.m. to 8 p.m. ET for investment inquiries.
  • Contact: 1‑877‑464‑5678.

Online Assistance

• • A chatbot is available on the website for instant support.
  • Additionally, a comprehensive FAQ section can help answer common questions.

Tangerine Bank ensures that help is readily accessible, regardless of time or need.

Tangerine’s Referral Rewards:

Tangerine offers a referral program that allows current customers to invite friends and family to join using their unique Orange Key. Here’s how it works:

1. New Customer Requirements:
   
   • The referred person must sign up using the Orange Key.
     
   • They must deposit at least $250 within 60 days of opening the account.
     
   • A balance of at least $250 must be maintained for 60 consecutive days.
     
2. Once these conditions are met, the new customer will receive a $50 bonus.
   
3. Referral Rewards for Existing Customers:
   
   • The referring customer will also receive $50 credited to their Tangerine chequing or savings account.
     
   • Customers can earn up to three referral bonuses annually, with a maximum of $150 in rewards.

This program allows new and existing customers to benefit from the referral process.

What Makes Banking with Tangerine Unique?

Tangerine Bank attracts many customers by offering most of the services you expect from a traditional bank, minus the physical branches. With Tangerine, you can easily open a chequing or savings account, access ABMs, and manage credit cards. Additionally, the bank provides various investment products and borrowing options to meet different financial needs. As a Canada Deposit Insurance Corporation (CDIC) member, Tangerine Bank protects your eligible deposits. Furthermore, in J.D. Power’s 2023 Canada Retail Banking Satisfaction Study, Tangerine Bank ranked first in overall customer satisfaction among midsize banks, highlighting its commitment to delivering a quality banking experience.

EQ Bank vs Tangerine: A Detailed Comparison

	EQ Bank	Tangerine
Account Types	Hybrid chequing/savings, U.S. dollar savings, RRSP, TFSA	Chequing, savings, U.S. dollar savings, business savings, RRSP, TFSA, RIF
Interest Rates	N/A	Up to 0.10%
HISA Rate	4.00% (Personal Account)	Up to 6.00% promotional and 0.45% regular interest rates
Monthly Banking Fees	None	None
Account Minimums	None	None
ATM Withdrawals	Free at any ATM in Canada (fees are reimbursed)	Free at any Scotiabank ABM
Cost of Interace – transfers	Free	Free
NSF Fee	Free	$40
Referral Program	Yes, it pays up to $500 lifetime	Yes, pays up to $150 per year
Credit Cards	None	Tangerine Money-Back Credit Card and Tangerine World Mastercard
5-year GIC interest rate (as of Sept. 2024)	3.70%	3.70%
Other Bank Services Offered	Mortgages	Mortgages, investment portfolios, lines of credit, HELOC
CDIC Insurance	Yes	Yes

Conclusion

In conclusion, both EQ Bank and Tangerine Bank offer solid digital banking experiences, but the right choice depends on your specific needs. EQ Bank might be the better option if you’re looking for high-interest savings with no monthly fees and don’t mind the lack of a debit card for everyday purchases. On the other hand, if you prefer a more traditional banking experience with a full range of services, including chequing accounts, credit cards, and more flexibility for daily transactions, Tangerine may be the ideal fit.

Eventually, both banks offer strong benefits without the fees and hassles of traditional banks, making them excellent choices for Canadians looking to simplify their finances while still earning competitive returns. Your decision will depend on how you prioritise interest rates, everyday banking features, and the tools you need to manage your money.

You May Also Read :

Know The Online Banks in Canada	Online Banks in Canada
What is Credit Unions in Canada	Credit Unions in Canada
Guide To No Fee Chequing Accounts	No Fee Chequing Accounts
How To Block Debit or Credit Card	Block Debit or Credit Card
Explore TFSA Vs RRSP	TFSA Vs RRSP

Frequently Asked Questions (FAQs)

Which one is better, Tangerine or EQ Bank?

Choosing between Tangerine and EQ Bank depends on your needs. EQ Bank offers higher interest rates with no fees, making it great for saving. Tangerine Bank provides more services like chequing accounts and credit cards, offering greater flexibility for daily banking. Go with EQ Bank for savings or Tangerine Bank for a more comprehensive banking experience.

Why is EQ Bank so good?

EQ Bank is highly regarded because it offers competitive high-interest rates on savings with no monthly fees. It also provides unlimited free transactions, including bill payments and Interac e-Transfers®, making it a great option for those focused on saving and maximising their money. Additionally, it has a simple, user-friendly online platform, making banking convenient and accessible.

Is EQ a safe bank?

Yes, EQ Bank is a safe bank. It is a Canada Deposit Insurance Corporation (CDIC) member, meaning eligible deposits are insured up to $100,000 per account, protecting your money. Additionally, EQ Bank operates under strict regulations, ensuring the security and safety of its customers' funds.

Does EQ Bank charge fees?

No, EQ Bank does not charge monthly fees on its accounts.

What makes Tangerine different from other banks?

Tangerine stands out from other banks because it operates entirely online, offering lower fees and higher interest rates than traditional banks. It provides a full range of financial services, including chequing, savings, credit cards, and investments, all with the convenience of digital banking.

Does EQ Bank refund ATM fees?

No, EQ Bank does not refund ATM fees charged by other banks.