EQ Bank Savings Plus Account
Interest rate of 1.7%
- Zero everyday banking fees
- Free transactions
- No minimum account balance
Like many other parts of our lives, banking has become increasingly digital. Canada has a number of new digital banking providers and challenger banks, promising to revolutionize the financial industry through the use of world-class technology and digital services. But are they worth the hype? Learn about some of the new banks on the block and what makes them different.
Like the name suggests, a digital banking provider operates digitally, usually from an app or website, rather than from a physical branch or office. Digital banking is a fairly loose, umbrella term that includes online banking, mobile banking, budgeting apps, and challenger banks (which we’ll explain below).
There are a number of digital banking and online banking providers already operating in Canada or about to launch. Many are not actual banks – instead, they are private financial companies partnered with banks, credit unions and other financial institutions to bring similar products and services.
Online banks, like Tangerine or EQ Bank, are digital banks that usually don’t have physical branches and customers use mobile banking apps to control their money. These online-only banks are built on existing infrastructure and closely mimic traditional banks.
A challenger bank, like Revolut or N26, is a completely digital banking provider that doesn’t use any existing legacy systems to operate. Unlike regular online banks, challenger banks don’t use any physical infrastructure or digital operating systems that are already being used by existing financial institutions. The technology used by these fully digital banking providers is developed from scratch. They get their name from their roles as challengers to traditional banks, like the big 5 Canadian banks.
Similarly, if a bank offers a top-notch mobile banking app, internet banking services, cardless cash facilities and digital savings tools, this doesn’t automatically mean it’s a challenger bank either. Remember, a 100% digital challenger bank is one that doesn’t use any existing banking systems or infrastructure.
App-based banking is any sort of financial institution or tool that you control primarily through an app. There are several advantages to app-based banking:
Using your phone as your main point of contact with your bank can save you time and give you more control over your finances, but there are a few things to be aware of.
App-based banking encompasses a lot of different financial products, including:
Digital banking providers need to have the same banking licenses and approvals as existing Canadian banks before they’re able to offer products and services to consumers. These new banks will be regulated by the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC) in the same way that existing banks are regulated.
Your deposit of up to $100,000 with an Canadian Deposit Insurance Corporation (CDIC)-insured bank is protected by the Canadian government. This means if something were to happen to the bank, your money (up to this amount) would be safe. Note that some of the digital banks mentioned in this guide are not yet considered banks and haven’t yet been licensed or CDIC-insured.
If you’re interested in digital banking, simply visit their website and sign up. If you want to join one of the new digital bank providers that have yet to open in Canada, you can join their waitlist by visiting their website. When they launch products, those on the waitlist will be the first to know and the first to receive access to these new products. rate With no everyday banking fees and free transactions, open an EQ Bank Savings Plus Account and get an interest rate of 1.70%.
EQ Bank Savings Plus Account
With no everyday banking fees and free transactions, open an EQ Bank Savings Plus Account and get an interest rate of 1.70%.
Digital banking providers are becoming more and more popular – and for good reason. They often cater to specific niches and groups and they’re known for offering innovative apps. But before you ditch your current bank, take the time to read through all of the fine print to make sure the bank you’re interested in is as good as it sounds then compare digital banking providers to find the right one for you.
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