Finding the best bank for your finances can be a tricky undertaking, but it’s an important commitment which will have a lasting impact on how you manage and save your money.
Whether you’re looking to invest, save, or just switch banks altogether, there are many options in Canada.
As a result, it can be difficult choosing the right one. Two of the most popular digital banks in Canada are EQ Bank and Tangerine Bank.
In this blog post, we will explore EQ Bank vs Tangerine in detail to see which offers better savings rates and other unique features.
We will also compare fees and services provided by each provider so you can make an informed decision about which of these banks may work for your specific financial goals.
Table of Contents
About EQ Bank
EQ Bank is a Canadian digital bank that offers savings accounts and a variety of other banking services.
The bank was founded in 2016 by Equitable Bank, which is one of the largest financial institutions in the country.
Equitable Corporation has been operating since 1970 and serves over 1 million customers.
EQ Bank was created to provide you with the best possible digital experience in banking.
To achieve its goal, the bank offers competitive interest rates on savings accounts and GICs.
Because it is an online-only bank, you can open an account on EQ Bank at any time and anywhere to enjoy comprehensive digital banking solutions.
Also, you can manage your finances from anywhere with the Bank’s app or online dashboard.
Products Offered by EQ Bank
There are several banking products and services provided by EQ Bank to help you achieve your financial goals.
Let’s look at the financial products and services you can access at EQ Bank below:
Savings Accounts
EQ Bank offers several savings accounts to help Canadians reach their savings goals. The following are the types of savings accounts available for you at EQ Bank:
- Savings Plus Account
- Joint Savings Plus Account
- RSP Savings Account
- TFSA Savings Accounts
- US Dollar Account
The EQ Bank Savings Plus Account and the Joint Savings Plus Account offer you an interest rate of 2.50% without minimum balance requirements or monthly fees.
The RSP Savings Account and TFSA Savings Accounts, on the other hand, offer a higher interest rate of up to 3.00%.
With the EQ US Dollar Account, you can save in US dollars and earn an interest rate of 2.00% with a low conversion fee.
GICs
EQ Bank currently offers one of the highest GIC rates in Canada. The bank offers both registered and non-registered GICs.
The GICs offered by EQ Bank come with flexible terms that range from 3 months up to 10 years.
Here is a table containing EQ bank’s GIC rates with their terms:
| GIC Rate | GIC Term |
| 2.65% | 3 Month |
| 3.50% | 6 Month |
| 3.75% | 9 Month |
| 5.00% | 1 Year |
| 4.95% | 15 Month |
| 4.75% | 2 Year |
| 4.70% | 27 Month |
| 4.55% | 3 Year |
| 4.40% | 4 Year |
| 4.30% | 5 Year |
| 4.10% | 6 Year |
| 4.10% | 7 Year |
| 4.10% | 10 Year |
Mortgage Marketplace
The EQ Bank mortgage marketplace is a platform that connects you with different lenders in Canada.
Through the platform, you can access more than 2,000 mortgage products from different lenders.
So how does the EQ Bank mortgage marketplace work? The process is very straightforward.
First, you have to apply by signing in to the EQ Bank banking portal. After signing, you will be required to answer some questions that will enable the bank to know the type of mortgage you want.
After answering the questions, EQ Bank will use an algorithm to survey the mortgage market and provide you with the best mortgage that fits your needs.
About Tangerine Bank
Tangerine Bank is one of the digital-only banks in Canada that have been around for many years.
In fact, it’s one of the oldest and largest digital bank services in Canada. Tangerine Bank has been around since 1997 when they were known as ING Direct Canada.
In 2012, Scotiabank purchased ING Direct Canada and renamed it Tangerine. Since then, they’ve continued providing Canadians with a convenient banking experience.
Tangerine Bank offers a full suite of banking products and services that are available through its website or mobile app.
They offer their customers access to savings and chequing accounts, GIC, and investment products.
Products Offered by Tangerine Bank
Tangerine Bank offers numerous banking products and services that can help you achieve your financial objectives.
The following are the banking products and services you can access through Tangerine Bank:
Savings Accounts
Tangerine bank offers different types of savings accounts for different savings needs to help you achieve your savings goals
The following are the types of savings accounts offered by Tangerine Bank:
- Regular savings account
- RSP Savings Account
- Tax-Free Savings Account
- RIF Savings Account
- USD Savings Account
- Business Savings Accounts
Apart from the USD savings account, the RIF savings account and the business savings accounts, all the above Tangerine savings accounts have an interest rate of 1.00%.
The Tangerine RIF Savings Account has an interest rate of 1.05%. The USD savings account had an interest rate of 0.10% and the business savings account has an interest rate of up to 2.90%.
However, apart from the regular interest rates you can get on the Tangerine savings accounts, the bank also offers promotional interest rates.
If you join Tangerine through the promo code “EARNMORE” you will earn an interest rate of up to 5.00% on your savings within the first 5 months. You will also get a welcome bonus of up to $400.
You should note, however, that the offer will end by March 30, 2023. So if you want to take advantage of the offer, you have to open an account with Tangerine within the offer period.
LEARN MORE: Tangerine High-Interest Savings Account Review
Chequing Account
Tangerine Bank offers a chequing account known as No-Fee Daily Chequing Account.
With the account, you can make daily transactions without paying any fees. The account also comes with a client card that you can use to make purchases at participating stores.
The No-Fee Daily Chequing Account offers a regular interest rate of 0.10%. However, you can also get the promotional interest rate of 5.00% and the welcome bonus of $400 if you open the account within the promo period.
LEARN MORE: Tangerine Promotions
GICs
Tangerine Bank offers the following flexible GIC rates:
| GIC Rate | GIC Term |
| 90 Day | 1.50% |
| 180 Day | 3.60% |
| 270 Day | 3.75% |
| 1 Year | 4.85% |
| 1.5 Year | 4.70% |
| 2 Year | 4.45% |
| 3 Year | 4.30% |
| 4 Year | 4.25% |
| 5 Year | 4.15% |
Investing
Tangerine Bank offers you an opportunity to start investing with as little as $25. You can access the following investment accounts through Tangerine:
- Retirement Savings Plan (RSP)
- Tax-Free Savings Account (TFSA)
- Retirement Income Fund (RIF)
- Non-Registered Investment Account
Spending
Tangerine Bank offers two types of credit cards to help make spending easier. The two credit cards are Money-Back Credit Card and World Mastercard.
With any of the cards, you can earn a cash back of 2% on your purchases. The best part is that there is no minimum spending amount requirement.
Also, the two cards offer you a welcome cash back of up to 15% if you make purchases of up to $1,000 within your first two months of getting the card.
Borrowing
To help you achieve your borrowing needs, Tangerine offers you several options with flexible repayment options and low-interest rates.
You can access the following borrowing options through Tangerine Bank:
- Home Equity Line of Credit
- Mortgages
- Line of Credit
EQ Bank vs Tangerine Bank Compared
Now that you have an overview of the products and services offered by EQ Bank and Tangerine Bank, how do you choose the best bank?
To help make this decision easier, let’s go through a head-to-head comparison of EQ Bank vs Tangerine Bank:
| Key Features | EQ Bank | Tangerine Bank |
| Products | Savings accounts, GICs and mortgages | Savings accounts, chequing accounts, GICs, spending, investing, borrowing |
| Monthly fees | No | No |
| Interest rate on savings accounts | 2.50% | 1.00% |
| Minimum balance | No | No |
| CDIC Insurance | Yes | Yes |
From the above comparison, you can see that Tangerine Bank outsmarts EQ in terms of the number of financial products.
However, when it comes to interest rates, EQ Bank offers a higher regular interest rate.
In terms of minimum balance requirements and monthly fees, both banks don’t charge monthly fees or have a minimum balance requirement.
Therefore, if you are looking for a bank that offers a vast number of financial products, Tangerine Bank might be a better option.
However, if you are looking to earn a higher interest rate on your savings, then EQ Bank might be the best option for you.
Final Thoughts: EQ Bank vs Tangerine
Both EQ and Tangerine offer several banking products and services to help you meet your financial objectives.
However, they aren’t exactly equal. There are several things you need to consider before choosing the best option.
The best bank for you will depend on several factors, such as the products you want and the rates they offer.
Hopefully, with help of this article, you can now decide which of the two online banks is best for you.
