Finance, Personal

Wyth Financial Review For 2023

Are you looking to switch to an online-only bank? Wyth Financial is one of the best online banks in Canada to consider.

Wyth embodies the key features most people look for in an online-only bank. This includes zero monthly fees, zero minimum balance, high interest on savings, and low banking fees.

Even though you can’t go wrong with Wyth Financial, it’s essential to understand what the bank entails and how it compares with other top online banks in Canada.

Fortunately, this Wyth Financial review covers everything you need to know including the bank’s products, fees, pros, and cons.

There we go!

Wyth Financial Review

About Wyth Financial

Wyth Financial is a federally regulated online-only bank that was launched in 2017 to operate as the trade name of Concentra Bank.

Like other online-only banks, Wyth operates entirely online with corporate offices in Saskatoon, Toronto, and Regina. The bank operates in every part of Canada except Quebec and it has over $35 billion in assets under management.

When the bank started in the 1970s, it was referred to as the Co-operative Trust Company of Canada (Co-operative Trust). Wyth has now evolved to offer robust banking and financial solutions to Canadians.

The bank offers high-interest savings accounts, GICs, and mortgages with competitive interest rates. Although the bank is popular for offering personal products, it also serves corporate entities with the following services: 

  • Specialized lending
  • Commercial deposit solutions
  • Foreign exchange 
  • Leasing

With these, Wyth not only helps Canadians save and invest but also helps us establish and manage businesses.

Is Wyth Financial Legit?

Wyth Financial is undoubtedly legit and the reasons are so obvious. Firstly, the bank is owned by a Schedule I bank (Concentra Bank) that’s federally regulated. This means that Wyth Financial is allowed by the Federal Bank Act to execute certain banking activities.

Secondly, deposits on Wyth Financial are covered up to $100,000 per insured category by the CDIC (Canada Deposit Insurance Corporation). Should Wyth get out of business, you will have nothing to worry about. 

In addition, Wyth offers legit personal and corporate solutions that attracted over $35 billion in assets under management.

Is Wyth Financial Safe?

Wyth Financial is safe both on record keeping and assets protection. As per record keeping, Wyth uses bank-standard encryption to protect the personal information of its clients.

As noted above, deposits up to $100,000 on Wyth are covered per insured deposit by the CDIC. With this level of safety, you will have little to worry about when banking with Wyth Financial.

But as with every other bank, you must take extra steps to ensure the full safety of your Wyth Financial account. 

What Does Wyth Financial Offer?

Wyth offers competitive financial products to individuals and corporate companies. For the purpose of this review, we shall focus on Wyth Financial offerings to individuals. 

Let’s get started!

  • Wyth High-Interest Savings Account (HISA)

Wyth used to be one of the providers of the best high-interest savings account in Canada. Its HISA has a 2.25% interest rate without monthly fees and minimum balance.

Interestingly, you can also make a mobile cheque deposit on your Wyth Financial HISA, giving you the feeling of a chequing account.

Deposits up to $10,000 on Wyth HISA are insured by the CDIC. However, the maximum amount you can save on the account is $150,000. Other limits of the account are highlighted below: 

TransactionMaximum Limit Per Transaction
Interac e-Transfer $25,000 incoming$3,000 outgoing
Electronic funds transfer$100 incoming  $50,000 outgoing
Mobile cheque deposit$150,000 incoming

The fees of the Wyth Financial HISA are discussed in the subsequent parts of this review.

  • Wyth Guaranteed Investment Certificates (GICs)

If you’re looking to lock in your savings for the long term in exchange for fixed-interest earning, Wyth offers competitive GIC rates highlighted below: 

TermRate
1-year4.55%
18-month4.60%
2-year4.65%
3-year4.70%
4-year4.70%
5-year4.80%
Wyth Financial GIC Rates

The minimum amount you can save on a Wyth GIC is $1,000 and the maximum amount is $150,000. 

To get a tax advantage, you can save in a Wyth registered GIC account ranging from TFSA, RRSP, RRIF, RESP, and RDSP. 

Bear in mind that you can’t withdraw from a Wyth Financial GIC because they’re non-redeemable. In special cases, you may be allowed to withdraw from your GIC account which may result in interest and fee penalties. 

Finally, your deposit Wyth GICs are also insured up to $100k by the CDIC. With an interest guarantee and deposit protection, you will enjoy the best of both worlds with Wyth GIC.

  • Wyth Mortgages

Whether you’re looking to buy a residential or rental property, Wyth got you covered with fixed and variable mortgages. 

The fixed mortgage ranges from 1 to 5 years which comes with posted and special rates. The variable mortgage is only available for the popular 5-year term.

Below are the posted rates and APRs of Wyth closed fixed terms: 

TermRateAPR
1-year fixed6.41%6.01%
2-year fixed5.90%6.50%
3-year fixed5.69%6.36%
5-year fixed5.27%6.09%

Obviously, Wyth posted rates are not among the best mortgage rates in Canada. However, the following special mortgage rates of Wyth Financial compete significantly with the rates of most mortgage lenders in Canada.

TermRate
1-year fixed5.61%
2-year fixed5.70%
3-year fixed5.56%
5-year fixed5.19%
5-year variable4.84%

That said, you can lock up a Wyth mortgage rate for up to 90 days for mortgage refinancing and 120 days for first-time home buying. 

Also, you can get a Wyth mortgage even if your down payment is less than 20% of the mortgage amount. Although this could result in higher mortgage payments to cover default insurance payments.

Wyth Financial Fees

Like other online-only banks in Canada, Wyth Financial charges no monthly fees. The bank also waives fees on several banking services as shown below: 

HISA Fees

ServiceFee
Account opening/closure$0
Interac e-Transfer deposit$0
Interac e-Transfers withdrawal1 free withdrawal per month. $1.50 per additional withdrawal per month
EFT$0
NSF fee$50 
Cancel e-Transfer request$5 
Transaction recall/tracing$0
Bank draft request$50 
A request for duplicate tax slips outside scheduled dates$25 
Personal information request$25 
Inactive account$0
Transactional research $150 per hour

GIC and Registered Account Fees 

FeatureFee
Change of pre-approved GIC/internal transfer $50 
Cash withdrawals from variable rate  RRSP/RRIF $50 
Registered plan transfer to another financial institution$50 
Inactive RESP closure fee$50 
Non-educational withdrawal from variable rate RESP $50 
RESP Canada Learning Bond $25
A request for duplicate registered plans outside scheduled dates$25 
Standing written instructions RRSP$25 

Mortgage Fees

ServiceFee
Discharge of mortgage$0 – $380
Transfer/Assignment fee$0 – $380
Mid-term loan payment charge$90
Payment skips and misses $90 per each
Release of covenant$350 – $1,000
Dishonoured payment$105
Legal action fees$150 – $350
Early renewals$75
Repayment history$0 online and $25 for hardcopy
Taxes$0 – $150

Click here to learn more about other fees that Wyth charges.

Wyth Financial Pros and Cons

So far we have discussed what Wyth Financial entails. To make sense of this, let’s explore the pros and cons of Wyth Financial. 

Pros  

  • Competitive interest: Although Wyth Financial doesn’t have the best interest on savings, GICs, and mortgages, its interest rates compete with the rates of several banks in Canada. 
  • Hybrid HISA: Wyth HISA offers competitive savings interest rates with access to mobile cheque deposits.   
  • Low fees: With no monthly fees, deposit fees, inactivity fees, or EFT fees, Wyth is a low-cost online bank.
  • Deposit protection: Although this is common with most online banks in Canada. But the benefits of deposit protection can’t be overemphasized.

Cons

  • Limited products: When it comes to personal banking products, Wyth ranks low as it doesn’t offer credit cards, chequing accounts, personal loans, and other relevant products. So if you’re looking for a one-stop-shop bank, Wyth may be a distant option.
  • Limited savings balance: Wyth HISA has a low maximum balance of $150,000 that’s below what many online banks offer. This may not be a problem if your savings goal is within the maximum balance.
  • No welcome bonus: Unlike other online banks, Wyth Financial doesn’t offer welcome bonuses to new members. 

How to Open a Wyth Financial Account

As a full-fledged digital bank, opening a Wyth Financial account can be done in a few minutes as everything is handled online. 

However, you must meet the following eligibility before you can open a Wyth Financial account:

  • Be a resident of any Canadian province or territory except Qu├ębec
  • Reach the age of majority in your province or territory 
  • Posses a Social Insurance Number 
  • Possess a valid phone number, email address, and provincial driver’s license

If you meet the above eligibility, you can proceed to download the Wyth mobile app to initiate the application process. The app is available on Google Playstore and App Store.

The information and documents that will be required will depend on the account you’re opening.

Wyth Financial Alternatives

There are many reasons why you may not find Wyth Financial your perfect online-only bank. It’s not a one-stop-shop; it has a low savings limit and; its interest rates don’t ring a bell.

The good news is that there are several alternatives that cover up the loopholes of Wyth Financial.

In what follows, we’re going to take a brief look at Tangerine, EQ Bank, and Neo Financial to see how they compare with Wyth Financial.

  • Tangerine Bank

Tangerine Bank is recognized as one of the pioneer online banks in Canada which has been in existence since 1997.

From its inception, the bank was known as ING Direct Canada not until it was acquired by Scotiabank and rebranded to Tangerine in 2014.

The rebranding only makes Tangerine stronger as it offers more robust banking solutions than many other online banks in the country. With tangerine, you can access:

  • Registered and unregistered savings accounts
  • Chequing accounts
  • GICs
  • Credit cards
  • Personal loans and lines of credit
  • Mortgages and HELOC
  • Mutual funds

While Wyth Financial outshines Tangerine in terms of regular savings rates and mortgage rates, Tangerine offers one of the highest promotional savings rates of 4.25%. In addition, Tangerine offers 4.85% on 1-year GIC term and 5.20% on a 5-year GIC term.

Eligible individuals can also get up to $400 cash back on their initial $1,000 purchases under the Tangerine credit card promotion program.

  • EQ Bank

For years, EQ Bank has earned a reputation as one of the best online banks in Canada based on its high-quality products and competitive interest rates.

EQ Bank products and services include registered and unregistered savings accounts (including a USD account), GICs, mortgage marketplace, and international money transfers.

Notably, both Wyth Financial and EQ Bank have limited offerings and they don’t offer debit cards or credit cards.

While the EQ Bank savings rate (2.50%) is not also among the best, its savings account shares a lot in common with Wyth HISA. Both accounts allow you to make mobile cheque deposits and they don’t have monthly fees and minimum balances.

Compared to the 4.55% rate of Wyth Financial on a 1-year GIC, EQ Bank offers 4.65% interest on the same term. In addition, EQ Bank offers up to 4.70% interest on 2 to 10-year GIC terms.

The bottom line is that you will earn more in interest with EQ Bank than you would with Wyth Financial. 

  • Neo Financial

The need to reinvent the way Canadians spend, save and improve their funds led to the establishment of Neo Financial in 2020. In no distant period, Neo Financial attracted over 1 million Canadians in the process of achieving its mission.

While Neo Financial is not also a one-stop-shop online bank, it’s constantly expanding its offerings. Currently, the bank offers credit cards, savings accounts, mortgages, and a managed investment platform.

The Neo savings account shares a lot in common with Wyth HISA as they both offer a 2.25% interest rate. The two accounts don’t also charge monthly fees and they don’t require a minimum balance. 

However, Neo has a lower 5-year variable mortgage rate of 4.35% compared to Wyth Financial’s 4.83% rate.

Also, Neo offers access to a cashback credit card with 5% average cashback at partner stores and 1% guaranteed cashback for other purchases. This makes the card one of the best credit cards in Canada.

The Bottom Line on Wyth Bank Reviews

I’m not quite impressed with Wyth Financial offerings in the presence of so many competitive online banks out there. 

But one thing I must confess is that Wyth Financial is ahead of several online banks in terms of interest rates and fees.

While you can’t go wrong with Wyth Financial, you will save and earn more with the above alternatives. 

But if you’re not sure which online bank to choose, you need to first consider your banking needs and identify the bank that meets them. When determining which online bank to choose, your focus should be on the bank:

  • Product offerings
  • Fees
  • Interest rates
  • Account limits

If you still need help choosing the best online bank in Canada, kindly drop a comment below or contact our team at [email protected].

Wyth Financial Review FAQs

Is Wyth a bank?

Yes. Wyth Financial is a federally regulated Schedule I bank in Canada. Its banking solutions include high-interest savings accounts, GICs, and mortgages

Who owns Wyth Bank?

Wyth is currently owned by Concentra Bank. However, there’s an ongoing acquisition agreement between Concentra Bank and Equitable Bank. If this agreement materializes, Both Wyth and Concentra Bank will be owned by Equitable Bank in the future.

Who bought WYTH Financial?

The deal is not yet sealed, but Equitable Bank is planning to acquire Wyth Financial alongside its parent company, Concentra Bank.

Does Wyth Financial have a TFSA?

Yes. Wyth Financial has a TFSA alongside other registered accounts such as RRSP, RRIF, RDSP, and RESP.

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About John Adebisi

John Adebisi is a CPA, FCCA and MBA holder with a Bachelor's degree in Accounting & Finance. He has over a decade of experience in writing personal and business finance content for audiences across North America, Europe, the UK and Africa. In addition to his writing experience, he also has a strong background in financial research and analysis, giving him a unique perspective of the financial markets. John derives pleasure in helping people make smart financial decisions, and he believes that knowledge and experience can be valuable resources for anyone who wants to learn how to manage their money.

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