Online-only banks like EQ Bank excel in cost savings and digital efficiency but sacrifice physical access for some users. They leverage lower overhead to pass benefits like high interest and zero fees to customers.
Pros
-
Zero or Low Fees: No monthly charges, unlimited transactions, free e-Transfers, and ATM reimbursements worldwide—saving $200+ yearly versus Big 5 banks.
-
High Interest Rates: Chequing/savings earn 4-5% promo rates (far above 0.01% at traditional banks), compounding on daily balances without locks.
-
Superior Digital Tools: Intuitive apps for mobile deposits, savings goals, instant transfers; 24/7 access beats branch hours.
-
CDIC Insurance: Up to $100k protected, same as physical banks; fully regulated in Canada.
-
Convenience for Remote Users: Link external chequing for seamless in/out transfers; ideal for Nairobi pros managing CAD inflows digitally.
Cons
| Drawback | Impact on Users |
|---|---|
| No Physical Branches | Can't deposit cash/cheques easily; must use external ATMs or mail. |
| Limited Products | No RESPs, joint chequing in some cases; fewer loans/mortgages. |
| Customer Service Delays | Email/chat reliant; no instant teller help for complex issues. |
| Onboarding Friction | App-only setup suits tech-savvy but frustrates beginners. |
| Rare Needs Unsupported | No bank drafts/cheques; workarounds needed for vendors. |
Best For
Digital natives or high-balance savers prioritizing yields over cash deposits. EQ shines as a "second account" for interest, paired with Simplii for everyday banking. Avoid if you deposit cash weekly or prefer face-to-face advice
Chat About This