Pro #1: Current interest rate: 1.50%* everyday interest rate*
Currently, Canadian banks only pay 0.05% on their savings accounts. Other Canadian banks offer a high-interest rate but for a limited time only, usually 3 months then rates go down to almost zero after the promo period.
EQ Bank’s interest rate is not for a limited time. Meaning they pay high rates for a year or more.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
Con #1: Only Available for Canadian Residents and Citizens
International students and temporary workers may not be eligible to open an account with EQ Bank.
Pro#2: Withdraw Anytime (No Fee)
The great thing with EQ Bank is you can withdraw funds at any time. Let’s say we only leave it in the account for 20 days and then withdraw everything. They will pay for the interest earned for the 20-day period.
Also, there are no fees for withdrawing funds.
Con #2: No ATM access available
Since EQ Bank is purely online, they have no ATM of their own. To get physical cash, you may have to transfer the money first from EQ Bank to another bank. Then withdraw the physical cash on an ATM machine or bank teller of another Canadian Bank.
That means you may have to wait 2-3 days to get the physical cash since it takes a couple of days to transfer money between banks.
Pro#3: No Minimum Balance Required
There is no minimum balance required to open a Savings Plus Account. Meaning you can leave the balance at $0 and add funds later.
Also, you can get started with as little cash as you like if you’re not comfortable holding much cash in EQ Bank.
Personally, I only deposited $500 when I get started and tried their platform.
Con #3: No Debit Card to buy on Physical Stores or Online
EQ Bank currently has no debit or visa card to buy stuff on grocery stores like Walmart or buying things on Amazon.
With that said, you can still pay credit card bills, internet bills, and electric bills using EQ Bank.
Pro #4: Free transfers and free transactions
EQ Bank Savings Plus Account do not charge withdrawing funds to a different bank. Also, this feature is what makes EQ Bank unique to other savings accounts.
Savings Plus account allows users to pay a bill or do an Interac e-Transfers® for free. Also, there is no monthly limits as to how many transactions you can do.
It is a combination of a savings account and a chequing account in one bank account.
EQ Bank’s Savings Plus Account, by its name itself, is an enhanced savings account where you can enjoy high interest and the flexibility of a chequing account. Best of all, they charge (currently) zero everyday banking fees.
Con #4: No physical location, only available online
EQ Bank is currently purely online.