Is EQ bank in Canada legit?

Short Answer

Yes, it is legitimate to open an account with EQ bank in all the provinces of Canada. Let's grab some more important information on EQ bank, advantages and disadvantages of opening an account with the digital bank.

Detailed Answer

What is EQ Bank?

Traditional banking is where there are branches across the country where the bank has acquired its license. Whereas, digital banking offers all the products offered by a traditional bank in online mode which can be accessed round the clock via your phones, tablets and laptops. EQ bank is the first digital bank launched in Canada back in 2016 by Equitable bank.

Banking Products offered by EQ

Here's a list of banking products that EQ Bank offers you:

1. Everyday Banking Account

Savings Account Plus:

This is offered at @1.65% per annum interest rate, where you don’t have to pay any account keeping fee. In addition, e-transfers, EFTs and bill payments are of no cost. There is no minimum balance that should be retained, but one can maintain only c$200,000

Joint Savings Plus Account:

This offers all the features of a savings account and the account can be maintained by a maximum of three people.

**US Dollars account **

You can get a US Dollar account @ 1.40% per annum with competitive exchange rates.

2. Investment Accounts with EQ Bank

  • Tax-Free savings Account
  • Guaranteed Investment Certificate
  • Registered Savings Plan

Other accounts with EQ Bank

  • Mortgage marketplace at low interest rates

Advantages of EQ Bank

  • Zero paperwork
  • All the transactions can be completed in a blink of an eye
  • Not required to visit branches
  • Hassle free
  • No minimum balances
  • Free transactions
  • Banking on the go
  • International money transfers
  • No hidden fees

Disadvantages of EQ Bank

  • No physical branches
  • The number of accounts and types of accounts are limited
  • No ATM, debit or credit cards. Transactions are implemented only by e-transfers.
  • Fear of internet fraud and scam
  • Must have internet at all times
  • No personal relationship and faith
  • Limitation on maximum deposits

Is EQ bank legit?

Yes, EQ bank is legitimate and it is authorized in all the provinces of Canada. It is protected by Canada Deposit Insurance Corporation (CDIC) and the digital bank already has nearly $7 billion funds under management. The bank has in fact received the following awards and recognitions:

  • Forbes World’s Best banks for two consecutive years in 2022 and 22021
  • 4.5 star rated app
  • 2021 offered the personal finance award for its interest rate savings account, TFSA and RRSP savings account
  • 2021 Greedyrates awards for best savings account
  • Fintech innovation award for most innovative cloud deployment in 2020
  • 2020 Celent model bank award

Legitimacy of EQ Bank

It is common for people to question the legitimacy of EQ bank as it is fully digital. However, digital banks are in vogue now. There are some more digital banks competing with EQ bank in Canada such as SIMPLII Financial and Tangerine bank.

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Categories: Banking
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