Tangerine vs. EQ Bank vs. Simplii: which online-only bank is right for you

Tangerine is owned by Scotiabank. It offers a no-fee chequing account, savings, GICs, credit cards, mortgages and simple index-style investment funds. Its biggest practical advantage is free access to Scotiabank's ATM network.

EQ Bank is the digital arm of Equitable Bank. It is built around one flexible account that pays a high everyday interest rate, with free Interac e-Transfers, free bill payments, GICs, a US dollar account, an FX-friendly card and no monthly fees at all. It has historically paid the highest ongoing rate of the three.

Simplii Financial is owned by CIBC. It offers no-fee chequing, savings, GICs, credit cards, mortgages and personal lines of credit, with free use of CIBC's large ATM network and strong support for international money transfers.

All three give you a chequing-style account with no monthly fee and unlimited debit transactions, which already beats a typical $16.95-a-month big-bank account.

Cash matters if you use it. Tangerine gives free withdrawals at Scotiabank and Global ATM Alliance machines. Simplii gives free withdrawals at CIBC machines. EQ Bank has no ATM network of its own — you withdraw through a card that may rebate some fees, or you move money to another account first.

Cheques: Tangerine and Simplii issue paper cheques and full void-cheque documentation, which still matters for rent and some employers. EQ Bank's cheque support is more limited.

EQ Bank generally pays the strongest ongoing everyday rate without requiring you to chase promotions, and its GIC rates are consistently competitive across one to five year terms.

Tangerine and Simplii run aggressive limited-time promotional rates for new deposits — often several times their base rate for five or six months. If you are willing to move money and set a calendar reminder, those promos can beat EQ for a while, then drop sharply.

The practical difference: EQ suits people who want a good rate permanently and never think about it. Tangerine and Simplii suit people who enjoy rotating money for promotional bonuses.

Tangerine — pros: real ATM network, credit cards with useful cashback categories, mortgages, simple investment funds, mature app. Cons: base savings rate is mediocre between promos, and the investment funds cost more than buying ETFs yourself.

EQ Bank — pros: best ongoing rate, no fees anywhere, USD account, strong GIC shelf, good for saving and for travel spending. Cons: no ATM network, weaker cheque support, no credit card of the traditional kind, so it works best as a second account rather than your only one.

Simplii — pros: CIBC ATM access, free international money transfers to many countries, credit cards, mortgages and lines of credit, good newcomer offers. Cons: base rates lag EQ, and the app is the least modern of the three.

Pick EQ Bank if your priority is earning the most interest on cash you are holding for a house down payment, an emergency fund or a GIC ladder, and you already have a chequing account elsewhere.

Pick Tangerine if you want one account to replace your big bank entirely and you still use ATMs and cheques — the Scotiabank machine access plus a decent cashback card covers most of daily life.

Pick Simplii if you send money abroad regularly, you are near CIBC machines, or you want no-fee chequing from an institution that also does mortgages and lines of credit.

Many Canadians run two of these: a no-fee chequing account at Tangerine or Simplii for pay and bills, and EQ Bank for savings. Deposits at all three are CDIC-insured up to $100,000 per category per institution, and holding accounts at two institutions doubles that coverage.