How EQ Bank’s New Savings Account Stacks up to its Competitors

Craig Sebastiano
by Craig Sebastiano January 22, 2016 / No Comments

Last week, Equitable Bank launched its digital bank, EQ Bank, which offers a savings account that pays a high interest rate of 3%. How does it compare to other high-interest savings accounts?

Using RateHub’s comparison tool, we looked at how EQ Bank’s interest rate measures up to eight of its competitors with high-interest savings accounts. Assuming the interest rates being offered stay the same for the year, here’s how they compare:

Financial institution Interest rate Amount deposited Signup bonus Interest earned Value after one year
EQ Bank 3.00% $5,000.00 $0 $150.00 $5,150.00
Tangerine 2.40%/0.80%* $5,000.00 $25 $79.58 $5,104.58
Oaken Financial 1.75% $5,000.00 $0 $87.50 $5,087.50
Accelerate Financial 1.75% $5,000.00 $0 $87.50 $5,087.50
Achieva Financial 1.70% $5,000.00 $0 $85.00 $5,085.00
Outlook Financial 1.70% $5,000.00 $0 $85.00 $5,085.00
Steinbach Credit Union 1.60% $5,000.00 $0 $80.00 $5,080.00
Scotiabank 1.50% $5,000.00 $0 $75.00 $5,075.00
Meridian Credit Union 1.50% $5,000.00 $0 $75.00 $5,075.00

*The 2.40% interest rate is for the first 180 days and 0.80% thereafter

And the winner is: EQ Bank’s Savings Plus Account. You’ll earn $150 in interest and earn $45.42 more than what you’d get if had an account at Tangerine. In the above example, we assumed that you’re a new Tangerine client and receive a $25 cash bonus within 30 days of opening your account. Currently, you’ll qualify for this offer if you deposit $100 into your savings account by March 31. With the high teaser rate and bonus, Tangerine has the second-best return after one year. You can also get an additional bonus of $25 if you set up an automatic savings plan of $100 or more per month and keep that going for six months, but we chose not to include that additional bonus for this example.

Compare the Best Savings Accounts

Use our tool to compare the best savings accounts in Canada. Get the best interest rates and learn how much your savings will grow.

If you decide keep your money in for another year, here’s how much money you’ll earn:

Financial institution Interest rate Amount after one year Interest earned Value after two years
EQ Bank 3.00% $5,150.00 $154.05 $5,304.05
Oaken Financial 1.75% $5,087.50 $89.03 $5,176.53
Accelerate Financial 1.75% $5,087.50 $89.03 $5,176.53
Achieva Financial 1.70% $5,085.00 $86.45 $5,171.45
Outlook Financial 1.70% $5,085.00 $86.45 $5,171.45
Steinbach Credit Union 1.60% $5,080.00 $81.28 $5,161.28
Scotiabank 1.50% $5,075.00 $76.13 $5,151.13
Meridian Credit Union 1.50% $5,075.00 $76.13 $5,150.13
Tangerine 0.80% $5,104.58 $40.84 $5,145.42

After two years, EQ Bank still wins out and you’ll earn $127.52 more than Oaken Financial and Accelerate Financial. What’s surprising is if you continue to hold the money in a Tangerine account, you’ll actually end up earning $5.62 less in interest than you would at Scotiabank, which owns Tangerine.

Also, EQ Bank’s Savings Plus Account has no monthly fees, no minimum balance requirements, an unlimited amount of transactions, and five free Interac e-Transfers a month.

While a few competitors’ savings accounts have some of the same features, none of them are offering an equal or higher non-promotional interest rate and five free monthly Interac e-Transfers. If you’re looking for the best high-interest savings account in Canada, EQ Bank currently has the best one. But for how long?

Flickr: KMR Photography