EQ Bank: The Next Best Banking Solution
Working in the financial industry, I share most of my clients with other financial institutions. Lately, I have been noticing an increase in customers banking with EQ Bank. The first time I had even heard about EQ Bank was only a few months ago. Interested, I decided to dive in and see what all the fuss was about. If you bank with one of the five big banks, you will notice two things: Interest rates on savings accounts are extremely low, and your banking fees are extremely high.
If only there was an institution which gave you a decent rate on your savings deposits, didn’t charge you a monthly fee, and didn’t penalize you for e-transferring your money.
I give you, EQ Bank. A subsidiary of Equitable Bank, which offers a hybrid savings-chequing account. The EQ Bank Savings Plus Account is a savings account which also allows you to pay your bills and transfer money. The interest rate at the time of this post is 2%, with no monthly fees and no minimum balance, making the EQ Bank Savings Plus Account the highest interest savings account in the country, it also does not require a minimum deposit.
EQ Bank is a digital bank, meaning transactions are completed solely on a computer or smartphone/tablet. This means very little overhead for the bank itself, which is how it can offer you such incredible rates.
The EQ Bank Savings Plus Account also comes with some chequing account features, such as unlimited day-to-day transactions, ‘free’ bill payments, and five free interact e-transfers every month. It is also quite simple to use EFT (electronic fund transfer) to move your money between financial institutions.
Equitable Bank is a member of Canadian Deposit Insurance Corporation (CDIC), so your deposits are insured up to the applicable limits. ($100,000 at the time of this post).
My favourite feature of EQ Bank is the ability to set up sub-accounts under your savings account through a feature they call “savings goals.” These sub-accounts allow you to set up automatic deposits into your savings goal account, and they even include a progress bar to show you how close you are to reaching your goal.
There are no fees – see for yourself. The only charge I can find is $1.50 for each e-transfer over your five per month.
There are a few limitations to speak of, the first being the fact there are no debit cards or cheques issued with accounts, which means clients can only access their money through the EQ Bank mobile app or website. Clients can freely move their money via EFTs and E-Transfers.
Cheque deposits are limited to $25,000 per cheque, and bill payments are limited to $5000 per transaction. Also, there is an account size limit of $100,000 per customer.
Opening an account
Opening an account is very simple. You can sign up online, download the mobile app, write a cheque to yourself from an existing bank account, and deposit it by taking a picture with the mobile app. EQ Bank will notify you when your account is complete, which usually takes a few days.