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The dusty, glacial world of banking, which went uninterrupted for just about a century, has had its foundations rocked of late.
Slick, techy, challenger banks are on the up and up, offering a lot more to their customers than just a place to stash your cash. In the immortal words of Men in Black’s Agent Jay, many customers are looking at the big 6 banks and thinking “old and busted” whereas neo banks, like Wealthsimple and EQ, are definitely the “new hotness.”
I happen to be a devoted customer of both Wealthsimple and EQ. I turn to Wealthsimple for its easy, relatively low-fee robo investing, and EQ for its no-fee, high-interest savings accounts. I love ‘em both. But if you had to pick one, which is the better option for you?
My hot take
Such a hard choice. I mean, I literally use both! But – for an all in, head to head competition, I’m leaning Wealthsimple, just for the comprehensive (and ever growing) products and services it offers.
Cameron Smonk
Freelance Writer
At a glance
| Details | EQ Bank | Wealthsimple |
|---|---|---|
|
Accounts
|
Personal | Chequing and Saving |
| Saving Account Interest Rate | 1.00%* base | 1.75%* base |
| TFSA/RSP Interest Rate | 1.50%* | N/A |
| Withdraw Cash from ATMs | Any ATM, fees are reimbursed in Canada | Any ATM, fees are reimbursed in Canada |
| Interac e-Transfers® | Free | Free |
| Everyday Banking Fees | None | None |
| NSF Fee | N/A | N/A |
| Account Minimum | $0 | $0 |
| Discounted International Money Transfers | No | No |
| Linked External Accounts | Yes | Yes |
| CDIC Insurance | Yes | Yes |
| Reviews | EQ Bank review | Wealthsimple Chequing account review |
| Open an account |
EQ Bank and Wealthsimple pros and cons
I’ll be honest, unless you really, really like going into bank branches, both of these financial institutions are pretty high-tier, depending on what you’re looking for.
EQ pros and cons
Pros
- High everyday interest rate
- Savings account can serve as a chequing account
- Cash back, pre paid Mastercard with no ATM fees, FX fees or annual fees
- One of the best GIC rates in Canada
Cons
- No branches
- Website can be a bit janky, in my experience
- No mortgage products
Wealthsimple pros and cons
Pros
- The highest everyday interest rate in Canada
- Savings account can serve as a chequing account
- Cash back, pre paid Mastercard with no ATM fees, FX fees or annual fees
- Comprehensive investment platform
- Mortgages offered through partnership
Cons
- No branches
- No GICs
EQ Bank vs. Wealthsimple: Savings accounts (that double as chequing accounts)
EQ has long been at the pinnacle of high-interest savings accounts, offering a lovely 1.00%* interest on the cash in your account, and a tantalizing bonus of 2.75%* on recurring deposits of $500 or more for the first year. Basically, save regularly in the first year, and you’re outperforming just about any GIC.
But it’s not just branded as a savings account (though that’s its sole function for me). EQ touts its ability to act like a chequing account, with an associated pre-paid Mastercard that’s a bit like a debit, only – better? EQ offers free withdrawals from any ATM in Canada, cashback with purchases and no FX or monthly fees. Not too shabby.
Wealthsimple offers “Canada’s highest-interest chequing account,” and it earns like a high-interest savings account. You’ll get 1.75% interest with no minimum balance. If you have $100,000 or more invested with Wealthsimple (Premium), that jumps to 2.25%. And if you’ve got $500,000+ across Wealthsimple products (Generation), you’ll earn 2.75%. Set up $2,000 in monthly direct deposits and you can unlock a 0.5% boost, bringing the rate as high as 2.75% total for eligible users.
If that sounds too good to be true…I thought so too. But I actually can’t find the trap. No fees, Interac e-Transfers and, like EQ, a prepaid Mastercard with no ATM or FX fees. Plus, up to 1% cash (or stock, or crypto) back when you spend with your cash card. I’ll be honest, as I’m writing this up, I’m preparing to move some of my cash assets to Wealthsimple.
EQ has long been at the pinnacle of high-interest savings accounts, offering a lovely 1.00%* interest on the cash in your account, and a tantalizing bonus of 2.75%* on recurring deposits of $500 or more for the first year. Basically, save regularly in the first year, and you’re outperforming just about any GIC.
But it’s not just branded as a savings account (though that’s its sole function for me). EQ touts its ability to act like a chequing account, with an associated pre-paid Mastercard that’s a bit like a debit, only – better? EQ offers free withdrawals from any ATM in Canada, cashback with purchases and no FX or monthly fees. Not too shabby.
Winner: Wealthsimple
I came into this comparison confident EQ would take it. But with the suite of perks and the staggering interest, Wealthsimple wins this one for me.
EQ Bank card vs. Wealthsimple cash card
A pre-paid mastercard with no ATM fees, no FX fees and some cash back. Solid!
$108
First Year Value
$0
Annual Value
Get this card if you...
- want to avoid paying any foreign transaction fees
- want to earn cash back on a prepaid card
- have a fair credit score
Annual Fee & Annual Interest Rates
$0
Annual Fee
0%
Purchase
Our Take
The EQ Bank Card is a prepaid Mastercard that offers Canadian users cash back on all purchases and reimburses fees for domestic ATM withdrawals. It also provides free withdrawals from any ATM in Canada, with EQ Bank reimbursing any fees incurred. Additionally, the card does not charge foreign exchange fees, making it a cost-effective option for international transactions, however, users should be aware that ATM fees charged abroad are not reimbursed.
Eligibility
Fair (300 - 619)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- No FX fees (up to 2.5%)
- Earn 0.5% cash back on every purchase
- Free ATM withdrawals in Canada (EQ will reimburse you)
Cons
- ATM fees charged abroad (EQ will not reimburse)
Annual Interest Rates
0%
Purchase
Fees
$0
Annual Fee
0.00%
Foreign Transaction
Rewards cash back
0.5%
Cash back on purchases
1.25%
Interest on your balance
Our Take
The EQ Bank Card is a prepaid Mastercard that offers Canadian users cash back on all purchases and reimburses fees for domestic ATM withdrawals. It also provides free withdrawals from any ATM in Canada, with EQ Bank reimbursing any fees incurred. Additionally, the card does not charge foreign exchange fees, making it a cost-effective option for international transactions, however, users should be aware that ATM fees charged abroad are not reimbursed.
Eligibility
Fair (300 - 619)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- No FX fees (up to 2.5%)
- Earn 0.5% cash back on every purchase
- Free ATM withdrawals in Canada (EQ will reimburse you)
Cons
- ATM fees charged abroad (EQ will not reimburse)
Annual Interest Rates
0%
Purchase
Fees
$0
Annual Fee
0.00%
Foreign Transaction
Rewards cash back
0.5%
Cash back on purchases
1.25%
Interest on your balance
Exactly the same as the EQ card, but with the option to turn your cash back into stock investments or crypto. A neat gimmick, that differentiates it.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Choose whether your cash back goes to your investments or crypto or cash account
- Earn up to 2.25% on your balance
- No foreign exchange fees
- No annual fees
- $5 reimbursement per withdrawal for any ATM fees
Cons
- No insurance
- Relatively low spending and transaction limits
Fees
$0
Annual Fee
0.00%
Foreign Transaction
0.00%
Balance Transfer
Rewards
1.25% to 2.25%
Earn at least 1.25% on your account balance*
0%
There are no foreign exchange fees
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Choose whether your cash back goes to your investments or crypto or cash account
- Earn up to 2.25% on your balance
- No foreign exchange fees
- No annual fees
- $5 reimbursement per withdrawal for any ATM fees
Cons
- No insurance
- Relatively low spending and transaction limits
Fees
$0
Annual Fee
0.00%
Foreign Transaction
0.00%
Balance Transfer
Rewards
1.25% to 2.25%
Earn at least 1.25% on your account balance*
0%
There are no foreign exchange fees
Winner: Wealthsimple
Wealthsimple takes this one by a nose, just for the teensy bit more flexibility.
Well this one isn’t really a competition, is it? Investing is the bread and butter of Wealthsimple, and hardly a tertiary concern for EQ. Whether you’re looking to buy individual stocks, diversify your portfolio with ETFs or gamble on Crypto, it’s Wealthsimple all the way.
The one area EQ might peak your interest is their GIC’s which have traditionally had solid interest rates compared to their competitors. As of writing, Wealthsimple does not offer GICs.
Unlike most banks, EQ doesn’t actually offer mortgages. It does however provide a comprehensive aggregator of over 2,000 mortgage products, allowing you to shop around for the one that fits your liking.
But, if you actually want to purchase a mortgage, in this binary you’d have to go through Wealthsimple (or, to be clear, their partner Pine). Through their collaboration with Pine, Wealthsimple is able to offer direct lending so you can skip the broker fees. There’s also a neat feature where Wealthsimple clients can get a cash back rebate of up to 0.15% on mortgage payments which might not sound like much, but consider the price of the average Canadian home and it becomes not-insignificant.
What the internet has to say
I have had all positive experiences with EQ. They are one of the better banks I've used.
/u/UrbaneBoffin
Yes. Recently switched from RBC to Wealthsimple. It was the best investment decision of 2023 for me. Wealthsimple's user interface is 100% better and buying/selling XEQT is essentially free. If you set up direct deposit with Wealthsimple (ie. push your salary directly to Wealthsimple), you get 5% interest on your cash account.
/u/Belugawhy
How to sign up for EQ Bank
In my experience, opening an EQ bank was easy-peasy. You can do it in less than 20 minutes online right from their home page, and you’ll just need to have access to all the standard identification information (including your SIN number) to do so.
Go to EQ BankHow to sign up for Wealthsimple
Wealthsimple is designed to be as straightforward as possible. Hit the button below, enter your ID info, and you’ll be up and running on their cash account in less than 20 minutes. If you’re opening an investment account, it might take a bit longer as you’ll be asked to fill out a risk tolerance assessment for Wealthsimple investing.
Go to WealthsimpleWhich one will you pick? Leave us a comment in the thread below.
*Interest is calculated daily on the total closing balance and paid monthly. For the EQ Bank Card, interest is paid into the linked Personal Account. Rates are per annum and subject to change without notice. For the Personal Account, Joint Account and EQ Bank Card, the current base interest rate is 1.00% (the “Base Rate”). Customers who add and maintain qualifying recurring direct deposits of at least $2000/month to a Personal Account or Joint Account are eligible to earn a bonus interest rate of 2.75% (the Base Rate plus an additional 1.75%) for the eligible accounts (the Personal Account, Joint Account, and the EQ Bank Card balance). Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details.
Cameron Smonk
Freelance Writer
Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.
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