After years of dealing with fees, high rates, and mediocre rewards from big banks, I’m ready to switch to digital banking. I’ve had enough, especially since traditional banking services used to be worth it, but lately, it feels like they’re not giving the same value back.
What are the best options these days? I want to switch my direct deposit, chequing account, and open a TFSA. I also have two credit cards with the big banks and a mortgage I’ll keep paying.
I’m overwhelmed with all the choices—Wealthsimple, Simplii, EQ Bank, Tangerine. Can anyone with experience share some tips on how to make the transition easier?
I recommended EQ Bank to my wife after she had a hard time setting up with Tangerine. For investing in retirement stocks and ETFs, I use Interactive Brokers Canada. They have low fees and good currency exchange rates. Some people use Norbert’s Gambit, but I prefer not to.
I’d choose Wealthsimple over KOHO for customer support alone. Wealthsimple has human support, though not 24/7. If you have a fraudulent transaction, it’s essential to have someone available round-the-clock. That’s why I wouldn’t use KOHO.
For peace of mind, I like having support around the clock, even if it’s just a preference.
Get a line of credit with a big bank. You can keep using their ATMs and services without paying full fees. Then shop around for your other accounts and link them to your line of credit.
Maris said:
Get a line of credit with a big bank. You can keep using their ATMs and services without paying full fees. Then shop around for your other accounts and link them to your line of credit.
This is exactly what I do. I keep a low-fee RBC account where my car payment and mortgage are paid from. My line of credit and a no-fee credit card are also with RBC, so they waive the monthly fee for having multiple products.
This way, I keep a big bank without paying high fees and get easy access to my funds.
I’ve been with PC Financial (now Simplii) for over 25 years. It’s free, offers cheques, and I can use CIBC ATMs for cash. I also have a Tangerine account for when they offer promotional rates and Wealthsimple for stock trades. No fees and no issues with Simplii!
EQ Bank mainly offers high-interest savings accounts and mortgages.
Tangerine was good back when it was ING Direct, but since Scotia bought it, things have gone downhill. They offer mutual funds, GICs, and savings accounts.
For investing, I use Wealthsimple (a Power Corp subsidiary) for my emergency fund and investments. Wealthsimple offers robo-advisor options and a self-directed platform if you prefer to pick index funds yourself. A lot of people prefer index funds since they have lower fees compared to mutual funds.
Questrade is similar to Wealthsimple but has a smaller base of assets.
Wealthsimple has a promo with Apple right now if you move money over. I’d also open Tangerine or Simplii in case you need a service WS doesn’t offer. I’ve been using this kind of setup since 2016, and it works well.
I use a no-fee credit union account and Wealthsimple, both with no fees, and I’m really happy with them! My paycheck goes to Wealthsimple, and I send some to the credit union for my mortgage.
Wealthsimple offers a bonus if you direct-deposit over $2000 monthly, so why not? Plus, they have a Mastercard debit card, and customer service is great.