A Comprehensive Guide to The Best Banks in Canada (2022)

Ever wondered what the best banks in Canada are? There are quite a number of banks in Canada that can lay claim to that title.

There is so much to consider when choosing a bank: setting up a flexible chequing account, saving for a rainy day, adding your family to your financial plans, and opening a line of credit.

The bank you choose will determine if you can get access to perks such as competitive interest rates, overdraft protection, and new member benefits. Therefore, it cannot be overstated that you need to bank with the absolute best banks in Canada?

It’s easy to get overwhelmed by all the options out there, so we have put together this breakdown of Canada’s best banks so you can easily compare what’s available in your area. Stick around and find out all you need to know.

The Big 6: Best Banks in Canada with Physical Branches

There’s a reason people still use physical banks: they’ve been around for centuries, and their business is pretty easy to understand. They have branches in various cities, offer ATMs and loans, and also offer a wide range of account types that suit different needs. So, what are the best banks in Canada?

The major thing that sets physical banks apart from online banks is personal relationships. A good relationship with your bank can be incredibly helpful if you want to negotiate fees or get discounts on certain services, for example.

If you’re planning for a long-term goal like retirement or education funding for your child, having someone you trust to walk you through the process can make all the difference.

Here are some of the best physical banks available:

1. Royal Bank of Canada- The Best of All

The Royal Bank of Canada (RBC) is undoubtedly one of the best banks in Canada. It was founded in 1864 and has been serving customers in Canada ever since. It’s the largest bank in the country, with over 16 million customers worldwide.

As of 2017, RBC offers a wide range of banking services, including chequing accounts, savings accounts, student accounts, and more.

They have a VIP chequing account that comes with Interac e-transfer, unlimited debits, free drafts, up to a $120 fee rebate on select credit cards, and discounts on safe deposit box rentals.

Their High-Interest Savings Accounts currently give a 0.05% rate of interest.

2. Canadian Imperial Bank of Commerce (CIBC)- The Best Bank for Students and New Immigrants

CIBC is the fifth-largest bank in Canada, and undoubtedly one of the best banks in Canada. It serves more than 11 million clients worldwide and operates over 1,100 branches in Canada as well as a network of over 3,700 ATMs.

They offer a wide variety of products and services: credit cards, mortgages, life insurance, investments, business banking, and more.

They offer three chequing accounts namely the everyday chequing accounts, CIBC Smart, and Smart Plus. With the Smart Plus, you get the most of all (free ATM withdrawals for any bank’s cards, unlimited transactions, and rebates).

I have personally banked with CIBC in the past 5 years, and I can attest to the fact that CIBC is by far one of the best banks for students in Canada. Their customer service is great, their advisors are efficient, and I haven’t paid a single monthly fee in these 5+ years.

So, would you consider CIBC worthy to be one of the best banks in Canada? Your choice to make.

3. Bank of Montreal (BMO)- The Best Bank for Small Businesses

The Bank of Montreal is the oldest and the fourth largest bank in Canada. It was founded in 1817, and today, the bank is one of the best banks in Canada serving over 7 million clients in Canada and 939 branches.

It also has a network of over 2,000 ATMs for convenient client access wherever they may be in the country.

Their Premium chequing offers free ATM withdrawals with cards that are not Bank of Montreal’s, unlimited transactions, and an annual fee rebate on their World Elite Mastercard (worth $150).

For their highest-interest savings account, look to their Savings Builder which offers a 0.05% rate. Also, you get 0.45% bonus interest (monthly) when your balance goes up by at least $200. These features definitely qualify them to be a leading and undoubtedly one of the best banks in Canada.

4. Scotiabank

With a history that goes back almost 200 years and more than 3,500 ATMs across Canada, Scotiabank is a veteran of what they do best. It is no surprise they are considered by many as one of the best banks in Canada.

They have a strong history of stability and innovation and serve more than 25 million customers around the world.

Scotiabank has two types of chequing accounts: The Scotiabank Ultimate Package and The Scotiabank Preferred Package. When you open an account, both of them can offer you as high as $350.

As for their savings accounts, you can get up to a base rate of 0.20% on interest rates.

5. Toronto-Dominion Bank

Since being established in Toronto in 1855, TD Bank has grown to become one of the largest and best banks in Canada and worldwide. Today, it serves over 25 million customers across the globe.

Not only does TD have a large international presence, but the bank also has over 1,100 branches in Canada and a network of 2,800 ATMs across the nation.

Its most eye-catching chequing account is the All-Inclusive Banking account which offers certified cheques, unlimited transactions, free non-TD ATM withdrawal, rebates, and money orders.

Interest rates on TD savings accounts range from 0.01% all the way to 0.125%. As for TD’s youth bank account, you get a 0.01% interest rate.

6. National Bank of Canada

The National Bank of Canada (Banque Nationale du Canada), often not included on the list of the best banks in Canada, is definitely one of Canada’s premier financial service providers and commercial banking heavyweights. They are well renowned in Canada and beyond for their exceptional services.

Their focus is on commercial (as well as personal) banking, financial markets, and management of wealth. NBC, which is Canada’s sixth-largest bank, was founded in 1859.

The offer diverse personal chequing accounts, a high-interest savings account, and a USD progress account to help you sort out your personal banking needs.

With their wide range of MasterCards available to take care of different unique needs, you should find a card that suits you best.

How The Best Banks with Physical Branches Compare

Want to know more about the famous Big Six of Canada at a glance? Are you still trying to make up your mind about who to go for? The table below should give you some pointers:

*Market cap as of May 5th 2022

The Best Online Banks in Canada

The fact is, people are banking differently these days. With online banking, you can check your balance, pay bills, and even deposit checks from your computer or smartphone. You don’t even have to get up from your sofa. Could these new-age banks be one of the best banks in Canada?

Just like you can watch TV shows on Netflix, order food, and buy tickets to your favorite artiste’s shows, you can do all your banking online.

The following are some of the most popular online banks currently available in Canada:

1. Innovation Credit Union

Innovation Credit Union is a credit union serving Canadians. It was founded in 2007 when Southwest Credit Union and BCU Financial merged.

Innovation Credit Union is the third biggest credit union in Saskatchewan. It is also the 21st largest credit union in the country and by far one of the absolute best banks in Canada.

With ICU, you get a no-fee account that offers:

• There are no minimum balance requirements
• There are no monthly account fees
• You get access to thousands of ATMs across Canada
• You also get free and unlimited Interac e-Transfers

2. Coast Capital Savings

Coast Capital Savings is a Federal Credit Union that has been providing financial services to Canadians since 1940. Coast Capital Savings has more than 500,000 members and $25.2 billion in assets under its management, making it one of the best banks in Canada.

Its services are wide-ranging, including checking and savings accounts, mortgages, credit cards, loans, and investments.

The following are the features for their chequing account:

• The convenience of depositing funds
• No/low monthly fees
• 4000+ ATMs
• You use the Coast Mobile Banking app

How about the savings account, you ask? Well, here are the features:

• You get two 2 free monthly transactions
• No monthly fee
• 0.10%1 interest rate
• $5 per additional transaction

3. Tangerine

Tangerine is an online-only bank that offers no-fee chequing and savings accounts, credit cards, mortgages, investment options, and more; all with no fees. They have over 3,500 ATMs in Canada and 44,000 across the world.

You can access your Tangerine account 24/7 through its website or mobile app. With over 2 million users, they are definitely a popular option among Canadians.

When it comes to chequing accounts, they offer the following:

• You get free access to 3,500 Scotiabank ATMs in Canada and 44,000 globally
• You pay no monthly account fee
• Unlimited free debits, Interac, e-Transfer transactions, and Tangerine email money transfers
• You get mobile cheque deposits
• You get an interest of up to 0.10% on your balance

There is also the perk of getting your first chequebook order for free.

Their savings accounts offer different options. These include RRSP, high-interest savings, TFSA, US$ savings, RRIF, an account for children, and RRIF.

Check out our Tangerine savings account review for more information

4. EQ Bank

EQ Bank is a branch of Equitable Bank that focuses on offering high-interest savings accounts with no monthly fees, no minimum balance, and unlimited free transactions. They also provide high-interest guaranteed investment certificates (GICs) with terms from 1 all the way to 5 years.

If you are going to be in the conversation of the best banks in Canada, you have to show you’re worth your claim. EQ Bank is definitely in the top bunch. They have an online banking platform that makes it easy to manage your account and take control of your finances.

EQ accounts function as hybrid accounts. This means chequing and savings accounts are merged. The following are the features of EQ Bank accounts:

• There is no minimum account balance
• Free bill payments that are unlimited and electronic fund transfers
• You get unlimited Interac e-Transfers
• There is no monthly banking fee
• You get free mobile cheque deposits
• You get joint accounts
• The CDIC insurance rate is $100,000 (per insured category)

With an interest rate of 1.50%, this account is definitely up there with the very best.

Check out our EQ Bank review to learn more.

5. Simplii Financial

If you’re looking for an online bank that offers financial products like credit cards, mortgages, loans, and investment options like traditional banks, Simplii is for you. They also offer no-fee chequing accounts and high-interest savings accounts.

With over 3,400 ATMs distributed across Canada and free Interac e-Transfers, they clearly mean business.

Their chequing account offers the following:

• You get unlimited debits, bill payments, and Interac e-Transfers
• A $350 cash bonus is waiting for you when you sign-up and meet the eligibility requirements
• There are no monthly account fees
• You get free access to more than 3,400 CIBC ATMs
• You don’t need a monthly or minimum balance
• You get interest on your balance of up to 0.10%

As for their savings account, it offers a standard 0.10% interest. They also have no monthly fees.

How The Best Online Banks Compare

To get a better understanding of the features of the online banks discussed above, the table displays them at a glance:

Other Reputable Financial Institutions

Neo Financial

This is yet another online platform for the future. With cards that give you three tiers of cashback rewards (with $0 in monthly fees at the start), they are sure to grow in popularity in the coming years.

Paying for purchases with your card can lead to an increase in your cashback rewards. They are super convenient and leverage the latest technology.

Their savings account (which is their main service) offers will give you an impressive 1.30% savings rate. A quite juicy offer, if you ask me.

Here are the Neo Savings Account features:

• You get to pay no monthly account fees
• You enjoy a 1.30% interest rate
• Free Interac e-Transfers and bill payments
• No minimum deposit requirement
• There is CDIC insurance coverage

How to Find the Best Bank Account in Canada That Meets Your Need

It’s not just about finding the best banks in Canada. It’s also about finding a bank that suits you. Finding the ideal bank for you is not always a straightforward process. There are different things you need to factor in when making your decision. Below are some things you should consider when making your mind up:

• Pay attention to fees.
• Decide on what you want and keep it in mind when making decisions.
• Consider the account minimums.
• Consider how accessible the services of the banks are.
• Don’t just skip the terms and conditions. Understand what you are agreeing to before making a decision.

Conclusion

In this article, we have provided you with a list of the best banks in Canada, the alternative banking solutions, and how you can pick the very best that will suit you perfectly.

When it comes to finding a bank that meets your needs, it’s best to compare several banks and not just settle for the first one you find.

Whether you’re currently banking with a small local bank or you already have a high-profile Canadian bank account, there is room for improvement when it comes to banking in Canada. Don’t be afraid to search around and make sure you find the best bank for your needs. The end result will be worth it.

FAQs on The Best Banks in Canada

Which Bank Are the Big 5 in Canada?

The big five biggest banks in Canada are currently Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, CIBC, and Bank of Montreal. Any of these could generally be thought of as one of the best banks in Canada, but it is arguable.

Which Banks Charge No Monthly Fees?

Online banks often have attractive monthly fee rates for customers. Because they don’t have to deal with the cost of maintaining physical locations, they usually channel those saved costs into giving customers better offers.

EQ Bank is a shining example of an online bank that does not charge monthly fees on its chequing and savings accounts.

What Is the Best Online-Only Bank in Canada?

When it comes to saving money with savings accounts, EQ Bank will help you do that. Simplii also has impressive chequing account rates you can count on.