Motusbank Review Rating: 4.7
If you’re looking for low-cost banking solutions on savings, investing, and loans, online-only banks got you covered.
You probably know the cost of using a traditional bank in Canada. The interest rates, monthly fees and other high banking fees could easily consume your savings.
But with an online bank, you can easily grow your savings with high-interest rates and low banking fees.
However, some online banks are as good as some traditional banks in terms of fees and interest rates. Hence, the need to look for the best online bank out there.
Fortunately, Motusbank is one of the best online banks in Canada, offering competitive banking solutions.
This Motusbank review covers everything you need to know about this digital bank, such as its accounts options, fees, interest rates and how it compares.
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What is Motusbank?
Motusbank is a federally chartered online-only bank owned by the Meridian Credit Union.
Like other digital banks, Motusbank offers low-cost banking solutions due to its low operation cost.
Despite being a new digital bank established in 2019, Motusbank has competitive all-round baking solutions, such as:
- No-fee chequing accounts,
- High-interest savings accounts
- Mortgages
- Personal loans
- Line of credit
- Investment products.
This Motusbank review focuses on all aspects of the bank to help you make an informed decision.
Who Owns Motusbank?
The Meridian Credit Union owns Motusbank. The Meridian Credit Union is a popular credit union in Canada with over 75 years of experience in the industry.
This credit union has $27.6 billion assets under management, 380,000 members and 1900 employees as of the time of writing this Motusbank review. This makes it Ontario’s largest credit union and Canada’s 2nd-largest credit union.
Furthermore, the Meridian Credit Union offers a wide range of products and services through fourteen Commercial Business Centres. This includes:
- Banking
- Wealth management
- Credit products and services
Is Motusbank Safe?
Short Answer? Yes. Motusbank is absolutely safe. Motusbank is registered with the Canada Deposit Insurance Corporation (CDIC), which insures your deposit up to $100,000 per separate deposit.
Also, Motusbank’s parent company, Meridian Credit Union, has been in existence for over 75 years, and it’s Ontario’s largest credit union and Canada’s 2nd-largest credit union.
Furthermore, Motusbank uses advanced encryption to protect your personal information and card details against fraudsters. This means you have nothing to worry about using motusbank.
Pros and Cons of Motusbank
Each online-only bank has its pros and cons – Motusbank is not an exception. Here are the good and ugly sides of Motusbank you should weigh before making a decision.
Pros
- High-Interest Savings: Motusbank offers 1% on its savings account, which is way high compared to brick-and-mortar banks and other digital banks’ rates.
- Lower Fees: Motusbank charges no transaction fees on its savings and chequing accounts. This will save you hundreds of dollars in the long run.
- Auto-Save Feature: Automate your savings on Motusbank by having your debit purchases round up from $1 to $5 and deposited in your savings account.
- Multiple Products: Motusbank is an all-around digital bank that offers similar banking solutions as traditional banks. This bank got you covered from savings, chequing, mortgages to personal loans and line of credit.
- CDIC Insurance: Your deposit up to $100,000 per separate deposit is insured by the CDIC on Motusbank. This means you have nothing to worry about in case Motusbank goes out of business.
Cons
- No Credit Card: You have to look elsewhere if you’re looking for a digital bank with a credit card because Motusbank doesn’t offer it at the moment.
- No Physical Contact: As an online-only bank, Motusbank doesn’t have any physical presence. So consider other options if you’re looking for a bank with physical branches.
Motusbank Products
Motusbank offers registered and unregistered accounts, ranging from savings, chequing, TFSA, RRSP, RRIF, and GIC accounts. Let’s take a look at them one after the other.
1. Mortgages
Whether you’re refinancing or buying a new home, Motusbank got you covered with the following competitive mortgage rates:
- 1-year fixed mortgage = 2.54%
- 2-year fixed mortgage = 2.54%
- 3-year fixed mortgage= 2.54%
- 4-year fixed mortgage = 2.54%
- 5-year variable mortgage= 2.54%
- 6-month convertible fixed mortgage = 4.00%
2. GICs
If you’re looking for guaranteed returns on your investment, motusbank Guaranteed Income Certificate (GIC) has competitive interest rates as follows:
| Long Term Non-Redeemable GICs | Interest Rates |
| GICs | ● 1-year GIC = 1.50%
● 18-month GIC = 1.55% ● 2-year GIC = 1.60% ● 3-year GIC = 1.60% ● 4-year GIC = 1.60% ● 5-year GIC =1.60% |
| RRSP | ● 1-year RRSP GIC = 1.55%
● 18-month RRSP GIC = 1.60% ● 2-year RRSP GIC = 1.65% ● 3-year RRSP GIC = 1.65% ● 4-year RRSP GIC = 1.65% ● 5-year RRSP GIC = 1.65% |
| TFSA | ● 1-year TFSA GIC = 1.55%
● 18-month TFSA GIC = 1.60% ● 2-year TFSA GIC = 1.65% ● 3-year TFSA GIC = 1.65% ● 4-year TFSA GIC = 1.65% ● 5-year TFSA GIC = 1.65% |
| RRIF | ● 1-year RRIF GIC = 1.55%
● 18-month RRIF GIC = 1.60% ● 2-year RRIF GIC = 1.65% ● 3-year RRIF GIC = 1.65% ● 4-year RRIF GIC = 1.65% ● 5-year RRIF GIC = 1.65% |
The bank also has short-term non-redeemable and escalator GICs rates. Check them out here.
3. No-Fee Chequing Account
Motusbank offers a no-fee chequing account that has no Interac e-Transfer transfers fee and minimum balance requirement.
The no-fee chequing account has 0.15% interest rates with 25 free cheques on the first order. This is in addition to the unlimited bill payments, debit purchases and withdrawals.
Furthermore, the no-fee chequing account has direct deposit options with mobile cheque deposits.
4. Savings accounts
The Motusbank savings account offers a 1% interest rate, which is high compared to banks and other digital banks.
However, check out my review on the best high-interest savings accounts in Canada if you’re looking for a high-interest rate on your savings.
That said, you can open a single, or joint savings account on Motusbank, so long as you’re a Canadian resident that has reached the age of majority with a valid email address.
Like the chequing account, the Motusbank savings account has no monthly fee and minimum balance requirements.
Furthermore, the savings account has unlimited debit purchases and withdrawals with free ATM withdrawals with The Exchange Network in the Allpoint Network in Canada and US, respectively.
That said, Motusbank also offers competitive rates on the following registered savings accounts.
a. TFSA Savings Account
A TFSA stands for a tax-free savings account. This account allows you to deposit and withdraw your money tax-free. Furthermore, interest and dividends in a TFSA savings account are not taxable.
However, the contribution limit varies annually, but you can deposit up to $6,000 in your TFSA savings account this year.
That said, Motusbank offers 2.25% introductory interest rates on its TFSA savings account and 1.25% after.
b. RRSP Savings Account
An RRSP stands for a registered retirement savings plan. This is a type of registered account designed for retirement savings.
Unlike TFSA, deposits and earnings on RRSP are not taxable, but withdrawals are taxable.
Furthermore, you must convert your RRSP to RRIF by December 31 of the year you reach the age of 71.
Moreover, the Motusbank RRSP savings account offers a 1% starting interest rate with no monthly fees.
RECOMMENDED: TFSA vs RRSP: Which to Choose?
5. Motusbank Personal Loans and Lines of Credit
This online-only bank offers competitive personal loans and lines of credit. You can get up to $35,000 personal loans with 1 to 5-year terms.
Furthermore, you can receive a personal line of credit, secured line of credit or home equity line of credit (HELOC) with a 2.75% interest rate.
That said, $5,000 is the minimum loan amount of motusbank. The application process is hassle-free, and you can get quick approval once you qualify.
Motusbank Fees
As an online-only bank, Motusbank has a low operational cost, unlike brick-and-mortar banks. Hence, it offers free transactions on savings and chequing accounts.
That said, the bank doesn’t also charge a fee on Point-of-Sale transactions and online cheque viewing.
However, Motusbank charges the following banking fees:
| Service | Fee |
| 1 Interac e-Transfer request | $1.25 |
| Interac ATM transaction fee | $2.00 |
| Send Interac e-Transfer for Savings accounts | $1.25 |
| US ATM transaction fee | $3.00 |
| International ATM transaction fee | $5.00 |
| Foreign debit transaction surcharge | 2.50% |
| Paper statement monthly | $2.00 |
Source: motusbank.ca
Learn more about registered accounts and other fees.
Motusbank Review: My 5-Star Rating
Here’s how I arrived at the 4.7/5-star rating of this Motusbank review:
| Feature | Rating |
| Account Options | **** |
| High-Interest Savings Rate | ***** |
| Fees | ***** |
| Free Interac e-Transfers | ***** |
| Ease of Use | ***** |
| Customer Service | **** |
How to Open a Motusbank Account?
Opening a motusbank account takes a minute once you’re a Canadian resident that reached the age of majority with a valid email address.
You can sign up online or download the motusbank on Apple Store or Google Play Store.
Here are the step-by-step processes of opening a motusbank account online:
- Visit the motusbank website
- Choose the account you want, such as a Haigh-interest savings account, TFSA savings account and RRSP savings account.
- Provide the required information
How Do I Transfer Money to Motusbank?
All you need is to log in to your motusbank account, navigate to the “Transfer” section,” click “Link My other Bank,” and enter the required information.
That’s all! You can start transferring right away, online or on the motusbank mobile app.
However, you can also transfer money to your motusbank account by filling this form to set a manual Money Mover.
All you need is to fill, scan and email the Money Mover form to memberservice@motusbank.ca, indicating the account you want to link.
After approval, you can manually transfer money between your main account and motusbank account online or on the motusbank mobile banking app.
Motusbank vs EQ Bank: Which to Choose?
As mentioned previously, motusbank is a newcomer in the digital banking industry. While EQ Bank has been in the business since 2016, motusbank was launched in 2019 yet has competing features.
What is EQ Bank? EQ Bank is also a federally regulated bank, offering all-inclusive online-only banking solutions.
Like motusbank, EQ Bank converts its low operation cost to high-interest rates and low fee banking solutions.
However, while motusbank has a no-fee chequing account, EQ doesn’t have a chequing account.
On the other hand, EQ Bank doesn’t charge a non-sufficient funds (NSF) fee, while motusbank charges $45.00.
The following table highlights the key differences and similarities between motusbank and EQ Bank.
| Features | motusbank | EQ Bank |
| Account Types | Chequing, Savings, TFSA, RRSP, RRIF | Savings, TFSA, RSP, GICs, |
| Savings Interest Rate | 1% | 1.25% |
| Interac transaction fee | Free | Free |
| Account Minimum | None | None |
| NSF Fee | $45.00 | None |
| CDIC Insurance | Yes | Yes |
As you can see, EQ Bank is more cost-saving than motusbank in terms of fees and interest rates. But don’t conclude with this. Learn more on this EQ Bank Review before deciding.
Verdict on Motusbank Review
Fees and interest rates are key things to look out for in any bank. While digital banks make banking cost-effective, you can save more by comparing and contrasting the available options.
As you can see from the above motusbank review, online banks differ in terms of fees, interest rates and account options.
So when narrowing your selection of the best online bank in Canada, consider the fees, interest rates and account options. This will help you choose a cost-effective bank that suits your situation.
Overall, my motusbank review is positive, and I recommend it to anyone looking for an alternative banking solution against traditional banks.
Let me know which online bank you’re going with in the comment section.
FAQs on Motusbank Review
Is motusbank a Real Bank?
Absolutely. Motusbank is a real bank that functions the same way traditional banks do. Location is the only difference between motusbank and brick-and-mortar banks. While motusbank is entirely located online, brick-and-mortar banks have a physical presence.
Does motusbank Have a Debit Card?
Yes. Motusbank issues debit cards to its savings and chequing accounts customers. However, it doesn’t issue credit cards.
How Safe is motusbank?
Motusbank is absolutely safe because it’s owned and operated by Ontario’s largest credit union and Canada’s 2nd-largest credit union, Meridian Credit Union.
In addition to advanced encryption that protects your personal information and card details, your deposit of up to $100,000 per separate deposit is insured by the CDIC on motusbank.
What if I Have More Questions?
If you have any questions about motusbank, call 1-833-696-6887 or memberservice@motusbank.ca.
However, if you have more questions about this motusbank review, drop them in the comment section.
