Tangerine Savings Account Review Rating: 4.7
Low-interest rates, high fees are the common characteristics of most banks in Canada.
Fortunately, the development of the Internet has led to the widespread of online banks that save banking costs in all aspects.
Tangerine is one of the top direct banks in Canada, offering low-cost banking solutions, such as savings, spending, borrowing and investing.
This Tangerine Savings Account review focuses on everything you need to know before signing up with this bank. We also compared Tangerine Savings Account with EQ Bank Savings Plus Account to help you make a cost-effective decision.
Tangerine Bank, functioning as Tangerine, is an online-only bank owned by Scotiabank. It was established in 1997 as ING Direct Canada and was renamed Tangerine Bank in 2012 after being acquired by Scotiabank.
Like other digital banks, Tangerine is able to offer low-cost banking solutions because it operates entirely online.
As of the time of writing this Tangerine Savings Account review, Tangerine has about $40 billion in assets and over 2 million clients.
This is obvious due to its wide range of competitive banking solutions, ranging from:
- No-fee savings and chequing accounts
- Tax-Free Savings Account (TFSA) Savings Account
- Registered Retirement Savings Plan (RRSP) Savings Account
- Registered Retirement Income Fund (RRIF) Savings Account
- Mutual funds (via a subsidiary).
- Guaranteed Investment Certificates (GIC),
This review focuses on Tangerine Savings, registered and other savings accounts.
What is a Tangerine Savings Account?
Tangerine Savings account is special savings account with competitive interest rates compared to traditional banks.
In addition to competitive interest rates, this account has no monthly/annual fees nor minimum balance requirement.
Currently, New Tangerine Savings Account users can enjoy 2.25% introductory interest rates for up to 5 months in addition to a $300 bonus.
- Competitive Interest Rate: Earn 2.25% introductory interest rates up to 5 months and 0.10% after.
- No Monthly/Annual Fees: Increase your earnings by saving hundreds of dollars from the waived monthly/annual fees.
- No Minimum Balances: Save according to your pace without bothering about compulsory minimum balance requirements.
- Automatic Savings: Save while sleeping with the Automatic Savings Program (ASP) feature that seamlessly helps you achieve your savings goal.
Tangerine Other Savings Accounts
This Scotiabank subsidiary offers registered and other types of savings accounts that help you save on taxes and fees.
1. Tangerine Tax-Free Savings Account
As the name implies, a Tax-Free Savings Account is a tax-advantaged account that helps you save and withdraw your money and interest tax-free.
This account offers the same interest rates as Tangerine’s regular savings account. It also has no monthly/annual fees and minimum balance requirements.
The TFSA contribution room changes annually. The current limit is $600. However, you can contribute up to $69,500 in 2021 if you’ve never used TFSA since its introduction in 2009.
- Tax-free Savings: Enjoy tax-advantage on your savings, interest, earnings and withdrawals once you don’t exceed your contribution limits.
- Competitive Interest Rate: Like the Tangerine regular savings account, this account offers 2.25% introductory interest rates up to 5 months and 0.10% after. You will also enjoy a $300 welcome bonus.
- Flexibility: Unlike other registered savings account, this account allows you to withdraw your money at any time, with no tax implications
- No Monthly/Annual Fees: Convert traditional banks’ monthly/annual fees to tax-free savings with a Tangerine TFSA Savings Account.
- Automatic Savings: Achieve your saving goals faster with the Automatic Savings Program (ASP) feature that allows you to save even while sleeping.
2. Tangerine RSP Savings Account
If you’re concerned about your retirement days, it’s essential to consider opening a Registered Savings Plan (RSP) account.
The Tangerine RSP Savings Account is a registered account with tax-advantage on your retirement savings.
Like the Tangerine regular savings account, this account has a competitive interest rate with no monthly/annual fee nor minimum balance requirements.
- Competitive Interest Rate: Like the Tangerine TFSA Savings Account, this account offers 2.25% introductory interest rates up to 5 months and 0.10% after. You will also enjoy a $300 welcome bonus.
- Flexibility: Save according to your budget and transfer your funds to other investment vehicles without any implication.
- No Monthly/Annual Fees: Convert your monthly/annual fees to high retirement savings.
- Automatic Savings: Sleep to your retirement while saving automatically with the Automatic Savings Program (ASP).
3. Tangerine RIF Savings Account
The Tangerine RIF Savings Account allows you to withdraw your retirement savings with competitive interest rates and zero monthly fees.
While your RIF interest earnings are tax-free, your compulsory annual average RIF Payment amount is taxable.
That said, the Tangerine Savings Account has no minimum balance requirement.
- Competitive Interest Rate: Enjoy 0.15% interest rates, one of the highest you can find.
- No Monthly/Annual Fees: Save hundreds of dollars from recurring monthly and annual fees.
- No Minimum Balances: Save according to your pace while earning the same rate.
4. Tangerine US$ Savings Account
The Tangerine US$ Savings Account helps you earn competitive interest rates on your US funds with no monthly or annual fees.
Like the Tangerine regular savings account, you will earn a 2.25% introductory interest rate and a $300 welcome bonus for five months.
- Competitive Interest Rate: Earn a 2.25% introductory interest rate and a $300 welcome bonus for five months.
- No Monthly/Annual Fees: Save and earn more by converting monthly/annual fees to your account.
- No Minimum Balances: Save according to your budget and earn the same rate.
- Exchange Rates: Enjoy competitive exchange rates on US dollars exchanges.
5. Tangerine Children’s Savings Account
The Tangerine Children’s Savings Account helps you save and educate your children about savings while they are young.
Your children will be assigned a personal Client Number to track their transaction history, just as same as you will.
However, this account can only be opened by a parent or a legal guardian with a Tangerine account.
- Competitive Interest Rate: Enjoy 0.20% interest rates, one of the highest you can find.
- No Monthly/Annual Fees: Save and earn more by paying no monthly or annual fees.
- No Minimum Balances: Save as low as $1 and earn the same interest rate.
Is My Money Safe in Tangerine?
Your money is absolutely safe with Tangerine because the bank is a Canada Deposit Insurance Corporation (CDIC) member. Thus, your deposits up to $100,000 per deposit category are protected.
Tangerine protects your card and personal information against theft and fraudsters using a microchip.
Furthermore, you don’t have to pay for unauthorized purchases because Tangerine has Interac Zero Liability, Mastercard Zero Liability and Visa Zero Liability.
Pros and Cons of Tangerine Savings Account
Like other digital banks, Tangerine has its pros and cons. Let’s take a brief look.
- Above-Average Interest Rate: Most banks offer less than interest 0.10% rates. Tangerine’s above-average interest rate is calculated daily and paid monthly.
- Welcome Bonus: New Tangerine Savings Account clients enjoy a welcome bonus of 25% and $300 up to 5 months.
- No Monthly/Annual Fees: Tangerine Savings Account has no monthly or annual fees. This applies to all Tangerine savings accounts.
- No Minimum Balances: This means you can start saving with as low as $1 and enjoy the same rate.
- Automatic Savings: You can now save while sleeping by setting up an automatic deposit with the Automatic Savings Program (ASP).
- Low Standard Interest Rate: The 0.10%standard interest rate of Tangerine accounts is low compared to other digital banks in Canada.
- Non-Sufficient Funds (NSF) Fee: Unlike other digital banks in Canada, Tangerine charges $45 for NSF on its savings account.
- No Physical Contact: You can’t have physical contact with Tangerine since it operates entirely online.
Tangerine Savings Account Review: My 5-Star Rating
Here’s how I arrived at the 4.7/5-star rating of this Tangerine Savings Account review:
|Free Interac e-Transfers||*****|
|Ease of Use||**** (4.3)|
How to Open a Tangerine Savings Account
The registration process of the Tangerine Savings Account is pretty easy.
All you need is to visit the Tangerine sign up page and provide the required information, such as your:
- Phone number, street and email address
- Social Insurance Number (SIN)
- A valid government-issued photo ID
- An Orange Key or Promo Code (optional)
- Employment information and other required details
Note: You may need to visit a Canada Post outlet to confirm your IDs in order to activate your Tangerine account.
Tangerine Savings Account vs EQ Bank Savings Plus Account
EQ Bank doesn’t need a mention in the world of digital banks in Canada. This is due to its competitive interest rates on registered and unregistered accounts.
Like Tangerine Bank, EQ Bank is able to offer competitive interest rates because it operates entirely online. So the high-interest rates and low-banking costs are the results of low operational costs.
While Tangerine Savings Account has 0.10% standard interest rates, the EQ Bank Savings Plus Account offers 1.25%.
However, Tangerine offers introductory interest rates of 2.25% and a $300 bonus for five months. This will likely earn you much in the short run.
But even though EQ Bank Savings Plus Account has no introductory interest rates and bonuses, the 1.25% interest rate is one of the highest in the industry, which is enough to earn you much in the long run.
The following table summarizes the key similarities and differences between the Tangerine Savings Account and EQ Bank Savings Plus Account.
|Features||Tangerine Savings Account||EQ Bank Savings Plus Account|
|Savings Interest Rate||2.25% introductory interest rate (5months) and 0.10% after||1.25%|
|ATM Cash Withdrawals||Yes||None|
|Interac e-Transfer fee||Free||Free|
|Discounted International Money Transfers||No||Yes|
EQ Bank Savings Account is obviously the winner in the foregoing comparison based on interest rates and fees.
However, if you’re looking to achieve a short-term goal, the 2.25% Tangerine interest will likely boost your earnings.
Before making any decision, I recommend you read this EQ Bank review to have a balanced perspective of your choice.
Verdict on Tangerine Savings Account Review
Tangerine Savings Account is no doubt one of the competitive digital banks in Canada.
The 2.25% introductory interest rates and zero fees will earn you more in the short run.
However, the EQ Bank Savings Plus Account is ideal if you’re looking for a long-term savings vehicle.
Not only will you enjoy high-interest rates on your savings, but you will also save more on fees.
For more savings opportunities, I recommend you check out these best high-interest savings accounts in Canada.
Overall, my Tangerine Savings Account review is positive, and I recommend it to anyone looking for a short-term savings vehicle.
Let me know the digital bank you’re going with in the comment section.
FAQs on Tangerine Savings Account Review
Is Tangerine a Good Savings Account?
Absolutely. Tangerine is a good savings account because the 2.25% promotional interest rate is one of the highest in the industry.
Furthermore, Tangerine Savings Account has no monthly fees or minimum balance requirement, helping you save more according to your pace.
Can You Withdraw Money From Tangerine Savings Account?
You can withdraw money from your Tangerine Savings Account without a fee with the free ABM withdrawal.
Is Tangerine Owned by Scotiabank?
Yes. Scotiabank has owned Tangerine since 2012. However, Tangerine is operating separately with a different institution number.
What Can You Do With a Tangerine Savings Account?
You can save your money and earn competitive interest rates on Tangerine Savings Account. You can also invest your money in TFSA, RSP and RIF through the Tangerine Savings Account.
Which is Better EQ Bank or Tangerine?
EQ Bank is better than Tangerine in terms of interest rates and fees. However, if you’re looking to achieve a short-term goal, the Tangerine introductory interest will quickly boost your earnings.
If you have more questions about this Tangerine Savings Account Review, drop them in the comment section.