When was the last time you stepped into a bank? For us, trips have become increasingly few and far in between. Don’t get me wrong; I have fond memories of my dad walking me into a branch to open my very first account as a wee lad. I used that account for decades with an unwavering- yet unfounded- loyalty, believing that I was using the best service in the business. Until, I discovered, I wasn’t.
As the years came and went, fees increased, services were reduced and attractive promotions only applied to new customers. The day of reckoning came when said bank, which shall rename nameless, raised the minimum balance waive fees. It was the last straw. I closed my account, canceled my credit card and took my business elsewhere- to a bank with no fees.
Enter the new kid on the block, a new online bank with no fees and 3% interest: EQ Bank.
EQ Bank, Who?
EQ Bank is owned by Equitable Bank, the 9th largest federally regulated Schedule 1 bank with 14 billion in assets under management. Funds up to $100,000 deposited are covered by the Canada Deposit Insurance Corporation (CDIC), just like the rest of the big banks. Except for the fact that they are offering something that the big banks are not:
The EQ Bank Savings Plus Account
The EQ Bank Savings Plus account is an interesting take on ye regular ol’ bank account, in that there is no defined distinction between chequings or savings. It’s a savings account that you can use for your everyday transactions. With it, you get:
Pros:
- 3% interest rate on your entire balance, calculated daily paid monthly.
- 5 free Interac e-Transfers per month
- Unlimited transactions (deposits, bill payments, fund transfers)
- Mobile app with mobile cheque deposit
- No minimum balance
- No monthly fees
- Secure online chat.
- 24/7 Customer service support based in Canada.
Cons:
- No debit card or ATM access (more on this later).
- No joint account
- Not yet available in Quebec
Related: Comparing Canadian Chequing Accounts
EQ Bank is also taking a different approach on the savings front; account holders can open an unlimited number of sub-accounts for specific savings goals.
Wait, there’s NO Debit Card?
You read that right. There is no debit card issued with the account. That also means you can’t take cash out at an ATM and you can’t pay for anything in store using this account.
Why on earth would they do that? Debit cards, payment processing and ATM agreements all cost money, which according to to EQ Bank, means less savings to pass along to its customers.
The account is designed to help customers reach savings goals and is supposed to be used in conjunction with or as a companion to existing banking situations. Deposits and withdrawals are handled through Electronic Fund Transfers (EFT), typical for online banks, which take a couple business days to clear or can be done through the free Interac e-Transfers.
The Last Word
A bank account with no debit card isn’t going to be for everybody, but could be of interest to anyone looking for a place to park short term savings.
Nonetheless, the world of online banking come boils down to a single word: Trust. Could you, would you, should you, trust your money with an online financial institution with no physical infrastructure?
Only you can decide. It may just not be for your parents.
Is EQ Bank worth a test drive?
