How To Find the Best Online Banks in Canada

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(Newswire.net — April 17, 2021) — If you find yourself utilizing the services of in-person banking less than you used to, you are not alone. The Canadian Bankers Association estimates that around 75% of Canadians rely primarily on online and mobile banking today. Online banks, digital banks, and virtual banks all have similar offerings and are proving to be the financial institutions of the future. These online banks typically provide easy access to numerous bank accounts with no or low fees, higher interest savings rates, no-minimum balance banking, and secure funds.

While many traditional banks in Canada have grown their online presence to provide digital services, they are now competing with branchless banks that provide completely online services. The best online banks Canada has to offer also administers the same services and features as traditional banks but with the convenience of online transactions. Let’s explore how to find the best online banks in Canada.

Online Banking

Online banking refers to managing finances and conducting banking transactions via the internet. Opting for an online banking solution means acquiring virtual accounts for your finances and managing them remotely. Online banks rely on apps and websites rather than physical branches and offices. While they offer many of the same services as traditional banks such as account and credit card services, you won’t have access to things like counter services, savings deposit boxes, or in-person advice. The best online banks in Canada operate as similarly as possible to traditional banks. When selecting an online option, choose one that aligns as closely as possible with traditional banking.

Bank Fees and Rates

Aside from brick and mortar branches, bank fees are perhaps one of the biggest differences between online banks and traditional banks. While traditional Canadian banks have to account for buildings and staff as a part of their fees, online-only banks don’t have this overhead. As a result, they can pass these savings on to their customers with little or no monthly fees. Online banks also offer minimal transaction fees for chequing accounts and boast high-interest rates for savings accounts. If you are looking to transition to a virtual bank, you should shop around for low monthly fees and higher interest rates. The best online banks will offer minimal fees allowing the customer to keep more of their money.

Security

Since you will be entrusting your finances to your online bank, you will want to ensure that it is safe. As more and more of our lives are becoming digital, those aspects must remain safeguarded. As a matter of policy, the funds that are deposited in online-only banks are protected by the Canada Deposit Insurance Corporation (CDIC). Similar to traditional banks or credit unions, deposits made to online banks are safe. Beyond this, however, you will want to make sure that your information is safe.

These virtual banks are regulated by the Office of the Superintendent of Financial Institutions and the Financial Consumer Agency of Canada. They are held to the same information safety and security standards that physical banks are. Do some research on your online bank of choice to check for any recent data breaches. The best online banks offer high-security standards for your information and funds. 

Customer Service

Just because you are going with an online bank, doesn’t mean that you have to sacrifice the customer service offered at a physical bank. No matter where you choose to do business, your banking needs will not change. You will want a financial institution that offers customer support and solutions when you need them. While you will lose the in-person advice and consultation at a physical bank, you will want to make sure that your online bank offers strong support. Usually, the best online banks provide customer support over the phone and on the internet.

If you’re interested in moving your finances to a digital banking platform, it will take a little research to be sure that you are getting what you need for your banking needs. Canada is home to numerous virtual banking opportunities and it will be important to make sure that you are getting adequate financial products. Taking some time to investigate fees, rates, security, and customer service will help you find the best online banks in Canada.