Choosing the right bank can save you hundreds of dollars per year in fees and earn you better interest rates. Here's how to compare your options.
The Big Five Banks
Canada's largest banks dominate the market:
- Royal Bank (RBC) – Largest bank, extensive branch network
- TD Bank – Long hours, strong customer service
- Scotiabank – International presence, Scene+ rewards
- BMO – Oldest bank, good for small business
- CIBC – Competitive mortgage rates
Pros of Big Banks
- ✓ Branches everywhere across Canada
- ✓ Full range of services (mortgages, investments, business banking)
- ✓ ATMs widely available
- ✓ Established reputation and stability
Cons of Big Banks
- ✗ Higher monthly fees ($10-$30/month)
- ✗ Lower interest rates on savings
- ✗ Minimum balance requirements to waive fees
- ✗ Less personalized service
Online Banks
Digital-only banks with no physical branches:
- Tangerine – Owned by Scotiabank, no fees, decent interest rates
- EQ Bank – Highest savings rates, no chequing account
- Simplii Financial – Owned by CIBC, free chequing, CIBC ATMs
- Motive Financial – High interest rates, limited features
Pros of Online Banks
- ✓ No monthly fees
- ✓ Higher interest rates on savings (2-5%)
- ✓ Easy mobile app experience
- ✓ No minimum balance requirements
Cons of Online Banks
- ✗ No physical branches for in-person help
- ✗ Limited ATM access (or fees at non-partner ATMs)
- ✗ Fewer services (some don't offer mortgages or investments)
- ✗ Depositing cash can be difficult
Credit Unions
Member-owned financial cooperatives, often regional:
- Meridian Credit Union – Ontario's largest
- Coast Capital Savings – BC-based
- Vancity – Vancouver-focused, ethical banking
- Desjardins – Quebec's largest financial institution
Pros of Credit Unions
- ✓ Lower fees than big banks
- ✓ Better interest rates (profits returned to members)
- ✓ Personalized, community-focused service
- ✓ Ethical and local focus
Cons of Credit Unions
- ✗ Limited branch network (regional only)
- ✗ Fewer ATMs outside your region
- ✗ Technology may lag behind big banks
- ✗ Must become a member (usually easy)
How to Decide
Choose a Big Bank if you:
- • Need in-person service regularly
- • Want all services in one place (mortgage, investments, business)
- • Travel frequently and need ATMs everywhere
- • Can maintain minimum balances to waive fees
Choose an Online Bank if you:
- • Want to avoid monthly fees completely
- • Prefer mobile/online banking over branches
- • Want higher interest rates on savings
- • Don't need to deposit cash regularly
Choose a Credit Union if you:
- • Live in a region with a strong credit union presence
- • Value community and ethical banking
- • Want better rates than big banks with some branch access
- • Prefer personalized service
Pro Tip: Use Multiple Banks
Many Canadians use a combination:
- Big bank for chequing – Pay bills, direct deposit, ATM access
- Online bank for savings – Earn 3-5% interest with no fees (EQ Bank, Tangerine)
- Credit union for mortgage – Often better rates than big banks
This strategy maximizes convenience, minimizes fees, and maximizes interest earned.