More online-only banks have been popping up, and whether you should make the switch depends on your banking habits and priorities. If you’re like 77% of Canadians, you probably already do most of your banking digitally for everyday transactions. If you find yourself forgetting in-person bank branches exist and plan to wave goodbye to them for good in the next five years (along with 37% of Canadians), it might be time to consider an online-only bank. These banks — some of the big Canadian players include EQ Bank and Simplii Financial — often have user-friendly platforms that make handling simple transactions a breeze. Plus, without the costs of maintaining physical branches, they typically offer higher interest rates on savings accounts and low or even no fees (compared to the $15 monthly fees some traditional banks charge). But, if your banking needs are a bit more complex or you often require in-person assistance, an online bank might not be the best fit for you. If you’re still all in on the switch, just make sure your online-only bank is insured by the Canada Deposit Insurance Corporation (CDIC), which you can check on its website.
