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Wealthsimple vs. EQ Bank

Wealthsimple vs. EQ Bank: Why we like one much more

Cameron Smonk

By Cameron Smonk

🗓️

Updated: October 29, 2024

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The dusty, glacial world of banking, which went uninterrupted for just about a century, has had its foundations rocked of late. 

Slick, techy, challenger banks are on the up and up, offering a lot more to their customers than just a place to stash your cash. In the immortal words of Men in Black’s Agent Jay, many customers are looking at the big 6 banks and thinking “old and busted” whereas neo banks, like Wealthsimple and EQ, are definitely the “new hotness.”

I happen to be a devoted customer of both Wealthsimple and EQ. I turn to Wealthsimple for its easy, relatively low-fee robo investing, and EQ for its no-fee, high-interest savings accounts. I love ‘em both. But if you had to pick one, which is the better option for you?

My hot take

Such a hard choice. I mean, I literally use both! But – for an all in, head to head competition, I’m leaning Wealthsimple, just for the comprehensive (and ever growing) products and services it offers.

At a glance

Details EQ Bank Wealthsimple
Accounts
Personal Cash
Saving Account Interest Rate 2.00% base 3.5% base
TFSA/RSP Interest Rate 2.50% N/A
Withdraw Cash from ATMs Any ATM, fees are reimbursed in Canada Any ATM, fees are reimbursed in Canada
Interac e-Transfers® Free Free
Everyday Banking Fees None None
NSF Fee N/A N/A
Account Minimum $0 $0
Discounted International Money Transfers No No
Linked External Accounts Yes Yes
CDIC Insurance Yes Yes
Reviews EQ Bank review Wealthsimple Cash review
Open an account Go to site Go to site

EQ Bank and Wealthsimple pros and cons

I’ll be honest, unless you really, really like going into bank branches, both of these financial institutions are pretty high-tier, depending on what you’re looking for.

EQ pros and cons

Pros

Pros

  • High everyday interest rate

  • Savings account can serve as a chequing account

  • Cash back, pre paid Mastercard with no ATM fees, FX fees or annual fees

  • One of the best GIC rates in Canada

Cons

Cons

  • No branches

  • Website can be a bit janky, in my experience

  • No mortgage products

Wealthsimple pros and cons

Pros

Pros

  • The highest everyday interest rate in Canada

  • Savings account can serve as a chequing account

  • Cash back, pre paid Mastercard with no ATM fees, FX fees or annual fees

  • Comprehensive investment platform

  • Mortgages offered through partnership

Cons

Cons

  • No branches

  • No GICs

EQ Bank vs. Wealthsimple: Savings accounts (that double as chequing accounts)

EQ Bank personal account

EQ has long been at the pinnacle of high-interest savings accounts, offering a lovely 2.00% interest on the cash in your account, and a tantalizing bonus of 3.75% on recurring deposits of $500 or more for the first year. Basically, save regularly in the first year, and you’re outperforming just about any GIC.

But it’s not just branded as a savings account (though that’s its sole function for me). EQ touts its ability to act like a chequing account, with an associated pre-paid Mastercard that’s a bit like a debit, only – better? EQ offers free withdrawals from any ATM in Canada, cashback with purchases and no FX or monthly fees. Not too shabby.

Wealthsimple cash account

Wealthsimple cash offers “Canada’s highest-interest chequing account” but for a chequing account, it sure earns like savings, with 3.5% interest starting at $1 in assets, 4% for Wealthsimple clients with $100k spread across their products, and 4.5% if you happen to be in the lucky group with over $500k.

If that sounds too good to be true…I thought so too. But I actually can’t find the trap. No fees, Interac e-Transfers and, like EQ, a prepaid Mastercard with no ATM or FX fees. Plus, up to 1% cash (or stock, or crypto) back when you spend with your cash card. I’ll be honest, as I’m writing this up, I’m preparing to move some of my cash assets to Wealthsimple.

Winner: Wealthsimple

I came into this comparison confident EQ would take it. But with the suite of perks and the staggering interest, Wealthsimple wins this one for me.

EQ Bank card vs. Wealthsimple cash card

A pre-paid mastercard with no ATM fees, no FX fees and some cash back. Solid!

EQ Bank Card

Apply now

3.0

Fair

Suggested credit score

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Apply now

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No FX fees (up to 2.5%)

  • Earn 0.5% cash back on every purchase

  • Free ATM withdrawals in Canada (EQ will reimburse you)

Cons

  • ATM fees charged abroad (EQ will not reimburse)

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Cash back on purchases

0.5%

Interest on your balance

2.00%

Annual Fee

$0

Foreign Transaction Fee

0%

Exactly the same as the EQ card, but with the option to turn your cash back into stock investments or crypto. A neat gimmick, that differentiates it.

Wealthsimple Cash card

Apply now

Poor

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • Earn 1% cash back on all purchases

  • Choose whether your cash back goes to your investments or crypto or cash account

  • Earn up to 5% on your balance

  • No foreign exchange fees

  • No annual fees

  • $5 reimbursement per withdrawal for any ATM fees

Cons

  • No insurance

  • Relatively low spending and transaction limits

Eligibility

Recommended Credit Score

Poor

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn at least 4% on your account balance

4%

Get 1% cash back on all purchases

1%

There are no foreign exchange fees

0%

Annual Fee

$0

Foreign Transaction Fee

0%

Winner: Wealthsimple

Wealthsimple takes this one by a nose, just for the teensy bit more flexibility.

EQ Bank vs. Wealthsimple: Investment options

Well this one isn’t really a competition, is it? Investing is the bread and butter of Wealthsimple, and hardly a tertiary concern for EQ. Whether you’re looking to buy individual stocks, diversify your portfolio with ETFs or gamble on Crypto, it’s Wealthsimple all the way.

The one area EQ might peak your interest is their GIC’s which have traditionally had solid interest rates compared to their competitors. Right now, its 1 year GIC offers 4.00%, which is pretty darn compelling. It is, in fact, one of the highest GIC rates offered in Canada. As of writing, Wealthsimple does not offer GICs.

Product
EQ Bank
Wealthsimple
GIC
Term: 1 year
Term: Not offered
Return: 4.00%
Return: N/A

EQ Bank vs. Wealthsimple mortgages

Unlike most banks, EQ doesn’t actually offer mortgages. It does however provide a comprehensive aggregator of over 2,000 mortgage products, allowing you to shop around for the one that fits your liking.

But, if you actually want to purchase a mortgage, in this binary you’d have to go through Wealthsimple (or, to be clear, their partner Pine). Through their collaboration with Pine, Wealthsimple is able to offer direct lending so you can skip the broker fees. There’s also a neat feature where Wealthsimple clients can get a cash back rebate of up to 0.15% on mortgage payments which might not sound like much, but consider the price of the average Canadian home and it becomes not-insignificant.

EQ Bank vs. Wealthsimple current promotions

EQ Bank current promotion

The normal interest rate is 2.00%. You get an additional 1.75% bonus interest rate for customers with eligible direct deposits

Wealthsimple Cash current promotion

1% cash back on a minimum $15k deposit, with no limit, when you switch.

What the internet has to say

I have had all positive experiences with EQ. They are one of the better banks I've used.

/u/UrbaneBoffin

Yes. Recently switched from RBC to Wealthsimple. It was the best investment decision of 2023 for me. Wealthsimple's user interface is 100% better and buying/selling XEQT is essentially free. If you set up direct deposit with Wealthsimple (ie. push your salary directly to Wealthsimple), you get 5% interest on your cash account.

/u/Belugawhy

How to sign up for EQ Bank

In my experience, opening an EQ bank was easy-peasy. You can do it in less than 20 minutes online right from their home page, and you’ll just need to have access to all the standard identification information (including your SIN number) to do so.

Go to EQ Bank

How to sign up for Wealthsimple

Wealthsimple is designed to be as straightforward as possible. Hit the button below, enter your ID info, and you’ll be up and running on their cash account in less than 20 minutes. If you’re opening an investment account, it might take a bit longer as you’ll be asked to fill out a risk tolerance assessment for Wealthsimple investing. 

Go to Wealthsimple

Which one will you pick? Leave us a comment in the thread below.

Cameron Smonk Freelance Writer

Cam is a content marketer with a passion for saving, financial independence, and pulling off elaborate credit card point schemes. He has worked in Fintech and Finserve (specifically Group Retirement) and loves researching and writing about finance.

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