Tangerine Bank Review: The Best Overall Online Bank In Canada

Last updated on June 13th, 2020 at 05:05 pm

Today, Tangerine Bank is Canada’s premier online banking service – but it didn’t start out that way.

Founded in 1997 as a direct banking service under the name ING Direct (or ING Bank of Canada), the service offered savings accounts with over-the-phone transactions.

In November 2012, Scotiabank purchased the fifteen-year-old banking service from ING Group NV. At the time, ING Direct serviced nearly two million Canadians.

As part of the acquisition, ING Direct was required to undergo a facelift – namely, the service was forced to change its name within an eighteen-month deadline.

Nearly a year later, the company revealed that the service would be moving forward under the title Tangerine.

The name, according to former Tangerine CEO Peter Aceto, pays homage to ING Direct’s “orange” history and helps potential customers know that the service stands out from the rest.

A subsidiary of Scotiabank, Tangerine bank offers free access to nearly 45,000 ABMs worldwide. And with free deposits and withdrawals available on all ABMs transactions, Tangerine bank rises above competitors.

Tangerine Bank In Canada

Tangerine was established in opposition to major Canadian banks, all of which offered the same few services for exorbitant prices. With a lean, technological approach, ING Direct looked to revolutionize Canadian banking with low costs and high-interest rates.

Furthermore, the bank established several cafes, pop-up locations, and kiosks in lieu of traditional banking branches.

For these reasons, Tangerine Bank should be at the top of the list for anyone searching for a secure and convenient bank. With flexible banking options, Tangerine has one of the most user-friendly setups of any bank in Canada.

tangerine bank

What Makes The Tangerine Bank Unique?

Tangerine offers surprise-free banking.

With a name like Tangerine, it’s hard not to stand out from the competition. It’s not just the company’s name, however, that distinguishes them from the rest.

As a direct online banking service, Tangerine bank is able to cut down on the costs of banking—ultimately saving you money. This manifests in Tangerine’s amazingly high-interest rates that allow you to collect money like nowhere else.

It’s also present in all the free services that Tangerine bank offers its customers. From free ABM transactions, free daily chequing and savings, and access to a 2% cashback rewards card with a $0 annual fee, Tangerine stands above the rest when it comes to affordable banking. 

With cafes, pop-up locations, and kiosks standing in a place of traditional branches, Tangerine offers a different way to the bank. This cost-saving ingenuity has been a part of the company’s vision since day one when ING Direct began as a telephone banking service.

Tangerine Bank Online Banking Services

Tangerine’s online banking offers full-scale banking services.

From traditional chequing and savings accounts to credit cards and GICs, Tangerine Bank gives customers great flexibility over their finances.

How do these services compare to those offered by other popular banks? Is Tangerine competitive with other banks on the market?

To answer these questions, a brief overview of the products offered by Tangerine is in order.

Let’s look at the online banking services offered by Tangerine and a brief summary here: 

1. Tangerine Chequing Account

  • No Daily Transaction Fees

  • Overdraft Protection Available

  • Free Access to 3,500 ABMs (44,000 worldwide)

2. Tangerine Savings Account

  • Savings, Tax-Free Savings, RSP Savings, RIF Savings (1.25%)

  • US Dollar Savings (0.80%)

3. Tangerine Investment Funds

  • Non-Registered Investment Fund

  • RSP Investment Fund

  • Tax-Free Investment Fund

  • RIF Investment Fund

4. Tangerine Mortgages

  • Receive Your Own Personal Account Manager

  • Great Rates

  • Prepayment Options Available

5. Tangerine Home Equity Line of Credit

  • Low-Interest Rates

  • Easy Repayment Plans

6. Tangerine RRSP Loans

  • Easy Application and Approval Process

  • No Fees

  • Incredible Rates

  • Flexible Repayments

7. Tangerine Credit Cards

8. Tangerine GICs 

  • Guaranteed Investment (Up to 3.15%), RSP Guaranteed Investment (Up to 3.25%), Tax-Free

  • Guaranteed Investment (Up to 3.25%), US$ Guaranteed Investment (Up to 3.20%)

  • RIF Guaranteed Investment (Up to 3.25%)

9. Tangerine Business Accounts 

  • Business Savings Account (Up to 1.50%)

  • Business US$ Savings Account (0.80%)

  • Business Guaranteed Investment (Up to 2.85%)

  • Business US$ Investment (Up to 3.00%)

Tangerine’s wide variety of banking services are competitive in the market. Let’s break down a few key categories to see how Tangerine stacks up against some key competitors.

tangerine bank

Tangerine Bank Chequing and Savings Account

Tangerine Bank offers a number of unique savings features.

If you’re looking for a new bank, chances are you’re in need of a new chequing or savings account.

With this in mind, let’s take a more in-depth look at Tangerine’s chequing and savings account options. Keep the above information in mind as you look over the following details.

First, let’s examine some more of the critical information you need to know before opening a chequing account.

For starters, keep in mind that Tangerine customers are treated to daily interest rates on money in their chequing accounts. These rates are currently:

  • $0.00 – $49,999.99 – 0.15%

  • $50,000.00 – $99,999.99 – 0.55%

  • $100,000+ – 0.65%

These generous interest rates help customers get more out of their chequing accounts.

Tangerine Bank Savings Account 

Tangerine’s savings account rates of 1.25% fair favourably against competitors. BMO, for instance, may look better on the service, as they offer up to 1.600% savings interest rates.

However, a closer look reveals that customers must meet minimum balance requirements to qualify for this “bonus interest.” Actual rates for many customers often prove lower.

RBC Bank’s interest rate savings are even lower—maxing out at 0.35%, with most options only offering 0.30% interest rates.

CIBC Bank offers the closest competition with straightforward savings interest rates up to 1.20%–but even then, Tangerine comes out the winner.

Perhaps best of all, however, is the fact that Tangerine bank makes opening a savings account easier than ever before. Their streamlined online application is simple and offers fast results.

Consider Tangerine Bank to get the most out of your savings.

Tangerine Bank Chequing Account

Another strong feature of Tangerine Bank’s chequing account options is that they offer very few fees. For example, online daily banking, Tangerine Email Money Transfers, ABM deposits and withdrawals (Tangerine or Scotiabank ABMs only), and the first chequebook all come free.

Additionally, the fees they do have are quite low—for instance, it’s only $1 to use non-Scotiabank/Tangerine ABMs in Canada.

Other fees include overdraft fees ($40), Canadian drafts ($10), additional chequebooks ($20), and replacement cards ($15 starting with the second one).

What’s more, Tangerine offers several saving options for their customers. We’ll take a closer look at their GIC and housing interest rates below, but for now, we’ll keep it simple.

Tangerine’s standard savings account option boasts a variety of home-run features, including an interest rate of 1.25%, $0 fees, and a $0 minimum balance requirement.

Tangerine Bank vs. Competition 

Tangerine offers convenient chequing account options.

What makes Tangerine’s chequing account options stand out is that they don’t charge a fee for daily transactions.

This keeps tangerine’s chequing account affordable for customers no matter their budgets.

Even better, when opening a chequing account with Tangerine bank, customers are eligible for up to 0.65% interest rates. This interest is paid on a monthly basis based on daily calculations for every dollar in your account.

What’s more, customers with Tangerine bank get free access to up to 3,500 ABMS (in Canada) – making withdrawing your hard-earned money convenient.

These features really stand out when compared to other popular banks. RBC bank, for instance, offers a much greater number of ABMs—but it comes with a catch.

Users can only get up to 10 free debits a month—and then are charged $1.00 for each afterwards.

CIBC charges a monthly fee based on the number of ABM transactions made. The first twelve transactions cost $4.95, while additional transactions are $1.25 each.

Customers are capped at twenty transactions without paying $14.95 a month for unlimited transactions.

Tangerine remains competitive in all other services offered as well. From better-than-average GIC rates to flexible mortgage plans, Tangerine provides industry-leading quality.

It’s perhaps for this reason that Tangerine has become Canada’s premier online banking platform. With products and services that remain competitive with other online and more traditional banks, Tangerine is a name you can trust.

Current Offers At Tangerine Bank

Currently, Tangerine bank offers a variety of benefits for customers who sign up within the next few days. Let’s take a look:

  • Chequing Account: If you switch your pre-authorized payments or payroll in the first 90 days of opening your chequing account, you are eligible for a $150 cash bonus. As of the time of this writing, there are 102 days left on this offer.

  • Savings Account: Tangerine advertises potential 3.00% interest in your initial Tangerine Savings Account for the first six months if you sign up within the next 72 days (as of the time of this writing).

Take advantage of these special offers to enjoy even more savings with your Tangerine banking account!

Tangerine

Tangerine Money-Back Credit Card vs. The Competition

Tangerine offers an unlimited money-back credit card that gives 2% money rewards for purchases made in the following categories: gas, furniture, hotel-motel, grocery, restaurants, drug store, public transportation and parking, entertainment, home improvement, and recurring bill payments.

For all other purchases, the card offers a .50% money-back reward guarantee. With a $0 annual fee, the Tangerine Money-Back Credit Card offers a convenient way to earn money while you shop.

How does this card stack up to the competition?

Tangerine Bank Cash Back Credit Cards Vs. Others

  • BMO CashBack Mastercard: With a 1% cash-back guarantee, this popular option falls behind Tangerine’s 2% money-back promise.

  • CIBC dividend Visa Card: This 2% cash-back reward card offered by CIBC is the bank’s only mainstream option available for no annual fee. Unfortunately, the card only offers rewards for purchases made at the grocery store.

  • RBC Cash Back Mastercard: The RBC Cash Back Mastercard is similar in that it offers 2% unlimited cash-back on your purchases. Unlike the Tangerine Money-Back Credit Card, however, this option is limited to the grocery store.

  • TD Cash Credit Card: With a 0% annual fee and 3% cashback on dining, 2% cashback on groceries, and 1% cashback on everything else, the TD Cash Credit Card (one of TD’s five credit card options), offers slightly more than the Tangerine Money-Back Credit Card.

Unlike other major Canadian banks, Tangerine Bank does not offer diverse credit card options. That being said, its cashback rewards card is one of the best in the nation and far outshines most of the competition. In fact, only one major card can claim to be its superior—the TD Cash Credit Card.

Tangerine Bank Guaranteed Investment Interest Rates

  • 90 Day Guaranteed Investment  0.50%

  • 180 Day Guaranteed Investment  2.40%

  • 270 Day Guaranteed Investment  2.50%

  • 1 Year Guaranteed Investment  2.60%

  • 1.5 Year Guaranteed Investment  2.80%

  • 2 Year Guaranteed Investment  2.80%

  • 3 Year Guaranteed Investment  2.85%

  • 4 Year Guaranteed Investment  2.90%   

  • 5 Year Guaranteed Investment  2.95%

Tangerine Bank Tax-Free Guaranteed Investment Interest Rates

  • 90 Day      Guaranteed Investment  0.50%

  • 180 Day    Guaranteed Investment  2.60%

  • 270 Day    Guaranteed Investment  2.70%

  • 1 Year       Guaranteed Investment  3.00%

  • 1.5 Year    Guaranteed Investment  3.05%

  • 2 Year       Guaranteed Investment  3.10%

  • 3 Year       Guaranteed Investment  3.15%

  • 4 Year       Guaranteed Investment  3.20%   

  • 5 Year       Guaranteed Investment  3.25%

With Tangerine’s Tax-Free Guaranteed Investment rates as high as 3.15% and with fees of $0, Tangerine’s GIC options are among the best in online banking.

Tangerine Bank’s GIC interest rates are calculated based on fixed investment times and range from 0.50% for 90 days to 3.15% for five years.

These powerful GIC options help customers set aside funds at guaranteed interest rates for a predetermined time of their choosing. And because these GICs are CDIC-insured, customers can be sure their funds are secure.

Tangerine also offers competitive mortgage interest rate options. These rates vary from 3.55% to 3.99% depending on the length of the fixed mortgage. With secured rate options available, customers never have to worry about losing their hard-earned money.

Tangerine Bank

Conclusion 

Tangerine bank ranks among the best and most flexible in Canada. This powerful online banking service offers full-scale products to meet a variety of consumer needs.

From industry-leading chequing and savings account options to CDIC-insured GICs, Tangerine remains competitive with any bank in Canada. Additionally, its secure online application forms can be completed in a matter of minutes—giving qualified customers quick and convenient access to their funds.

Those looking for more information about Tangerine Bank can check out their official website. See why Tangerine bank has become the choice of millions throughout Canada by chequing out its industry-leading products and services today.

Tangerine Bank Review

4.95

Value For Money

4.9/5

Benefits

5.0/5

Rewards

5.0/5

Pros

  • Tangerine bank ranks among the best and most flexible in Canada
  • Offers industry-leading chequing and savings account options to CDIC-insured GICs, Tangerine remains competitive with any bank in Canada
  • With Tangerine's Tax Free Guaranteed Investment rates as high as 3.15% and with fees of $0, Tangerine’s GIC options are among the best in online banking.

Cons

  • Lack of traditional banking branches
  • Closer look reveals that customers must meet minimum balance requirements to qualify for this “bonus interest"
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Sagar Sridhar

Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master's degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.

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Sarah

Excellent, thank you

Mick

I am not sure that Tangerine is in my area but I am going to check. I love the idea of better online banking since I am an online business person. I have been looking for a new bank. I want all the benefits of a strong online bank with the added bonus of a physical branch/building in my area if I need it. Thanks for the information!

Zeenat Aman

Informative and detailed! Thanks

Andres

Great article, thanks.
If you have to pick one between Tangerine Motusbank and Simplii which one would be?

Steve

TANGERINE Bank – More like a Lemon Do NOT use this dishonest, iNCONVENIENT Bank!!! Since this bank ‘bought’ my business with promises of high interest (for a limited time) and promises of up to 4% in cash back on some purchase categories, I’ve had nothing but grief since I keep discovering far too much fine print; ways they can legally deceive customers. Besides being the most inconvenient to communicate with, “due to a higher than average call volume” which seems to be anytime I call, even late at night. (Usually an hour + on hold- even if you request a… Read more »