ATM LIMIT: VARIABLE
ATM FEE: FREE
PREMIUM OPTION: NO
CUSTOMER SUPPORT: Email, Live Chat
MONTHLY FEE: $0
LOADING OPTIONS: Bank transfer or Check
CARD CHARGE: $0
What is Tangerine Bank?
There are many banking options available to Canadians, so it makes sense to spend time reviewing your choices so you can come to an informed decision on managing your finances. Tangerine is known for its “forward banking” slogan and is a Scotiabank subsidiary. One important thing you need to know about Tangerine is that it doesn’t have conventional physical banks. Instead, it has five casual café-style locations in Calgary, Vancouver, Montreal and Toronto, where there are two. Chances are you will be doing most of your Tangerine banking online rather than offline.
How does Tangerine bank work?
One of the big draws of Tangerine is that most of its banking services are free. You don’t need to pay monthly or annual fees either. The service was once called ING Direct and it first launched in 1997. It was purchased by Scotiabank in 2012 and the name was changed two years later. Scotiabank is one of Canada’s five biggest banks.
There’s a No-Fee Daily Chequing account that offers an interest rate of between 0.05% to 0.15%. There are no daily chequing fees to worry about, and you don’t have to pay for transactions. There are no limits on them either. Pre-authorized payments and direct deposits can be arranged for your paycheque. There’s also the option of overdraft protection to help you avoid substantial charges.
Key features of Tangerine Bank
Many customers have praised Tangerine for helping them save hundreds in bank fees whilst making three-figure sums in interest. If you are seeking a low-fee, high-interest banking solution in Canada, there’s a big chance Tangerine might be for you. Although you can visit one of the brand’s cafes, most people will be able to everything online if they wish. Investment options are also available, and you may be able to take advantage of these even as a beginner. Bonuses are frequently made available for new customers too.
There are five different savings accounts to choose from. These include the savings account, a tax-free account, RRSP, RRIF and US dollar accounts. The savings account offers a fixed interest rate of 0.10%, and you won’t be charged monthly fees. You don’t have to stick to a minimum balance. With the tax-free savings account, you will able to earn interest without being taxed as long as you stick to the contribution limit of $6,000 each year or the overall maximum limit of $69,500.
There are no monthly fees for the RRSP or Retirement Savings Plan, which also gives you an interest rate of 0.10%. The RRIF Savings Account also has an interest rate of 0.10% at a lower tax rate. With the US$ Savings Account, you can earn 0.20% on your savings in US currency. However, you can only access the money when you’re in Canada.
Tangerine also gives you access to five different GICs. Each of these has an interest rate of up to 1.25% apart from the US dollar GIC which offers a rate of up to 0.70%. If you want to transfer GIC funds to another bank, you will need to pay $125.
The Money-Back Mastercard is a credit card that gives you 2% cashback. You can choose from 10 categories for your cashback, which include groceries, furniture and entertainment. It comes with an interest rate of 19.95%. The Tangerine World Mastercard has the same interest rate but comes with an array of extra features like car rental and phone insurance and free Wi-Fi across the world. You will need a household income of at least $100,000 to access the Tangerine World Mastercard.
Tangerine also offers a line of credit which enables you to borrow money at a low variable interest rate. There is no annual fee. You can borrow money against your home’s equity at a 2.35% interest rate. Tangerine also offers mortgages. There are several options for fixed terms up to ten years as well as a five-year variable mortgage. You won’t be penalised if you relocate and transfer your mortgage to another property. Also available through Tangerine are investment portfolios, of which there are five. These include Dividend, Equity Growth, Balanced Growth, Balanced and Balanced Income. There are four different investment accounts too. Aside from RRIFs, you will only need $25 to get an investment account started. Any deposits that you make with Tangerine will be insured up to £100,000.
The Tangerine app
The service does have its own app, which you should be able to access if you have an Android or iOS device. You can carry out the vast majority of banking tasks via the Tangerine app.
Is Tangerine Bank safe and secure?
As Tangerine is part of one of Canada’s biggest banks, you can expect to benefit from world-class standards of safety and security.
Advantages of Tangerine Bank
- No/low fees depending on your specific needs
- Save on chequing fees
- A wide range of financial management solutions
- Most tasks can be completed on your mobile device
Disadvantages of Tangerine Bank
- No formal bricks and mortar banks
- Standard interest rate not exceptional after promo period
- Few options for cash deposits
- Some cash withdrawal limits
If you don’t feel any need to visit a formal physical bank, Tangerine may well be for you. What draws the vast majority of people to Tangerine is that there are minimal fees to worry about. If you do want to speak to someone from the bank before you sign up, you can do so through the phone, mail or the chatbot service. Once you are a Tangerine customer, you’ll be able to talk through the secure chat system and speak to bots and real human beings employed by the company. You’ll also gain access to detailed information about your account. Many Tangerine customers have more than one account with the bank.
Any fees that you do pay are scheduled for the 1st January each year, so you can prepare for these in advance. Whether you want to invest, borrow, spend or save, Tangerine has options for you.