The Tangerine Savings Account is a user-friendly online savings account from Tangerine Bank. With a welcome bonus of a 6% interest rate on your savings for the first five months, no monthly fees, and no minimum balance requirements, this account stands out as the best savings accounts in Canada.
Whether you are saving for a rainy day or working towards a specific financial goal, the Tangerine Savings Account has everything you need to reach your targets. It provides access to banking services and tools to help you balance budgets and manage savings without visiting a physical bank.
In this Tangerine Savings Account review, we will explore the offerings of the Tangerine Savings Account, its features, interest rates, pros and cons, and how it compares to other savings accounts in Canada.
Our Take on Tangerine Savings Account
The Tangerine Savings Account offers a hassle-free signup process and an admirable fee-free system. Its banking platform makes managing funds easy and convenient. However, the interest rate for daily transactions is not as high as what other online banks provide, but it still remains competitive compared to the interest rates offered by several of Canada's leading banks.
- Earn up to 1% interest
- Automatic savings option
- No annual fee
- CDIC Deposit Insurance up to $100,000
- No minimum balance
- Free access to the Scotiabank ABM network
- No physical branches
- Lower interest rates compared to other digital banks
About Tangerine Savings Account
The Tangerine Savings Account is a special savings account with competitive interest rates from the Tangerine Bank.
Tangerine Bank, functioning as Tangerine, is an online-only bank owned by Scotiabank. It was established in 1997 as ING Direct Canada and was renamed Tangerine Bank in 2012 after being acquired by Scotiabank.
Like other digital banks, Tangerine operates entirely online and offers low-cost banking solutions. It has about $40 billion in assets and over 2 million clients.
The Tangerine Savings Account has an impressive no-annual-fee structure and an easy sign-up process. With its convenience and flexibility, no minimum balance requirements, and no monthly fees, this account makes it easy to start saving for your goals.
No matter your savings goals, this account is the perfect fit. It lets you set up a Savings Goal with your Savings Account and customise it to visualise your targets.
So whether you are saving for a new home or car, a big purchase, or a well-deserved vacation, Tangerine Savings Account will help you stay on track to get there faster.
Benefits and Downsides of Tangerine Savings Account
Like other digital banks, Tangerine has its pros and cons. Let’s take a brief look.
Pros
- Above-Average Interest Rate: While most major banks in Canada offer interest rates less than 0.10%, Tangerine Savings Accounts offers a 0.7% interest rate.
- Welcome Bonus: When you sign up with the promo code “EARNMORE”, you can earn up to $400 cash back and a 6% savings rate (valid till July 17, 2024).
- No Monthly/Annual Fees: Tangerine Savings Account has no monthly or annual fees. This applies to all Tangerine savings accounts.
- No Minimum Balances: This means you can start saving with as low as $1 and enjoy the same rate.
- Automatic Savings: You can save while sleeping by setting up an automatic deposit with the Automatic Savings Program (ASP).
Cons
- Low Standard Interest Rate: The 1% standard interest rate of Tangerine Savings Account accounts is low compared to other digital banks in Canada.
- No Physical Contact: You can’t have physical contact with Tangerine since it operates entirely online.
- Minimum Age Requirement: You must be at least 16 years to open a Tangerine Savings Account.
Is My Money Safe in Tangerine?
Your money is safe with Tangerine because the bank is a Canada Deposit Insurance Corporation (CDIC) member. Thus, your deposits up to $100,000 per deposit category are protected.
Also, using a microchip, Tangerine protects your card and personal information against theft and fraudsters. They also arranged protection for customers who purchase mutual funds. They secure coverage through the Mutual Funds Dealers Association of Canada’s Investment Protection Corporation.
Furthermore, you don’t have to pay for unauthorised purchases because Tangerine has Interac Zero Liability, Mastercard Zero Liability and Visa Zero Liability.
How to Open a Tangerine Savings Account
Opening a Tangerine Savings Account is pretty easy. All you need is to visit the Tangerine sign-up page and provide the required information, such as your:
- Phone number, street and email address
- Social Insurance Number (SIN)
- A valid government-issued photo ID
- An Orange Key or Promo Code (optional)
- Employment information and other required details
Note: You may need to visit a Canada Post outlet to confirm your IDs to activate your Tangerine account.
Tangerine Savings Account vs EQ Bank Savings Plus Account
When it comes to choosing the best savings to account for your needs, it’s important to compare different options to find the one that offers the most value.
Two popular choices in the Canadian market are the Tangerine Savings Account and the EQ Bank Savings Plus Account. Here’s how they stack up against each other:
- Interest Rates: Tangerine and EQ Bank offer competitive interest rates on their savings accounts. Tangerine currently offers an interest rate of 0.7% on your account balance. EQ Bank, on the other hand, offers a flat rate of 1.50% on all balances.
- Fees: Neither Tangerine nor EQ Bank charges monthly fees nor requires a minimum balance to open an account. However, Tangerine does charge a $2.50 fee for non-Tangerine ATM withdrawals, while EQ Bank offers free ATM withdrawals at all machines across Canada.
- Customer Support: Tangerine and EQ Bank offer 24/7 customer support by phone or online chat, which can be helpful if you have any questions or issues with your account.
Overall, the Tangerine Savings Account and the EQ Bank Savings Plus Account are solid choices for anyone looking to save money and earn competitive interest rates.
The best option for you will depend on your specific needs and preferences, so be sure to compare the features and benefits of each account carefully before making a decision.
Features | Tangerine Savings Account | EQ Bank Savings Plus Account |
Savings Interest Rate | 1% | 1.25% |
Monthly Fees | None | None |
ATM Cash Withdrawals | Yes | None |
Interac e-Transfer fee | Free | Free |
Account Minimum | None | None |
NSF Fee | $45 | None |
Discounted International Money Transfers | No | Yes |
CDIC Insurance | Yes | Yes |
Final Thoughts on Tangerine Savings Account Review
Tangerine Savings Account offers competitive interest rates and no hidden fees or complicated terms and conditions, making it an attractive option for people looking for a savings account.
It comes with an impressive no-annual-fee structure, an easy sign-up process, and no minimum balance requirements. This account also allows you to set a savings goal and customize it to visualize your targets.
However, some downsides exist, such as lower interest rates than other digital banks and no physical branches. Nevertheless, the money is safe with Tangerine, and it is a CDIC member.
Overall, the Tangerine Savings Account is a top choice for anyone looking to start or grow their savings. With its no-fuss approach and competitive interest rates, it’s easy to see why so many Canadians trust Tangerine for their banking needs. So why wait? Sign up today and start enjoying the sweet rewards of smart saving with Tangerine!
My Tangerine Savings Account review is positive, and I recommend it to anyone looking for a short-term savings vehicle. I recommend you check out these best high-interest savings accounts in Canada for more savings opportunities.
FAQs on Tangerine Savings Account Review
Is Tangerine a Good Savings Account?
Absolutely. Tangerine is a good savings account because the 2.25% promotional interest rate is one of the highest in the industry.
Furthermore, the Tangerine Savings Account has no monthly fees or minimum balance requirement, helping you save more according to your pace.
Can You Withdraw Money From Tangerine Savings Account?
You can withdraw money from your Tangerine Savings Account without a fee with the free ATM withdrawal.
Is Tangerine Owned by Scotiabank?
Yes. Scotiabank has owned Tangerine since 2012. However, Tangerine is operating separately with a different institution number.
What Can You Do With a Tangerine Savings Account?
You can save your money and earn competitive interest rates on Tangerine Savings Account. You can also invest your money in TFSA, RSP and RIF through the Tangerine Savings Account.
Which is Better EQ Bank or Tangerine?
EQ Bank is better than Tangerine in terms of interest rates and fees. However, if you’re looking to achieve a short-term goal, the Tangerine introductory interest will quickly boost your earnings.
