This Motusbank review takes a look at the product offerings of this online bank and how it compares to other banks in Canada.
Maintaining several locations with all the resulting overheads adds up to the costs of traditional banks. With the advent of technology and introduction of online banks, these expenses are bypassed resulting in low-cost banking and high interest on savings and investment accounts.
Online-only banks give you all the banking functionality as traditional banks, but with more flexibility and affordability. With the growth of online-only banks in Canada, the market has become competitive making it challenging to choose the best one.
Motusbank is one of the best online-only banks in Canada that is popular for its comprehensive financial products.
In this Motusbank review, you will learn everything about the bank and how it compares to other online banks in Canada.
An Overview of Motusbank
Motusbank is an online-only Canadian bank, specializing in low-cost savings accounts, investing and personal loans. Launched in 2019, Motusbank looks to reduce your banking costs by offering no-fee accounts and low-interest rates.
Motusbank has quickly established itself as one of the leading financial technology companies by providing an innovative, customer-oriented business model that is unique in the banking industry today.
With Motusbank, you don’t have to pay any monthly fees, but some transaction charges apply. You’ll also get competitive rates on loans and great investing solutions for your retirement accounts.
You can open an account with Motusbank with any amount, no credit checks and no minimum balance required. It also offers mortgages with lower rates.
Here is a Motusbank review at a glance:
|Savings Account Rate||1.0%|
|Registered Accounts||TFSA, RRSP|
|Other products||Chequing, Investing, Mortgage, Lending|
How Does Motusbank Work?
Motusbank is a digital bank, which means all its services are offered online. As a result, you’ll get the convenience of digital banking with the security and trustworthiness of a traditional bank.
Getting a Motusbank account can be done in just a few minutes and there are no fees or minimum balance requirements to worry about.
There are no physical branches at Motusbank, but you can access your money and investments online or through the Motusbank mobile app.
With an easy-to-use interface and 24/7 customer service available by phone, Motusbank is always available to help with any questions you may have.
The bank offers chequing accounts with no monthly fees as well as high-interest savings accounts. You can open unlimited accounts for free, complete with unlimited transactions and Interac e-Transfer capability.
To simplify things for new users, Motusbank also offers a variety of bundles that include all the products you need to get started with banking.
Products Offered by Motusbank
Motusbank offers several cost-effective products for your financial needs.
Whether you are looking for a high-interest savings account or a chequing account, Motusbank has a product that is right for you. Motusbank products include:
1. Motusbank No-Fee Chequing Account
Motusbank has come out with an incredible product for those looking for a no-fee chequing account.
Whether you’re a student, or a small business owner looking for a great chequing account, the Motusbank no-fee chequing account is the right choice.
With a 0.15% interest, 25 free cheques, unlimited transactions, and a debit card, it’s everything you need to get through your daily banking.
The best part is that the account does not have a minimum balance requirement or monthly fees. The Motusbank no-fee chequing account gives you more banking for less money.
Related: Best No-Fee Bank Accounts in Canada
2. Motusbank Savings Accounts
A savings account is a great place to keep your money for short-term goals, and to build your savings habit. The Motusbank savings account is a high-interest account that earns interest on every dollar saved.
There are no monthly fees or minimum balance requirements, which means you only pay for the services you use.
And, with unlimited transfers between your accounts and easy access through mobile banking, it’s great for daily spending and saving.
Below are some of the accounts offered by Motusbank with their interest rates:
- High-interest savings account: 1.00%
- TFSA savings account: 1.25%
- RRIF savings account: 1.00%
- RRSP savings account: 1.00%
However, you can earn a special interest rate of 2.25% when you open your first TFSA savings account with Motusbank.
3. Motusbank GICs
If you’re looking for an effective way to put money aside for longer term goals like retirement, it might be worth checking out Motusbank’s GICs.
Motusbank’s GICs have interest rates that are higher than those offered by most traditional banks, but lower than what you can get from other online banks.
They’re a great way to save for a range of short and long-term goals, with varying interest rates depending on the GIC term. Motusbank GIC rates are as follows:
- Non-Registered GICs = 0.95% to 1.05%
- RRSP GICs = 0.95% to 1.05%
- RRIF GICs = 0.95% to 1.05%
- TFSA GICs = 0.95% to 1.05%
- RESP GICs = 0.95% to 1.05%
However, on a 1-year TFSA GIC account, you can earn an interest rate of up to 2.05%.
4. Motusbank Mortgages
There are thousands of mortgage lenders out there, but if you are looking for a company that offers one of the best mortgage rates, you should consider Motusbank.
The company has a long history of offering affordable mortgages. Motusbank customers can choose between fixed rates and variable mortgage options. Fixed rate mortgages offer a long-term fixed interest rate and promise the lowest monthly payments.
Variable mortgages have a floating interest rate that changes according to market conditions and give customers the flexibility to choose the right interest rate for them and their financial goals. Motusbank mortgage rates are as follows:
- 6-month convertible fixed mortgage = 4.00%
- 1-year fixed mortgage: 3.35%
- 2-year fixed mortgage: 3.29%
- 3-year fixed mortgage: 3.53%
- 4-year fixed mortgage: 3.62%
- 5-year fixed mortgage: 3.61%
- 5-year variable mortgage: 2.27%
To compare the best mortgage rates in Canada, check out Nesto, an online marketplace for mortgage lenders.
5. Motusbank Personal Loans and Line of Credits
If you’re looking for a low-interest personal loan or line of credit, Motusbank is worth considering. Motusbank’s personal loan interest rates start at 5.15% and its line of credit interest rates start at 3.20%.
With Motusbank’s HELOC, you can get credit worth 65% of the value of your home and also get a personal loan of up to $35,000.
Also, you can choose a term that suits your needs and financial capabilities, between 1 month to 5 years.
6. Motusbank Online Brokerage
Motusbank also offers online trading services through a partnership with Qtrade Direct Investing, one of Canada’s best brokerages.
As a result, Motusbank provides a multitude of trading options for its clients within the brokerage platform.
You can use the service to view real-time quotes, news and market information, look up stock prices & portfolios and perform online trades.
7. Motusbank Robo-Advisor
Motusbank is also a partner of VirtualWealth, which provides investment solutions such as stocks, ETFs, bonds, and mutual funds.
The Robo-advisor makes investing easy for anyone, even if you are completely new to investing.
It will analyze your portfolio and develop the best strategy possible in the market to maximize your returns while minimizing risk.
Related: Best Robo-Advisors in Canada
Is Motusbank Safe and Legit?
The answer is yes. Motusbank is a fully licensed and secure online bank in Canada, and it’s designed to make managing your finances easy.
It offers everything you expect from your traditional bank and more, without any of the hidden fees. Even though Motusbank is new, the security measures are the same as what you would get from any of the other big banks.
It offers fraud protection with a 100% Security Guarantee. In the event of an unauthorized transaction on your account, they’ll fully reimburse any amount you lose. Learn more here.
Plus, Motusbank is a division of Meridian and also a member of Canada Deposit Insurance Corporation which insures your savings for up to $100,000.
With no monthly fees, no overdraft charges, and no minimum balance required, Motusbank is definitely one of the top choices for all your day-to-day banking needs in Canada.
Motusbank Pros and Cons
Motusbank is a digital bank that offers Canadians a simple and efficient alternative to traditional banking.
But like every financial institution, Motusbank has its pros and cons. Here are some of the pros and cons of Motusbank you need to be aware of:
Here’s a quick look at the pros of Motusbank accounts:
Easy Sign-Up Process
Motusbank has no physical branch. This makes the sign-up process easier and more convenient than most banks, which require customers to visit a branch to open an account.
No Banking Fee
With a Motusbank account, your money stays in your pocket where it belongs. Motusbank does not charge any monthly fees.
Therefore, you can use your Motusbank account as much or as little as you want, with no strings attached.
No Minimum Balance Requirement
Motusbank has no minimum balance. Therefore, if you are looking for a bank that doesn’t require minimum balances to keep an account open, you should consider Motusbank.
Although Motusbank is still in its early stages, it offers a wide range of banking solutions. They include savings accounts, chequing accounts, GICs, loans, investments and more.
High-Interest Savings Account
Motusbank has one of the best savings accounts available in Canada. They offer a higher interest rate than the big banks and some of the other Canadian digital banks.
Depending on the account you choose, you can expect to earn between 1.00% and 1.25% interest. The more money you keep in your savings account, the more you will earn.
Motusbank is insured by CDIC. What that means for you is that if anything happens to Motusbank, your money will be safe and sound.
As a member of CDIC, the Canada Deposit Insurance Corporation insures eligible deposits, including cash and cheques, up to $100,000 per depositor in each insured category.
Learn more about how CDIC insurance works and the insured categories here in the linked post.
Interest-Earning Chequing Account
The Motusbank Chequing account is a straightforward chequing account that features an interest-earning component.
The variable rate may vary from time to time, but you can expect them to be competitive.
25 Free cheques
The Motusbank chequing account comes with 25 Free cheques. If you need additional cheques after that, you can order them online through Motusbank’s mobile banking.
Here are some of the drawbacks of Motusbank you should be aware of:
Lack of Credit Card Options
Motusbank offers checking and savings accounts to fit all financial needs. However, Motusbank offers no credit card options which can be a big inconvenience for some, especially if you’re looking to do all your banking with a single bank.
Lack of Physical Branches
Motusbank is a bank with no physical locations. As a result, you can’t access your account or deposit funds into your account in person.
Therefore, if you want to visit a branch in person, this might not be the right bank for you.
Though it has no monthly fees, there are certain transaction charges that you’ll have to pay at Motusbank. For example, it charges $1.25 for interac e-transfers.
Learn more about the Motusbank fees below.
How to Sign-Up for Motusbank
The sign-up process for Motusbank is straightforward. To sign up for Motusbank, follow these steps:
- The first thing to do is visit the Motusbank website, and click on the ‘Sign up’ button.
- From there, you will be brought to a page that lets you choose which of their accounts you want to open. Select the account you wish to open and proceed by clicking on “Open Account Now”
- The next step is providing some personal information about yourself, including name, address, date of birth, email address, Social Insurance Number (SIN), phone number, etc.
- Next, accept terms and conditions, review all account details, and then click “Submit”.
- That’s it! Once you’ve finished signing up for a Motusbank account, you can use it just like any other bank account in Canada.
If you’re planning to open a Motusbank account, you might want to know how much you’d be charged for banking services.
The following are the fees charged by Motusbank for its banking services:
|ATM International transaction fee||$5|
|US ATM transaction fee||$3|
|ATM Interac e-Transfer||$2|
|Cheque image with a paper statement||$1.50|
|Sending through Interac e-Transfer for savings account||$1.25|
|Foreign debit transaction surcharge||2.50%|
|Request Interac e-Transfer||$1.25|
|Canadian Dollar draft||$6.50|
|Bill payment trace||$10|
|Closing account within 90 days of account opening||$25|
Motusbank is a digital bank operating in Canada. It offers its clients services such as savings, mortgages, and chequing accounts
However, with such a wide range of services, there are also several alternatives to Motusbank in the market.
Some of the alternatives that you can consider in place of Motusbank are EQ Bank and Tangerine Bank. Let’s compare Motusbank to the two banks:
Motusbank vs EQ Bank
Both Motusbank and EQ Bank are online-only banks. While EQ Bank was launched in 2016, Motusbank was launched in 2019 so it is relatively newer.
The 2 banks offer services such as savings and GICs, both of which come with higher interest rates than what most other banks offer.
Also, just like Motusbank, EQ Bank doesn’t require a minimum deposit or balance to open an account. It also has no monthly fees for its high-interest savings account service.
However, Motusbank also offers a no-fee chequing account while EQ Bank does not offer this type of account.
EQ Bank, on the other hand, has one of the highest interest rates on Canadian high-interest savings accounts (HISA). It has an interest rate of 1.50% compared to the 1.00% offered by Motusbank.
In addition, EQ Bank has no fees on everyday banking like Interac e-transfers, bill payments, but Motusbank does. So overall, EQ Bank has a better offering than Motusbank at the moment.
Motusbank vs Tangerine Bank
Unlike Motusbank which was launched in 2019, Tangerine Bank has been around since 1997.
It offers its customers various financial products including mortgages, credit cards, loans, GICs and savings accounts.
Like Motusbank and EQ Bank, Tangerine bank doesn’t charge any monthly fees and does not require a minimum deposit or balance to open an account.
However, Tangerine Bank’s interest rate starts at 0.10% as compared to Motusbank’s 1.00% interest rate on savings accounts.
But, if you open a Tangerine chequing and savings account through a promo code, you can earn an interest rate of up to 2.50%.
Motusbank vs Motive Financial
Motive Financial is another popular online bank in Canada with competitive GIC rates, no-fee chequing accounts and high-interest savings account offering.
Like Motusbank, there are some transaction charges with Motive financial accounts. You can also choose between registered and non-registered accounts.
However, Motive Financial has a higher savings account rate plus up to 0.60% on its chequing account.
Learn more about the bank in this Motive Financial Review.
FAQs on Motusbank Review
Motusbank bank is a completely safe online bank. Deposits at motusbank, being a registered financial institution, are insured by the Canadian Deposit Insurance Corporation for up to $100,000.
Since it is a young bank, Motusbank’s products are currently limired. So for now, motusbank clients will have to get credit cards else where.
Motusbank is accessible across all provinces in Canada, with the exception of Quebec, in which it can only take deposits and cannot provide loans.
Yes, Motusbank is for real. Motusbank is backed by Meridian which has been trusted for over 70 years by more than a million members across Ontario and Canada as a whole.
Final Thoughts on Motusbank Review
As you can see in my Motusbank review, the online bank offers competitive financial services and products to Canadians. From high-interest savings accounts to interest-earning chequing accounts, Motusbank helps you save time and money you would have otherwise spent banking with a traditional bank.
Unfortunately, it has some transaction fees. But if you’re just looking for a place to keep your funds, then motusbank is definitely worth checking out.
I hope that you liked reading this Motusbank review and also found it useful. If you have any questions, you can drop a comment in the comments section.
Motusbank is an online-only Canadian bank, specializing in low-cost savings accounts, investing and personal loans.