This Tangerine Savings account review covers everything you need to know about the account.
Online-only banks have grown in popularity over the years. As a result, more and more Canadians are turning to these banking option because of their lower cost and innovative banking solutions.
Tangerine is one of Canada’s leading online-only banks that offer a complete suite of banking products including high-interest savings accounts, chequing account, mortgage, credit cards and more.
In this Tangerine savings account review, I will explore the features, benefits and downsides of the account and give a final verdict on whether or not it’s worth it.
An Overview of Tangerine
Tangerine is one of Canada’s most popular digital banks with millions of satisfied customers.
It was founded in 1997 as ING Direct Canada. In November 2012 the bank was renamed Tangerine after Scotiabank announced that it intended to acquire it by purchasing ING Group’s operations in Canada.
Despite its long history, Tangerine is one of the more affordable banks and is great for those looking for consumer banking products.
With features such as no transaction fees for debit purchases and no minimum balance requirement, Tangerine has proven to be a favourite among Canadians since its launch.
Types of Tangerine Savings Accounts
There are several savings accounts you can open with Tangerine, each with its own unique characteristics.
Below, we’ll go over the available Tangerine savings accounts offerings:
Tangerine Savings Account
The Tangerine Savings Account is the most basic of Tangerine’s Savings Account offerings that can help you reach your short- and long-term savings goals.
The Tangerine Savings Account is a non-registered, no-fee, no-minimum balance account. With the account, you can earn an interest rate of 1.00% on your savings. This is, unfortunately, one of the lowest savings rate at online banks in Canada.
However, if you sign-up as a new user, you can earn an interest rate of 5.00% and an additional $400 bonus as a welcome package.
In addition, you get free unlimited Interac e-transfers and you can set-up automated savings to the account.
Below are some of the benefits of opening a Tangerine Savings Account:
- No monthly or annual fees
- Competitive promotional interest rate
- No minimum balances
- Automatic savings
- Welcome bonus
Tangerine Tax-Free Savings Account
This account has similar features to the standard Tangerine Savings Account, but the money deposited in this account can grow tax-free.
Any interest earned on a Tangerine Tax-Free Savings Account is entirely tax-free. For instance, if you earn $1,000 in interest on the non-registered Tangerine savings account, you’ll get a T5 tax slip and add it to your total income at tax time.
The same interest will be tax-free in the Tangerine Tax-free savings account. That means your savings will grow faster than they would in an ordinary savings account.
Below are some of the benefits of opening a Tangerine Tax-Free Savings Account:
- No monthly or annual fees
- Automatic savings
- Tax-free savings
- Competitive interest rate
- Welcome bonus
Tangerine RSP Savings Account
This account lets you save for retirement with tax-deferred growth. Like the TFSA, it has similar features to the standard Tangerine savings account
Just like a Tangerine regular savings account, this account earns a standard 1.00% interest, and there are no fees for deposits or withdrawals.
This account also has a lower minimum deposit requirement of $100, so if you have already set up your regular savings account, you can deposit any extra money that you want to save outside of your tax-free savings account (TFSA).
Below are some of the benefits of opening a Tangerine RSP Savings Account:
- No monthly or annual fees
- Automatic savings
- Competitive introductory interest rate
- Tax-deferred growth
- Welcome bonus
Tangerine RIF Savings Account
Your retirement savings are a critical part of your financial future. It’s important to preserve that nest egg for as long as possible, and the Tangerine RIF Savings Account provides you with a tax-free way to do just that.
The account has no minimum balance requirement. Also, Tangerine has one of the best RIF interest rates among the major banks. If you open a Tangerine RIF Savings Account today, you will earn an interest rate of 1.05%.
Below are some of the benefits of opening a Tangerine RIF Savings Account:
- No minimum balance requirement
- No monthly or annual fees
- Competitive promo rates
- Welcome bonus
Tangerine US$ Savings Account
The Tangerine US$ Savings Account is a great option for Canadians who want to save money in U.S. dollars.
You can use the savings account to save up for a purchase you plan on making in the US. You can also use it to save up for a vacation abroad.
In addition to earning a competitive interest rate on your U.S. funds, you can transfer funds into and out of the account at no cost from your Tangerine savings account or chequing account.
Similar to other savings accounts, you will earn a welcome interest rate of 5.00% for five months, and Tangerine will give you a welcome bonus of $400. After the welcome bonus period ends, your Tangerine UD$ Savings Account will earn a 0.10% interest rate per annum.
Below are some of the benefits of opening a Tangerine US$ Savings Account:
- Low & competitive exchange rates
- No monthly or annual fees
- Competitive interest rate
- No minimum balances
Tangerine Children’s Savings Account
Are you looking for a savings account to help your children learn good savings habits, grow their funds, and earn increased interest?
It’s never too early to start teaching your children how to manage money. The Tangerine Children’s Savings Account is a great way to get your child started with saving.
Plus, there’s no minimum balance required, no monthly fees, no chequing account necessary, and no limits on transactions. And the account comes with one of the best interest rates you’ll find on kids’ accounts with a savings rate of 1.10%.
Below are some of the benefits of opening a Tangerine Children’s Savings Account:
- No monthly or annual fees:
- decent interest rate
- No minimum balances
Related: Tangerine RESP: Is there One?
Is My Money Safe in Tangerine?
Tangerine is a safe and secure financial institution that has been operating in Canada for years.
As a CDIC member, your deposits are protected up to $100,000 per insured category. This means you can have total peace of mind with any of the Tangerine accounts knowing that your funds are safe.
Tangerine Savings Account Pros and Cons
Just as there are both pros and cons to using a traditional brick-and-mortar bank, the same is true with digital banks like Tangerine. Let’s take a look at some of the pros and cons of Tangerine:
Pros of Tangerine Savings Account
- No Minimum Balance Requirement: If you’re looking for a no minimum balance requirement savings account, consider opening a Tangerine savings account. You can open a savings account with Tangerine for as low as $1 and earn interest based on the daily closing balance in your account.
- No Monthly or Annual Fees: The Tangerine Savings Account is completely free savings account with no maintenance fees.
- Automatic Savings: With Tangerine’s Automatic Savings Program, you can save without thinking about it. It puts your money to work for you by automatically moving money to your savings account.
- Welcome Bonus: Tangerine has a unique offer for new account holders, in the form of a bonus interest rate for the first 5 months. You get to earn 5.00% for the first 5 months and up to $400 in cash bonus.
- Low Exchange Rates: You can exchange funds between your CAD and USD account at very competitive exchange rates
Cons of Tangerine Savings Account
- No Physical Location: Tangerine has no physical branch locations. The only way to reach them is by phone, email or live chat, which may take a while before you get a response.
- Non-Sufficient Funds (NSF) Fee: If you accidentally overdraw your account, an NSF fee of $45 will apply.
How to Open a Tangerine Savings Account
Opening a Tangerine savings account is quick and easy, and you can open your account within a few minutes.
To open a Tangerine savings account, go to the Tangerine registration page and click on Sign Me Up. You will be required to provide some personal information such as:
- Your name
- Date of birth
- Residential Address
- Contact information
- Social insurance number
- A government valid photo ID
- Employment details and others
After you provide the required information, your Tangerine account is created and you can proceed with funding the account.
As part of the account opening process, Tangerine will conduct a soft credit check to verify your identity. If this fails, you may be required to visit the closest Canada Post location for verification.
Who should open a Tangerine Savings Account?
While the Tangerine Savings account has a lot of positives, it is not for everyone.
If you’re looking to earn the best interest on your funds, you’ll have to look beyond the Tangerine savings account offerings. At 1.00%, it has one of the lowest savings rates among the online banks in Canada.
You can get up to 15x the interest at other online banks like EQ Bank.
However, if you want an online bank with a full-suite of banking products to meet all your financial needs, then the Tangerine accounts may be for you.
The introductory savings rate is also a plus, making Tangerine suitable for those looking to save for short term goals.
Tangerine Promotions
As a new Tangerine client, you can enjoy a number of promotions depending on the account you open.
With the deposit accounts, you’ll get the promotional savings rate of 5.00% for the first 5 months. In addition, you can receive a cash bonus of $400 if you meet the requirements.
And if you decide to apply for any of the Tangerine credit cards, you’ll earn extra cash back on your purchases. Learn more about the Tangerine credit cards in the posts below:
Tangerine Savings Account Alternatives
If the Tangerine savings account does not meet your needs, there are several other online banks offering very competitive rates in Canada.
Tangerine Savings vs EQ Bank Savings Plus
The EQ Bank Savings Plus account is arguably the best savings account offering in Canada.
Not only do you get a non-promotional savings rate of 2.50% that is way higher than what Tangerine offers, the account also allows bill payments, paycheque deposit and unlimited free Interac e-transfers.
That said, Tangerine’s promotional offer makes it a great choice for short term savings if you’re a new client. You may however be forced to move your funds after the promo offer because of its paltry interest.
Overall, if you’re looking for a place to keep your deposits for long, EQ Bank offers a better savings account product than Tangerine.
Related: EQ Bank Savings Plus Review
Tangerine Savings vs Simplii HISA
Simplii Financial is another online bank division of a big 5 bank in Canada. Like Tangerine, it offers a full suite of products and services that includes HISA, chequing, credit card, mortgage, investments and more.
Its standard savings rate is also quite low at only 0.40% to 2.00%, so it is also only suitable for short term savings. It also offers a sign-up bonus of $400 to new clients and a promotional rate of 5.25%.
Related:
FAQs on Tangerine Savings Account Review
Yes, you can withdraw money from your Tangerine savings account by transferring the funds to your chequing account and withdrawing the funds via ATM, Interac e-transfer and other withdrawal methods.
The Tangerine savings account does not have a monthly fee and it’s free to perform most everyday transactions. It also doesn’t have a minimum balance requirement. However, the standard savings rate of 1.00% is low compared to the rates of other online banks.
Yes, when you open a Tangerine savings account, you will be issued a debit card. Your card entitles you to free limitless debit transactions as well as free access to more than 3,500 Scotiabank ATMs in Canada.
The regular interest rate on Tangerine savings accounts is 1.00%. However, if you open your first qualifying savings account, you will receive 5.00% interest for the first five months.
Tangerine savings account holders earn interest daily, which is paid out every month.
Final Thoughts on Tangerine Savings Account Review
The Tangerine savings account is an online-only solution with a lot of perks. It has no minimum balance and it offers unlimited withdrawals without charges.
This makes it one of the best savings accounts and worth considering if you’re looking for a cost-effective way to save your money.
I hope you found this Tangerine savings account review useful if you have been looking for a bank that allows you to maximize your savings potential. However, if you are looking for other savings accounts with a higher interest rate, read our best high-interest savings account in Canada article to learn more.
If you have any questions or concerns, feel free to drop a comment in the comments section.
Tangerine savings account Review
Summary
The Tangerine savings account is an online-only solution with a lot of perks. It has no minimum balance and it offers unlimited withdrawals without charges.
