Are you looking to sign up with an online bank or just wondering what Wyth, a new bank, is all about, this Wyth Financial review is for you.
Whether you’re just starting or want to switch from a traditional bank to another financial institution, an online bank could be your best alternative.
Besides low fees, online banks also come with competitive interest rates on banking and investment products than traditional banks. The challenge is that there are many online banks out there with competitive offerings across different banking aspects.
Though relatively new, Wyth Financial is one of the best banks you will encounter when searching for the best online banks in Canada.
This Wyth Financial review covers everything you need to know about the bank including how it compares with other online banks in Canada.
What is Wyth Financial?
Wyth Financial is an online bank and the new trade name of Concentra Bank. It is the 13th largest bank in Canada by assets that supports 90% of the credit unions in Canada.
With over 60+ years of experience and $35 billion in assets under management, Wyth Financial offers a unique experience to individuals, Fintech companies, corporate entities and credit unions in Canada.
The bank offers a moderate range of financial products ranging from high-interest savings account (HISA) to mortgages and GICs that are available in registered accounts.
As one of Canada’s best-managed banks, Wyth Financial offers some of the best interest rates you can find in Canada. But the question is, is Wyth Financial the best online bank for you?
Let’s find out.
Is Wyth Financial Legit?
Wyth Financial, formerly Concentra Bank, is a legit online bank and a federally regulated Schedule I bank. The bank has been operating in Canada since the 1950s and now has over $35 billion in assets under management.
Wyth offers legit financial products ranging from HISA, mortgages and GIC which feature some of the competitive rates in Canada. In addition, deposits on Wyth Financial are covered by the CDIC up to $100,000 per insured category.
Security-wise, Wyth Financial protects your personal information with advanced encryption and other behind-the-scenes features common with other large Schedule I banks.
Wyth Financial Products
As of the time of writing this Wyth Financial review, the bank offers the following financial products.
1. High-Interest Savings Account (HISA)
- Interest: 2.25%
- Monthly fee: $0
- Minimum balance: None
- CDIC protection: Yes
The Wyth Financial high-interest savings account is one of the best HISAs in Canada due to its 2.25% interest rate with no monthly fee and minimum balance.
The 2.25% high interest is calculated daily but paid monthly and applies to up to $150,000 deposits. In addition, you can deposit money into Wyth savings account for free through an external account, Interac e-Transfer or mobile cheque deposit.
That said, the following are some of the current fees associated with the Wyth Financial HISA.
| Service | Fees |
|---|---|
| Withdrawal via Interac e-Transfers | $1.50 per transaction (following 1 free month Interac e-Transfer withdrawal request) |
| Request to stop an e-Transfer | $5 |
| NSF (non-sufficient funds) fee | $50 |
| Bank draft | $50 |
| Inactivity fee | $0 |
| Personal information request | $25 |
Related: Best High-Interest Savings Accounts in Canada
2. GICs
Wyth Financial offers some of the best GIC terms in Canada with a 1,000 minimum investment up to a maximum of $150,00. Like the Wyth HISA, your GICs deposits are covered by the CDIC and the interest is compounded annually and paid at maturity.
When the GIC matures, you can withdraw both your principal and interest at once or renew your investment using the principal.
While Wyth GICs are non-redeemable, you can redeem them before maturity in special circumstances. However, there may be interest and transaction penalties when making a pre-maturity withdrawal.
The following are the current Wyth Financial non-redeemable GIC rates at the time of writing:
| GIC Term | GIC Rate |
|---|---|
| One year | 4.30% |
| Eighteen months | 4.25% |
| Two years | 4.55% |
| Three years | 4.60% |
| Four years | 4.65% |
| Five years | 5.19% |
You can also invest in the Wyth GIC through different registered accounts such as TFSA, RRSP, RRIF, RDSP and RESP.
Below are some of the associated fees for Wyth GICs and registered accounts.
| Service | Fees |
|---|---|
| Non-sufficient funds (NSF) fee | $50 |
| Inactivity fee | $0 |
| Transfer-out of a registered plan | $50 |
| Transactional research | $150/hour |
| Request for duplicate tax slips | $25 |
| RRSP/RRIF variable rate deposit cash withdrawals | $50 |
| RESP variable rate deposits non-educational withdrawal | $50 |
Related: Best GIC Rates in Canada
3. Mortgages
Whether you’re looking to buy a new home or transfer your mortgage, Wyth Financial got you covered. The bank has different kinds of mortgages suitable for individuals looking for:
- First-time home
- Second homes
- Rental property
- Conventional mortgage
Interestingly, Wyth has a rate hold that secures you a residential mortgage rate for up to 120 days for buying a new home and 90 days for refinancing an existing home.
Below are the current Wyth Financial special mortgage rates for insured mortgages.
| Mortgage Term | Mortgage Rate |
|---|---|
| One year | 4.89% |
| Two years | 4.89% |
| Three years | 5.04% |
| Five years | 4.19% |
Compared to other mortgage rates out there, it’s obvious that Wyth has some of the competitive mortgage rates in Canada.
Here are some of the fees associated with Wyth Financial mortgages you should be aware of:
| Services | Fees |
|---|---|
| Appraisal fee | $200 to $500 |
| Enrollment fee | $100 |
| Skipping and missing payments | $90 per payment |
| Repayment history | $0 online $25 for hardcopy |
| Release of covenant fee | $350 |
| Information statement | $0 online $25 for hardcopy |
| Records research fee | $75 |
| Cheque processing fee | $25 |
| Early renewals fee | $75 |
To see how Wyth mortgage rates compare to other financial institutions in Canada, check Nesto, an online marketplace for the best mortgage rates in Canada.
Related: Tangerine Mortgage Rates
Pros and Cons of Wyth Financial
Like other online banks, Wyth has its pros and cons you need to consider when determining if it’s the perfect option for you.
Let’s take a look at some of the major pros and cons of Wyth Financial.
Pros
- Competitive interest: Wyth has some of the best interest rates in Canada on HISA, mortgages and GIC accounts
- No minimum balance: You can start earning the 2.25% high interest on your Wyth savings account with as low as $1 because there’s no minimum balance requirement.
- Low fees: With no monthly fees, deposit fees, inactivity fees, and other fees, you can make the most of your money on Wyth Financial.
- Deposit protection: Bank without worrying about the safety of your funds as your deposits are covered by the CDIC up to $100,000 per insured category.
Cons
- Limited products: If you’re looking for an online bank with a chequing account, credit card, and other financial products beyond HISA, mortgages and GICs, you have to look elsewhere.
- Limited balance: The maximum balance on Wyth’s Financial savings and GIC account is $150,000. This may not be suitable for some high-net-worth investors in Canada.
- No promotions: Unlike other online banks out there, Wyth doesn’t offer any special offers for new users.
How to Open a Wyth Financial Account
Opening a Wyth Financial account takes only a few minutes. However, you must meet the following requirements to open a Wyth Financial account:
- Be a resident of any Canadian province/territory (except Québec)
- Reach the age of majority in your province/territory
- Have a valid email address and phone number
- Have a Social Insurance Number and a provincial driver’s licence
Once you meet the above requirements, you can sign up online or through the Wyth Financial mobile app available on Google Playstore and App Store.
Whether online or through a mobile app, the whole application process can be summarized into the following 5 simple steps:
- Create your login credentials
- Provide some personal details
- Choose from one of the available Wyth accounts
- Fund the account
- Start earning competitive returns on your funds
Update: Wyth Financial products have been merged with EQ Bank following the acquisition of Wyth Financial by Equitable Bank. Hence, Wyth Financial is no longer accepting new clients.
How Wyth Financial Compares
Canadians have the opportunity of choosing from different online banks. So if Wyth Financial is not the perfect online bank for your needs, choose from any of the following alternatives.
| Key Feature | Wyth Financial | EQ Bank | AcceleRate Financial | Neo Financial |
|---|---|---|---|---|
| Products | HISA, mortgages, GICs, TFSA, RRSP, RRIF, RDSP, and RESP | HISA, US Dollar account, GICs, TFSA and RSP accounts | HISA, GICs, TFSA, RRSP | HISA and credit cards |
| HISA interest rate | 2.25% | 2.50% | 3.40% | 2.25% |
| Mobile cheque deposit | Yes | Yes | N/A | N/A |
| Non-sufficient funds (NSF) | $50 | None | $50 | None |
| Deposit protection | CDIC | CDIC | DGCM | CDIC |
Notably, the above table excludes online banks that offer high promotional rates such as Tangerine (with 6.00% HISA interest rate) and Simplii Financial HISA with a 6% promo rate.
Let’s take a look at how each of the above banks compares with Wyth Financial.
Wyth Financial vs EQ Bank
EQ Bank is another top alternative to Wyth Financial that is popular for its high-interest Savings Plus Account and competitive GIC rates.
EQ Bank is owned by Equitable Bank and has been in the Canadian online banking industry since 2016. With Equitable Bank’s agreement to acquire Concentra Bank in 2022, both Wyth Financial and EQ Bank may be owned by Equitable Bank.
That said, the 2.50% interest on savings and competitive interest on USD, GICs, and registered savings accounts make EQ Bank an all-round top option for Canadians looking for an online bank.
Like Wyth, EQ Bank savings plus account support mobile cheque deposit with no minimum balance, monthly fee and deposit fee.
Learn more:
Wyth Financial vs AcceleRate Financial
AcceleRate Financial is also an online-only bank that offers a competitive 3.40% interest on savings accounts.
Like Wyth, Accelerate Financial doesn’t also have monthly fees and deposit fees.
While your deposits are covered by the CDIC up to $100,000 per insured deposit on Wyth, you will get 100% deposit protection on Accelerate by the DGCM.
As an online bank branch of Crosstown Civic Credit Union, AcceleRate requires a $5 membership fee to access its products and services.
With more limited financial products than Wyth, Wyth is a better online bank than AccelerRate. But AcceleRate could be an option if you’re looking for a credit union-based online bank in Canada.
Learn more: Accelerate Financial Review
Wyth Financial vs Neo Financial
Neo Financial is a popular option when it comes to the best fintech offerings in Canada because of its competitive offerings.
While Neo has a relatively low HISA interest of 2.25%, it offers a very competitive credit card that comes with up to 5% cashback on purchases.
If you’re strictly looking for an online bank for savings and spending, you can’t make the wrong choice with Neo Financial.
But due to Neo Financial’s limited products, you may find Wyth Financial more suitable because it supports mortgages and GICs, unlike Neo.
Learn more: Neo Financial Review
Some FAQs on Wyth Financial Review
Yes, Wyth is a bank that operates entirely online. It functions as your regular bank and your deposits are protected up to $100,000 per insured category by the CDIC.
Wyth Bank is currently a brand name of Concentra. However, on Feb 07, 2022, Equitable Bank announced its acquisition plan of Concentra Bank. When this is completed, Equitable Bank will become the new owner of Wyth Financial bank.
Wyth is safe as per the security standards of Schedule I banks in Canada.
Besides deposit protection by the CDIC, your information on Wyth is protected with advanced encryption and real-time alerts against Internet fraudsters.
Wyth might be your best online bank if you’re strictly looking for a bank with competitive interest on savings, GICs and mortgages. But if you’re looking for an online bank with robust products such as chequing accounts and credit cards, you need to consider Wyth alternatives.
Verdict on Wyth Financial Review
Now you know why Wyth Financial is one of the best online banks in Canada. Overall , my Wyth review is positive. From high-interest on a savings account to competitive GIC and mortgage rates, you can’t make the wrong choice with Wyth.
And with its impending acquisition by Equitable Bank, things can only get better for the Wyth and its clients. One easy way to determine if Wyth is the perfect option for you is by assessing your banking needs versus Wyth Financial products.
In addition, it’s essential you evaluate how Wyth limits, fees, and interest rates compare with other online banks before making a final decision. So is Wyth the perfect online bank for you? Kindly let me know in the comment below.
If you like this Wyth Financial review, do well to check out our existing posts for more information about the best banking products and services in Canada.
