When it comes to online banking, Tangerine is likely the most well-known, and for good reason. It was one of the first online banks to be brought to Canada as an alternative to traditional banking and originally started operating under the company name ING DIRECT. It was eventually acquired by Scotiabank and became Tangerine in 2012.
The company has certainly played a key role in the trend toward online, branchless banking, and it offers a variety of banking and investing options to consumers. The convenience of banking online and the lower fees and competitive rates it is able to offer makes it an attractive option for Canadians.
Let’s go more in-depth with Tangerine to help you determine if you should park your capital or invest through this particular online bank.
What Accounts Does Tangerine Offer?
Tangerine offers many different accounts and products.
Savings Accounts
High-interest rate
No daily banking fees
No minimum balance required
Earn 0.10% interest
New clients can earn 2.15% in your first savings account for 5 months
Automatic Savings Program (ASP) to help you personalize your savings goals
Tax-Free Savings Accounts
Same benefits as a Tangerine Savings Account
Earn 0.10% interest
New clients and earn 2.15% in your first savings account for 5 months
Money earned is tax-free
RSP Savings Accounts
Same benefits as a Tangerine Savings Account
Earn 0.10% interest
New clients and earn 2.15% in your first savings account for 5 months
Tax benefits of an RSP
Grow your RRSP with a competitive interest rate to save for retirement
US Savings Accounts
No fees
No service charges
Earn 0.10% interest
New clients and earn 2.15% in your first savings account for 5 months
Exchange rates: 1.358 to buy, 1.313 to sell
RIF Savings Accounts
Same benefits as a Tangerine Savings Account
Earn 0.15% interest
New clients and earn 2.80% in your first savings account for 5 months
Interest earned is tax-sheltered
Chequing Accounts
No daily chequing fees
Earn up to 0.10% interest earned on every dollar
No fees for daily transactions
Free Interac e-transfers
50 free cheques
Free access to 3,500 ABMs
Overdraft protection
Unlimited debit purchases
Unlimited bill payments
Unlimited pre-authorized payments
Track and categorize your spending
Account alerts through text or email
Deposit cheques from your mobile device
Credit Cards
Earn cash-back rewards on all purchases with a Tangerine Credit Card
Personalized categories
Unlimited money-back monthly
No annual fees
Money-Back Credit Card
No annual fee
Earn rewards (up to 2%)
19.95% interest rate
World Mastercard
Earn travel rewards
On-demand and subscription services
Rental car collision/loss damage insurance
Mobile device insurance
Mastercard airport experiences
GICs
Competitive guaranteed interest rate
Guaranteed Investment – Earn up 1.20%
RSP Guaranteed Investment – Earn up 1.20%
Tax-Free Guaranteed Investment – Earn up 1.20%
US$ Guaranteed Investment – Earn up 0.70%
RIF Guaranteed Investment – Earn up 1.20%
Business Accounts
Competitive interest rate on business savings
Business Savings Account – Earn up to 0.55%
Business US$ Savings Account – Earn up to 0.20%
Business Guaranteed Investment – Earn up to 1.20%
Business US$ Guaranteed Investment – Earn up to 0.70%
Investment Funds
Non-Registered Investment Fund – Flexible, no contribution limits, and withdraw funds whenever you need them.
Tax-Free Investment Fund – Unused contributions are carried forward, withdraw funds anytime, and pay no taxes on gains.
RSP Investment Fund – Pay fewer taxes now, enjoy tax-deferred growth, and carry forward unused contributions each year.
RIF Investment Fund – Provides a minimum retirement income amount each year, can be tax-sheltered, and can be an option to convert your RRSP.
Mortgages
Variable and fixed terms available
Flexible prepayment options
Dedicated account manager
Portable
Home Equity Line of Credit (HELOC)
Borrow against your home equity
2.35% interest rate
Fixed payback plan
24/7 online access
RRSP Loans
3.75% interest rate
Quick approval
No fees
No service charges
Flexible repayment
Take advantage of RRSP tax benefits
Line of Credit
Low-interest rate
No annual fee
Access available funds when you need it
Pay off the balance at your own pace
Pros and Cons of Online Banking at Tangerine
Pros
No daily fees on chequing accounts. Many big banks charge a small monthly fee, especially if your balance is under the minimum. Tangerine does not charge such fees.
Excellent no-fee credit card. The credit cards offered by Tangerine rival even the best cards offered by big banks.
Tons of banking products. Unlike most other online banks, Tangerine’s product offerings are vast and are comparable to what you’d get at a traditional bank.
All your banking needs are met in one place. You can do all your banking in nearly all facets right from your computer or mobile device.
Easy-to-use website. Tangerine’s website layout is user-friendly, making it easy even for computer novices to navigate.
Free cheques. The first 50 cheques you order are free.
Interest earned on checking accounts. Many other banks don’t offer any interest at all on chequing accounts, but Tangerine offers a small amount of at 0.10%.
Physical locations if you want to meet face-to-face. Unlike most other online banks, there is the opportunity to go in-person to a Tangerine “cafe,” of which there are a handful across Canada.
Cons
Interest rate on savings is not the highest.
No personal or car loans are available.
Overview of Accounts
Tangerine Savings Accounts
Feature
Savings Account
Tax-Free Savings Account
RSP Savings Account
US$ Savings Account
RIF Savings Account
Monthly Fee
$0
$0
$0
$0
$0
Minimum Balance
None
None
None
None
None
Interest Rate
0.10%
0.10%
0.10%
0.10%
0.15%
Mobile App Available?
Yes
Yes
Yes
Yes
Yes
Special Features
– New clients and earn 2.15% in your first savings account for 5 months – Automatic Savings Program (ASP)
– New clients and earn 2.15% in your first savings account for 5 months – Automatic Savings Program (ASP)
– New clients and earn 2.15% in your first savings account for 5 months -Automatic Savings Program (ASP)
– New clients and earn 2.15% in your first savings account for 5 months – Automatic Savings Program (ASP)
– New clients and earn 2.15% in your first savings account for 5 months – Automatic Savings Program (ASP)
Tangerine Chequing Accounts
Feature
Details
Daily Fees
$0
Interest Rate
Up to 0.10%
Overdraft Protection Available?
Yes
Debit Purchases
Unlimited
Bill Payments
Unlimited
Pre-Authorized Payments
Unlimited
Interac e-Transfers
Unlimited
Cheques
First 50 free
Tangerine Credit Cards
Feature
Money-Back Credit Card
World MasterCard
Annual Fee
$0
$0
Rewards
Up to 2%
Up to 2%
Interest Rate
19.95%
19.95%
Special Features
– Travel rewards – On-demand and subscription services-Rental car collision/loss damage insurance – Mobile device insurance – Mastercard airport experiences
Tangerine GICs
Feature
Guaranteed Investment
RSP Guaranteed Investment
Tax-Free Guaranteed Investment
US$ Guaranteed Investment
RIF Guaranteed Investment
Interest Rate
1.20%
1.20%
1.20%
0.70%
1.20%
Tangerine Business Accounts
Feature
Business Savings Account
Business US$ Savings Account
Business Guaranteed Investment
Guaranteed Investment
Interest Rate
Up to 0.55%
0.20%
Up to 1.50%
Up to 1.20%
Tangerine Mortgages
Type
Rate
5 Year Variable Mortgage
2.45%
1 Year Fixed Mortgage
3.19%
2 Year Fixed Mortgage
2.69%
3Year Fixed Mortgage
2.69%
4 Year Fixed Mortgage
2.89%
5 Year Fixed Mortgage
2.69%
7 Year Fixed Mortgage
2.99%
10 Year Fixed Mortgage
3.09%
Tangerine HELOC
Feature
Details
Interest Rate
2.35%
Special Perks
– 24/7 online access – Regular fixed payments help you pay off the principal sooner
Tangerine RSP Loans
Feature
Details
Interest Rate
3.75%
Special Perks
– Flexible repayment – Quick approval-No fees or services charges
Tangerine Line of Credit
Feature
Details
Interest Rate
Based on Tangerine’s Prime Rate
Special Perks
– No annual fee – Accessible when needed-Quick apply
What Customer Support Does Tangerine Have Available?
Live support at Tangerine is accessible via the following channels:
By phone: 1-888-826-4374
Online chat: Weekdays 8 am-8 pm (EST), Weekends 9 am-5 pm (EST) for savings and checking inquiries, and Weekdays 8 am-8 pm (EST) for investment inquiries.
In-person at a Tangerine cafe located in Downtown Toronto, North Toronto, Vancouver, Montréal, and Calgary.
By mail:
3389 Steeles Avenue East
Toronto, Ontario, M2H 0A1
How to Open an Account With Tangerine
Signing up with Tangerine and opening an account is easy. Simply choose the account type that you want to open, and click on the “enroll now” button. You’ll be taken to a standard form page that you’ll have to fill out and include information such as the following:
Your Name
SIN
Date of birth
Phone number
Email address
Mailing address
Your occupation
You will have to confirm your identity, which you can do in one of three ways:
By visiting a Canada Post outlet
By visiting a Tangerine Cafe
By sending a cheque
Is It Safe to Bank With Tangerine?
Yes, banking with Tangerine is safe. Your funds and investments are secure. Plus, Tangerine has to comply with privacy standards when it comes to online banking, just like all other major financial institutions in Canada and goes the extra step by ensuring secure online PIN reset, encryption, and Secure Socket Layer (SSL) protection.
The online bank also uses DoubleSafe, a technology that requires you to choose a photo and phrase that you will have to type in every time you log in. This adds an extra layer of identification to ensure that imposters don’t try to hack your account. Lastly, Tangerine’s credit cards have SecureChip technology that is less vulnerable to theft compared to magnetic strips.
Who is Best Suited For Banking Online With Tangerine?
Tangerine may be best suited for those who like the idea of taking their banking completely online, even though there are a couple of physical locations in Canada. It’s also great for people who appreciate the low fees (and sometimes no fees) associated with their banking products and like the variety of products that the online bank has to offer.
If you’re technologically savvy and are comfortable with managing your banking and financial products on your computer or mobile device, then you might find Tangerine the perfect financial partner for all your banking needs.