MotusBank Review: No-Fee Checking Account, High Interest Rate Online Bank in Canada

MotusBank

In today’s busy world, where people don’t have a lot of time even for personal work, technology appears to be the answer to this view, MotusBank a recent Canadian bank emerged as an internet banking platform that provides answers to the hassle of the early banking system. This emergence is reviewed as to give customers the proper choice for engagement.

People see internet banking as an innovation and evolution of the banking sector and other financial institution. In today’s competitive world, providing a service through the internet is not as important as the quality and distinctive of that service. The question now is whether or not MotusBank would suffice as the preferable customer’s choice of internet banking. This would be determined by reviewing this new Canadian online-only bank, as we take cognizance of its offering, unique difference, and of cause their flaws.

What you should know about MotusBank

Motusbank is an online-only bank in Canada, owned by Meridian Credit Union. It was incorporated on the 11th of February, 2019 and launched on the 2nd of April, 2019 offering their new client high-interest savings accounts, with their chequing account coming with no fee and also promising an interest. MotusBank is a digital bank with no physical branches, they are a bank committed to offering services that are specifically tailored and personalized to customers, mostly the millennials.

To celebrate its official launch, MotusBank with the brand tagline “when banking feels good” introduced a new mortgage offer with a fantastic competitive low rate of 2.82% on all one to five-year fixed rate mortgages. In addition to this time-limited mortgage offer, it also offers the same amazing rate for a five-year variable closed mortgage and 3.75% for a Home Equity Line of Credit (HELOC). MotusBank offers a mind-blowing interest earns on their chequing account with their regular savings accounts coming with high-interest rate. The new Meridian just launched internet bank MotusBank will compete directly with the already established online-only banks like EQ Bank, Tangerine, and Simplii Financial.

MotusBank Services

MotusBank which is the new player in the internet banking sector in Canada offers all-around financial service which the traditional banks also offer. Below are the most notable services MotusBank are offering.

MotusBank Savings Account: MotusBank Savings Account is in four types; high-interest savings account, TFSA savings account, RRIF savings account, RRSP savings account. These savings accounts come with the following features.

  • Zero daily banking fee charge
  • Their savings accounts come with no monthly charge and no minimum balance required
  • Unlimited debit purchases and withdrawals
  • High-interest rate
  • Fee access to over 3,700 Exchange Network ATMs across Canada

High-Interest savings account: Grow your savings and get a high-interest rate regardless of balance. Its rate is 2.25%.

TFSA is a truly clever way to save for just anything. Withdrawals are tax-free and saved money in TFSA are not taxed, Its rate is 2.50%.

RRSP is an outstanding way to save for retirement and it comes relatively with tax advantages. Contributions are tax-deductible, and anything you earn is tax-sheltered until you withdraw the money. Its rate is 2.25%.

RRIF savings account has a rate of 2.25%.

No-Fee Checking Account: MotusBank No-fee checking account comes with an earnings and has the following features;

  • Zero daily banking fee charge
  • Free, unlimited Interac e-Transfers
  • Earnings of 0.5% on every dollar in your account
  • Fee access to over 3,700 Exchange Network ATMs across Canada
  • Unlimited debit purchases and withdrawals
  • Mobile cheque deposits with Deposit Anywhere

Mortgage: Motusbank Mortgages is an exceptional feature of the bank as it gives room for customers to flexibly choose a preferable plan. Another uniqueness is the Mortgage Protection where one can protect their home in case they miss payments due to things such as critical illness, disability and just the overall hardships of life. The mortgage comes with three different choices of rate which are:

Fixed Rate MortgagesInterest RateVariable Rate MortgagesInterest Rate
6-month convertible fixed mortgage 4.00% 5-year variable mortgage (open) 4.95%
1-year fixed mortgage (open) 6.00% 5-year variable mortgage 2.90%
1-year fixed mortgage 2.82% 5-year variable mortgage (high ratio) 2.90%
2-year fixed mortgage 2.82%
3-year fixed mortgage 2.82%
4-year fixed mortgage 2.82%
5-year fixed mortgage 2.82%
5-year fixed mortgage (high ratio) 2.82%

MotusBank GIC’s: Their GICs are listed below.

Long term non-redeemable GICs (RRSP)

  • 1-year GIC: 2.80%
  • 2-year GIC: 3.10%
  • 18 months GIC: 3.10%
  • 3-year GIC: 3.10%
  • 4-year GIC: 3.10%
  • 5-year GIC: 3.25%

Long term non-redeemable GICs (TFSA)

  • 1-year GIC: 2.80%
  • 2-year GIC: 3.10%
  • 18 months GIC: 3.10%
  • 3-year GIC: 3.10%
  • 4-year GIC: 3.10%
  • 5-year GIC: 3.25%

Long term non-redeemable GICs

  • 1-year fixed rate GIC: 2.70%
  • 2-year fixed rate GIC: 3.00%
  • 18 months GIC: 3.00%
  • 3-year fixed rate GIC: 3.00%
  • 4-year fixed rate GIC: 3.00%
  • 5-year fixed rate GIC: 3.15%

Long term non-redeemable GICs (RRIF)

  • 1-year GIC: 2.80%
  • 2-year GIC: 3.10%
  • 18 months GIC: 3.10%
  • 3-year GIC: 3.10%
  • 4-year GIC: 3.10%
  • 5-year GIC: 3.25%

3-year Escalator RRSP GIC

  • Year 1: 2.75%
  • Year 2: 3.20%
  • Year 3: 3.50%
  • Yield: 3.15%

5-year Escalator RRSP GIC

  • Year 1: 2.75%
  • Year 2: 3.15%
  • Year 3: 3.20%
  • Year 4: 3.40%
  • Year 5: 4.00%
  • Yield: 3.30%

3-year Escalator TFSA GIC

  • Year 1: 2.75%
  • Year 2: 3.15%
  • Year 3: 3.20%
  • Yield: 3.15%

5-year Escalator TFSA GIC

  • Year 1: 2.75%
  • Year 2: 3.15%
  • Year 3: 3.20%
  • Year 4: 3.40%
  • Year 5: 4.00%
  • Yield: 3.30%

3-year Escalator RRIF GIC

  • Year 1: 2.75%
  • Year 2: 3.20%
  • Year 3: 3.50%
  • Yield: 3.15%

5-year Escalator RRIF GIC

  • Year 1: 2.75%
  • Year 2: 3.15%
  • Year 3: 3.20%
  • Year 4: 3.40%
  • Year 5: 4.00%
  • Yield: 3.30%

MotusBank Personal Loan: Are you looking for a personal loan? Motus online bank can lend you up to $35,000 that would be paid on a monthly installment. Their rates are below

  • Personal loan: Starting at 5.15% interest.
  • A personal line of credit: Starting as low as 5.65% interest
  • Secured home equity line of credit: Starting as low as 5.65% interest

Why Choose MotusBank

Aside from being an online bank which as all the benefits and convenience that comes with it, MotusBank offers all forms of financial services the big banks offer and also comes with distinctive incentives tailored to compel and engage new and prospective customers. Since it’s an online-only bank, they offer 24/7 customers service to attend to their customer’s complaints and issues.

One thing you already know is MotusBank comes with comfort as you don’t have to leave your comfort zone to perform banking operation as all you need for your banking activities can be accessed online via their official website or mobile app. Their innovative mobile app allows conducting transaction easy, including cheque deposits. The app is available on Android and iOS (iPhones).

If you’re a fan no-deposit banking, then you will definitely love this about MotusBank as they offer no-fee banking on their savings and chequing accounts. MotusBank with their offers and incentives makes you save more while spending less. Although there are certain transactions which they charge for but compared to other financial institution the rate is quite low. Either way, using a MotusBank will make you save on your spending.

We cannot talk about MotusBank and not talk of the amazing interest rates in their savings, chequing, and mortgages that give cutting-edge advantages ahead of their competitors. They make sure that they underscore the complexity of the digital space and ensured to a large extent they curb numerous of the negative aspects of online banking.

MotusBank Account Rate

• MotusBank Savings account – 2.25%

• Tax-free savings account 2.50%

• RRSP savings account – 2.25%

• No-fee chequing account – .50%

• Secured home equity line of credit – 3.75%

• Personal line of credit – From 5.65%

How It Compares to Other Competitors

MotusBank pride itself as one of the banks offering high-interest savings account even though in the sector, can still be comparable to some of their key players in the online banking sector in Canada. Its savings account besides being a no-fee account also has a very juicy interest rate of 2.25% compared to what you will get with Simplii Financial at 1.15% and 1.15% of Tangerine Bank. With of the goodies that come with MotusBank savings account some of their competitors seems to offer what’s a bit higher than the 2.25% that MotusBank is offering. EQ Bank also an online bank in Canada offers a 2.30% interest rate which edges what MotusBank offers by just a touch.

Many people will love the fact that you will get a debit card with your account so you can quickly access your cash if you need it, an option which their competitors also offers. No fee will charge on your withdrawal using your debit card as long as you use one of the over 3,700 EXCHANGE Network ATMs across Canada. However, international ATM withdrawals will cost you $5, plus a 2.5% exchange fee.

With competitors like Tangerine and Simplii Financial offers credit card, MotusBank which is just entering the market does not offer a credit card yet.

Below is how MotusBank compares with but Simplii Financial and Tangerine Bank.

MotusBankSimplii FinancialTangerine Bank
Savings Account Interest Rate 2.25% 1.15% 1.15%
Interest on Cheqing Account 0.50%
Banking Fee $0 $0 $0
Credit Card No Yes Yes
Minimum balance $0 $0 $0

Final Verdict

Internet banking is providing a new banking experience for Canadian on their everyday bank activities, offering low fee banking and high return on their services. The opinion that the new digitalized banks will have a negative hit at the Big 5 is still up for argument but, with a new entry and definitely more competition we can’t but hope that there will be a deep cut in their monthly banking fees to keep up with what the new digitalized banks are offering.

MotusBank as carefully set itself aside among the growing internet banks by offering financial services that meet the needs of everyday Canadians.

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