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Earn 1.05% on your high interest savings account đź’°

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Motusbank has quickly made a name for itself as Canada’s newest digital full-service bank since its launch on April 2, 2019. Owned by Meridian Credit Union, this bank offers a range of services, including checking and savings accounts, mortgages, and more.

Overview of Motusbank

Motusbank stands out as a fully chartered bank, distinguishing itself from credit unions. It is a member of the Canada Deposit Insurance Corporation (CDIC), which provides an added layer of security for customers. The bank offers a no-fee checking account, high-interest savings accounts, Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), Guaranteed Investment Certificates (GICs), mortgages, and other loans.

Pros of Motusbank

Let’s explore some of the standout features that make Motusbank an attractive option for consumers.

No Fee Checking Account

One of the primary advantages of Motusbank is its no-fee checking account. Here are some key features:

  • Zero monthly fees and no minimum balance requirements.
  • Free unlimited e-transfers, unlike many traditional banks that charge fees.
  • 0.5% interest on every dollar in your account.
  • Your first 25 checks are free, along with mobile check deposit.
  • Unlimited debit purchases, bill payments, and withdrawals.
  • Access to over 3,700 ATMs across Canada without additional fees.

This checking account competes favorably with the big banks, which typically charge monthly fees ranging from $14.95 to $15.95 for similar services.

Competitive Savings Account Rates

Motusbank offers attractive interest rates for its savings accounts:

  • 2.25% on high-interest savings accounts, RRSPs, and RRIF accounts.
  • 2.5% on TFSA accounts, which is significantly higher than the rates offered by major banks and even some competitors.

While EQ Bank and Alterna Bank offer slightly higher rates at 2.3%, they don’t provide the same TFSA benefits that Motusbank does. Notably, EQ Bank does not offer TFSAs, which could lead to tax implications on earned interest.

Attractive Mortgage Rates

Motusbank also provides competitive mortgage rates:

  • 3.09% for fixed and variable closed mortgages for terms of one to five years.
  • They claim to be the first bank to offer a fully digital mortgage application process.

For those interested in a Home Equity Line of Credit (HELOC), Motusbank offers some of the best rates available in the market.

No Pressure from Shareholders

Unlike traditional banks that are under constant pressure to deliver returns to shareholders, Motusbank focuses on providing better pricing and services to its customers. This can lead to more favorable terms for consumers.

Cons of Motusbank

While there are many advantages to using Motusbank, there are some drawbacks to consider.

Digital-Only Banking

As a digital bank, Motusbank lacks physical branches. This means:

  • Replacement cards and bank drafts must be mailed, which can take time.
  • Customer service is limited to online, mobile app, telephone, or ATM support.
  • Withdrawing large amounts of cash from ATMs can be challenging.

New Bank with Uncertain Future

Motusbank is relatively new, raising questions about the longevity of its competitive rates:

  • While they currently offer some of the best rates, there is uncertainty about how long they can maintain them.
  • As a digital bank, they may still provide better rates than traditional banks, but the future remains uncertain.

No Credit Card Options

Currently, Motusbank does not offer a credit card. This is a downside for those looking for a no-annual-fee cashback card. In comparison, competitors like Tangerine have successfully launched credit cards after a couple of years.

Limited Free Checks

Motusbank only offers the first 25 checks for free. For those who still use checks, this may be a limitation compared to other banks that offer unlimited checks.

Who Should Consider Motusbank?

Motusbank is a strong contender for anyone looking for a no-fee chequing account with unlimited transactions and free transfers. It’s also an excellent choice for individuals looking to park their short-term savings or emergency funds in a high-interest TFSA account.

Final Thoughts

Overall, Motusbank is an appealing option for those looking for a digital banking experience with minimal fees and competitive rates. While there are some drawbacks, such as the lack of physical branches and credit card options, the benefits may outweigh the negatives for many consumers. If you’re considering switching banks, Motusbank is worth exploring.

HOW TO APPLY

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