Motive Financial is the digital banking arm of Canadian Western Bank (CWB). Initially launched in 2008 under the name Canadian Direct Financial, the platform underwent a rebranding in 2017, emerging as Motive Financial.
Being exclusively an online bank allows Motive Financial to provide a variety of account options with competitive interest rates. If you are comfortable managing your banking online using a laptop, smartphone, or tablet, then Motive Financial could be a suitable option for your banking requirements. Read on for my review of Motive Financial and discover the reasons why.
Account Rates at Motive Financial
- Motive Savings Account – 0.75% for balances up to $5,000,000.01, and 0.50% thereafter
- Motive Savvy Savings Account – 1.25%
- Motive RSP Savings Account – 0.25% up to $2,500, then 1.25%
- Motive TFSA Savings Account – 1.25%
- Motive Chequing Account – 0.60%
- Motive Cha-Ching Chequing Account – 0.25%
- Motive Financial also provides GICs for interest-seeking customers
*The above rates were accurate at the time of writing (July 2020).
One of the highlights of Motive Financial is the Motive Savvy Savings Account, which offers a notable interest rate of 1.25%. This account ranks among the more attractive high interest savings options in Canada. While Motive once led the market, recent rate reductions by the Bank of Canada have influenced Motive to adjust its rates.
Another appealing feature is the opportunity to earn interest on both of Motive Financial’s chequing accounts. Although the interest rates may not be high, this practice is relatively rare compared to conventional banks.
The Motive Cha-Ching Chequing Account offers no monthly fees, unlimited transactions and e-Transfers, in addition to 50 personalized cheques at no cost. This is an excellent offer for a no-fee chequing account!
The Motive Chequing Account, which offers a slightly higher interest rate of 0.60%, shares many features with the Cha-Ching account, but it charges a $1 fee for each e-Transfer.
Motive Financial also provides GICs, but because the rates change frequently, I’ve chosen not to include them here. However, they are available for those who are interested.
Motive Financial in Comparison to Others
The landscape for high interest savings accounts in Canada has shifted notably in recent months. In response to COVID-19, the Bank of Canada has reduced interest rates, forcing all online banks to follow suit. Some banks have cut rates more significantly than others.
Motive Financial continues to offer one of the most competitive interest rates on the market. EQ Bank generally provides rates similar to Motive, while Motusbank offers comparable rates for their TFSA and savings accounts. Although there remain several options, expect returns to be lower given the current low rates.
Conclusion
My impression of Motive Financial is quite favorable. Although online banking is not a new phenomenon in Canada, Motive Financial offers excellent account options for Canadians. Their competitive interest rates on high interest savings accounts are particularly notable, along with some attractive features in their chequing accounts.