Tangerine Bank, previously recognized as ING Direct, has established itself in Canada for over twenty years. Being among the earliest digital banks in the country, it has become one of the most prominent names in the industry. Their long-standing presence gives them valuable insights into customer preferences, although they now face intensifying competition.
In this review of Tangerine Bank, I will explore their account rates, available products, and how they stack up against other digital banking options. While they may not be the first pick for everyone, they certainly have a broad range of offerings.
Account Rates at Tangerine Bank
- Chequing Account – Up to 0.10%
- Savings Account – 2.10% for the first 5 months (0.10% thereafter)
- Tax-Free Savings Account – 2.10% for the first 5 months (0.10% thereafter)
- RSP Savings Account – 2.10% for the first 5 months (0.10% thereafter)
- USD Savings Account – 2.10% for the first 6 months (0.10% thereafter)
- RIF Savings Account – 2.10% for the first 6 months (0.15% thereafter)
Historically, Tangerine offered some of the most competitive interest rates, which is why it has been included in discussions surrounding the best high-interest savings accounts in Canada. However, in recent years, they have started to fall behind.
Their current promotional rate of 2.10% for five months is attractive but requires some effort to capitalize on. Here’s how it works:
- Use promo code ‘EARNMORE’
- Open your first eligible Savings and Chequing Accounts within 30 days
- Receive 2.15% interest on your Savings Account for five months
To qualify for a payroll bonus of up to $150*
- Follow steps 1 to 3
- Ensure your payroll is directly deposited into your Chequing Account within 60 days of account opening
- Maintain payroll direct deposits for at least three consecutive months to earn a $150 bonus after the third month
While the chequing account offers up to 0.10% interest, the fine print reveals that substantial deposits are needed to achieve this rate. You will earn 0.01% on balances between $0 and $49,999.99, 0.05% on amounts from $50,000 to $99,999.99, and 0.10% on deposits over $100,000. Comparatively, traditional banks typically offer no interest on checking accounts, so Tangerine does provide a slight advantage.
If you actively seek out the best interest rates and are willing to switch banks for them, Tangerine can be a viable option.
Like many digital banking institutions, Tangerine does not impose monthly fees and does not require a minimum balance, with free e-transfers included.
What sets Tangerine apart from other digital banks is their diverse selection of accounts, including a Retirement Savings Plan and a US dollar account. They also offer credit card options and investment funds, making Tangerine a solid choice for customers looking for a variety of products from one financial institution.
Tangerine Money-Back Credit Card
Tangerine has an appealing offering in the form of the Tangerine Money-Back Credit Card, known as a leading cash back credit card in Canada. Customers appreciate the ability to choose up to three categories to earn 2% cash back, with all other purchases earning 0.5% cash back.
This customizability is a significant draw since most credit cards have predetermined categories for cash back or points. With Tangerine, you can essentially tailor your card to optimize rewards based on your spending habits.
Additionally, the Tangerine Money-Back Credit Card has a low minimum income requirement, making it accessible for individuals with modest earnings or recent graduates seeking a better credit option. Moreover, it carries no annual fee. For more detailed insights, check out my Tangerine Money-Back Credit Card review.
Tangerine World Mastercard
Tangerine also offers a premium credit card option, the Tangerine World Mastercard, which shares similarities with the Money-Back Credit Card but provides additional perks:
- Collision/loss damage insurance for rental cars – coverage for 31 days
- Mobile device insurance for up to $1,000
- Access to Mastercard Airport Experiences via LoungeKey
- Exclusive offers and experiences through Priceless Cities
To qualify for this card, you must have a personal income of at least $60,000 or a combined household income of $100,000. For further details, refer to my review of the Tangerine World Mastercard.
Tangerine Investment Funds
Another attractive product from Tangerine is its investment funds, which target various indexes and charge a management fee of 1.07%. This fee is considerably lower than the average mutual fund management fee of 2.50%. However, investing through robo-advisors like JustWealth, RBC InvestEase, or Nest Wealth typically incurs fees under 1%.
Tangerine’s investment options are favored for their simplicity. They provide four different portfolios with varying levels of risk, plus a dividend portfolio for seekers of dividend income. All portfolios are automatically rebalanced, requiring minimal involvement from the investors.
Though there are cost-effective ways to invest, Tangerine’s investment funds suit individuals who prefer to consolidate their banking and investment needs with one institution. Please note that to access Tangerine’s investment options, you must first open a Tangerine account.
Comparing Tangerine Bank
While Tangerine Bank has a wide array of products, most customers primarily focus on their interest rates. Their promotional rate of 2.15% is attractive but is limited to a five-month duration.
For many, EQ Bank remains a preferred choice as they typically offer higher interest rates. This bank has transformed the landscape by being one of the pioneers in offering free e-transfers. It’s also worth noting that Tangerine charges $1 for e-transfers if the recipient does not have a Tangerine account, which is less favorable when compared to most digital banks that provide unlimited free e-transfers.
However, what differentiates Tangerine is their diverse product offerings; very few digital banks provide a US dollar account, let alone a credit card or investment funds as Tangerine does.
Concluding Remarks
Overall, my assessment of Tangerine Bank is positive. If you seek an online bank with a comprehensive selection of products and services, Tangerine is certainly a commendable option. On the other hand, for those whose primary concern is obtaining the highest interest rate, alternative banks may be more suitable.