Simplii vs Tangerine: The Ultimate Showdown

For many Canadians, banking means using one of the big five banks in Canada. These banks allow Canadians to access everyday financial services like personal and commercial banking, mortgages, and credit cards. But as services become increasingly digital and online, there are online challengers that are looking to disrupt the Canadian banking sector. This ultimate showdown article will discuss two of them: Simplii vs Tangerine as we determine which is the better banking choice.?

Simplii Financial Overview

Simplii Financial was founded in 2017 and is a wholly-owned subsidiary of the Canadian Imperial Bank of Commerce. It was established following the end of the partnership between CIBC and the consumer banking division of Loblaws, better known as President’s Choice Financial. Anyone who was with PC Financial before 2017 was moved to Simplii’s banking platform.?As of 2023, Simplii Financial had more than 2 million registered customers.?

Tangerine Overview

The Tangerine Bank was introduced to Canadians in 1997 as the ING Bank of Canada doing operations as ING Direct. At the time, it was a revolutionary platform in Canada and it was ING’s first pilot for a direct-to-customer banking service without any branches. In November 2012, ING Direct was acquired by Scotiabank in a deal that was worth $3.1 billion. In 2014, Scotiabank officially changed its name to Tangerine. Like Simplii, Tangerine has over 2 million registered customers as of 2023.?

Simplii vs Tangerine: Chequing Accounts

Simplii Chequing Accounts

As the name of the company suggests, chequing accounts with Simplii is a very simple concept. For Canadians, Simplii offers only one type: the Simplii No Fee Chequing Account. With this account, you get free daily banking, no monthly or annual fees, and access to over 3,400 CIBC ATMs across Canada.?

Other benefits of a Simplii No Fee Chequing Account include the use of a Debit Mastercard, mobile wallet payments, getting foreign cash delivered to your door, and sending Visa digital gift cards to anyone in Canada. If you sign up for Simplii’s Global Money Transfer service you can send free international money transfers. Finally, there is an incentive to spread the word as for every friend you sign up with Simplii, you receive $125 cash!

Tangerine Chequing Accounts

Tangerine also offers a no-fee chequing account with free daily transactions through an online and mobile platform. Just as with Simplii, Tangerine offers free access to its parent company’s ATMs. Scotiabank has over 3,500 in Canada as well as 44,000 globally through the Scotiabank Global ATM Alliance. This is definitely one benefit of Scotiabank’s expansive international footprint.?

Tangerine’s chequing account also pays a very modest interest rate although it will pay out a rate of 0.10% for balances of $100,000 or more. This chequing account is no frills and is also meant to be used in tandem with Tangerine’s High-Interest Savings Account and investment products.?

The Winner: Tangerine

This chequing account comparison was a close one as both chequing accounts offer no fees and free daily banking. Tangerine has a slight edge due to the number of global Scotiabank ATMs you have access to and a lower minimum balance to earn the highest interest-rate.?

Simplii vs Tangerine: Savings Accounts

Simplii Savings Accounts

As with its chequing accounts, Simplii offers customers no monthly fees, no minimum account balance, and to earn interest on every dollar in their account. The Simplii High-Interest Savings Account works perfectly alongside a Simplii No Fee Chequing Account due to its much higher interest-rate payouts. The maximum interest rate in the chequing account was 0.10% on a balance of $1 million or more. In Simplii’s High-Interest Savings Account, a balance of $1 million or more will earn you a solid 5.50%. On the flip side, anything balance less than $1 million will only net you a maximum of 1.00%.?

The Simplii USD Savings Account also has no monthly fees, no minimum account balance, and a generous 3.05% interest rate that is calculated daily and paid out monthly. You can even deposit USD cheques to Simplii and transfer money between accounts using competitive foreign exchange rates. Finally, Simplii does offer a Tax-Free Savings Account or TFSA which earns 0.40% interest if you hold your balance in cash and not in investments.?

Tangerine Savings Accounts

Tangerine’s savings account also offers no fees and no minimum balance, as well as a 0.70% interest rate on all balances. The online platform is perfect for transferring funds back and forth between Tangerine’s chequing and savings accounts.?

The site also offers a US Dollar Savings Account although compared to Simplii, the 0.10% interest rate isn’t too enticing. If you are a Tangerine user and want to earn more on your US dollars, consider one of their US Dollars Guaranteed Investment Certificates or GICs, which currently payout an interest rate of up to 5.20%.?

Tangerine also offers a TFSA for Canadian users which also has a 0.70% interest rate. This is higher than Simplii’s 0.40% interest rate. Note that Tangerine is not a brokerage so you cannot own individual investments like stocks or ETFs in your Tangerine TFSA.?

The Winner: Simplii Financial

This savings account comparison wasn’t really that close as Simplii offers higher interest-rates for both the High-Interest Savings Account and the US Dollars Savings Account. You do need to have a balance of $1 million to earn the highest interest rate of 5.50%, but the 3.05% interest rate in the USD savings account is much better than Tangerine’s.?

Simplii vs Tangerine: Credit Cards

Simplii Credit Cards

The simple theme continues for Simplii when it comes to its credit card lineup. Simplii only offers one credit card for users in Canada: the Simplii Financial Cash Back Visa Card. This credit card has no annual fees and only requires a minimum household income of $15,000 annually.?

Tangerine Credit Cards

Tangerine offers Canadians two different credit cards: the Tangeiner World Mastercard and the Tangerine Money-Back Credit Card. Both of these options have no annual fees, unlimited money-back rewards, and the ability to earn up to 2% cash back each month.?

The Winner: Tangerine

This credit card comparison can be summed up in one phrase: two cards are better than one! The flexibility of Tangerine’s reward system is nice, especially for those who wouldn’t benefit from earning on gas or restaurants. The travel rewards from the Tangerine World Mastercard are great for avid travellers and the card adds true legitimacy to this popular Canadian online bank.?

This article is the shortened version of an article originally published on Hardbacon.ca by Baggio Ma under the title "Simplii vs Tangerine: The Ultimate Showdown".