Tangerine Bank Review 2021

  • Zero monthly or annual fees on most products
  • Get 0.10% interest on a Tangerine savings account
  • Access 3,500 ATMs across Canada

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If you’re looking for a bank with a high-interest savings account, this Tangerine Bank review may be helpful.

Those looking to improve their interest rate and avoid significant banking fees have flocked to digital banks. Business Insider estimates an 8.9% increase in the growth of digital bank account holders in Canada by 2024.

Tangerine Bank is a leading digital bank offering no banking fees, no minimum balance requirements, and great interest rates for savings and investments. They are an award-winning bank and pride themselves on their impeccable customer service. The Tangerine website and mobile app are easy to use. And opening an account will take you less than 10 minutes.

This broad Tangerine Bank review delves into the pros and cons of banking with Tangerine Bank and examines their products and services.

What Makes Tangerine Bank a Good Option?

Tangerine caters to a variety of client’s saving, spending, investing, and borrowing needs. There’s the option to open a savings account that holds a higher interest rate than most banks. And the opportunity to set up a no-fee chequing account if you choose.

You can also apply for a credit card with no annual fees. Or you can start an investment fund to save for your future and retirement.

Tangerine is like no other bank I’ve used before. Unlike mainstream banks that generally charge high fees, Tangerine allows your money to grow with zero monthly fees. In addition, you don’t need to maintain a minimum balance to keep your account open.

There are clearly some benefits to being a Tangerine client. Signing up for one of their products can get you free Interac e-Transfers, a free cheque book, and free ABM withdrawals. If you’re not yet a client, you could benefit from their promotional offers when signing up.

I’ve also heard good things about their customer service. Tangerine clients have 24/7 access to customer service reps. There’s even a Tangerine café in Toronto for in-person engagements if needed.

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The Pros & Cons of Tangerine Bank

Be sure to check out the next part of this Tangerine Bank review – the pros and cons list. Here we let you know how our experience went as well as what we’ve been told from other users.

ProsCons
+ Canadian Big 5 bank-owned
+ Convenience
+ No fees
+ Competitive rates
– No branches
– Limited free cheques
– Low non-promo rates

The Pros of Tangerine

Let’s start with the positive on this Tangerine Bank review. We liked quite a few features and aspects of our experience.

Owned by a Canadian Big Five Bank

Knowing that an online bank is affiliated with a reliable and successful financial institution can be reassuring. Tangerine Bank is an online division of Scotiabank, which was voted one of Canada’s most trusted banks.

Convenience While Banking

With online banks like Tangerine Bank, you can make transactions from the comfort of your home. Access your account in mere minutes via any device and handle payments without much hassle.

Low or No Fees

One of the things I’m most impressed about is that Tangerine offers carry zero monthly or annual fees on most products. This way, you can make the most of the money you’ve deposited and focus on the growth of your investment.

Competitive Savings Account Interest Rates

While traditional banks generally offer interest rates as low as 0.01% on their savings accounts, Tangerine Bank provides a competitive 0.10%. This is quite a significant difference and something to take into consideration.

Saving You Time

Banking with a digital financial institution saves you the time it takes to queue up at traditional brick-and-mortar branches. You can handle most of your banking from home or on the go, making it a super convenient service.

Various Ways to Bank

Clients can bank on any device via the Tangerine mobile banking app or by logging into their account on Tangerine’s website. You can visit the Tangerine café to open accounts or apply for a Tangerine credit card if you’re in Toronto.

Simple Cheque Depositing Process

Using the Cheque-in feature made available to Tangerine clients, you can deposit a cheque without having to stand in queues or visit a bank branch. All you need to do is take a picture of the cheque with your smartphone or tablet, then enter some details. The money will then be deposited as per the cheque.

Free Access to ABMs

Tangerine clients can use any of the 3,500 Scotiabank ABMs (Automated Banking Machines) across Canada for cash withdrawals and more.

The Cons of Tangerine

Below are the cons that we found when testing out Tangerine Bank’s services for this Tangerine Bank review.

No Physical Branches

Being unable to do your banking at a physical branch is one of the most significant disadvantages of online banks. This would be a considerable drawback for those that prefer having face-to-face interactions with bank personnel.

While they have a brick-and-mortar café in Toronto, it still lacks the functionality of physical branches.

Low Non-promotional Rates

The promotional interest rates offered for Tangerine’s savings and investment accounts can be relatively high. However, when the discount period comes to an end, the interest rates decrease significantly.

Technological Barriers

If you have a poor internet connection, you may experience interruptions when banking online. You might also struggle to get in touch with their personnel online as a result. In addition to this, if you travel to remote areas, you may not have access to your accounts.

Limited Free Cheques

Tangerine chequing accounts come with the benefit of a free cheque book, including 50 cheques. Unlike other online banks, when you’ve used those 50 cheques, you’ll have to pay for more cheques.

Products Offered by Tangerine Bank

Next in our Tangerine Bank review, we’ll check out the products that you can get through Tangerine Bank.

Tangerine ServicesFeatures
Savings AccountsRSP, TFSA, CAD savings, USD savings offered
Chequing AccountNo fees and free transfers
Credit CardsWorld Mastercard or Money Back Credit Card
Guaranteed Investment Certificates (GICs)Earn guaranteed interest for your term of choice
Investment FundsInvest in a low-fee portfolio for as little as $25
MortgagesSecure a competitive rate for 120 days
Line of CreditZero fees and a fast online application

Savings Accounts

Saving with Tangerine is all about making the most of your hard-earned money without having to pay to save. You can choose from five savings accounts, including standard, tax-free, Retirement Savings Plan (RSP), Retirement Income Fund (RIF) and US dollar.

Their Savings Accounts come with a minimum of 0.10% interest rate. Except for the RIF Savings account that offers an interest rate of 0.15%. First-time clients could benefit from a promotional interest rate of 2% when signing up.

There are no minimum balances required on any savings accounts, and no daily fees are charged either.

Business owners get to share in the bank’s higher interest rates as well. In addition, you can open a savings account that has no monthly fee and no minimum balance.

These are the four types of business savings accounts on offer:

  • Standard: Offering a minimum interest rate of 0.25%.
  • US Dollar: This provides a 0.20% interest rate.
  • Guaranteed Investment Certificates (GICs): Affording clients a minimum rate of 0.20% in interest.
  • US Dollar GICs: With a minimum of 0.10% in the interest offered.

Chequing Account

Tangerine Bank offers a no-fee daily chequing account. This account comes with overdraft protection ($5 per use), free ABM access and free Interace-Transfer transactions.

Businesses can benefit from the payroll direct deposits feature available. And they can schedule preauthorized payments worry-free.

Chequing account holders can earn up to 0.10% interest in the following ranges:

  • $0.00 to $49,999.99 – 0.01%
  • $50,000.00 to $99,999.99 – 0.05%
  • $100,000 or more – 0.10%

First-time clients may also benefit from a promotional rate of 2% when opening an account.

Credit Cards

There are two types of credit cards you can sign up for with Tangerine Bank. They’re the Money-Back Credit Card and the World Mastercard. Both credit cards carry zero annual fees. But, you’ll incur an interest rate of 19.95% on your purchases.

Holders of the Money-Back Credit Card can receive rewards of up to 2% on everyday expenses. These include groceries, restaurant meals, gas, public transport, parking, and recurring bill payments.

To obtain a Money-Back Credit Card, you’ll need to earn$12,000+ in annual income and be the age of majority in your province. To qualify, you must also be a permanent Canadian resident with no bankruptcy declarations in the past 7 years.

Like the Money-Back Credit Card, the World Mastercard offers cardholders rewards of up to 2% and unlimited money-back. What makes this credit card notable are add-ons such as mobile phone insurance, rental car collision/loss damage insurance, and travel rewards.

The primary World Mastercard requirements are the same as those for the Money-Back Credit Card. However, the income requirements are stricter. Applicants should have either $60,000+ in annual income or $100,000+ in household income per annum. Alternatively, you’ll need a total balance of $250,000+ in your Tangerine Savings Account(s) and/or Investment Fund Account(s).

Guaranteed Investment Certificates (GICs)

Set money aside for your future with Tangerine Bank’s Guaranteed Investment Certificates. You can benefit from a fixed interest rate for your term of choice. There are five GICs available: Standard, Tax-free, RSP, RIF, and US Dollar.

The Standard, Tax-free, RSP, and RIF GICs can earn up to 1.50% interest depending on the chosen term. The shortest term of 90 days earns clients 0.20% in interest, while the longest term of five years earns 1.50%.

As for the US Dollar GICs, account holders can earn interest of up to 0.70%. The shortest term of 90 days has the lowest interest rate of 0.10% and the maximum of 0.70% for five years.

Investment Funds

Tangerine Bank offers clients the opportunity to open Non-registered, Tax-free, RSP, and RIF investment funds starting with as little as $25.

Clients can also build a low-fee portfolio. You can choose from two types of portfolios, either the core portfolio or the global Exchange Traded Funds (ETF) portfolio. Both portfolios are ideal for low to medium-risk investors and consist of a combination of bonds and stocks.

Their portfolios are aligned with the markets while keeping fees low. They’re reviewed quarterly and rebalanced as needed. These portfolios are diversified and straightforward to access.

You can set up automatic contributions to stay on track and add to your investment fund regularly. In addition, the application process can be conducted entirely online.

Mortgage

Tangerine Bank caters to homebuyers as well, in addition to the product offerings we have covered. You can secure a rate guaranteed for 120 days and receive guidance through the application process.

Making lump-sum prepayments of up to 25% of your original mortgage amount can also be done online. And you can move with your mortgage to a new property without incurring any penalties.

Line of Credit

Borrow with low variable interest rates with Tangerine Bank’s Line of Credit. The benefits include zero annual fees and a fast online application process with easy access to your funds.

Alternatively, borrow against the equity you’ve accumulated in your home and receive a low-interest rate of 2.35%.

Tangerine Bank Costs & Fees

High banking fees are synonymous with large Canadian banks. Hundreds of dollars are spent every month to cover the cost of holding money with a major bank in Canada. However, Tangerine Bank boasts low to no fees on all accounts and transactions.

Although some products carry no monthly or annual fees, there’ll still be charged for specific services and transactions. We explore the various costs below based on their applicable product offering.

Chequing Account Fees

  • ABM withdrawals (not Scotiabank ABMs—Canada): $1.50
  • ABM withdrawals (not part of Global ATM Alliance—US/worldwide): $3
  • Inactivity (1 year): $10
  • Bank cheque: $10
  • Returns: $7.50
  • Non-sufficient funds: $45

Non-registered Savings Accounts Fees

  • Non-sufficient funds: $45

Registered Savings Accounts Fees

  • Retirement Savings Plan (RSPs), Tax-Free Savings Accounts (TFSAs) and Retirement Income Funds (RIFs) transfer to another financial institution fee: $50

Are Tangerine Bank’s Products Safe?

Tangerine Bank is an associate of the Canada Deposit Insurance Corporation (CDIC). The CDIC covers eligible deposits up to $100 000 per insured category if a member institution defaults.

The current deposits eligible for CDIC coverage are:

  • Tangerine Savings Accounts
  • Tangerine Guaranteed Investment Certificates (GICs)
  • Tangerine Business Savings Accounts
  • Tangerine Tax-Free Savings Account (TFSA)
  • Tangerine Retirement Savings Plan (RSP) Accounts

One of Canada’s Big Five banks, Scotiabank, owns Tangerine Bank. Therefore most individuals are at ease when banking with them.

In terms of safety, they’re bound by the same regulations as all Canadian banks. In addition, they have the same capital, limits, and monitoring authority.

Their premises are in Vancouver, Calgary, Toronto, and Montreal, and they have a local board of directors and local employees.

Tangerine Bank Promotions & Discounts

Tangerine Bank has three promotions for savings accounts, chequing accounts, credit cards, and mortgages when writing this Tangerine Bank review. These offers can be found on the bank’s website, along with applicable discount codes you can use when opening an account.

Tangerine Bank Customer Service

Tangerine Bank prides itself on having superior customer service. They’re recognized as one of the top-rated mid-sized banks in Canada in terms of customer satisfaction.

Customers can contact the bank’s personnel with their queries 24/7 via phone. Or you can use the chatbot feature and comprehensive FAQs on their website for more information. There’s also the option of visiting the Tangerine café in Toronto for in-person assistance.

They stipulate on their contact page that the estimated call wait time is 10 minutes. However, I’ve never had to wait more than 4 to 5 minutes for a representative to answer my call.

Their customer service representatives are clearly trained well and know their products inside out. I’ve always experienced a friendly and eager-to-please reception when chatting to them. And I would expect they have a high customer satisfaction rate.

The Tangerine Bank Website & App

Upon first visiting the Tangerine Bank website, visitors are met by a simple, colourful, and uncluttered interface. The website is easy to navigate and has decent load times, depending on your internet speed.

You can explore the Tangerine Bank website in either English or French. Fees and interest rates for each product are clearly displayed, speaking to the bank’s level of transparency with all clients.

You can find what you’re looking for without hassle as core products and menu items are clearly displayed. They categorized information by topic, and there are visible call-to-action buttons if you’re interested in creating an account.

The chatbot integration can be found at the bottom of your screen and is helpful if you have any questions. In general, I often struggle to find the information I need when it comes to using chatbots. However, Tangerine’s website chatbot is one of the smartest I’ve come across. The information it holds is widespread, and you’re bound to find what you’re looking for there.

They also have a helpful blog with tips and advice on saving, spending, investing, and borrowing. These are definitely worth a read.

Their mobile app is just as user-friendly and makes for super convenient banking on the go. You can even secure your account with biometrics on the app. This includes fingerprint mapping and facial recognition.

How to Get Started with Tangerine Bank

The signup process is relatively simple, and it shouldn’t take more than ten minutes to complete.

You have the choice of setting up your account either on your desktop computer or via the Tangerine Bank mobile app. In both instances, you’ll be required to provide your Social Insurance Number (SIN) and your employment information for tax reporting purposes.

Steps to Set Up Your Profile on a Desktop Computer

After clicking on the “Sign Me Up” button at the top of the screen, you’ll be asked to enter your email address and create a banking PIN.

You’ll also be given the option to enter an Orange Key or Promo Code if you have one.

Once done, you’ll be required to add your personal information, including your physical address. The final step is to choose the type of account you want to open and follow the on-screen instructions.

Steps to Set Up Your Profile on the Tangerine Mobile App

Signing up through the Tangerine app is just as easy. After downloading the app, you’ll be prompted to sign up.

Next, you’ll need to use your camera to scan your valid Canadian driver’s license and take a selfie to verify your identity.

You’ll then be asked to input your personal information and provide a digital signature.

Whether you sign up on your PC or via the app, you should get an account approval notification within 5 to 7 days.

Alternatives to Tangerine Bank

You may prefer to entrust your money to a bank with brick-and-mortar branches for in-person interaction. Or maybe you’re just looking for a better interest rate on your savings and investment accounts. If that’s the case, you may want to explore your options at the following alternative banks.

EQ Bank

A branch of renowned Equitable Bank, EQ Bank is an online-only bank that has been around since 2016.

What sets them apart is that they offer savings and investment accounts that will earn you up to 1.25% in interest. Their High-interest Savings Plus Account is the starting point through which you can open additional investment accounts.

These include Guaranteed Investment Certificates (GICs), a Tax-free Savings Account (TFSA), a Retirement Savings Plan (RSP), and a US Dollar Account. They also offer a mortgage approval service, along with expert broker advice.

EQ Bank is all about intelligent and effortless savings and investments with the Canada Deposit Insurance Corporation (CDIC) protecting deposits up to $100,000.

It’s important to note that EQ Bank isn’t a traditional bank. They don’t offer a cheque account, credit cards, or business banking. But they do offer what is possibly the highest interest rate you’ll find at a Canadian bank.

If you’re focused on high-interest savings and making your money work for you, EQ Bank would be a more suitable option for you.

CIBC

CIBC has been in the business of banking since 1961 and offers almost every product you would expect from a traditional bank.

They offer an online banking interface and a convenient mobile app. In addition, CIBC has over 1000 physical branches scattered across Canada. Many of which are open late, as well as on Saturday and Sunday.

Their products include savings and cheque accounts, with no account fees. However, you’ll be charged for transactions. Savings accounts offer up to 0,05% in interest, and some require a $25 minimum balance.

CIBC’s Visa credit card options include a travel, cash-back, and no-fee card, to name a few. They also offer an Aeroplan credit card which will earn you Aeroplan flight points as you use it.

Fixed and variable rate mortgages are also available through CIBC, along with mortgage brokers and experts to guide you through the process.

Their investment options include a TFSA, registered RSP, GICs, and investment options for students and persons with disabilities.

CIBC also facilitates business banking, lending, and credit cards.

The benefit of banking with CIBC over Tangerine would be that you can do your banking face-to-face with a representative at a branch. However, you’ll earn considerably less interest on your savings account.

Tangerine Bank Review Conclusion

Tangerine Bank stands out from many of the digital banks in Canada. Not only because of their competitive rates but also because of their superior customer support.

This full-service bank caters to personal and business needs, from mortgages to business saving accounts.

In addition, their savings and spending products carry no monthly fees, and account holders aren’t required to have a minimum balance. First-time clients can benefit from great entry rates that earn them much higher interest on their savings and chequing accounts.

If you’re paying high fees at your current bank and you think it is time for a change, Tangerine Bank is one to consider.

Top Tangerine Products

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Tangerine offers a wide range of banking services to help Canadians live better.5 minutes

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Savings Accounts

Save money your way with savings accounts, TFSA, RSP, and USD savings.

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Chequing Account

Get a no-fee chequing account with free transfers and interest payments.

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Credit Card

Get tons of money-back rewards with Tangerine credit cards.

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FAQs about Tangerine

What is Tangerine?

Tangerine is an online-based company unlike a typical bank. It is a simple tool for making it easier for people to save and understand everyday banking.

Why should I apply for Tangerine?

Tangerine provide different services for saving, investing and borrowing that are super easy to manage. You can grow your funds with no fees and you don’t need a minimum balance to maintain your account.

How do I sign up for Tangerine?

It’s simple, you can apply on your digital device or through the Tangerine app. Make sure you have your Social Insurance Number (SIN) and employment details for report purposes

How much does Tangerine cost?

Tangerine Bank has lower fees compared to other banks, they also offer no fees on accounts and transactions. Check their website for the more detailed list of fees.

Is it safe to use Tangerine?

Tangerine has the same regulations similar to banks, which means that they are monitored regularly. It’s definitely safe to use Tangerine as your personal information are highly protected.

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Tangerine Bank Review 2021

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August 21, 2021
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