Personal Finance

A Comparison of Popular Subsidiary Banks, CU's, FI's

  • Last Updated:
  • Apr 24th, 2019 9:49 am
[OP]
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May 8, 2009
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A Comparison of Popular Subsidiary Banks, CU's, FI's

Going to compare subsidiary FI's here. Only the subsidiaries.

Pre-Amble:
  1. please don't ask about an FI here if they're not a subsidiary, and no reason to bicker about any FI's here. We're comparing subbies!
  2. these FI's are often seen as "off the beaten path" (limited to no branch access), so no need to compare them to brick and mortar
  3. Much of these options are unavailable in QC. To further discuss this, do so on its respective thread.
  4. Many FI's could be arguably considered "subsidiaries" of some sort of parent co. We're focusing on FI's that operate as subbies under parent co's who also offer similar products. This can be summarized by acquisitions/merges (Simplii/Tang/MBNA), out of province & low cost HISA/TFSA/GIC e-banking (Manitoban & Ontarian CU's) and the likes. No need to get into other popular FI's that put themselves in an envelope to claim to be a subby

No Fee Chequing
  • Alterna Bank
  • Envision Financial (BC only)
  • Motive
  • Motusbank
  • Simplii - unlimited free chequebooks
  • Tangerine

Note that Simplii takes the cake for the unlimited chequebooks and e-Transfers, but Motusbank is a runner up with one free chequebook per year and unlimited no-fee e-transfers. Alterna Bank has no fee "coverdraft" where chequing overdraft automatically pulls from savings at no fee.


HISA/TFSA Great Rates
  • Simplii/Tang part of HISA lottery, TFSA nothing special (though Tang has intro offer)
  • Alterna Bank. Highest daily rate for an FI based in Eastern Canada without playing musical chairs
  • Motive. Currently HISA leader in daily rates
  • Motusbank
  • Achieva (CU sub). No HISA lottery, and won't have the most aggressive rate, but for a small balance, the $1 free per month is hard to beat
  • Hubert (CU sub). Great rates, easy account linking.
  • IdealSavings (CU sub). Aggressive rates with three free withdrawals per month. TFSA has a $5 withdrawal fee, so only good for TFSA for bigger balances. Combining SCU with Motive would also defeat the purpose of IdealSavings unless they outranks others after another BoC prime re-rate
  • Outlook/AcceleRate/Implicity. More MB CU subs.

Honourable mention of Zag Bank, a no-QC e-banking subby of Desjardins that's been shut down. Amusingly, only known competitor to run a migration offer was Achieva.

GIC's / Term Deposits
All of the above plus Omnia Direct (WFCU sub) that does GIC's only (can be TFSA and/or USD)


Credit Cards
  • Envision Financial (BC only) - Collabria MC's including cashback, travel, USD, low interest
  • MBNA
  • Simplii
  • Tangerine

Do note that these credit card credit limits cannot be merged with CL's of CC's issued by parent co's. Aside MBNA, expect most of these to be a "one card offering". Credit union subbies won't offer CC's, since CU parent co's already go through Collabria/CUETS just to offer CC's.


LOC's
  • Alterna Bank. HELOC only
  • Envision Financial (BC only)
  • Motusbank
  • Simplii
  • Tangerine uLOC grandfathered, might come back

USD
  • Envision Financial (BC only)
  • Hubert
  • Omnia Direct. Term only.
  • Tangerine

Business
  • Alterna Bank
  • Envision Financial (BC only)
  • Tangerine

Honourable Mentions
These are not necessarily subsidiaries or they don't operate under a parent co that offers similar (overlapping) products. Just frequently discussed FI's that are part of the competition.

EQ Bank
Subsidiary of Equitable Bank. Offers (in CAD only) HISA/GIC's, no TFSA's


Musical Chairs Combo
Note that some of these are subbies
  • Simplii (no-QC) winter & Tang
  • DUCA (ON only) spring and fall
  • Meridian
  • CTFS (rarely offers deals)
  • Fallback on EQ, Motive, IdealSavings or SCU, or even Achieva
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Thread Summary
16 replies
[OP]
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May 8, 2009
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Am I missing anything @dekvitaly @minimalist ?
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Jr. Member
May 25, 2016
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Great thread!

Maybe add Steinbach Credit Union too? I think they are pretty competitive.

Another less commonly mentioned category is good RRSP rate/account from some of these?
Newbie
Aug 4, 2018
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There is also EQ Bank's zero monthly fee HISA that has unlimited free bill payments, transfers and transactions with five free Interac e-Transfers per month, convenient micro deposit external account linking and (like many others in your list except Motive) cheque photo deposit app.

If "simply" comparing high interest savings accounts (i.e., HISA to HISA) then Alterna Bank eSavings is currently one of the only "standalone" QC-friendly, zero monthly fee HISA out there that has "free, unlimited bill payments, transfers and debits" including unlimited "free Interac" e-Transfers out and unlimited "free Exchange ABM" debits plus unlimited (need DP?) "Me-to-Me" transfer links to external accounts from different financial institutions" (with 3 account type exclusions: USD, business/community and multiple signature external accounts).
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Feb 1, 2006
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Ontario
U08052018 wrote: If "simply" comparing high interest savings accounts (i.e., HISA to HISA) then Alterna Bank eSavings is currently one of the only "standalone" QC-friendly, zero monthly fee HISA out there that has "free, unlimited bill payments, transfers and debits" including unlimited "free Interac" e-Transfers out and unlimited "free Exchange ABM" debits plus unlimited (need DP?) "Me-to-Me" transfer links to external accounts from different financial institutions" (with 3 account type exclusions: USD, business/community and multiple signature external accounts).
Yeah, Alterna eSavings really rocks. AFAIK it's the only free unlimited debit, can be joint, debit card accessible, zero monthly fee HISA in Canada paying 2%+. To steal a line from MBNA WE MC, "It's an all in one wonder!".
Cards:HSBC WE MC 1.5%/3% travel 0 FX MC acceptance 31 day med AF $49
CTC WE MC 3% grocery, 3.54% CTC, RA, billpay
Bank: Alterna (0.9%, no fees)
Broker: IB (Foreign stocks/low comm/low margin rates)
Sr. Member
Jun 13, 2018
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biglaity wrote: Great thread!

Maybe add Steinbach Credit Union too? I think they are pretty competitive.

Another less commonly mentioned category is good RRSP rate/account from some of these?
Not a subsidiary.
[OP]
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biglaity wrote: Great thread!

Maybe add Steinbach Credit Union too? I think they are pretty competitive.

Another less commonly mentioned category is good RRSP rate/account from some of these?
For RRSP's, aren't the rates similar to HISA/TFSA? If you have a suggested "list" for good RRSP's, feel free to post, and I'll update OP.
ritzcrv wrote:
Not a subsidiary.
This. Same with EQ.
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Newbie
Aug 4, 2018
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From their website
"Canada's Challenger Bank™
Equitable Bank manages over $26 billion in assets and is a wholly owned subsidiary of Equitable Group. It was founded in 1970 as The Equitable Trust Company and has become Canada’s ninth largest Schedule I bank. Equitable Bank offers a diverse suite of residential lending, commercial lending, and savings solutions, including high-interest savings products and GICs. At Equitable, we have no doubt that financial services are changing. Consumers increasingly prefer to interact remotely through digital channels and are less likely to visit brick and mortar locations. That’s why we launched EQ Bank in 2016. Its approach to simple and convenient banking makes it a strong contender in the industry. We believe there’s an opportunity for something different, to provide better service and a better deal for our customers through digital banking."
"EQ Bank is brought to you by Equitable Bank, a bank with over four decades of experience in the Canadian market."

Please define what would qualify as "subsidiary"?
Last edited by titaniumtux on Jan 5th, 2019 3:42 pm, edited 1 time in total.
Reason: Link text too long
[OP]
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U08052018 wrote: From their website



"EQ Bank is brought to you by Equitable Bank, a bank with over four decades of experience in the Canadian market."

Please define what would qualify as "subsidiary"?
And TD CT (Toronto-Dominion Canada Trust) is a subsidiary of Toronto-Dominion Bank Financial Group.

We could argue that a plethora of mainstream FI's are subsidiaries in one shape or form. In fact, probably most companies and businesses operate with an umbrella over a basket of subsidiaries.

Does Equitable Bank operate an investment brokerage or some sort of financial institution above its consumer brand EQ Bank?

I'll update OP with a note on that, but the purpose of this thread is to compare FI's who clearly operate as subbies, generally for the sake of market differentiation.
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TORONTO
titaniumtux wrote: And TD CT (Toronto-Dominion Canada Trust) is a subsidiary of Toronto-Dominion Bank Financial Group.
Nope.

There is no legal entity called TD Canada Trust. TD Canada Trust is a brand name used by these legal entities:

The Toronto-Dominion Bank
TD Mortgage Corporation
TD Pacific Mortgage Corporation
The Canada Trust Company

The last 3 are subsidiaries of The Toronto-Dominion Bank.

http://www.tdcanadatrust.com/products-s ... /index.jsp
titaniumtux wrote: We could argue that a plethora of mainstream FI's are subsidiaries in one shape or form.
Nope. The big Schedule I banks are not subsidiaries; they trade on stock exchanges. As large schedule I banks, they have restrictions on share ownership to ensure that they are widely held (no controlling shareholder) and majority owned by Canadians.
titaniumtux wrote: In fact, probably most companies and businesses operate with an umbrella over a basket of subsidiaries.
Yes. But the big Schedule I banks are not themselves subsidiaries, they are the top of the umbrella with many subsidiaries.
[OP]
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@M8Rxmjsik ok...

For the thread's sake, I defined the scope of relevant subbies to this thread (now in OP). Generally those via acquisition/merge, different market segment/out of province type subsidiaries.

Is there any reason we should include EQ Bank? Equitable Bank owns EQ Bank, but Equitable Bank doesn't seem to operate consumer deposit banking services outside of EQ Bank, so I don't see how it's relevant to this thread. Please correct me if I'm wrong.
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[OP]
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Added Motusbank.
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DUCA in honourable mention section - also has free chequing account
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Bull Dog wrote: DUCA in honourable mention section - also has free chequing account
Already in there under musical chairs.
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U08052018 wrote:

If "simply" comparing high interest savings accounts (i.e., HISA to HISA) then Alterna Bank eSavings is currently one of the only "standalone" QC-friendly, zero monthly fee HISA out there that has "free, unlimited bill payments, transfers and debits" including unlimited "free Interac" e-Transfers out and unlimited "free Exchange ABM" debits plus unlimited (need DP?) "Me-to-Me" transfer links to external accounts from different financial institutions" (with 3 account type exclusions: USD, business/community and multiple signature external accounts).
The wording of Alterna Bank's exclusion for Me2Me transfer links is "Accounts that require multiple signatures for authorizing transactions" . I take this to mean you CAN link to an external JOINT account, but not one that requires both signatures. If either signature is acceptable for that joint account you should be good to go with the link up.
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Great thread @titaniumtux

Could we know which of the No Fee Chequing can connect with PayTM and pay our CCs/bills with no fees?
[OP]
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spena wrote: Great thread @titaniumtux

Could we know which of the No Fee Chequing can connect with PayTM and pay our CCs/bills with no fees?
Thank you, @spena
  1. any of these accounts can be linked to PayTM for bill pay, EXCEPT Motusbank HISA (PAD pulls from HISA blocked by Meridian). For chequing accounts, that means ANY will do the trick
  2. my personal recommendations: small hassle but Motive with overdraft, bring balance back to $0 manually from HISA (maintain highest interest rate on HISA UNTIL spent out of chq account), Alterna Bank for no-fee coverdraft (no hassle & automated, but slightly lower interest rate than Motive), Motusbank chq (highest interest rate on a chq account), otherwise can do Simplii or Tang HISA (it works, and interest rates are better than chq accounts). Beyond that, if you wish to use a certain HISA for a dedicated savings / spending goal, you could use Hubert or Achieva (watch out with Achieva and the likes since it's one no-fee withdrawal per month)

I would recommend using an account with PayTM that offers unlimited or at least more than one withdrawal per month, unless you're loading PayTM with enough PayTM cash out of a bank account to cover multiple bills. If the account you wish to link to PayTM has more than 10 digits, you'll have to supply account PAD credentials to PayTM via in-app support. They do claw back the micro-deposits, and that will count against your withdrawals (in case they're not unlimited).
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