Overview of Banks in Canada

Part
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Part
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Popular Savings and Checking Accounts

There is no publicly available information that accurately identifies the most popular savings and checking accounts in Canada. However, the EQ Bank Savings Plus Account and Steinbach Credit Union TFSA Account as well as the Scotia Bank Basic Plus Checking Bank Account and Tangerine Checking Account stood out the most based on their features and reviews.

EQ Bank Savings Plus Account

Its Features and Benefits


Steinbach Credit Union TFSA Account

Its Features and Benefits


Scotia Bank Basic Plus Checking Bank Account

Its Features and Benefits


Tangerine Checking Account

Its Features and Benefits

Research Strategy

Although we could not determine the most popular savings and checking accounts in Canada based on customer reviews, we were able to provide a few examples of good checking and savings accounts that were recommended by experts in the field because of their features.

We began by going through industry reports, databases, and credible review and bank sites such as Ratehubbut and the Federal Deposit Insurance Corporation database but we could not find any information on the proffered savings and checking accounts by Canadian customers. These sources mainly contained information on the various types of accounts offered by the different banks and their features. This information is not available in the public domain probably because banks are not obligated to publicly declare the number of account holders per account type as well as their customers' feedback on the accounts. Moreover, a customer's choice of a savings or checking account may be guided by their personal financial goals, which are very subjective and vary greatly. For example, some may opt for high-interest earning accounts while others choose tax-free accounts. Moreover, we were also unable to establish why the different account types were loved by the holders.

Part
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Part
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Desjardins

Desjardins is a Canadian financial institution that provides multiple services including checking accounts, savings accounts, loans, and credit cards. In 2018, Desjardins held 8.3 percent of Canada's financial market share. Below are information about Desjardins' presence in Canada, and an overview of the types of accounts it offers.

Market share

  • The top three property/casualty insurance companies in Canada controlled 31.6 percent of the industry in 2018.
  • Desjardins Group was ranked the third largest insurer in Canada, and recorded an increase of market share by 0.1 percent in 2018.
  • In 2018, Desjardins had a market share of 8.3 percent.
  • When it comes to written premiums, Desjardins ranks fourth among Canadian life and health insurers, and first in Quebec.
  • “Our objective over the next three years is to double our market share outside Quebec,” said Denis Berthiaume, Quebec City-based senior vice president of individual insurance at Desjardins.

Market shares in Quebec

Desjardins accounts

Checking accounts

Personal checking account

  • The Personal Checking Account allows deposits, withdrawals, checks, transfers, bill payments, and debit card purchases.
  • There aren't any interest rates on a primary checking account.
  • There are also no fees if the minimum monthly balance for a selected plan is maintained. Otherwise, standard transaction fees will apply.
  • As long as Canadian currency is being used, overdraft transfers can be added to accounts to cover transactions that exceed the balance available in an account.
  • Desjardins Access Card, which is a debit card, allows regular transactions at Desjardins caisses, ATMs, and on AccèsD Internet, mobile services, and AccèsD Telephone.

Build-Up Savings Account

  • The Build-Up Savings Account is said to be ideal for regular transactions and growing savings.
  • It allows deposits, withdrawals, checks, transfers, bill payments, and debit card purchases.
  • It has an interest rate of 0.00 percent to 0.10 percent based on the balance that is maintained.
  • There are also no fees if the minimum monthly balance for a selected plan is maintained. Otherwise, standard transaction fees will apply.
  • As long as Canadian currency is being used, overdraft transfers can be added to accounts to cover transactions that exceed the balance available in an account.
  • Desjardins Access Card, which is a debit card, allows regular transactions at Desjardins caisses, ATMs, and on AccèsD Internet, mobile services, and AccèsD Telephone.

$U.S. Build-Up Savings Account

High Yield Account

  • The High Yield Account is ideal for "carrying out regular transactions while earning higher returns" if a certain balance is maintained.
  • The account allows deposits, withdrawals, checks, transfers, bill payments, and debit card purchases.
  • Regular transactions have no fees as long as a minimum monthly balance of $25,000 is maintained.
  • As long as Canadian currency is being used, overdraft transfers can be added to accounts to cover transactions that exceed the balance available in an account.
  • Desjardins Access Card, which is a debit card, allows regular transactions at Desjardins caisses, ATMs, and on AccèsD Internet, mobile services, and AccèsD Telephone.

Savings accounts

  • They are High Interest S@vings Account, TFSA Savings Account, Regular Savings Account, and Enhanced Investment Account.

High Interest S@vings Account

  • The High Interest S@vings Account is only available on Personal AccèsD Internet and mobile.
  • The account is for “people who want to grow their savings quickly with each dollar saved earning high interest.”
  • There are no fees and funds are easily accessible.
  • Deposits are insured up to $100,000 per person per caisse. 
  • The regular savings account rate is 1.00, plus a bonus rate of 1.25 percent on all new deposits until March 31, 2020.

TFSA Savings Account

  • The TFSA Savings Account lets customers put money aside for both short and medium-term projects.
  • It provides security and flexibility for people to build up savings and access funds.
  • In order to open this savings account, potential clients must first register for a tax-free savings account and open a Desjardins checking account.
  • The TFSA Savings Account allows deposits, withdrawals, and transfers.
  • "Overcontributions are subject to a tax of one percent per month."
  • There are no fees, and savings and withdrawals are not taxed.
  • The regular savings account rate is 1.00, plus a bonus rate of 1.25 percent on all new deposits until March 31, 2020. 

Regular Savings Account

  • The Regular Savings Account is ideal for clients wanting to "accumulate funds through single or scheduled periodic installments."
  • The interest rate on the account is between 0.05 percent to 0.10 percent depending on the product.
  • It allows deposits, withdrawals, and transfers.
  • There are service charges "except for automatic transfers from a checking account in the same folio."

Enhanced Investment Account

  • Clients must have a Desjardins checking account to open an Enhanced Investment Account.
  • The Enhanced Investment Account is ideal for clients wanting to increase their money for an investment or a major purchase.
  • "This savings account combines flexibility and high returns, and its interest rate varies with market fluctuations."
  • It allows deposits, withdrawals, and transfers permitted at all times.
  • There are no monthly fees and the minimum regular interest rate is 0.65 percent based on the balance that is maintained.

Youth and student account

Youth Profit Account

  • The Youth Profit Account is for clients who are 21 and under, as well as for full-time college, CEGEP, and vocational students who are between 22 to 25 years old.
  • The interest rate for this account is between 0.05 percent to 0.10 percent based on the balance maintained.
  • This is a free monthly plan with unlimited transactions.
  • It allows deposits, withdrawals, checks, transfers, bill payments, and debit card purchases.
  • Desjardins Access Card, which is a debit card, allows regular transactions at Desjardins caisses, ATMs, and on AccèsD Internet, mobile services, and AccèsD Telephone.

Student STRATEGIC Account

  • It allows deposits, withdrawals, checks, transfers, bill payments, and debit card purchases.
  • Desjardins Access Card, which is a debit card, allows regular transactions at Desjardins caisses, ATMs, and on AccèsD Internet, mobile services, and AccèsD Telephone.


Part
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Part
03

Wealthsimple

The market share of Wealthsimple is 61.29% of the total assets managed in the robo-advisors segment in Canada.

Market Share

  • Wealthsimple operates in the robo-advisors segment of the Canadian financial market.
  • The amount of assets managed in the of robo-advisors segment in Canada is $8.158 billion.
  • Wealth Simple has over $5 billion worth of assets under its management.
  • The market share of Wealthsimple in the robo-advisors segment is 61.29%

Types and Features of Wealthsimple Accounts

Registered Retirement Savings Plan (RRSP)
  • RRSP is the most common retirement account that Wealthsimple offers its clients.
  • One of the features of the account is that it lets the holder avoid taxes and pay only them after they retire.
  • RRSP contributions lowers the contributor’s income tax bill.
  • Account-holders can withdraw their money during retirement at a lower tax rate. Funds in the account can be withdrawn to either buy a house or pay for education.
Tax-Free Savings Account (TFSA)
  • TFSA is a savings account that lets the holder avoid taxes on the gains made over time.
  • Another feature of the TFSA is that the holder can withdraw their funds at any time without incurring a penalty. Additionally, one can start saving with as low as $1.
Personal Account
  • Personal Wealthsimple account is a taxable account that allows holders to invest any extra money they have after maxing out their RRSP and TFSA.
  • Personal account holders are not obligated to register the account with the authorities.
Registered Education Savings Plan (RESP)
  • The RESP account allows holders to save money for their child’s education while lowering their tax burden.
  • Additionally, the account takes advantage of government matching of up to 20% of the holders annual contribution up to a maximum of $7,200.
Registered Retirement Income Fund (RRIF)
  • RRIF is an account created for individuals who are 71 years or older who want to convert their RRSP accounts.
  • The account is used to provide income to individuals who have retired.
Locked-In Retirement Account (LIRA)
  • LIRA is an account for individuals who have pensions from former employers, but they are not yet retired.
  • LIRA gives the account holders the option to move their pensions from former employers to new smarter accounts.
  • Transferring your funds to your LIRA account is free.
Joint Account
Business Account
  • Business account is created for companies that want to take advantage of the lower corporate income tax rate.
  • The business account lets the excess cash inflow grow and gives the account holders the option to withdraw the cash during a lower income tax rate in a slow year.

Benefits of Wealthsimple Account s

  • One of the benefits of Wealthsimple accounts is that one can invest in Auto-pilot. Another benefit is that Wealthsimple does socially responsible investing.
  • Additional benefits are, however, awarded depending on the plan chosen by the account holder. The plans depend on the amount of money deposited in the accounts.
Basic Plan
Black Plan
Generation Plan

Research Strategy

After doing an in-depth dive in various reports from the Canadian Stock market, financial reports of Wealthsimple, financial databases and numerous research reports the team was unable to find the exact market share that Wealthsimple has in the Canadian financial market. The research team was, however, able to find critical data that helped triangulate the market share of the segment that Wealthsimple is currently operating in. The team found that Wealthsimple is in the robo-advisors segment of the financial sector and triangulated this market share because it provides a more accurate representation of the company’s position in the industry.

Calculations

The market value of assets managed in the robo-advisors segment in Canada is $8.158 billion.
The market value of assets that Wealthsimple is managing is $5 billion.
Market share of Wealthsimple = $8.158 billion/ $5 billion * 100
= 61.29%

Part
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Part
04

Simplii Financial

Simplii Financial holds 0.02% of the Canadian commercial banking market. Details of the company's market share and account offerings have been provided below.

Market Share

  • Simplii Financial has an estimated annual revenue of $13 million per year.
  • The company has 66 employees generating an estimate of $197,273 in revenue per employee.
  • In 2019, the commercial banking sector in Canada was worth $71 billion with a CAGR of 4.2%.
  • The market share of Simpli Financial was 0.02% ($13 million / $71 billion = 0.00018 or 0.02%)
  • Simplii Financial is a subsidiary of CIBC which generated $1.27 billion in revenue in FY 2018 fourth quarter.

Account Types

Part
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Part
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Canadian Imperial Bank of Commerce

The Canadian Imperial Bank of Commerce (CIBC) at a Glance

  • In 2019, the market share for the Canadian Imperial Bank of Commerce was valued at 50.02 billion Canadian dollars, remaining steady for three years after its 10 billion dollar upwards spike in 2016.
  • CIBC currently offers 10 different types of accounts: a Smart Account (which has a variant for students and seniors), an Everyday Chequing account, an Advantage account for Youth, an eAdvantage Savings account, a Bonus Savings account, a Premium Growth account, a US$ Personal account, and a Smart Plus account.

CIBC -- Smart Accounts

  • CIBC Smart accounts have a monthly fee starting at $4.95 per month, which increases by $1.25 for every transaction after the twelfth, but is capped at $14.95.
  • When a user's daily balance is greater than or equal to $3,000, there is no monthly fee.
  • CIBC Smart accounts also offer overdraft protection service.
  • Students with an enrolled Smart account pay no monthly fee for as long as they remain a student.
  • For Smart account holders over 65, the monthly fee is reduced to $0 for the first 12 transactions, but it increases by $1.25 for every transaction after the twelfth, and caps at $10 per month.

CIBC -- Everyday Chequing Accounts

  • CIBC Everyday Chequing accounts have a monthly fee of $3.90, which includes the first 12 transactions of the month.
  • Unlike the Smart accounts, Everyday Chequing accounts do not have a monthly cap, and will increase by $1.25 for each transaction after the twelfth.

CIBC -- Advantage for Youth Accounts

  • CIBC Advantage for Youth accounts have no monthly fee, nor any additional fees for transactions.
  • CIBC Youth accounts also have an interest rate of 0.15%.

CIBC -- eAdvantage Savings Accounts

  • CIBC eAdvantage Savings accounts have a high interest rate of 1%, but a $5.00 fee for each transaction.
  • Certain applicants may be eligible for a 2.75% bonus rate when they open their first CIBC eAdvantage Savings account.

CIBC -- Bonus Savings Accounts

  • CIBC Bonus Savings accounts offer a 0.10% interest rate for accounts that have a balance over $3,000 -- the interest rate is halved for accounts with a balance beneath $3,000.
  • Bonus Savings accounts do not have a monthly fee, but they charge $5.00 for each transaction after the first transaction of the month.

CIBC Premium Growth Accounts

  • CIBC Premium Growth accounts offer a fixed 0.05% interest rate for every dollar saved, regardless of the account balance.
  • Premium Growth accounts also do not have a monthly fee, but charge $1.50 for each transaction.

CIBC US$ Personal Accounts

  • CIBC US$ Personal accounts have an interest rate of 0.15% on any balance, and allow for quick management of U.S. funds.
  • US$ Personal accounts have no monthly fee, but charge $0.75 USD for each transaction.

CIBC Smart Plus Accounts

  • CIBC Smart Plus accounts have a monthly fee of $29.95 with a $4.95 discount for patrons over years of age.
  • However, Smart Plus monthly fees are waived on accounts with a daily balance equal to or greater than $6,000, or accounts with $100,000 in savings and investments.
  • There are no fees for transactions.


Part
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Part
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BMO

BMO holds a 10% market share for deposits, offers five types of checking accounts and four types of saving accounts. An overview of the accounts, including their benefits and features is presented below.

BMO Market Share

Overview of BMO Checking Accounts

BMO Checking Accounts: Premium & Performance

  • The Premium Plan checking account allows for unlimited transactions which include debit card & bill payments, transfers, and worldwide ATM withdrawals.
  • The plan comes with additional Canadian & US dollars savings accounts, standard overdraft protection, identity theft protection, checks, money orders, and drafts at no additional charges. It also offers a CA$300 sign-up bonus for a limited time and a CA$150 rebate for selected BMO credit cards.
  • The Premium plan charges a monthly fee of CA$30, which can be waived with a balance exceeding CA$6,000.
  • The Performance Plan checking account also allows for unlimited transactions of debit card & bill payments and transfers but charges CA$2 or CA$5 for the second ATM withdrawal onward within a month, depending on location.
  • The plan also comes with free identity theft protection. Standard overdraft protection, however, will cost CA$5 per month.
  • The same CA$300 sign-up bonus for the Premium Plan also applies to the Performance Plan. The plan charges a monthly fee of CA$15.95, which can be waived with a balance exceeding CA$4,000.
  • The Performance Plan is BMO's most popular checking account according to the bank’s website.

BMO Checking Accounts: Plus, AIR MILES® & Performance

  • The Plus Plan checking account users are limited to 25 transactions a month which includes debit card & bill payments and transfers.
  • The plan charges CA$2 or CA$5 for every ATM withdrawal depending on location. Standard overdraft protection will cost an additional $5 per month. The plan charges a monthly fee of CA$10.95, which can be waived with a balance exceeding CA$3,000.
  • The AIR MILES® Plan checking account rewards users with 1 air mile for every CA$30 spent using their debit card. It also awards users with 25 bonus air miles every month if they own selected BMO AIR MILES® credit cards.
  • The plan allows for unlimited transactions of debit card & bill payments and transfers but charges CA$2 or CA$5 for every ATM withdrawal depending on location. Standard overdraft protection will cost an additional CA$5 per month. The plan charges a fixed monthly fee of CA$15.95 that cannot be waived.
  • Practical Plan checking account users are limited to 12 transactions a month which includes debit card & bill payments and transfers.
  • The plan charges CA$2 or CA$5 for every ATM withdrawal depending on location. Standard overdraft protection will cost an additional CA$5 (Canadian) per month. The plan charges a fixed monthly fee of CA$4 that cannot be waived.

Overview of BMO Saving Accounts

BMO Saving Accounts: Savings Builder Account & Smart Saver Account

  • The Savings Builder Account offers an interest rate of up to 1.6% if the requirement of a CA$200 monthly deposit is met. The account includes a single free transaction into another BMO account every month. Each customer is limited to a single Savings Builder Account.
  • The Smart Saver Account offers an interest rate of 0.8% without conditions. The account includes a single free transaction into another BMO account every month. Each customer can have an unlimited number of Smart Saver Accounts.

BMO Saving Accounts: Premium Rate Savings Accounts & US Dollar Premium Rate Savings Accounts

  • Both the standard and US Dollar Premium Rate Savings Accounts require a checking account to be opened.
  • BMO allows these two types of saving accounts to be consolidated with other checking accounts with their PlanShare program.
  • The number of allowed transactions each month depends on other accounts that the Premium Rate Savings Account is consolidated with.
  • Both accounts offer a flat interest rate of 0.05%. Each customer can have up to 20 Premium Rate Savings Accounts.
Part
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Part
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RBC

The Royal Bank of Canada is one of the most dominant providers in the Canadian financial market, with a top or second-place market share in all key financial product categories.

Market Share

  • According to a 2019 investor presentation by the Royal Bank of Canada (RBC), the company has a top-level market share in all categories of personal and commercial banking in Canada.
  • Specifically, RBC has the number one market share in credit cards (28% market share), long-term mutual funds (32.9% market share), business loans (26.7% market share) and business deposits (25.6% market share) in the country.
  • Additionally, the company holds the second-largest position in personal lending (20.5% market share) and personal core deposits + GICs (19.7% market share) in Canada.
  • Meanwhile, RBC is also the largest retail fund company in Canada (31.7% market share), the biggest in individual disability sales (41% market share) and the fourth-largest player in pension de-risking (13% market share).

Accounts & Services Overview

  • RBC's key products and services are comprised of banking accounts, credit cards, mortgages, loans, investments and insurance.
  • Specifically in terms of accounts, the company offers checking, savings and student banking accounts.
  • RBC's four checking account options range in price from $4 to $30 per month, and generally offer unlimited debits in Canada, credit card rebates and some level of overdraft protection.
  • Additionally, the company's four savings account types are all available for free, provide interest rates between 0.15% and 1%, and offer a free number of debits/transfers per month.
  • Finally, RBC offers three youth and student accounts, all of which do not require a minimum balance, allow between 15 and unlimited debit transactions per month and offer between $25 and $60 upon sign-up.

RBC Checking Account Details

  • RBC's basic checking account, RBC Day to Day Banking, is priced at $4 per month, and offers 12 free debits per month, limited overdraft protection for an additional fee and the waiver of a monthly fee with a multi-product sign-up.
  • RBC's intermediate checking account, RBC No Limit Banking, is priced higher at $10.95 per month, and offers unlimited debits in Canada, limited overdraft protection for an additional fee and the waiver of a monthly fee with a multi-product sign-up.
  • The slightly more expensive RBC Signature No Limit Banking account offers significant additional advantages for $15.95 per month, including unlimited debits in Canada, up to a $39 credit card rebate per year and free personalized checks.
  • Finally, RBC's premium checking account, RBC VIP Banking, is priced at $30 per month, and offers unlimited transactions, unlimited cross-border debits, up to $120 in yearly credit card rebates and up to 3 additional related accounts.

RBC Savings Accounts Details

  • RBC's lowest interest savings account, RBC US High Interest eSavings, is designated in US currency, and offers an interest rate of 0.15% as well as one free debit per month.
  • RBC's intermediate savings account, RBC Day to Day Savings, is designated in Canadian currency, and offers a tiered interest rate as well as one free debit per month.
  • The slightly higher interest NOMI Find & Save account is designated in Canadian currency, and offers an interest rate of 0.5% as well as free transfers to and from a source checking account.
  • Finally, RBC's highest interest savings account, RBC High Interest eSavings, is designated in Canadian currency, and offers an interest rate of 1% as well as one free withdrawal from a RBC bank per month.

RBC Youth and Student Account Details

  • RBC Student Banking is available for no monthly fee, requires no minimum balance, provides 25 debits per month and offers $39 and $60 rebates for related product sign-ups.
  • Similarly, RBC No Limit Banking for Students is available for a fee, but requires no minimum balance, provides unlimited debits per month and offers $39 and $60 rebates for related product sign-ups.
  • Finally, RBC Leo's Young Savers Account is available for a fee, but also requires no minimum balance, provides 15 debits per month, and offers a $25 rebate upon sign-up.



Part
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Part
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Scotiabank

Scotiabank has a relatively modest share of the Canadian financial market, but offers a wide variety of relevant checking and savings account products.

Market Share

  • Scotiabank is an international bank based in Canada, that offers its customers a wide variety of products and services, including banking accounts, credit cards, mortgages, loans, lines of credit, investments, insurance and wealth management.
  • Although directly compiled information about Scotiabank's market share is not publicly available, this figure was triangulated using industry data as well as the bank's most recent revenue.

Account Details — Checking

  • Scotiabank offers four types of adult checking accounts: Ultimate Package, Preferred Package, Basic Plus Bank Account and Basic Bank Account.
  • The Ultimate Package offers customers up to 2.1% interest, unlimited free global non-Scotiabank ABM withdrawals, unlimited debit transactions and up to $139 fee waivers on Scotiabank credit cards; however, the account requires either a $30.95 monthly fee or a minimum daily balance of $5,000.
  • The slightly less expensive Preferred Package provides customers up to 2.05% interest, unlimited debit transactions and up to $139 fee waivers on Scotiabank credit cards; however, the account requires either a $15.95 monthly fee or a minimum daily balance of $4,000.
  • Meanwhile, the even more affordable but more limited Basic Plus Bank Account offers customers 25 free debit transactions per month and 10 free Interac e-Transfers per month for a fee of $10.95 per month or a minimum daily balance of $3,000.
  • Finally, the most streamlined Basic Bank Account provides customers with 12 free transactions and 2 free Interac e-Transfers per month for $3.95 per month.
  • Notably, the fees for all of these accounts are reduced to between $0 and $26.95 for senior account holders.

Account Details — Student

  • Scotiabank currently provides two distinct checking account options for students/youth: Student Banking Advantage Plan and Getting There Savings Program for Youth.
  • Although the Student Banking Advantage Plan requires a customer to be enrolled full time in a "post-secondary institution" in the US or Canada, it offers unlimited debit transactions and unlimited Interac e-Transfers for no fee.
  • In contrast, the Getting There Savings Program for Youth is available for free to anyone that is 18 years old or younger, and offers unlimited debit transactions and two free Interac e-Transfers per month.

Account Details — Savings

  • Scotiabank also offers five separate savings accounts for adults: MomentumPLUS Savings Account, Savings Accelerator Account, Money Master Savings Account, Scotia U.S. Dollar Daily Interest Account and Scotia Euro Daily Interest Savings Account.
  • The MomentumPLUS Savings Account offers customers a tiered interest rate between 1% and 2%, depending on the frequency of debit transactions.
  • In contrast, the Savings Accelerator Account is available for free and provides unlimited free transfers to other Scotiabank accounts, but offers less competitive interest rates.
  • Similarly, the Money Master Savings Account is available for free and provides unlimited free transfers to other Scotiabank accounts, but appears to offer even less competitive interest rates.
  • Meanwhile, the Scotia U.S. Dollar Daily Interest Account is available for free with a minimum $200 balance, and allows for commission-free US dollar drafts, "competitive" foreign exchange rates and easy transfers between Canadian and US accounts.
  • In parallel, the Scotia Euro Daily Interest Savings Account is available for free with a minimum 200 euro balance, and allows for two free teller transactions per month, "competitive" foreign exchange rates and tier interest rates based on account balance.
  • Notably, the fees for the two daily accounts are reduced to $0 for senior account holders, irrespective of minimum balances.

Account Details — Business

  • Finally, Scotiabank sells three account options for businesses: Right Size Account for business, Basic Business Account and Select Account for business.
  • Right Size Account for business is available for no monthly fee, allows for the withdrawal of funds anytime, provides unlimited free Canadian dollar self-service transfers and offers interest rates between 0.8% and 1.7%, depending on the account balance.
  • In contrast, the Basic Business Account is available in both US and Canadian dollars and enables next day fund transfers through Chase Merchant Services, but is available for a monthly fee of $10.95, not including other transaction fees.
  • Lastly, the Select Account for business is provided free of charge with a minimum balance, but has varied and somewhat complex fee scales for different transaction preferences.
Part
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Part
09

Tangerine

The market share of Tangerine within Canada's retail banking market is unclear. Tangerine used to be the Canadian branch of ING Direct, and was acquired by Scotiabank in 2012. As a subsidiary of Scotiabank, separate revenues, needed to calculate its market share, are not made public.

Deciphering its Market Share

  • Tangerine is an online retail bank that operates exclusively in Canada and provides its customers access to a variety of services, including banking accounts, credit cards, GICs, investment funds, mortgages, RSP loans and lines of credit.
  • According to the most recent available information (2016), Tangerine has a market share of between 6% to 7% within Canada's retail banking industry.
  • "Tangerine has over two million clients, close to CA$38 billion ($29.4 billion) in assets and over 1,000 employees. Its presence extends beyond digital to its cafe and pop-up locations, kiosks and 24×7 contact centres."
  • "Scotiabank is Canada’s third largest bank in terms of deposits. It has a market capitalization of just under CAD$90.9 billion. Operating in more than 50 countries around the world, the bank serves more than 25 million customers."

Account Details — Checking

  • Tangerine offers its customers only one checking account option.
  • The account is provided without any daily checking fees, and offers interest rates up to 0.65%.
  • Additionally, Tangerine's checking account provides free Interac e-Transfers, free access to 3,500 ABMs and overdraft protection.

Account Details — Savings

  • In contrast, the online bank offers five distinct savings account options: Savings Account, Tax-Free Savings Account, RSP Savings Account, US$ Savings Account and RIF Savings Account.
  • Tangerine's basic Savings Account offers an interest rate of 1.05%, requires no minimum balance and charges no fees.
  • Similarly, the Tax-Free Savings Account provides the same interest rate and fee structure of the Savings Account, but allows account holders to earn tax-free interest.
  • In parallel, the RSP Savings Account also offers the same interest rate and fee structure of the Savings Account, but allows account holders to enjoy the tax benefits of an RSP.
  • Meanwhile, the US$ Savings Account provides a lower 0.45% interest rate, but allows users to save US dollars with no fees or service charges.
  • Finally, the RIF Savings Account offers the highest interest rate, at 1.10%, by offering the same fee structure as a Savings Account and by using retirement funds.

Account Details — Business

  • Tangerine also offers four separate business savings accounts: Business Savings, Business US$ Savings Account, Business Guaranteed Investment.
  • The basic Business Savings account offers an interest rate of 1.25%, requires no minimum balance and charges no fees.
  • Similarly, the Business US$ Savings Account provides a lower 0.45% interest rate, but allows users to save US dollars and provides the same fee structure as the Business Savings account.
  • Meanwhile, the Business Guaranteed Investment offers interest rates between 0.5% and 2.2% for users who sign up for a GIC between 90 days and 5 years; notably, these accounts require no minimum balance and charge no monthly fees.
  • In parallel, the Business US$ Guaranteed Investment offers a slightly lower range of interest rates (up to 2.1%), but allows businesses to save in US dollars, and follows the same fee structure as the Business Guaranteed Investment account.

Research Strategy

Aside from direct research through the company's website and banking industry entities, research included an attempt to triangulate or calculate the bank's market share by identifying its annual revenues or by identifying its percentage of its parent companies revenues, then dividing by the total banking market size. There is no evidence the revenue figure or market share details are available in the public domain for Tangerine, a Scotiabank subsidiary.


Sources
Sources

From Part 02