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EQ Bank, Too good too be true?
June 29, 2017
1:10 pm
Halvor13
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Hello, Im new to the High interest saving world and stumbled across EQ Bank. Now this seems too good too be true 2.3% interest!! I'm really wondering if this bank is trustworthy or if I'm going to have to be contacting customer service constantly to fix problems. From reading different reviews about them on website sounds like getting your account started and depositing money into it can be a real pain. Also if someone could explain the intrest rate to me when they say "interest is calculated daily and paid monthly". Does this mean say if i have 1000$ in the account, each day of the month you'd earn 23$ and be paid out 23$ x total days in the month? I also realized that any interest earned you have to pay taxes. please any insight anyone has on this bank id appreciate learning about it. Good or Bad id like to learn as much about them as possible before i open a account, and have all sorts of problems.

Thanks in Advance everyone!!

June 29, 2017
1:20 pm
NorthernRaven
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Halvor13 said
Hello, Im new to the High interest saving world and stumbled across EQ bank. Now this seems too good too be true 2.3% interest!! I'm really wondering if this bank is trustworthy or if I'm going to have to be contacting customer service constantly to fix problems. From reading different reviews about them on website sounds like getting your account started and depositing money into it can be a real pain. Also if someone could explain the intrest rate to me when they say "interest is calculated daily and paid monthly". Does this mean say if i have 1000$ in the account, each day of the month you'd earn 23$ and be paid out 23$ x total days in the month? please any insight anyone has on this bank id appreciate learning about it. Good or Bad id like to learn as much about them as possible before i open a account, and have all sorts of problems.

Thanks in Advance everyone!!  

Welcome to the board. There will be people here who can give their opinions on EQ Bank's service. I'm having trouble imagining that anyone could think that a $1000 bank account could generate almost ~$700 in interest in a single month. In any case, the wording means that each day interest on your balance is calculated at 2.3%/365 (one day's worth of the annual rate), and the accumulated daily bits are paid into the account at the end of each month. So about ~6.3 cents per day, or ~$1.90 for the first month, and $23.24 for a year.

June 29, 2017
1:30 pm
2of3aintbad
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EQ Bank is the online presence of Equitable Bank. It has many good features besides the interest rate, as described in various threads, that make it more than just a savings account. However, there is only one type of account - not registered (no TFSA, RRSP, etc) and you cannot make it joint.

'Is this bank trustworthy' is a difficult question to answer - after all, what can go wrong in the online world? (sarcasm intended)

I certainly wouldn't put all my money in a single bank, including EQ Bank.

June 29, 2017
3:19 pm
christinad
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Having contacted their regular customer service email and complaint email and getting no response i would say i would not hold a large sum of money here because i wouldn't trust them to fix the problem in a timely manner.

June 29, 2017
3:54 pm
Loonie
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Overall, no better or worse than the rest of them probably. Every bank has its pros and cons. 2of3aintbad has named the ongoing limitations with this one.
I too would never put all my eggs in one basket, especially not an online-only basket, but I do have some at EQ. I like the rate. I don't like anything else about it particularly. The rate is the only reason for being there. The staff I have dealt with have been brusque, and I find the website cuts me off too soon. It's comparable to grocery shopping at No Frills. Not much variety; not much service; not pretty; good prices.

June 29, 2017
4:33 pm
Jon
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They still suffer from growing pain lately and their backend still need improvement. However, if you are within CDIC limit, you should be good.

June 29, 2017
6:21 pm
Norman1
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Halvor13 said
… Now this seems too good too be true 2.3% interest!! … Also if someone could explain the intrest rate to me when they say "interest is calculated daily and paid monthly". Does this mean say if i have 1000$ in the account, each day of the month you'd earn 23$ and be paid out 23$ x total days in the month? …

NorthernRaven said

… In any case, the wording means that each day interest on your balance is calculated at 2.3%/365 (one day's worth of the annual rate), and the accumulated daily bits are paid into the account at the end of each month. So about ~6.3 cents per day, or ~$1.90 for the first month, and $23.24 for a year.  

I agree with that. The "per annum" in the fine print (not "per diem") means the rate is 2.3% per year and, sadly, not 2.3% per day:

Current Interest Rate*

2.30%

* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

June 30, 2017
12:39 am
Loonie
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NorthernRaven and Norman1 are very reliable members of this forum and have given you the right info about the interest rate. It would be the same arrangement with almost any savings account at any bank or credit union.
You do get monthly compounding of this interest, because the interest you accrue at the end of the month is tagged on to the principal that you deposited and you earn interest on the whole thing the following month, but it doesn't amount to much at the prevailing low rates.
I'd say "go for it!" Just make sure that you only send them an initial cheque of $1.00; keep your balance just under 100K; keep some of your money in another bank or credit union; maintain at least one savings and one chequing account elsewhere.
You don't have to worry much about CDIC limits because they won't accept more than 100K deposit (which is the CDIC limit). all you have to do is scoop off the interest every month to stay within limits. If you deposit less, then you won't have to do even that until you hit 100K.

June 30, 2017
8:01 am
sandwich
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I've been with them for over a year. No problems.

CDIC insures the account up to $100k like all banks.

The interest is 2.3%. Remember that you have to pay tax on the earnings.

June 30, 2017
10:59 am
Winnie
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Loonie said
... I like the rate. I don't like anything else about it particularly. The rate is the only reason for being there. The staff I have dealt with have been brusque, and I find the website cuts me off too soon. It's comparable to grocery shopping at No Frills. Not much variety; not much service; not pretty; good prices.  

I completely agree with Loonie, my experience with EQ has been the same - "grocery shopping at No Frills" sf-smile

I'm patiently waiting, when EQ will finally start offering TFSA at 2.3% or better.
At that time I will move all of my TFSA to EQ.

June 30, 2017
12:07 pm
Nehpets
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My experience with EQ has been all negative and I would not, and in fact cannot deposit money there.

Initially my wife and I went through their absurd lottery process to win a chance to be a customer, last year.

Once we "won" our chance, we made our initial deposits, which they held before depositing, but my deposit "got lost" even though it was made using their app.

Weeks went by, with no response, so I closed the account and my wife closed hers as well.

If I recall correctly, there was another hold placed on her outgoing withdrawal.

With their recent rate increase, I thought I would give them another try, and let bygones be bygones. I was told that once you close an account there is no mechanism to re-open an account as I reported in this Forum post

I don't like playing games with companies I do business with, and expect a certain level of competence and respect for my business.

I don't feel EQ Bank provides any of these for me and so I stay away, preferring choosing other options where routine transactions are predictable, safe and staff is courteous and helpful.

I see the decision to deal with them as a benefits vs risks assessment.

June 30, 2017
5:50 pm
Norman1
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Nehpets said
With their recent rate increase, I thought I would give them another try, and let bygones be bygones. I was told that once you close an account there is no mechanism to re-open an account as I reported in this Forum post

EQ Bank may not be able to re-open a closed account. Could they not open a new account for you?

June 30, 2017
9:39 pm
User230
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EQ has basically a saving account that is it.

Does a good job of it with a 2.3% return right now and always has been at the top for regular savings account (non promo).

Micro deposits, makes setting up connections with other banks very easy. Up to 10 connections. Which is more than triple what Tangerine allows to connect this way.

Interface was initially confusing but after a few tries. It's easy and simple. A little counter intuitive.

Overall a 4/5 from me as a bank. Needs more things like TFSAs maybe RRSPs, maybe term deposits, etc.

July 1, 2017
3:47 am
3oakwest
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I've had no problem at all with EQ. I regularly transfer from and to EQ and it goes well for me with no delays. I do wish they had a TFSA account paying good interest.

July 1, 2017
9:49 am
Norman1
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Halvor13 said
… From reading different reviews about them on website sounds like getting your account started and depositing money into it can be a real pain.…

Those may be reviews from a year ago when EQ Bank launched their savings account with a 3% per annum rate.

Instead of a run of people withdrawing their money, there was a stampede of people trying to open accounts and deposit money. EQ Bank thought they would be lucky to get 10,000 depositors after a year. Instead, they got 15,000 in just six weeks and people were still coming. Their staff and onboarding processes were overwhelmed. Some details in a previous post from that time.

Things have been much better since then.

July 1, 2017
10:09 am
Nehpets
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Norman1 said
EQ Bank may not be able to re-open a closed account. Could they not open a new account for you?  

In fact, according to the "customer service" individual I spoke to, the answer is NO.

Once you're done, you're done with EQ.

This is what I found to be astounding, and what convinced me this is not the kind of business I want to have anything to do with.

You are quite right, Norman, a reputable and upstanding financial institution would welcome the return of a previously disenchanted client, but evidently no these guys.

July 1, 2017
10:47 am
AltaRed
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Giving the hundreds of times EQ runs their 'new branch at Ted's house' ad on BNN (and likely elsewhere), I've given up watching BNN for the most part. It's freaking annoying.

Really don't know what their end game is because we all know from HCG's experience, HISA accounts are 'fleeting'. Deposits can vanish in a month. And if their back office operations are as poor as mentioned in this thread, I wish those now opening accounts the best of luck.

July 1, 2017
11:26 am
R220
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I've been banking with EQ since early 2016. Banking with them is glitchy. Worrisome how glitchy it still is. Customer service is not good -- Their "secure" messaging doesn't work well. -- I am considering giving up and closing my account.

July 1, 2017
7:11 pm
Joe
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I will give EQ bank a double thumbs up as well....it's my go to bank when Tangerine pays less than they do. I have never had a problem with them. Easy to use web site, and a great chat service if you don't want to call them.

Tangerine....Canada's best bank. LBC.............Canada's 2nd best bank.
Hubert.....worst bank in Canada.

July 1, 2017
9:21 pm
Loonie
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AltaRed said
Giving the hundreds of times EQ runs their 'new branch at Ted's house' ad on BNN (and likely elsewhere), I've given up watching BNN for the most part. It's freaking annoying.

Really don't know what their end game is because we all know from HCG's experience, HISA accounts are 'fleeting'. Deposits can vanish in a month. And if their back office operations are as poor as mentioned in this thread, I wish those now opening accounts the best of luck.  

I'm fed up with those ads too, although I've seen more annoying ones like the one where they try to sing in unison. Painful.
I think EQ strategy is to always offer the best rate going to the general population on a savings account without promo rate, and, thereby, to ensure that there is no run on the bank. Oaken never did that, albeit that they had much more serious problems, so it was pretty easy for people to abandon them and get as good or better elsewhere. EQ also beefed up their rate at that point, just in case.
But, yes, we might all flee if a newcomer offered as good a rate, especially if they also offered TFSA.
The other thing EQ has done to protect itself is to restrict deposits to 100K. That way, they know everyone is fully insured by CDIC (not including interest) and therefore has less reason to bolt if things get rough. I have the feeling that HCG's withdrawal problems may have been because of people who had deposited over-CDIC limits and then withdrew them.

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