Digital banking is revolutionizing the way Canadians manage their money, and neobanks are at the forefront of that shift. Built for mobile use and powered by modern technology, neobanks offer low-fee, user-friendly alternatives to traditional banks.
This article breaks down the 5 best neobanks in Canada for 2026, with detailed descriptions, pros and cons, and insights into what makes each bank stand out:
What Is a Neobank?
Neobanks are financial technology (fintech) companies that deliver banking services exclusively online — typically through smartphone apps or web platforms — without traditional physical branches. This digital-first approach allows them to offer lower fees, streamlined onboarding, and innovative features tailored around customer needs.
Key differences from traditional banks:
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No brick-and-mortar branches — all service is online.
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Lower fees — reduced overhead leads to cheaper banking.
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Modern features — budgeting tools, push notifications, fast digital transfers.
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Mobile-first user experience — focused on simplicity and speed.
1. Neo Financial
Overview: Neo Financial very quickly became one of Canada’s most popular fintech banks, combining high-interest savings with strong cashback rewards. Its flagship Neo Money account offers some of the best interest rates available from digital banks in Canada.
Pros and Cons:
Best For: Savers and rewards seekers looking to earn more on daily spending.
2. Koho
Overview: Koho Financial Inc. is a Vancouver-based fintech company offering a prepaid Mastercard with cashback and powerful budgeting tools. While it isn’t a bank in the traditional sense, Koho partners with licensed institutions to deliver banking services.
Pros and Cons:
Best For: Users who want a simple, smart way to track spending and earn rewards.
3. EQ Bank
Overview: EQ Bank focuses on giving customers high savings interest rates, low fees, and flexible account options. It’s a full digital bank (part of Equitable Bank) and offers a hybrid chequing and savings account that’s ideal for everyday banking.
Pros and Cons:
Best For: Savers who want to grow cash without manual effort.
4. Wealthsimple Cash
Overview: Though part of a bigger financial services ecosystem, Wealthsimple Cash lets Canadians handle banking, investing, and even crypto in one app. Its seamless integration with Wealthsimple’s other tools makes very it attractive for users who want more from a banking platform.
Pros and Cons:
Best For: Users who want banking and wealth-building in one place.
5. Simplii Financial
Overview: Simplii Financial is the digital banking division of CIBC and offers a full-featured online branch-less bank with no monthly fees on chequing or savings. It also provides access to credit, mortgages, and investment products.
Pros and Cons:
Best For: Canadians looking for a digital banking replacement with traditional product options.
Final Thoughts
Neobanks are reshaping banking in Canada by offering cheaper, faster, and more flexible alternatives to traditional banks. Whether you value high savings rates, budgeting tools, or integrated investment options, there’s a digital-only bank that fits your needs.
Before switching, always consider your financial goals, the specific fees, and whether you prefer a pure fintech experience or a combination of digital and traditional products.
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