A Tangerine Bank Review for 2021
- Zack Fenech
- April 13, 2021
Tangerine Bank* has made a reputation for itself over the last few years as one of the most popular digital banks, with many exciting spending, saving, borrowing, and investing products that run the gamut of financial products available in Canada.
While some may find themselves wondering if it's too good to be true that a digital bank can provide so many great financial products while operating entirely online, rest assured, Tangerine is the real deal.
In this Tangerine Bank review, we'll take a look at everything the online-only bank has to offer, how it works, its key features as a bank, and much more.
Table of Contents
Tangerine Bank Review: 2021
In this section, we’ll review the most popular products offered by Tangerine, including:
- Chequing Account
- Credit Cards
- GICs
- Lines of Credit and Home Equity Line of Credit (HELOC)
- Mortgages
- Mutual Funds
- Savings Accounts
Tangerine No-Fee Daily Chequing Account
The No-Fee Daily Chequing Account is perhaps the most popular product offered by Tangerine—and with good reason!
After all, this chequing account is entirely free to use and comes with no minimum balance requirements.
It also allows account holders to reap the benefits of unlimited transactions, which includes unlimited Interac e-Transfers. All of this and much more comes with no minimum balance requirements and no monthly fees.
But that’s not all! Tangerine Bank* customers can access 3,500 Scotiabank ATMs nationwide, along with 44,000 Global ATM Network ATMs across the world, at no extra charge and one of the lowest foreign exchange rates available. The chequing account also offers a 0.15% interest on deposits of all sizes.
The Global ATM Network ATM allows customers to access affiliated banks worldwide at no additional fee, and usually with a great exchange rate.
Upon sign-up, Tangerine customers will receive a (bright orange) debit card, along with a chequebook containing 50 free cheques.
You can use the Tangerine Bank with Apple Pay, Android Pay, and Samsung Pay, all while having additional access through the banking account.
Tangerine Savings Accounts
Savings accounts with Tangerine Bank* are fruitful, to say the least. The digital bank has no shortage of Registered and Non-Registered savings account options, which include:
- Interest Savings Account
- Tax-Free Savings Accounts (TFSAs)
- Traditional Savings Account
- Registered Retirement Savings Plan (RRSP)
- Retirement Income Fund (RIF)
- US$ Savings Accounts
Tangerine High-Interest Savings Account
- Interest rate: 0.15%*
A High-Interest Savings Account (HISA) with Tangerine allows customers to make unlimited contributions and withdrawals. It is an ideal place to earn interest on savings.
Tangerine Tax-Free Savings Account
- Interest rate: 0.15%* A Tangerine Tax-Free Savings Account works like any other Tax-Free Savings Account (TFSA) in Canada. It allows customers to make the contributions and withdrawals that a Canadian citizen can make with their TFSA.
Tangerine Traditional Savings Account
- Interest rate: 0.15* A Tangerine Savings Account is a traditional savings account that allows Tangerine customers to make deposits and withdrawals, with no restrictions, penalties, or minimum balance requirements.
Tangerine Registered Retirement Savings Accounts (RRSP)
- Interest rate:0.15* Using a Registered Retirement Savings Plan (RRSP) account with Tangerine operates in the same fashion as an RRSP account, with no Tangerine fees or minimum balance requirements.
Tangerine Registered Retirement Income Fund (RRIF)
- Interest rate: 0.20%*
A Retirement Income Fund (RIF) account with Tangerine allows you to access your retirement savings. There is no minimum investment requirement.
*Rates current of November 2020.
Tangerine Credit Cards
Tangerine offers two credit card options, made available through Mastercard, which are:
- Tangerine's Money-Back Credit Card
- Tangerine's World Elite Card
Both of these cards come with no annual fees and a reasonable interest rate of 19.95%. They both offer cashback features of up to 2%. There is a 0.5% cashback rate on regular purchases that are not in any category.
Here's a breakdown of each card and what it has to offer Canadians who're looking for more out of their daily spending.
Tangerine Money-Back Credit Card
- Annual fee: None
- Interest rate: 19.95%
- Rewards: Up to 2% cashback on three spending categories, 0.5% on regular purchases
- Minimum annual income requirement: $12,000
Tangerine Money Back Credit Card is a no-frills credit card that grants a major opportunity to earn more cashback on what's most important to them, with minor qualification requirements.
With the Tangerine Money Back Credit Card*, cardholders can reap the benefits of 2% cashback on two spending categories of their choosing.
Cashback on this card is paid monthly, with the option to contribute to the credit card or to deposit the funds into a Tangerine Savings Account. Choosing the latter allows you to add an extra spending category and receive 2% on three categories.
Purchases outside of the three categories still earn cashback of 0.5%.
Tangerine World Elite Card
- Annual fee: None
- Interest rate: 19.95%
- Cashback: 0.5% to 2%
- Minimum annual income: $60,000 personal or $100,000 household
The Tangerine World Mastercard Credit Card isn't an average low-interest credit card. It provides an amplified version of the Money Back Card, with more perks than Tangerine's other credit card option.
Tangerine Money Back Credit Card* offers the same 2% cashback on two to three categories, depending on the cashback payout option selected.
This version of the Tangerine Credit Card comes with additional perks. One of these perks includes access to Boingo Hotspots, a wireless network with over a million hotspots worldwide.
Another perk includes rental car collision and loss damage insurance for up to 31 days.
Tangerine World Elite Mastercard also comes with mobile device insurance in the event of damage, theft, or technical failure.
Tangerine also offers special pricing on subscriptions through this credit card, along with airport lounge access and other perks.
Tangerine Guaranteed Investment Certificates (GICs)
While Tangerine* does not currently have as many investing products as major banks or independent brokerages, they certainly offer some of the best low-risk investing options, which include Mutual Funds and GICs.
Like any other bank or credit union, Tangerine offers Guaranteed Investment Certificates (GICs). GICs are term investments that allow Canadians to earn interest with a fixed-term on the investment, at their choosing.
If you’re looking for a no-risk investing option, Guaranteed Investment Certificates (GICs) are available through Tangerine.
Tangerine offers all types of GICs, including registered and non-registered options. This allows you to grow your money without tax-free interest.
Tangerine’s GIC investment options include:
- Traditional GIC Investment
- Retirement Savings Plan (RSP) GIC
- Tax-Free Guaranteed Investment (TFSA) GIC
- Retirement Income Fund (RIF) GIC
- USD GIC
Traditional GIC Investment
- Terms available: 90 days to 5 years
- Interest rate: 0.50% to 1.20%
- Minimum investment: None
- Monthly fee: None
Traditional GIC Investments with Tangerine comes with terms ranging from 90 days to five years. Customers can take advantage of terms from 90, 180, and 270 day term GICs, as well as 1.5 year GICs. Rates range from 0.50% to 1.20%. There is no minimum investment requirement to open a Traditional GIC with Tangerine.
Retirement Savings Plan (RSP) GIC
- Terms available: 90 days to 5 years
- Interest rate: 0.50% to 1.20%
- Minimum investment: None
- Monthly fee: None
Tangerine issues Retirement Savings Plan (RSP) GICs, which are commonly known as an RRSP GICs as well. Terms for RSP GICs with Tangerine range from 90 days to five years, with term options for 180 and 270 day GICs, along with 1.5 year GICs as well. Rates range from 0.5% to 1.20%, depending on the term. There is no minimum investment required to open a GIC.
Tax-Free Guaranteed Investment (TFSA GIC)
- Terms available: 90 days to 5 years
- Interest rate: 0.50% to 1.20%
- Minimum investment: None
- Monthly fee: None
Tangerine’s Tax-Free Guaranteed Investments, also known as TFSA GICs, offers Canadians who have yet to max out their TFSAs an opportunity to make tax-free gains on term investments.
Tangerine’s Tax-Free Guaranteed Investment offer terms starting at a 90-day minimum and going as long as 5 years in length. Rates range from 0.50% to as high as 1.20%.
Retirement Income Fund (RRIF GICs)
- Terms available: 90 days to 5 years
- Interest rate: 0.50% to 1.20%
- Minimum investment: None
- Monthly fee: None
A Retirement Income Fund (RIF) GIC allows Canadians under the age of 72 to transfer their RRSPs into an RRIF to earn income when they choose to retire.
Terms on RRIF GICs issued by Tangerine are available at 0.50% to 1.20%, with terms ranging between 90 days and 5 years.
There is no minimum investment requirement to open a RRIF GIC with Tangerine.
US Dollar Guaranteed Investment (USD GIC)
- Terms available: 90 days to 5 years
- Interest rate: 0.50% to 1.20%
- Minimum investment: None
- Monthly fee: None
US Dollar term investments with Tangerine allow Canadians to invest their American money in a Canadian investing account.
Terms on USD GIC accounts range from 90 days to 5 years, with rates ranging from 0.15% to 0.70%.
There is no minimum investment required and no monthly fees.
Tangerine Mutual Funds
Tangerine* offers two credit card options, made available through Mastercard, which are:
- Types of mutual funds: Registered and Non-registered
- Minimum investment: $25
- Portfolios available: Balanced Income Portfolio, Balanced Portfolio, Balanced Growth Portfolio, Dividend Portfolio, Equity Growth Portfolio
- Portfolio investments: Canadian Bonds, Canadian Stocks, U S Stocks, International Stocks
- MER: 1.07%*
*Current as of November 2020
Mutual Funds with Tangerine grant new and returning investors grant more opportunities to beat inflation with a mutual fund.
Depending on the type of investment, Canadians can invest in Canadian bonds and stock. U.S. stocks, and International stocks.
As of November 2020, Tangerine charges a management expense ratio of 1.07% for investments.
What is Tangerine Bank?
Tangerine* is a fully-digital Canadian bank, with only a few physical branches in Canada. It is the direct-to-consumer banking division of Scotiabank. Tangerine is a member of the Canada Deposit Insurance Corporation (CDIC).
Tangerine is a part of a growing trend of neo-banks, meaning exclusively digital banks offer their products and services exclusively online. This helps Canadians save money on banking fees while improving their banking experience.
How Does Tangerine Bank Work?
Tangerine* works like any other bank account, with the exception that no physical branches exist.
Anyone who signs up for a Tangerine Bank account receives a debit card. Customers can access their funds and make daily banking transactions using the Tangerine Mobile app.
Tangerine Pros & Cons
There are several pros and cons that come with any bank, and Tangerine is not exempt. Here are a few advantages and drawbacks of the popular online bank that can help give you some perspective on how the Tangerine Bank is right for you
Pros: The Good Stuff
Cons: The Not So Good Stuff
Our Final Thoughts
For a no-fee banking account with this many products and services, Tangerine* is an excellent option for those who see no reason to pay for monthly fees.
While there are no branches, in a world that’s almost entirely online, is this even an issue for many of us?
Tangerine is a safe and legitimate bank, which makes it suitable for anyone who likes to do most of their banking online.
Tangerine works great as an account to receive your money. You can save and invest with Tangerine, while also using external accounts for your advanced saving and investing needs, such as using an online brokerage or robo-advisor.
Frequently Asked Questions
Tangerine is owned and operated by Scotiabank. Scotiabank introduced the no-frills bank as a means of appealing to more customers with a direct-to-consumer online back.
Yes! ING Direct used to manage funds as an independent bank, but was purchased in 2012 and re-launched as Tangerine in 2013.
While Tangerine’s TFSA is an excellent product and definitely a great idea, as a no frills bank, they do not offer the highest interest rates in Canada. You can likely find a bank offering a higher rate. However, if you like all of your banking in one place, you won't be making an awful choice by joining them.
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