Tangerine vs. Simplii: Which bank is best for you?

Tangerine vs. Simplii: Which bank is best for you?

Moneywise.com / Moneywise.com

Tyler Wade

By Tyler Wade

Fact Checked: Amy Tokic

🗓️

Updated: November 15, 2024

Partners on this page provide us earnings.

Overview of Tangerine and Simplii bank accounts

The goal here is to help you understand the ins and outs, pros and cons, benefits and drawbacks of these two online neo banks. We ultimately want to help you decide which one to go with (or not, Money.ca doesn’t play favourites).

I've broken everything down into comparison categories, so feel free to use the left rail table of contents to jump around to the content most valuable to you.

First, a quick introduction on how Tangerine and Simplii are similar but different from your traditional “big 5” bank. 

Tangerine and Simplii pros and cons

Pros

Pros

  • No fees for daily banking operations

  • Both feature high interest rates on savings accounts

  • Free access to Scotiabank ATMs (Tangerine) | Free access to CIBC ATMs (Simplii)

  • Easy-to-use mobile app and online platform

  • USD savings accounts

  • Insured by the CDIC

  • Offers a variety of financial products such as credit cards, loans and investments

Cons

Cons

  • Don't have physical branches, which might be inconvenient for some customers

  • Charges a 2.5% foreign transaction fee on purchases made in a foreign currency

  • Fees for non-network ATM withdrawals can be high

  • Don't offer a wide variety of credit cards

  • Don't offer business banking services

Tangerine vs. Simplii: High-interest savings accounts

Tangerine and Simplii consistently give you better-than-a-big-bank's interest rates while charging no fees and requiring no minimum balance.

As of this writing, Tangerine offers you 0.70% interest in its high-interest savings account.

Simplii high-interest savings account gives you 0.35% interest in its high-interest savings account.

Tangerine offers a 6.00% savings rate for five months. Limits apply.

Currently, the HISA offer for Simplii is 6.00% for five months and the offer ends on January 31st, 2025. Limits Apply.

You can set up automatic deposits with either bank, which are great for things like emergency and slush funds to save for specific short-term goals like vacations or car maintenance.

At the end of 2023, Tangerine launched a business savings account to complement a business chequing account at another financial institution.

There are no fees or minimum balances, and you can keep your cash stashed while earning at least 2.35% for balances under $99,999.99.

Comparing Tangerine vs. Simplii Financial: Chequing account options

Both banks offer unlimited debit purchases, bill payments and withdrawals with no fees. You can also set up direct payroll deposits and pre-authorized bill payments to automate your finances.

With either account, you can access overdraft protection if you need it. Simplii charges you $4.97 and a fixed interest rate of 19% when you go into overdraft. Tangerine charges you $5, or $0.03 more, with the same fixed interest rate.

You get free Interac e-Transfers with both Tangerine and Simplii.

Tangerine chequing account promotion: As of February 5, if you open a Tangerine no-fee chequing account and a savings or investment account, you can earn up to $500 and get a 6.00% savings rate for five months.

Get no-fee banking with Tangerine

Simplii chequing account promotion: Earn $500† when you become a new client and open a No-fee Chequing Account by February 28th, 2025. Add an eligible direct deposit of at least $100 a month for 3 straight months. Offers ends February 28th, 2025.

Get no-fee banking with Simplii

Tangerine Money-Back vs. Simplii Cash Back Visa

Forgoing the special promos and offers, we'll look at the general features of Tangerine and Simplii's credit card offerings.

Simplii Financial™ Cash Back Visa* Card

Apply now

22% cash back†

Welcome offer

Excellent

Suggested credit score

Up to 10% cash back† for your first 3 months up to $1,000 eligible spend

Apply now

Pros

  • Extremely high cash back on bars and restaurants

  • Solid cash back on groceries, drug store, gas and prepayments

  • No annual fee

  • Up to three additional cards free of charge

Cons

  • Cash back applied as year-end statement credit

Eligibility

Recommended Credit Score

Excellent

Required Annual Household Income

$15,000

Pros

  • Extremely high cash back on bars and restaurants

  • Solid cash back on groceries, drug store, gas and prepayments

  • No annual fee

  • Up to three additional cards free of charge

Cons

  • Cash back applied as year-end statement credit

Eligibility

Recommended Credit Score

Excellent

Required Annual Household Income

$15,000

Earn 4% on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year†

4%

Earn 1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year† - after that 0.5% unlimited

1.5%

Earn 0.5% on all other credit card purchases with no limit on how much you can earn†

0.5%

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

†Terms and conditions apply. Click ‘Apply Now’ for complete details. This offer is not available for residents of Quebec

‡"Purchase" means any Transaction other than a Cash Advance, Balance Transfer or Convenience Cheque. "Cash" means a Cash Advance, Balance Transfer and Convenience Cheque. Interest rates may change from time to time.

The Simplii Cash Back Visa rewards a high 4% cash back from restaurants, bars and coffee shops†, then 1.5% cash back on gas, groceries, drug store purchases and pre-authorized payments†, until closing out with 0.5% cash back on all other purchases†. 

Tangerine Money-Back Credit Card

Apply now

3.8

Good

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • No annual fee

  • Choose the spending categories where you want to earn the most cash back

  • Unlimited cash back—no maximum spending limit for any purchase category

  • Cash back is paid out monthly rather than annually

  • Periodically includes a special welcome offer where you can get extra cash back

  • 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*

Cons

  • Regular cash back rates are still lower than what you can get from a card with an annual fee

  • Limited extra perks or benefits beyond the cash back and balance transfer promotion

  • Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart

  • Tangerine does not have any physical bank branches

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Pros

  • No annual fee

  • Choose the spending categories where you want to earn the most cash back

  • Unlimited cash back—no maximum spending limit for any purchase category

  • Cash back is paid out monthly rather than annually

  • Periodically includes a special welcome offer where you can get extra cash back

  • 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*

Cons

  • Regular cash back rates are still lower than what you can get from a card with an annual fee

  • Limited extra perks or benefits beyond the cash back and balance transfer promotion

  • Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart

  • Tangerine does not have any physical bank branches

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)

2%

Get a Tangerine Savings account and add a 3rd 2% cash back category.

3

Earn 0.50% on all your other everyday purchases.

0.5%

Variable APR

19.95% - 24.95%

Balance Transfer Rate

1.95%

Cash Advance APR

19.95%

Annual Fee

$0

Foreign Transaction Fee

2.5%

Tangerine's Money-Back Mastercard gives you 2% back on two categories of your choice: groceries, restaurants, gas, recurring bills, drug stores and more. Since we're comparing the complete offerings from both banks, you need to know that when you open a Tangerine Savings account, you unlock a third category for 2% cash back.  All other purchases earn 0.5% cash back. 

Neither card charges an annual fee, but the Simplii Financial™ Cash Back Visa* Card has a minimum income requirement of $15,000, whereas Tangerine Money-Back Credit Card requires $12,000. 

This debate may rage on, but it comes down to if you go out to restaurants, bars and coffee shops. As an aging millennial, I'd opt for the Tangerine Money-Back Credit Card because you won't find me at restaurants and bars much anymore, but your personal life may opt for the Simplii cash back. 

If you're a student and plan to use this card with roommates to buy all your groceries and pay your shared bills, know that you can get an additional five cards with Tangerine and three additional cardholders with Simplii to earn cash back faster. With Simplii, you can set spending limits—a pretty cool feature. With Tangerine, you can quickly use "Pause My Card" if an "Orange Alert" pops up for more customization. 

Finally, both cards give you 90-day purchase assurance and an extended warranty† to protect any purchases you make with the card.

Simplii Financial vs. Tangerine Investment options

Tangerine and Simplii offer RSPs, TFSAs, GICs and Mutual Fund accounts. 

Tangerine vs. Simplii: Savings account rates

Account Tangerine Simplii
RSP savings 0.70% 0.40%
TFSA savings 0.70% 0.40%

So, the RSP and TFSA savings rates are the same as its high interest savings accounts. Both a TFSA and RRSP should be used for long term savings (retirement or buying a home). It doesn’t make sense to earn so little over a long period of time.

Instead, you can lock in your money for nine months to 10 years when you buy a GIC and hold it in an RRSP or TFSA. 

Tangerine vs. Simplii: GIC rates

Product Tangerine Simplii
GIC Up to 4.50% (9-month term) Up to 3.688% (1-year term)

Over a one year time span, it’s not a terrible return and certainly better than the lowly savings rate. To maximize the money your money can earn with compound interest, let’s talk about your investment options. 

Tangerine vs. Simplii investment funds

As far as mutual funds are concerned, they're typically known for high fees—management fees and management expense ratios (MER) where an additional 1% can add up to hundreds of thousands of dollars lost from your investments. 

So, you're better off with a robo-advisor or a passive investment solution where you can save the fees. 

Simplii doesn't state their mutual fund fees. Instead, they tell you that as a Simplii financial customer, you'll get a discount of 10 basis points (aka not enough). For Tangerine, browsing on its website, using its search function, and trying advanced Google searches, I couldn’t find its mutual fund fees. 

When companies are private with this information, I assume the fees are high. 

However, thanks to their "Investment Fund" accounts, Tangerine does come out on top here. 

These passively managed funds invest in stocks and bonds, with quarterly rebalancing and global diversification. You can choose from its core portfolios, global ETF portfolios and socially responsible global portfolios. 

Tangerine core portfolios

Name of portfolio Investment mix and risk Average return since inception
Balanced income portfolio 70% bonds, 30% stocks; low to medium risk) 3.91%
Balanced portfolio 40% bonds, 60% stocks; low to medium risk 5.31%
Balanced growth portfolio 75% stocks, 25% bonds; medium risk 6.01%
Dividend portfolio 100% stocks; medium risk 7.12%
Equity growth portfolio 100% stocks; medium to high risk 9.46%

NOTE: Each fund charges 1.06% MER or $10.60 for every $1,000 you invest (or $1,060 for every $100,000 you invest)

Depending on your risk tolerance, you can also try Tangerine's ETF funds with low to high-risk options that invest in a range of ETFs. These ETF funds charge an MER fee of 0.76% or $7.60 for every $1,000 you invest so that you can save a little bit of money. 

Tangerine Global ETF Portfolios

Name of ETF Fund Investment mix and risk Average return since inception
Balanced income ETF portfolio 70% bonds, 30% stocks; low to medium risk -0.22%
Balanced ETF portfolio 40% bonds, 60% stocks; low to medium risk 2.66%
Balanced growth ETF portfolio 75% stocks, 25% bonds; medium risk 4.13%
Equity growth ETF portfolio 100% stocks; medium to high risk 6.66%

Finally, Tangerine also offers “socially responsible global  portfolios” that charge a 0.82% MER. 

What is a socially responsible portfolio?

According to Tangerine, it’s not investing with companies that: 

  • Controversial business activities: Companies that seem to be earning revenue from questionable activities, such as fossil fuels, tobacco and more.
  • Carbon intensity: Companies ranking in the top 25% of their sector for producing the most carbon (CO2/Revenue).
  • Established norms: Companies with alleged or verified non-compliance with established international norms (e.g. anti-corruption, human labour laws, and environmental rights).
  • Gender representation: Companies with no female representation in key decision-making positions. 
  • Controversial weapons: Companies with verified ongoing involvement in controversial weapons.

These exclusions mean that your investment in certain industries, such as energy for example, won't be as extensive as with our Global ETF Portfolios. You’ll pay a little bit more for a Portfolio that is managed to avoid companies involved in these categories. Because of these differences, the Socially Responsible Global Portfolios may perform differently than the Global ETF Portfolios.

In addition to MER, the annual management fee is 0.80% of each Tangerine Core Portfolio, 0.50% of each Tangerine Global ETF Portfolio, and 0.55% of each Tangerine Socially Responsible Global Portfolio. There is also a “fixed administration fee” of 0.15% of each portfolio’s value for all Tangerine Portfolios.

Those percentages start to cost a lot.

By contrast, Wealthsimple and Questwealth charge 0.50% MER for a similar product. Alternatively, you can check out Moka.ai, which charges a flat $7 monthly fee to invest in the S&P 500, which historically returns 10% annually. 

Comparing Tangerine Core portfolios to passive investment solutions and a robo-advisor

Under $100,000 Tangerine core portfolios Moka.ai Questwealth
MER 1.06% 0.09% to 0.39% (varies by ETF provider costs, average of 0.24%, for calculation) 0.17%-0.35% (varies by ETF provider costs, average of 0.26% for calculation)
Management fee 0.80% $7/month 0.25%
Administration fee 0.15% $0 $0
Amount invested $100,000 $100,000 $100,000
Time horizon 10 years 10 years 10 years
Ending balance (assuming annual return of 6% and no more money invested) $114,788.22 $116,726.68 $117,065.26
Total costs $3,120.26 $1,181.80 $843.22

  • Methodology for ending balance

    +

    To populate the table with the ending balance for each investment option given the specific details provided, we'll calculate the ending balance for Tangerine Core Portfolios, Moka.ai, and Questwealth over a 10-year period with an initial investment of $100,000. We'll consider the Management Expense Ratio (MER), management fee, and any administration fees specified. We'll use an average annual return rate of 6% before fees for all calculations, as no specific rate was provided in the new details.

    Let's break down the fees for each:

    Tangerine Core Portfolios

    MER: 1.06%

    Management Fee: 0.80%

    Administration Fee: 0.15%

    Moka.ai

    MER: 0.09% to 0.39% (We'll use the average, 0.24%, for calculation)

    Management Fee: $4.99/month (which translates to $59.88/year)

    Administration Fee: $0

    Questwealth

    MER: 0.17% to 0.35% (We'll use the average, 0.26%, for calculation)

    Management Fee: 0.25%

    Administration Fee: $0

    Given these details, let's calculate the ending balance for each option.

    Based on the provided fees and an initial investment of $100,000 over a 10-year period with an average annual return of 6% before fees, here are the updated ending balances for each option:

    Tangerine Core Portfolios: $14,788.22

    Moka.ai: $16,726.68

    Questwealth: $17,065.26

    These calculations take into account the management expense ratios (MERs), management fees, and any administration fees associated with each investment option. Questwealth ends with the highest balance, benefiting from its lower combined fee structure. Moka.ai follows, with its performance impacted by the flat monthly management fee but still achieving a significant ending balance due to its lower average MER. Tangerine Core Portfolios, with the highest combined fees, result in the lowest ending balance, illustrating the impact of higher fees on investment growth over time.

  • Methodology for costs

    +

    To calculate the total costs incurred from each provider over the 10-year period, we'll consider the management expense ratios (MERs), management fees, administration fees and any fixed fees as applicable. The total cost will be the difference between what the investment would have grown to without any fees and the ending balance after fees.

    Let's calculate the total costs for Tangerine Core Portfolios, Moka.ai, and Questwealth, using the same assumptions as before: an initial investment of $100,000, an average annual return of 6% before fees over a 10-year period.

    Growth without fees: This is what the investment would have grown to at a 6% annual return with no fees.

    Total cost: The difference between the growth without fees and the ending balance after fees for each provider.

    Let's perform these calculations now.

    The investment would have grown to $17,908.48 over 10 years with a 6% annual return and no fees. Here are the total costs incurred from each provider over the 10-year period:

    Tangerine Core Portfolios: $3,120.26

    Moka.ai: $1,181.80

    Questwealth: $843.22

    These total costs include the impact of management expense ratios (MERs), management fees, administration fees, and any fixed fees as applicable. Questwealth incurs the lowest total costs, followed by Moka.ai, and Tangerine Core Portfolios incur the highest total costs. This calculation highlights the long-term impact of fees on investment growth, with lower fees allowing for a higher ending balance due to reduced costs.

Read more: Wealthsimple vs. Questrade

Read more: EQ Bank vs. Tangerine

Read more: Questwealth review

Read more: Moka app review

Or, to get the most value out of investing, you can start investing in Canada's Best ETFs using some of the best trading platforms in Canada. 

Simplii vs. Tangerine Mortgages

You can get mortgages from Simplii or Tangerine, but you don’t have to (we’re just comparing the two banks here).

Frequently, Canadians are loyal to a fault to their financial institution of choice (or parent’s choice). With other providers, you can shop, compare and have different accounts—chequing, saving, credit cards, insurance, investments, and mortgages. 

Generally, despite all the “bundle” discounts a single provider may offer, you can find better deals (or products that suit you better financially) elsewhere. 

That said, let’s compare Tangerine and Simplii mortgages.

Compare mortgages Tangerine Simplii
Best mortgage rate (as of date of publication) 5.54% for a 5-year fixed 6.79% for a 5-year fixed
Mortgage term lengths available Fixed: 1,2,3,4,5,7, 10
Variable: 5 		Fixed: 2,3,4,5,7, 10
Variable: 5
Mortgage amounts $50,000 to over $1 million $35,000 to over $1 million
Eligibility Canadian resident, purchase residential properties, proof of income, credit check. Minimum downpayment of 5% for mortgages over $500,000, plus 10% of the remaining amount. Mortgages over $1 million require 20% down. Canadian citizens, permanent residents or non-permanent residents authorized to work in Canada. Enough income to make your mortgage payments. Minimum downpayment of 5% for mortgages over $500,000, plus 10% of the remaining amount. Mortgages over $1 million require 20% down.
Lump sum prepayments ✅ Up to 25% of your original mortgage amount ✅ Yes, up to 20% on mortgages with a term of 1-year or longer
Increase regular mortgage payments ✅ Up to 25% of your original mortgage payment ✅ Fixed: Once each year by up to 25% for closed mortgages
Variable: Yes, as long as the amortization period is not reduced to less than five years
Portable ✅ Move without penalty at current rate, term, and loan amount ❌
Open and closed mortgages Closed ✅
Home equity line of credit ✅ ✅
Property type Residential only Residential, investment property
Special features Lock in your mortgage for 120 days Hybrid mortgage (fixed+variable); lock in your mortgage for 120 days; cash back on your mortgage; special mortgage programs for medical professionals; resort lending; rural lifestyle, new Canadian and work permit mortgages
Fees Appraisal fee: $250
Funding processing fee: $280
No appraisal fees
You may incur fees for renewing before the maturity date, refinancing with a new term, transferring to another lender, or paying off your mortgage before the maturity date

Simplii vs. Tangerine: Current promotions

Feature Simplii Financial Tangerine
New Client No-Fee Chequing Offer Welcome offer: Earn $500† when you become a new client and open a No-fee Chequing Account by February 28th, 2025. Add an eligible direct deposit of at least $100 a month for 3 straight months. Offers ends February 28th, 2025. Earn up to $500 by opening a Chequing Account and Savings or Investment Funds Account with promo code EARNMORE.
High-Interest Savings Account Earn 6.0% interest rate on your first Simplii Financial High Interest Savings Account for the first 5 months. Limits apply. Offer ends January 31st, 2025. 6.00% savings rate for 5 months when signing up with promo code EARNMORE.
Credit Card Offer Up to 10% cash back† for your first 3 months up to $1,000 eligible spend Earn an extra 10% cash back (up to $100) with a Tangerine Money-Back Credit Card.
Global Money Transfer Get $50 when you send your first Global Money Transfer. Use promo code GMTEVENT. N/A
GIC Offer Not explicitly mentioned. Not explicitly mentioned.
Student Bank Account Offer Earn $500 with a No-fee chequing account. Conditions Apply; Win the Simplii Financial International Student Banking Contest and get a chance to win $35,000. Conditions Apply; Refer a friend and earn $125. Conditions Apply. Earn up to $500 and a 6.00% savings rate by opening a Chequing Account and Savings or Investment Funds Account with promo code EARNMORE.
Investing Offer Not explicitly mentioned. Set up Automatic Transfers to get $100 by signing up with promo code EARNMORE.

The bottom line

Although Tangerine and Simpli have similar offerings, benefits and drawbacks, key differences do exist where one might be more appealing than another. 

Tangerine grabs attention with its slightly higher savings account interest rates, two credit card choices, and an extensive selection of investment products. This makes it a great pick if you're looking for a comprehensive banking solution that offers competitive returns.

Meanwhile, Simplii brings substantial value with competitive rates, particularly appealing for no-fee daily banking and attractive promotional offers. 

Both banks provide solid online and mobile banking experiences, so your choice might come down to personal preferences, like specific financial products you're interested in, the kind of customer service you expect, and the promotional offers that catch your eye. 

Ultimately, picking between Tangerine and Simplii should hinge on your banking habits, financial goals, and the features and benefits that matter most to you. Think of it as choosing the best tool for your personal finance toolkit.

"Simplii FinancialTM" is a trademark and division of CIBC. Banking services are not available in Quebec.

Tyler Wade Content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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