Tangerine Bank Review

Tangerine was formerly known as ING Bank of Canada or ING Direct, but it was acquired by Scotiabank in the fall of 2012. It was then rebranded as Tangerine. Ever since, Tangerine has evolved into a progressive online bank which allows them to keep fees and costs of borrowing low. The primary benefit of Tangerine is the low costs, but this is only possible because the bank doesn’t have many physical branches or a wide array of services. All transactions are usually completed online by the individual banker. Overall, Tangerine is a great bank for people who’d prefer to do the majority of their banking themselves in exchange for lower fees and financing costs.

Tangerine Advantages and Disadvantages

Every bank has advantages and disadvantages. Before proceeding with Tangerine, take a moment to consider the below pros and cons to assess whether the bank is a good option for you.

Advantages

  • Low fees and costs of financing
  • Can perform all transactions using Tangerine’s online platform or app
  • A progressive bank for individuals who don’t like traditional banks or have difficulty qualifying for financial products

Disadvantages

  • Minimal physical branches, customer service is most accessible by phone or online chat
  • Access to less financial products and services because the bank is small and primarily online
  • Requires more knowledge of personal finance because customers don’t have access to brick and mortar branches

Tangerine Financial Product Overview

A complete list of all the financial products offered by Tangerine can be found below. For more information or to start the registration process, simply click on the link.

Tangerine Bank Accounts

  • Chequing Account. This account has no fees and earns interest up to 0.15%. Interac e-Transfers are now free and you will receive your first booklet of 50 cheques for free. Overdraft protection is available and you can use Scotiabank ATMs for free.
  • Savings Account. Earn interest of 0.25% with this savings account while paying no fees. There are no minimum balance requirements to earn the interest.
  • Tax Free Savings Account (TFSA). TFSAs are offered by Tangerine. You’ll earn 0.25% interest, have no fees and no minimum balance requirements. Investment income is sheltered within this account.
  • Registered Savings Plan (RSP). Start saving for retirement with this account with a 0.25% interest rate. There are no fees and no minimum balance requirements.
  • Retirement Income Fund (RIF). When you’re ready to retire and withdraw from your retirement savings, you can open an RIF with Tangerine. The interest rate is 0.3% and the account has no fees or minimum balances.
  • S. Dollar Savings Account. If you use US currency often, access a US dollar savings account that earns 0.2% and has no fees or minimum balance requirements with Tangerine. Tangerine offers great exchange rates so you can optimize the amount of foreign exchange amounts you pay.

Tangerine Credit Cards

  • Money Back Credit Card. This credit card has no annual fee and allows cardholders to earn 2% cash back from categories of your choosing and 0.5% cash back on all other purchases. There’s no limit on how much cash back you can earn with this credit card.
  • World Mastercard. Also a cash back rewards card, cardholders earn 2% cashback on categories of their choosing and 0.5% cash back on all other purchases. There’s no limit on cash back earnings. This credit card has the added benefit of travel rewards with Mastercard, rental car collision and damage insurance, mobile device insurance, Mastercard LoungeKey access and several other perks.

Tangerine Mortgages

Tangerine offers mortgages to their clients with a current interest rate of 2.69% on a five year fixed term. If you prefer a variable interest rate, you’ll receive a rate of 2.45%, which varies with Tangerine’s prime rate, over a five year term. A great feature of Tangerine’s mortgages is the flexible pre-payment options. Mortgages are also portable with no penalties if you choose to move.

Tangerine Lines of Credit & Loans

  • Home Equity Line of Credit. Home owners sometimes run into additional costs and need financing. The interest rate is 2.35% and your home equity will be used as security. Tangerine offers a fixed payback plan to ensure that you repay your debt sooner and you can access funds at any point in time.
  • Line of Credit. If you’re looking for financing for a home renovation, debt consolidation or an unexpected expense, you can use a line of credit from Tangerine. This line of credit has great rates, flexible repayment and accessibility at any point in time. There are no fees aside from interest with this account.
  • RSP Loan. If you’d like to catch up on RSP contributions, you can use this loan. The current interest rate is 3.75% and borrowers benefit from flexible repayment options. You can also get approved for this loan quickly and there are no fees.

Tangerine Investments

  • Regular GIC. Earn interest on your investment with no monthly fee. The maximum interest is 1.6% and this is a standard GIC account.
  • RSP GIC. Invest your RSP savings into a GIC with this account. The maximum interest rate is 1.6% and there are no fees.
  • TFSA GIC. Invest your TFSA savings into a GIC with this account. The maximum interest rate is 1.6% and there are no fees.
  • RIF GIC. Invest your RIF savings into a GIC with this account. The maximum interest rate is 1.6% and there are no fees.
  • US Dollar GIC. Invest your US dollar savings into a GIC with this account. The maximum interest is 1.2% and there are no fees.
  • Registered Investment Account. Begin to invest with the savings you’ve accumulated within a RSP, TFSA or RIF. Investment income earned within the portfolio will be tax free. You can begin investing with as little as $25, but keep in mind that registered account restrictions and benefits still apply.
  • Non-Registered Investment Account. Invest funds with this account once you’ve maxed out your registered savings accounts. The minimum amount required to open an account is $25 and you have a lot of flexibility with withdrawals and contributions. The portfolio costs are low and your investments will be globally diversified.