Simplii Financial Review Canada
In the past few years, Canada’s digital banking space has become increasingly crowded. Longstanding players like Simplii Financial and Tangerine must compete with names like EQ Bank, Motus Bank, and Neo Financial.
In this Simplii Financial review, I’ll cover their products and pricing, share the pros and cons, and a couple of Simplii alternatives to help you decide if Simplii Financial is worth considering.
What Is Simplii Financial?
Simplii Financial is a Canadian online bank and the Canadian Imperial Bank of Commerce (CIBC) digital banking arm. Simplii Financial offers a range of products, including chequing, high-interest savings, a no-fee cash back credit card, investments, mortgages, and personal loans.
Simplii Financial Products
Here’s a closer look at some of the main products offered by Simplii Financial.
Simplii Financial offers customers a No-Fee Chequing Account with no transaction limits and no minimum deposit requirement. The account can be connected to a Simplii Debit Mastercard, which you can use to make purchases online or in-store or withdraw cash at over 3,400 CIBC ATMs Canada-wide.
$400 Welcome Offer
Simplii is currently offering a $400 Welcome Bonus to new chequing customers. To qualify, you must open a no-fee chequing account and add an eligible direct deposit of at least $100 per month for 3 straight months. See Simplii Financial for a full list of terms and conditions.
High-Interest Savings Account
If you’re looking for a way to earn interest on your short-term savings, Simplii Financial has you covered with its high-interest savings account. The account has no transaction fees and no minimum balance requirement. And while the standard interest rate isn’t as high as what competitors like EQ Bank or Neo Financial offer, Simplii does have a generous welcome offer for new clients
6% Welcome Offer
Until January 31, 2024, you can earn 6% interest for the first five months when you open a Simplii Financial High Interest Savings Account.
Simplii Financial offers a lineup of GIC products with terms ranging between 1 and 5 years. Of note, their 1-year GIC is paying a very competitive 5.35%. Interest rates as of this writing are as follows:
- 1 Year 5.35% APY
- 2 Year 5.30%
- 3 Year 5.00%
- 4 Year 5.00%
- 5 Year 5.00%
Note: The Canada Deposit Insurance Corporation covers Simplii Financial GIC products up to the prescribed limits.
Simplii Financial Credit Card
The Simplii Financial Cash Back Visa card is a no-annual-fee credit card that offers cash back rewards. The card includes a welcome offer of 10% cash back on eligible restaurants, food delivery, and bar purchases (up to $500 spend).
The standard cash back earning rates are as follows:
- 4% on eligible restaurant, bar, and coffee shop purchases, up to $5000 spent per year.
- 1.5% cash back on eligible gas, groceries, drugstore purchases, and preauthorized payments, up to $15,000 spending per year.
- 0.5% cash back on all other purchases (no spending limit.)
As mentioned, there is no annual fee, and the cash purchase interest rate is 19.99% (increasing to 20.99% effective the first day of the February 2024 statement period.)
Simplii Financial offers fixed and variable mortgages, with terms ranging from 6 months (convertible) to 10 years. If you’re interested in going for a mortgage with Simplii, you can request a call from a Simplii Mortgage Specialist by completing a contact form on the website.
You can access personal loans and lines of credit through Simplii Financial. You can start an application online or by calling a Simple representative at 1-888-723-8881.
Simplii offers competitive interest rates and flexible repayment options to help you access funds when needed while staying on top of your financial goals.
Simplii Financial Online Banking
You can access your Simplii accounts via their website or mobile banking app, which is available for both iOS and Android devices. The Simplii Financial mobile app lets you deposit cheques, transfer money between accounts, make a credit card payment, or set balance alerts.
Simplii Customer Service
Simplii Financial offers several ways to get in touch, including phone, email, and live chat. Their customer support team is available 24/7 to assist with any banking inquiries or issues you may face. Simplii Financial’s website also includes a comprehensive FAQ section, which addresses common questions and concerns.
Is Simplii Safe to Use?
Simplii Financial is a subsidiary of the Canadian Imperial Bank of Commerce (CIBC), one of Canada’s largest and most established banks. As a result, you can expect a high level of security and trustworthiness from Simplii.
Your deposits with Simplii Financial are insured by the Canada Deposit Insurance Corporation (CDIC). This means that if Simplii were to fail, CDIC would provide coverage for your eligible deposits up to a limit of $100,000, ensuring your funds are protected. This insurance includes savings accounts, chequing accounts, and GICs with terms of 5 years or less.
Simplii also uses top-notch security measures to protect your personal information and account details. They employ encryption, firewalls, and secure login procedures to safeguard your account from unauthorized access.
If you’re searching for an online bank that can handle your day-to-day banking needs, Simplii Financial has plenty to offer. But it’s not the only online bank in Canada. Here are some Simplii Financial alternatives worth considering.
Tangerine is probably the closest competitor to Simplii Financial regarding its product lineup. Like Simplii, they offer no-fee chequing and high-interest savings, with similar welcome offers on both products.
Tangerine offers two Mastercard credit cards, both cash back rewards cards. What I like about the Tangerine cards is the flexibility. You can select up to three bonus cash back categories based on your spending habits. Otherwise, the cards are very similar to the Simplii Financial Visa card.
One product Tangerine offers that Simplii doesn’t is a business banking account. In fact, you can open business savings and business GIC accounts in Canadian and US dollars.
EQ Bank is one of the most buzzworthy online banks in Canada. In fact, they were recently named the #1 Bank in Canada on the Forbes 2023 list of the World’s Best Banks.
EQ doesn’t offer as many products as Simplii Financial (they don’t offer personal loans, lines of credit, or investment funds), but they provide superior savings and GIC account rates. For example, EQ Bank’s standard savings APY is 3.00%, compared to 0.40% at Simplii Financial. And they currently offer 5.75% APY on a 1-year GIC (vs. 5.35% at Simplii).
When you bank with the EQ Bank card, you’ll get free withdrawals at any ATM in Canada, cash back on your purchases, and no foreign exchange fees on purchases made outside Canada.
Note that the EQ Bank Card is not currently available in Quebec.
Simplii Pros and Cons
There’s a lot to like about Simplii Financial, but like anything else, it has a few drawbacks. Here’s my list of pros and cons.
- No-fee banking
- Generous welcome offers on chequing, savings, and credit card
- Backed by a major Canadian bank (CIBC)
- Free access to CIBC’s massive ATM network
- Wide range of banking products available
- Competitive interest rates on GICs (especially the 1-Year GIC)
- Standard interest rates are lower than some competitors, like EQ Bank
- Difficult to deposit cash
- Only one credit card product (no premium rewards credit card option)
- No business banking accounts offered
The Bottom Line on Simplii Financial
Simplii Financial is a solid online banking platform, but it doesn’t stand out amongst some pretty stiff competition. For example, it’s tough to compete with EQ Bank and the rates they offer on their Savings Plus and GIC accounts. It’s similar to Tangerine, although Tangerine’s credit card offering is superior.
I do like the generous welcome offers. If you have a large savings balance and can take advantage of the 6% bonus interest, it’s well worth considering.
Overall, I’d say that Simplii appeals most to existing CIBC customers who want free online banking but don’t want to have to switch to another bank entirely.
Is Simplii Financial safe and secure?
Yes, Simplii Financial is a safe and secure digital bank in Canada. It is backed by CIBC (Canadian Imperial Bank of Commerce), one of the country’s largest and most reputable banks. Simplii Financial follows strict security measures to protect your financial and personal information. They use encryption technology, fraud monitoring, and frequent security updates to ensure your safety and security while banking with them.
What are the fees and charges associated with Simplii Financial?
Simplii Financial is known for its low or no-fee banking services. They offer chequing and savings accounts with no monthly fees or minimum balance requirements. Their cash back Visa credit card is also a no-fee card. Transactions and bill payments are typically free, but some fees may apply for certain services like bank drafts and wire transfers.
Can I use Simplii Financial for both personal and business banking?
Simplii Financial primarily focuses on personal banking services. As of now, they do not offer specific business banking services. If you’re seeking business banking solutions, you may want to explore other options tailored to your needs.