- New EQ Bank survey finds only half (52%) of Canadians aware of interest earned on chequing accounts
- 1-in-2 Canadians (52%) dissatisfied with financial incentives from banks
- Majority of Canadians 18-34 (71%) still use first-ever bank accounts
- EQ Bank increases bonus interest on everyday banking to 4.00%1 with direct deposit
- Eugene and Dan Levy bring familiar parent-child insights to light in "Second Chance" campaign launch
TORONTO, Jan. 11, 2024 /CNW/ - EQ Bank, powered by Canada's Challenger Bank™, Equitable Bank, is helping Canadians re-define their chequing account expectations after its new survey revealed a significant disconnect in awareness about fees paid and interest earned. The survey also found that, despite widespread feelings of dissatisfaction, most young Canadians 18-34 still use their first-ever bank accounts. To raise awareness of this common predicament, EQ Bank joined forces with Eugene and Dan Levy to give Canadians a "Second Chance" at these first accounts.
In a landscape where most banks offer little-to-no interest and charge fees on chequing accounts, Canadians' awareness of what they could be making on their chequing accounts is low. The survey, conducted by EQ Bank among members of the online Angus Reid Forum, uncovered that only half (52%) of Canadians are aware of what interest they earn on these deposits compared to much higher awareness of bank fees (80%). Unsurprisingly, the majority of Canadians (52%) do not feel their primary bank provides them with adequate financial incentive, like earning interest on chequing deposits.
"EQ Bank is waking Canadians up to better banking options," said Mahima Poddar, SVP and group head, personal banking, EQ Bank. "Our research shows that today's banking landscape has trained Canadians to be aware of and demand reduced fees but often avoids a critical part of the equation: earning interest. The reality is that many Canadians have paid thousands in fees on chequing accounts while earning nothing or very little in interest. With the new year, we challenge Canadians to ask whether their banks are working hard enough for them and providing strong incentives to help them reach their full financial potential faster."
Active first-ever bank accounts are common for young Canadians aged 18-34. The majority of this group admit to still using their original accounts (71%) and have also never changed their everyday bank (62%). Despite this longevity and loyalty, all is not well – over half (55%) of Canadians 18-34 do not feel they receive adequate financial incentive from their current bank.
"It's never too late to ask questions and challenge the status quo, even when that means re-examining long-held beliefs," continued Poddar. "Canadians seem to be apathetic to moving away from the accounts they start with even though these bank accounts don't satisfy their needs. This seems to be largely explained because they're unaware that a world of better options exists outside their first-ever bank. No matter the stage of life, EQ Bank encourages Canadians to take charge of their financial futures by looking beyond what is familiar and instead choosing what could make them more."
Earning high interest and paying no fees on everyday banking are clear financial incentives that Canadians deserve from their banks. In order to encourage Canadians to break ingrained habits and improve their financial lives, EQ Bank is now offering customers the opportunity to earn 4.00% bonus interest on their everyday accounts when they direct deposit their pay.
"EQ Bank's account is like the dawn of a new era in personal banking," added Poddar. "We are re-defining the idea that chequing and savings accounts need to be entirely separate. By combining the best features of chequing with no fees and high interest, we're offering Canadians a better solution in which their money is always working for them no matter how they use it."
Setting up an account for the first time or earning 4.00% interest on an existing account takes minutes. More information can be found at eqbank.ca/help.
While every Canadian parent/guardian had good intentions when opening bank accounts for their children, even the best laid plans sometimes warrant a pivot. EQ Bank brought beloved Canadian father-son duo, Eugene and Dan Levy, together to help Canadians understand that they can easily get a second chance at their first-ever bank accounts.
"Most parents signed their little ones up for a bank account so they could learn about money and saving from an early age," said Eugene Levy. "The idea of highlighting the unintended result of that decision – high bank fees and not much interest – and exploring parents' epiphany moment was the hook that Daniel and I found funny."
"Every parent-child relationship has had their fair share of finance talks," said Dan Levy. "Getting the chance to satirize those conversations with my dad was a lot of fun – and a little cathartic, too."
Over the next year, Canadians can expect to see Eugene and Dan's conversation play out on TV screens, online, social media and billboards across the country. To hear what the comedy superstars have to say about second chances, visit EQ Bank's YouTube channel @eqbankcanada.
To learn more about EQ Bank and open an account or take advantage of 4.00% interest in minutes, visit eqbank.ca/help today.
Equitable Bank—Canada's Challenger Bank™—is a wholly owned subsidiary of EQB Inc., which trades on the Toronto Stock Exchange (TSX: EQB) (TSX: EQB.PR.C) and serves more than 578,000 customers. Equitable Bank's wholly owned subsidiary Concentra Bank supports Canadian credit unions and their more than 6 million members. With more than $115 billion in combined assets under management and administration, Equitable Bank has a clear mandate to drive change in Canadian banking to enrich people's lives. Founded more than 50 years ago, Canada's Challenger Bank™ provides diversified personal and commercial banking, and through its digital EQ Bank platform (eqbank.ca) has been named the top Schedule I Bank in Canada on the Forbes World's Best Banks 2021, 2022 and 2023 lists. Please visit eqbank.investorroom.com for more details.
These are the findings of a survey conducted by EQ Bank from December 20-22, 2023, among a representative sample of 1,507 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English only. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.5 percentage points, 19 times out of 20.
1 Interest is calculated daily on the total closing balance and paid monthly. For the EQ Bank Card, interest is paid into the linked Savings Plus Account. Rates are per annum and subject to change without notice. For the Savings Plus Account, Joint Savings Plus Account and EQ Bank Card, the current base interest rate is 2.50% (the "Base Rate"). Customers who add and maintain qualifying recurring direct deposits of at least $500/month to a Savings Plus Account or Joint Savings Plus Account are eligible to earn a bonus interest rate of 4.00% (the Base Rate plus an additional 1.5%) for the eligible accounts (the Savings Plus Account, Joint Savings Account and the EQ Bank Card balance) for a maximum period of 12 consecutive months. Conditions apply. Please review the EQ Bank Bonus Interest Offer Terms and Conditions for details.
Director, PR & Communications
SOURCE EQ Bank