How to Open a Bank Account at EQ Bank to Get the 3% Interest on Its Daily Savings Account

NOTE: As of December 2016, EQ Bank had reduced its interest rate to 2%. Please check the EQ Bank website for their current interest rate.

OK, so having just started opening an account at Zag Bank to get 2.5% interest for a few months, I’m now changing direction and opening a daily interest savings account at EQ Bank after I checked it out a bit to get 3 percent interest indefinitely, although I’m sure it won’t last the entire year.

NOTE: Unlike some lucky (?) financial writers I am getting absolutely nothing from Zag Bank or EQ Bank for writing these articles. I’m just hoping to get a higher interest rate on my own hard-saved dollars and I’m documenting my trials and tribulations for your edification and amusement.

Who Can Open a Daily Interest Savings Account at EQ Bank?

Now, on January 23, 2016 the rules say you must

be 19 or older
be a Canadian Resident
not live in Quebec
have a Social Insurance Number
have a personal cheque pre-printed with your name, for a Canadian dollar account at a Canadian financial institution that you can make payable to yourself for at least $1 to open the account

You cannot use a credit card cheque.

You cannot use a void cheque.

Why Do All These e-Banks Seem to Need Me to Send in a Cheque from My Own Chequing Account?

These e-Banks are using the other banks’ security systems to ensure you are who you say you are.

In other words, you are not presenting your personal id such as a Driver’s License with a photo or a Passport when you are opening these e-Bank accounts. So they are demanding you provide proof from another bank that you are who you say you are.

The other bank or credit union issued you cheques in your name after identifying you properly.

If it turns out you applied fraudulently under a false name when opening your e-Bank account, then the e-Bank intends to defend itself it court by shifting the blame to your chequing account bank or credit union for failing to properly identify you. It’s a cover their butt tactic.

How Else Do e-Banks Verify Your Id?

Most of these banks will also ask you a string of questions based on your credit history report. In theory, only you should know those details and be able to answer correctly.
Zag Bank uses credit history questions as part of their account setup practices. EQ Bank said it was going to but I haven’t been asked them yet, so I’m not sure when they will be asked.

What Do I Need to Get Started Opening My e-Bank Account at EQ Bank?

What should I have handy before I start this

your SIN
a valid email address NOTE Your email address will be your login ID!
a password for signing in to your bank account with a minimum of 7 alphanumeric characters

You will also have to be able to access your email quickly to get a passcode that they will email you. The code expires a few minutes after it’s sent.

Getting a Savings Account at EQ Bank

Go to the EQ Bank website and make sure the security settings say you are at the Equitable Bank site.

Click on the Join Now button.

The Step 1 Page

Type the required information in the following fields:

Email address (this will be your Login name!)
Password
Confirm Password
First Name
Middle Name (optional)
Last Name
Address
City
Postal code
Mobile number (optional, which is good because I don’t have a Smart phone) (Or a Smart fridge.)
Other phone number
SIN
Date of birth (dd/mm/yy or select from calendar)
Occupation

From the drop-down list select your Province

Do NOT click on the circle beside No for the question Are you a U.S. person? If you do, it slides over to say YES you are a U.S. person for tax reasons. It’s not a check box.

Click on the Next button.

Step 1 Second Page

Answer the question: “Apart from you (or your joint account holder) will anyone else use or benefit from this account?
If your answer is NO just leave the circle beside NO untouched. (If you click on it, it actually changes your answer to YES.)
Answer the question: “How do you intend to use this account?”
From the drop down list select Personal Savings or the applicable answer.
After you have clicked through and read the Terms and Conditions and the Account Agreement, click to check the box beside:
I have read and agreed to the Terms and Conditions and Account Agreement.
If you want to get ads and other communications, click to check that box.
Click on the button: Open Account

The Step 2 Page

Your new account number will be displayed. Make a note of it somewhere safe!
Sign in to them email address that you provided to EQ Bank.
Open their note to read it and find out your one time passcode.
Type the Passcode in the text field: Enter your six-digit passcode
Click on the button: Verify

Completing Your EQ Bank Account Setup

To completely open your account, you must send in a cheque to EQ Bank either by using a photo cheque deposit app or by mailing it in.

Your cheque must

have your name pre-printed on it
be for an account at another Canadian bank or credit union, not a foreign one (credit card cheques are not acceptable)
must be for an amount of at least $1 (This is because they will actually cash the cheque to prove the account is active and in good standing)
not be a void cheque (So you can’t print a void cheque off at, say, Tangerine)
be made payable to yourself
be signed by you like any other cheque

You can use the EQ Bank app to deposit it OR

Mail it to EQ Bank at their Toronto mailing address which will be provided on the enrollment screen.

Before closing the window, you may want to read the other EQ Bank documents. If so, click on the link provided.

NOTE: EQ Banks says your new account will become active 5 days after they receive and deposit your cheque. They will advise you by email when your account is fully active.

Will it work? Stay tuned!
UPDATE: February 10, 2016: My account is fully activated at EQ Bank and I’m using it in various ways. It all went fine, if a bit slowly.

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