Motive Financial Review 2024: Is It Worth It?
Motive Financial Review Rating: 4.4/5
The ongoing impact of the pandemic and technology development has impacted how Canadians bank today.
Before now, online banks were seen as the exclusive alternative for tech-savvy Canadians.
But as online-only banks continue to evolve, they’re now the ultimate alternative to traditional banks, especially the Big Banks.
According to a study conducted by the Canadian Bankers Association, 9 out of 10 Canadians are banking online.
We can easily associate this development with the ease of use, low cost, competitive interest and 24/7 access that online banks provide.
Unfortunately, with the increase of online banks in Canada, it becomes more difficult to decide which digital bank to go with.
Since its inception in 2008, Motive Financial has positioned itself as one of the best online banks in Canada.
Could it be the best for you? What are the pros and cons of Motive Financial? If Motive Financial is not for you, what are the best alternatives to consider?
This Motive Financial review provides everything you need to know about the digital bank including how it compares with other online banks.
Overview of Motive Financial
The following table summarizes my Motive Financial review for your quick understanding.
| Name | Motive Financial |
| Year founded | 2008 |
| Parent company | Canadian Western Bank |
| Headquarters | Edmonton, Alberta |
| Products & services | Savings accounts | Chequing accounts | GICs |
| Industry | Financial Services |
| Deposit protection | CDIC |
| Contact | Email: [email protected] | Phone: 1-877-441-2249| Fax: 1-877-441-2250 |
| Website | www.motivefinancial.com |
| Pros | High-interest rates, low fees & ease of use |
| Cons | Limited products, limited access & hard credit check |
| Overall rating | 4.4/5 |
| Recommendable? | Yes |
| Alternatives | EQ Bank, Tangerine, Saven Financial, Neo Financial |
What is Motive Financial?
Motive Financial is an Edmonton-based online-only bank that was founded in 2008. At its inception, it was known as Canadian Direct Financial not until it was rebranded to Motive Financial in April 2017.
The bank operates as one of the subsidiaries of Canadian Western Bank, which is a member of CWB Financial Group company and the Canada Deposit Insurance Corporation (CDIC).
Motive belongs to the financial services industry as it offers Canadians access to high-interest savings accounts, chequing accounts and GIC accounts.
Motive’s unique products have distinguished it from the competition, making it a top consideration for potential digital banking users in the country.
But the fundamental question is, is Motive worth the switch for you? Let’s find out!
How Does Motive Financial Work?
Motive Financial operates entirely online. That is, it doesn’t have physical branches like traditional brick-and-mortar banks.
As with other online-only banks, Motive converts its low-operational cost to low banking fees and high-interest rates on savings and GIC accounts.
Account opening, banking, investing and every other function with the bank are carried out through its online banking portal and mobile app.
That’s, you can bank with Motive Financial 24/7 using your mobile phone, tablet, computer or any device with Internet access.
You can make deposits and withdrawals through 2400 THE EXCHANGE Network ATMs. To send or receive transfers, you can use electronic funds transfer (EFT), Interac e-Transfer and cheque.
That said, if you have complaints or inquiries for Motive, you can table them by phone, email or fax instead of commuting to a physical branch.
Finally, Motive is available to all Canadians excluding Québec residents. However, Motive clients in Québec can operate their accounts through online banking, ATMs and points of sale (POS).
Is Motive Financial Safe?
Motive Financial is safe as per the standard of online banks in Canada. The safety of online banks in Canada is usually measured by how deposits and clients’ information are protected.
With Motive Financial, your deposits up to $100,000 are insured by the Canada Deposit Insurance Corporation (CDIC) per insured category.
The bank protects your personal and financial information on its online and mobile banking database using 128-bit encryption and other industry-standard security techniques.
In addition, Motive assigns Personal Access Code (PAC) to every client account. Without this authentic code, no one can access your account information.
And if your online banking session was inactive for 20 minutes, Motive will automatically end it to protect your information.
Even though it operates entirely online, Motive has taken measures to ensure that the security of its computer hardware and communications is not breached physically.
Is Motive Financial Legit?
Motive Financial is a full-fledged legit online-only bank in Canada. The bank offers legit financial products ranging from high-interest savings accounts, chequing accounts and GIC accounts.
In addition, Motive Financial’s parent company, Canadian Western Bank, has been in existence since 1988 and has $7.82 billion in assets under management as of 2021.
With deposit insurance from the CDIC, you can be sure that you’re dealing with a legit online bank.
Motive Financial Products
In this section, we shall take an in-depth view of Motive Financial’s offering to the online banking industry of Canada.
Motive currently offers two savings accounts, two chequing accounts and registered and non-registered GIC accounts.
It is worth stating that the quality of these products, not the quantity, is what distinguished Motive from other online banks in Canada
Let’s have a detailed view of each of the products!
1. Motive Savings Account
The Motive Savings Account is a standard account with no minimum balance and monthly fees.
This account offers access to free deposits, withdrawals, and the second largest ATM network in Canada (THE EXCHANGE Network).
The savings rate of this account is capped at 1.00% for a $0 – $5,000,000 deposit and 0.50% for a $5,000,000.01 deposit and above.
2. Motive Savvy Savings Account
Motive Savvy Savings Account is a high-interest savings account that doesn’t also require monthly fees like the Motive Savings Account.
With this account, you will get up to a 4.10% interest rate on your savings depending on your deposit balance.
The 4.10% high-interest rate applies to deposits between $0 – $5,000,000. If you deposit $5,000,000.01 and above, you will earn a low interest of 0.50%.
While the Motive TFSA savings account has a 4.10% interest, the Motive RRSP savings account has the following rates:
- 0.25% for $0 – $2,500 deposit
- 2.60% for a $2,500.01 deposit and above
That said, the Motive Savvy Savings Account also offers access to free deposits, 2 free transactions per month and unlimited transfers between accounts.
3. Motive Chequing Account
The Motive Chequing Account is the standard chequing account of Motive Financial. Like the savings accounts, this account doesn’t require monthly fees.
In addition to offering the first 50 free personalized cheques, the Motive Chequing Account also offers access to unlimited free transactions and THE EXCHANGE Network.
Unlike other online chequing accounts out there, the Motive Chequing Account offers 0.15% interest on a $0 balance and above.
4. Motive Cha-Ching Chequing Account
The Motive Cha-Ching Chequing Account is the advanced version of the Motive Chequing Account.
This account doesn’t also have monthly fees and it offers access to the first free 50 personalized cheques, unlimited free transactions and THE EXCHANGE Network.
In addition, the Motive Cha-Ching Chequing Account offers access to free Interac e-Transfers and unlimited monthly withdrawals.
Even more interesting is the fact that the Motive Cha-Ching Chequing Account offers a relatively high interest of 0.25% on a $0 balance and above.
5. Motive Financial GIC Rates
Motive Financial has distinguished itself from the competition with high-interest rates on guaranteed investment certificate (GIC) accounts.
You can access the competitive rates through registered and non-registered GIC accounts with a minimum balance of $500-$1,000.
In what follows, I provide a brief explanation of Motive GICs and their current rates.
- Motive Financial Non-Registered GIC Rates
The Motive non-registered GICs are taxable GIC accounts that require a minimum balance of $1,000 with terms ranging from 1 year to 10 years.
Depending on the term you choose, you can receive your interest annually on your Motive Savings Account or have it compounded to receive a lump-sum payment at maturity.
If you’re over the age of 57, Motive can pay you the interest monthly provided you invest in at least a 1-year GIC term.
That said, the following are the Motive non-registered GIC rates as of May 6, 2024:
| Term | Interest Rate |
| 1-year | 5.40% |
| 2-year | 5.20% |
| 3-year | 4.65% |
| 4-year | 4.50% |
| 5-year | 4.35% |
| 6-year | 4.30% |
| 7-year | 4.60% |
| 8-year | 4.60% |
| 9-year | 4.60% |
| 10-year | 4.60% |
Motive Financial GIC Promo (Expired)
Motive Financial offered a 5.75% special interest rate on 120-day non-redeemable GIC account. The offer expired on October 31, 2023.
- Motive Financial Registered GIC Rates
Motive Registered GICs offer tax advantages on your investment. The available accounts include TFSA and RRSP GICs.
The TFSA GIC requires a $1,000 minimum balance and it’s fully redeemable at 0.00% interest. On the other hand, RRSP GIC requires a $500 minimum balance.
Both the TFSA and RRSP GICs have the same rates which are compounded annually and paid as a lump sum at maturity.
The following are the current Motive Financial TFSA and RRSP GIC rates which are the same as the non-registered GIC rates.
| Term | Registered GIC Rate |
| 1-year | 5.40% |
| 2-year | 5.20% |
| 3-year | 4.65% |
| 4-year | 4.50% |
| 5-year | 4.35% |
| 6-year | 4.30% |
| 7-year | 4.60% |
| 8-year | 4.60% |
| 9-year | 4.60% |
| 10-year | 4.60% |
Motive Financial Fees
The Motive Financial fees vary per account. But as an online-only bank, Motive fees are considerably lower compared to the fees of the Big Banks.
Below is a highlight of the current Motive Financial fees per bank account:
| Service | Motive Chequing and Cha-Ching Chequing Account Fees | Motive Savings Account Fees | Motive Savvy Savings Account Fees |
| Monthly fee | None | None | None |
| Number of free monthly withdrawals | Unlimited | Unlimited | 2 ($5 per additional withdrawal) |
| Interac e-Transfer | $1.00 | $1.00 | $1.00 |
| Withdrawal fee at THE EXCHANGE Network ATM | Free | Free | Free |
| Withdrawal fee at non-EXCHANGE Network ATM | $1.50 | $1.50 | $1.50 |
| First 50 personalized cheques | Free | – | – |
To learn more about other service fees that Motive Financial charges visit this page.
Pros and Cons of Motive Financial
So far, I have discussed everything that Motive Financial entails. With this information, we can easily identify the following pros and cons of Motive Financial:
Pros
- High-interest rates: From savings accounts to GICs, Motive Financial has some of the most competitive interest rates out there.
- Low fees: Motive Financial converts its low operational costs to low fees by charging no monthly fees, ATM withdrawal fees at THE Exchange Network, and other service fees.
- Ease of use: The motive online banking portal and mobile app have an intuitive interface that simplified digital banking.
Cons
- Limited products: You can only access savings accounts, chequing accounts, and GIC accounts at Motive Financial at the moment.
- Limited access: Motive is not available to Québec residents. Although this is common among other online banks that don’t operate in French.
- Credit check: Motive Financial runs a hard credit check when reviewing account opening applications. This can impact your credit score temporarily. Several online banks approve account applications without running a hard check.
My Motive Financial Review Rating
I rate Motive Financial 4.4 out of 5 stars based on comparative analysis and the total rating of the following features.
Motive Financial Rating Methodology
Overall Rating
With this, my Motive Financial review is positive and recommendable to Canadians looking for competitive interest in savings and GIC accounts.
Is Motive Financial Worth It?
From the above Motive Financial review, you should be able to decide whether or not Motive is suitable for you.
As always, you want to look at the available products and their quality before choosing an online bank. In the article “How to Choose the Best Online Bank in Canada“, I also recommend the following consideration:
- Fees
- Interest rates
- Promotions
- Eligibility
- Accessibility
- Security and coverage
With this in mind, you’re in the right position to tell yourself whether Motive Financial is worth it or not.
Notwithstanding, you can’t go wrong with Motive Financial considering its competitive interest rates, low fees and ease of use.
How to Open a Motive Financial Account
If Motive Financial is suitable for you, the next step is to open an account with it.
But before you can open a Motive Financial account, you must meet the following eligibility:
- Be a Canadian citizen or resident (excluding Québec)
- Be 18 years or older
- Have a Social Insurance Number (SIN)
- Have a valid email address and phone number
- File your taxes in Canada
- Have a driver’s license
If you meet the above requirements, you should follow the steps below to open an account with Motive online:
- Visit the sign-up page here
- Click on the “Let’s go!” button to initiate the application
- Follow the prompts
According to Motive, the online application process takes about five minutes from start to finish. Interestingly, you can pause the application and resume later.
Once you complete the application process and your account is “MotiVerified,” you can start using your account immediately.
You can open a single or joint account with Motive Financial.
Motive Financial Alternatives
There are dozens of online banks out there making it flexible to compare and choose from the best option.
So if Motive Financial doesn’t suit your needs, all you need is to consider some of the best alternatives such as EQ Bank, Tangerine, Neo Financial, Saven Financial, Wyth Financial and Peoples Trust.
Below is an overview of Motive Financial alternatives for easy selection.
Motive Financial vs EQ Bank
| Key Features | Motive Financial | EQ Bank |
| Products | Savings, chequing and GIC accounts | Savings accounts, USD accounts, GICs, mortgage marketplace, prepaid card, international money transfers |
| HISA rate | 4.10% | 4.00% |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
EQ Bank has maintained a long reputation for offering competitive interest on savings and GIC accounts. While Motive outshines it in terms of savings and GiC rate, EQ Bank has more products than Motive.
Motive Financial vs Tangerine
| Key Features | Motive Financial | Tangerine |
| Products | Savings, chequing and GIC accounts | Savings accounts, chequing accounts, credit cards, GICs, lines of credit, mortgages |
| HISA rate | 4.10% | 5.75% promotional and 0.70% regular |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
Tangerine is a household name in the Canadian digital banking industry due to its wide range of competitive products. While Tangerine’s regular savings rate (0.70%) is lower than the Motive HISA rate (4.10%), its promotional savings rate (5.75%) is currently one of the highest in Canada.
Motive Financial vs Neo Financial
| Key Features | Motive Financial | Neo Financial |
| Products | Savings, chequing and GIC accounts | Savings accounts, credit cards, managed investing, and mortgage marketplace |
| HISA rate | 4.10% | 4.00% |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
Neo Financial is behind Motive in terms of savings rate, but it outshines Motive in terms of product offerings. Neo is popular for its cashback credit card that offers 15% back on the first purchase and 5% back on purchases at partner stores.
Motive Financial vs Saven Financial
| Key Features | Motive Financial | Saven Financial |
| Products | Savings, chequing and GIC accounts | Savings and GIC accounts |
| HISA rate | 4.10% | 4.20% |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | FSRA |
Operating as an online-only credit union, Saven Financial shares many similarities with Motive Financial. However, Saven is only available for Ontarians and it is regulated by the Financial Services Regulatory Authority of Ontario (FSRA). While Saven also has a higher savings rate, it has a lower product offering than Motive.
Learn more: Saven Financial Review
Motive Financial vs Wyth Financial
| Key Features | Motive Financial | Wyth Financial |
| Products | Savings, chequing and GIC accounts | Savings accounts, GICs, mortgages |
| HISA rate | 4.10% | 2.25% |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
Wyth Financial is a Saskatoon-based online bank that’s also regulated by the CDIC. Wyth’s HISA rate is 1 points below Motive’s. However, Wyth offers some of the most competitive GIC and mortgage rates in Canada. Unlike Motive, Wyth is available for individuals, corporate organizations and credit unions.
Note: Wyth Financial is closed following its acquisition by Equitable Bank.
Learn more: Wyth Financial Review
Motive Financial vs Peoples Trust
| Key Features | Motive Financial | Peoples Trust |
| Products | Savings, chequing and GIC accounts | Savings accounts, GICs, mortgages, payment solutions, prepaid and credit cards |
| HISA rate | 4.10% | 3.40% |
| Monthly fee | None | None |
| Minimum balance | None | None |
| Deposit protection | CDIC | CDIC |
Peoples Trust has been in existence since 1985 operating as a division of People’s Group. Peoples Trust’s HISA rate is the same as those of Motiv. However, People’s Trust offers more financial products than you can access at Motive.
Learn more: Peoples Trust Review
Verdict on Motive Financial Review
Motive Financial is indeed a worthy alternative to the Big Banks in terms of interest rates and fees.
If you’re looking for an online bank with competitive interest in savings and GIC accounts, you can’t go wrong with Motive Financial.
While my Motive Financial review is positive, the ball is in your court to decide whether or not to open an account with the bank.
If you need more clarification in making such a critical decision, don’t hesitate to drop your concerns in the comment section or contact your financial advisor.
RELATED: Oaken Financial Review
FAQs on Motive Financial Review
Motive Financial is good for those looking for an online-only bank in Canada with a high interest in savings and GIC accounts.
Motive Financial is owned by Canadian Western Bank, a member of CWB Financial Group company and the Canada Deposit Insurance Corporation (CDIC).
No. Motive Financial is an online banking division of Canadian Western Bank (CWB). On the other hand, CWB is a member of CWB Financial Group company.
But even as a division of CWB, Motive operates separately. This means you can’t bank with your Motive account through the CWB banking centre.
The maximum transfer limit of Motive Financial is $3,000 per transfer, $10,000 per week, and $20,000 per month.
Yes, Motive Financial runs a hard credit check to verify the name, date of birth and address of each applicant. This can lower your credit score temporarily.
Yes. Motive Financial is insured by the CDIC through its parent company, Canadian Western Bank. This means that your deposit in Motive Financial will be covered up to $100,000 per insured category.
The current Motive Financial high-interest savings rate is 4.10% and up to 5.40% GIC rate.
Unlike other online banks out there, Motive Financial doesn’t have a promo code.
All you need to close your Motive Financial account is to contact a Motive representative through any of the following channels:
Email: [email protected]
Phone: 1-877-441-2249
Fax: 1-877-441-2250
Motive Financial Review
Summary
Motive Financial is a worthy alternative to the Big Banks in terms of interest rates and fees.
Very nice summary of motive. The one thing missing is that gic’s are automatically rolled over which I personally did not like and they admitted on the phone that it is not clear on their website. You must call them to cancel. Rates though are good.
Thanks for the notice.