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Chequing accounts are an integral part of personal finance management. As the most well-utilized form of bank account, chequing accounts drive various banking activities, such as ATM withdrawals and transactions, bill payments, and money transfers. There are several chequing accounts in Canada to suit various financial needs.
This article provides all the information you need to choose the right chequing account for you, including an outline of the types of chequing accounts available, and a detailed list of chequing account options in Canada. Let’s dive in.
What Are Chequing Accounts?
A chequing account is a banking account that facilitates day-to-day transactions. It lets you deposit money, pay bills, handle everyday transactions, and manage short to medium-term financial needs. Unlike savings accounts, funds in a chequing account usually do not earn interest. However, some banks offer hybrid accounts that merge the benefits of savings and chequing accounts.
The Advantages of Chequing Accounts
Chequing accounts offer numerous advantages:
- Easy Access to Funds: Chequing accounts provide easy and immediate access to your funds for transactions.
- Transaction Variety: They allow various transactions including bill payments, deposits, withdrawals, and money transfers.
- Security: Most chequing accounts in Canada are protected by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000.
The Disadvantages of Chequing Accounts
- Fees: Chequing accounts often come with various fees including monthly fees, transaction fees, and ATM fees.
- Low Interest: They rarely offer interest on the deposited money.
- Potential for Overspending: Having easy access to money could lead to overspending and hinder your savings goals.
The Types of Chequing Accounts
Here, we outline the key types of chequing accounts suitable for different users:
- Personal Chequing Accounts: Designed for individual use, they offer diverse banking services with varying monthly fees based on the included transactions and features.
- Senior Chequing Accounts: Tailored for seniors (aged 60 or 65 and above), these accounts usually have low or no monthly fees and unlimited transactions.
- Student Chequing Accounts: These are designed for post-secondary students, offering low or no fees with unlimited transactions.
- Youth Chequing Accounts: For individuals under the age of majority, they provide functionality similar to a regular chequing account with the ability to earn interest like a savings account.
- Joint Chequing Accounts: Shared by two or more individuals, joint accounts are generally used by couples or parent-child duos for combined funds or household bill payments.
- Business Chequing Accounts: These are ideal for entrepreneurs and small business owners. They work like personal chequing accounts but are designed for business-related finances.
- USD Chequing Accounts: For those dealing with U.S. currency frequently, these accounts keep the money without converting it to CDN, providing easy access while in the United States.
- Online-only Chequing Accounts: These accounts operate completely online, offering low or no fees due to savings on overhead costs from operating physical branches.
- Hybrid Accounts: These accounts combine a chequing account’s functionality with a savings account’s high-interest-earning capabilities.
What to Consider When Choosing a Chequing Account?
Choosing the right chequing account depends on several factors:
- Banking Habits: Determine the number of transactions you make each month and how you conduct your banking (online or in-person).
- Fees: Consider the monthly fees, transaction fees, ATM fees, and other service charges associated with the account.
- Features: Look for features like the number of transactions, paper statements, wire transfers, foreign ATM transactions, overdraft fees, and cashier’s cheque fees.
- Accessibility: Consider the size of the bank’s ATM network and branch access for in-person banking needs.
- Rewards and Interest: A few chequing accounts offer rewards in the form of interest or points earned on debit transactions.
The Best Chequing Accounts in Canada
Now that you have a basic understanding of chequing accounts, let’s explore some of the best options available in Canada.
Best overall chequing account: BMO Performance chequing account
The BMO Performance Chequing account stands out as the best overall chequing account, with an excellent welcome offer, low monthly fees, and an award-winning streamlined banking app.
- Monthly Fee: $16.95 or $0 if you maintain a minimum balance of $4000 a month.
- Number of Transactions:
- Interact e-Transfers: Free unless the daily limit goes over $3000.
- Extra Features: Widespread access to no-fee ATMs, free identity theft protection with OnGuard, and students automatically qualify for a free monthly plan.
- Service Charges: Overdraft fees are $5/month. Bill payment fees are $1.50 where applicable. There may be charges for using POS devices. If you use customer service to make a transaction an assisted-service fee applies. Global money transfers cost $5/transfer. One free Canadian withdrawal is included and then costs $2 each and $5 abroad.
- Welcome Offer: An opening bonus of $600 if you include a savings account, invite a family member, and make certain transactions before February 29, 2024.
Best No-Fee Chequing Account: Simplii Financial No-Fee Chequing Account
The Simplii Financial No-Fee Chequing Account stands out for its unlimited transactions and zero fees. It offers everything a standard chequing account does, including bill payment, money transfers, withdrawals and Interact e-transfers. However, it is an online-only bank which means you need to be comfortable managing your account online through a website or mobile app.
Despite being an online bank, Simplii is associated with CIBC, so you have access to CIBC’s network of over 3,400 ATMs across Canada.
- Monthly Fee: None.
- Number of Transactions: Unlimited.
- Interac e-Transfers: Free.
- Extra Features: Mobile banking app for Apple and Android, pay-per-use overdraft protection.
- Service Charges: None for daily banking, but some for other services.
- Welcome Offer: You could earn $400 when you open an account by February 29, 2024 and meet certain conditions.
Best Student Chequing Account: Scotiabank Student Banking Advantage Plan
The Scotiabank Student Banking Advantage Plan is an attractive choice for students, offering unlimited transactions with no monthly fees. You can also earn Scene+ points on your debit purchases.
- Monthly Fee: None for students.
- Number of Transactions: Unlimited.
- Interac e-Transfers: Unlimited.
- Does it earn interest?: No.
- Extra Features: Mobile banking app for Apple and Android, pay-per-use overdraft protection. Free paperless and paper statements.
- Service Charges: None.
- Welcome Offer: Earn a $100 welcome bonus when you open an account and meet certain conditions.
Best Premium Bank Account: Scotiabank Ultimate Package
The Scotiabank Ultimate Package offers numerous premium perks such as unlimited transactions, free personalized chequebooks, money orders, and safety deposit boxes. It charges a monthly fee of $30.95, which can be waived if you maintain a minimum balance of $5,000.
- Monthly Fee: $0 or $30.95 (waived by maintaining at least $5,000 in your account).
- Number of Transactions: Unlimited.
- Interac e-Transfers: Unlimited.
- Extra Features: Free withdrawals from the Exchange Network’s surcharge-free ATMs, and earn 1 Scene+ point per $5 spent on everyday purchases and 1 point per $1 spent at Cineplex. No overdraft protection fees.
- Service Charges: Some, including $2.25 for paper statements.
- Welcome Offer: You can earn a $350 welcome bonus when you open an account. Conditions apply.
Best Rewards Chequing Account: PC Money Account
The PC Money Account stands out for its free, unlimited transactions and the opportunity to earn valuable PC Optimum points on everyday debit purchases. The account offers no monthly fees, no minimum balance requirements, unlimited transactions, and Interac e-transfers.
- Monthly Fee: $0
- Number of Transactions: Unlimited.
- Interac e-Transfers: Unlimited.
- Extra Features: Earn 25 PC Optimum points per $1 at Shoppers Drug Mart, 10 points per $1 at Loblaw banner grocery stores and 5 points per $1 spent everywhere else.
- Service Charges: Some, including $1.50 for ATM withdrawals at non-PC machines.
- Welcome Offer: You can earn up to 150,000 PC Optimum points.
Best Account from an Online-Only Bank: Motive Chequing Account
The Motive Chequing Account is an online-only bank offering free, unlimited transactions and an interest rate of 0.15%. You also get access to more than 3,600 ATMs on the Exchange Network.
- Monthly Fee: $0
- Number of Transactions: Unlimited.
- Interest rate: 0.15% of deposited funds. You get interest back based on your daily closing balance, paid out once a month.
- Interac e-Transfers: Unlimited.
- Extra Features: Mobile cheque deposits, and free withdrawals from the Exchange Network’s surcharge-free ATMs. 50 free personalized c
- Service Charges: Some, including $1.50 for ATM withdrawals at non-PC machines.
- Welcome Offer: None.
Best Hybrid Account: EQ Bank Savings Plus Account
The EQ Bank Savings Plus Account is a hybrid account offering a high interest rate of 2.50% with unlimited transactions and no monthly fees. It comes with a Mastercard debit card you can use at any ATM in Canada and anywhere that accepts Mastercard—for free. Plus, you get 0.5% cash back on every purchase.
- Monthly Fee: $0
- Number of Transactions: Unlimited.
- Interac e-Transfers: Unlimited.
- Interest rate: 2.50%.
- Extra Features: 0.5% cash back on every purchase (paid monthly), mobile cheque deposit, joint account access, international money transfers through Wise, and S. dollar account access.
- Service Charges: None.
- Welcome Offer: None.
The Best Chequing Account for Newcomers in Canada: TD Unlimited Chequing Account
The TD Unlimited Chequing Account offers an excellent starting offer for newcomers to Canada looking to open a bank account. With no monthly fees for the first 12 months of opening an account, an easy-to-use app, and accessible and reliable options to transfer money internationally to over 200 countries.
Monthly Fee: No monthly fee for the first 12 months, then $16.95 a month.
- Number of Transactions: Unlimited transactions,
- Interac e-Transfers: Free Interact e-transfers.
- Extra Features: An easy to use free app, no monthly fees if you keep your balance above $4000.
- Service Charges: Overdraft protection service for $5 a month, or $5 per instance depending on your account settings. $3 to $5 foreign ATM charges. $2 for paper statements.
- Welcome Offer: Get $350 when you open your first account as a newcomer to Canada before January 31, 2024. Certain conditions apply.
The Best Chequing Account for Newcomers in Quebec: National Bank Newcomer Bank Account
Designed to help newcomers to Quebec set up their financial lives, The National Newcomer Bank Account offers no fees for up to three years with unlimited Interac e-Transfer and digital transactions.
- Monthly Fee: $0 for up to three years ($15.95 thereafter).
- Number of Transactions: Unlimited digital.
- Interac e-Transfers: Unlimited.
- Extra Features: Mobile cheque deposit, eligibility for a National Bank Mastercard without having a Canadian credit history.
- Service Charges: Some, including in-branch transactions and paper statements ($2.50/month/account).
- Welcome Offer: None.
To compare the chequing accounts above, see the following summary table:
The Best Chequing Accounts in Canada Summary Table
| Chequing Account | Best for Category | Monthly Fees | Welcome Offer |
|---|---|---|---|
| BMO Performance Chequing account | Overall category | $16.95 or $0 with a minimum maintained account balance of $4000. | A maximum opening bonus of $600 before February 29, 2024, for meeting certain criteria. |
| Simplii Financial No Fee Chequing Account | No-fees category | $0 | Earn $400 when you open an account by February 29, 2024, and meet certain conditions. |
| Scotiabank Student Banking Advantage Plan | Best student chequing account. | $0 | Earn a $100 welcome bonus when you open an account and meet certain conditions. |
| Scotiabank Ultimate Package | Best Premium Bank Account | $30.95 or $0 with a minimum maintained account balance of $5000. | Earn a $350 welcome bonus when you open an account. Conditions apply. |
| PC Money Account | Best Rewards Chequing Account | $0 | Earn up to 150,000 PC Optimum points. |
| Motive Chequing Account | Best Account from an Online-Only Bank | $0 | None |
| EQ Bank Savings Plus Account | Best Hybrid Account | $0 | None |
| TD Unlimited Chequing Account | Best Chequing Account for Newcomers to Canada | $0 for the first 12 months, then $16.95 a month | Get $350 when you open your first account as a newcomer to Canada before January 31, 2024. Certain conditions apply. |
| National Bank Newcomer Bank Account | Best Chequing Account for Newcomers to Quebec | $0 for up to three years. | None |
Wrapping Up
Chequing accounts are a necessity for managing your day-to-day finances. The best chequing account for you depends on your specific needs, banking habits, and the number of transactions you make. By considering the different types of accounts, their features, fees, and accessibility, you can find the best chequing account in Canada that suits your financial needs.
Chequing Accounts: Frequently Asked Questions
Here are some frequently asked questions about chequing accounts:
Q1: Do chequing accounts earn interest?
A1: Although rare, some chequing accounts do offer interest. The interest rate is usually lower than that of a savings account.
Q2: Do you need a chequing account?
A2: Yes, a chequing account is necessary to manage your finances and allows you to receive payments, pay bills, and make everyday purchases.
Q3: What are the advantages and disadvantages of a chequing account?
A3: Chequing accounts provide easy access to your funds, allow various transactions, and offer security through CDIC insurance. However, they may come with various fees, offer low or no interest, and can lead to overspending due to easy access to funds.
Q4: What are the different types of chequing accounts?
A4: There are several types of chequing accounts including personal, senior, student, youth, joint, business, USD, online-only, and hybrid accounts.
Q5: What to consider when choosing a chequing account?
A5: When choosing a chequing account, consider your banking habits, the account fees, features, accessibility, and any rewards or interest offered by the account.
