Chequing accounts provide you with easy access to your funds and are great for managing most of your day-to-day transactions, such as paying by cheque, paying bills electronically, making electronic money transfers or depositing and withdrawing money. Most chequing accounts include the use of a debit card to access your money at automated banking machines (ABMs) or to make purchases at the point of sale, for example at a grocery store check-out.
Most chequing accounts do not pay interest on deposits. When a chequing account does pay interest, it usually pays a lower rate of interest than a savings account.
Most financial institutions offer service packages on their chequing accounts that allow you to make a certain number of transactions, often for a flat monthly fee.
Some accounts have low or no monthly fees but may allow fewer monthly transactions. Other accounts will waive the monthly fee if you keep a minimum monthly balance in your account. This can be a good way to save on banking fees.
For example, if you pay $12 per month in fees, and your financial institution will waive this cost if you maintain a minimum balance of $2,000, you could save $144 per year. This is the same as earning a 7.2% (after taxes) return on your $2,000.
Many financial institutions also offer lower fee or no fee service packages for children and teenagers, students enrolled in a postsecondary institution, and seniors 59 years of age or older. Find out if you qualify for one of these service packages.
FCAC’s banking package selector tool can help you find the financial institution and account that best suits your needs. When choosing a chequing account or banking package, consider: