Compare chequing accounts

A good chequing account makes it easy to manage your money. But how do you know which account is right for you? Let’s break down the different types of chequing accounts in Canada, including features, how chequing and savings accounts differ and how to open and close a chequing account in Canada.

What is a chequing account?

Also known as an everyday banking account or a spending account, a chequing account lets you manage your money with little or no limits. You can deposit your paycheque directly into your chequing account and access your money via ATMs, electronic transfers, cheques, email money transfers and (depending on the financial institution) cash back on debit purchases.

In simpler terms, it’s an account with features to help you pay bills, go grocery shopping and withdraw cash from an ATM. The best Canadian chequing accounts will help you manage your everyday finances efficiently and help you reach your financial goals.

What are the typical features of a chequing account?

• Not good for earning interest. Your chequing account holds funds that are accessible on demand, so banks don’t pay interest as there isn’t an incentive for holding your funds. If you’re looking for a high interest rate, a savings account may be more suitable.
• Linked debit card. A debit card is a spending card that’s linked to your chequing account so you can access your money at ATM’s, debit card terminals and online. Many debit cards have security chips that let you use Mastercard Tap & Go or Visa payWave to make purchases in a few seconds by holding your card up to the debit terminal. Alternatively, you can punch in your PIN to access your funds.
• Free in-network ATM access. Your debit card lets you access your funds from an Automatic Teller Machine (ATM). Your bank will also provide you with a network of ATMs that you can use for free. Some banks may also have global ATM alliances, which means you can freely access your money using specific ATM’s overseas.
• International ATM access (for a fee). If your bank doesn’t have a global ATM alliance, you’ll incur a fee when withdrawing funds from an overseas ATM.
• Link to your savings account. Many financial institutions let you link your chequing and savings accounts so you can easily transfer money back and forth and make the most of the higher savings account interest rates.

What are the different types of chequing accounts?

• Basic personal chequing account. This is the most common type of chequing account in Canada, which usually comes with a set number of monthly transactions and a monthly fee, among other features.
• No-fee chequing account. It’s possible to find a chequing account with no monthly fees as well as unlimited free transactions and Interac e-Transfers, but these are often offered by online banks that may not offer a full suite of financial products and services.
• Interest earning chequing account. Most chequing accounts don’t pay interest in your balance, but some do, but the rate will probably be much lower than a high interest savings account.
• Cash back chequing account. Another uncommon type of account, a cash back chequing account can help you earn back some of what you lose on bank fees and expenses by rewarding you with cash back for your spending.
• Student account. These chequing accounts are designed for students or youth under 18 who are looking for low-cost everyday banking solutions. You’ll usually need to meet eligibility criteria like age and education requirements.
• US dollar chequing account. If you shop or travel in the US frequently, a US chequing account can help you save a lot on fees and conversion rates. These can usually be linked to CAD bank accounts, giving you easy access to funds no matter where you are. Learn more about cross-border banking.

Chequing vs savings account: What’s the difference?

The typical account holder should have a chequing account for everyday use and a savings account to hold their savings. Here are the key savings vs chequing account differences.

The benefits of having a chequing account

• A convenient way to organize your money. Pay your bills, receiving your salary or benefits, pay for goods and services or send money to someone else.
• A safe place to keep your money. This is especially helpful during uncertain economic climates. Your chequing account is “on demand,” meaning you can access your funds at any time.
• A place that records your transactions. When applying for a loan, lenders will be able to refer to your transaction records to assess how well you can save money. You can also see where you’re spending most of your income.
• A place to build your assets. Money held in your chequing account is easy to access—by linking it to a savings account, you can also earn interest.
• If you’re unhappy, you can easily change accounts or banks. One of the great things about bank accounts are that they can be a short term commitment. So if you’re unhappy with your current bank account, you can always switch to a new bank. Review your needs regularly to see if your chequing account still meets them.

What are the risks of having a chequing account?

• Choosing the wrong type of account. Each type of account serves a very specific purpose. Not choosing the right one could result in paying unnecessary fees or penalties.
• Not having the right features. Look closely at your account to ensure it has the features you need to make your banking needs easier.

Questions to ask when choosing a chequing account

Here are some questions to ask to help you find the right chequing account for your needs:

• What’s your standout feature? This is the one feature or characteristic that your chequing account must have. Some people prefer convenience and flexibility, while others want unlimited monthly transactions or no fees.
• Are the features worth the fees? Most chequing accounts come with a monthly fee. But as the banking industry gets more competitive, more options for avoiding fees are arising. The rise of internet banking has almost made teller fees a thing of the past, and some banks waive the monthly fee if you set up direct deposit or bundle your chequing account with other financial products.
• What type of bank account do I need? Chequing accounts are designed for everyday banking—whether it’s depositing your paycheque, paying for bills and buying groceries. Compare a range of chequing accounts including basic, no-fee, interest-bearing, US dollar, student accounts and more to find one that’s right for you.

Can I open a fully online chequing account?

Yes, some banks operate entirely online, and many major banks and credit unions offer chequing accounts you can open and maintain without needing to visit a branch in person. An online chequing account is an everyday banking account that comes with a debit card to pay for purchases and access cash. You can manage your funds online or via mobile app.

If you’re thinking of going digital, compare online bank accounts based on:

• Customer service. If you can’t visit a branch for help, check which methods are available for getting a hold of customer service. Is help available 24/7, or only during certain hours? Can you use live chat to get answers?
• Fees. This includes monthly maintenance, ATM, foreign transaction and overdraft fees.
• Account access. What functions are available in the bank’s app or online? Can you easily transfer money to another account? Can you deposit cheques via mobile app?
• ATM network. How large is the bank’s ATM network? Can you easily access cash when you need it?

Quick tips making the most of your chequing account

• When shopping at stores that support cash back transactions, ask for cash at the time of purchase instead of withdrawing it from an ATM. This counts as one transaction, not two, and lets you avoid potential fees.
• If your chequing account comes with a limited number of free monthly transactions, keep an eye on your spending history and try to minimize transactions where possible.
• If you’re currently paying a monthly chequing account fee, ask your bank if there are any ways to get the fee waived. They may suggest opening a savings account, depositing your salary into your chequing account or maintaining a minimum daily balance. Or, they may suggest a different chequing account that better suits your needs.

How do I open a chequing account?

Once you’ve chosen the right Canadian chequing account, navigate to the bank’s website where you can start your secure online application. Depending on your personal situation, you may need to consider the following when opening a chequing account:

Eligibility requirements

• Age. Unless you have a parent or guardian co-applying for the account, you’ll need to be at least the age of majority in your province or territory.
• Residency. You’ll likely need to be a Canadian citizen or permanent resident with a valid Canadian address. If you’re a temporary resident, you’ll need a valid passport and immigration papers to apply.

Required documents

• Personal details. You’ll need your personal details on hand, including your full name, address, phone number and email address.
• SIN number. Banks will ask for your Social Insurance Number to verify your identity and other details on your application.
• Two valid pieces of ID. Provide two pieces of valid government-issued ID, such as a passport and a driver’s licence. Utility bills, credit card statements, rental agreements or other documents showing your name and address may be acceptable for one of those pieces of ID.

What happens after I’ve submitted my chequing account application?

Depending on the bank, your account could be opened immediately or within a few business days. Your bank will send you a package confirming the details of your new chequing account along with your new debit card. You’ll need to activate your debit card. The instructions for doing so will be included in the welcome package.

Using PayPal with a chequing account

• Can I link my chequing account to my PayPal account?

  Yes, in most cases, you can link a Canadian bank account to your PayPal account. Having PayPal linked to your account means you can buy things wherever PayPal is accepted (both online and offline). To link your account, log into PayPal, choose Wallet and select Link a card or bank.

  PayPal accounts can be linked to bank accounts, debit cards or credit cards. When you pay for items using PayPal, the default account is typically your bank account.

• How long do PayPal refunds usually take?

  It could take around five business days (but potentially up to 30 days) for a PayPal refund to appear on your statement, depending on your card issuer. You can check the status of your refund by logging into your PayPal account and reviewing your transaction history.

• Can I link my PayPal business account to my personal bank account?

  Yes, this is possible, but your personal bank account can only be linked to one PayPal account at a time.

How to close a chequing account

If you want to close your chequing account, make sure all your direct debits and credits have been successfully cancelled or transferred to a different account and you’ve given any new chequing account details to anyone who pays you money or withdraws payments from your account.

You may be able to close your chequing account online, but it may be easier to go to a branch. Some major banks and credit unions may even require this. Closing your account over the phone may also be an option.

If you want to be absolutely sure that your account is closed, try logging into your account online to see if it’s still active. You can also call or go into a local branch and ask a teller to verify that you’re no longer in their system.

If you’re no longer using a chequing account, it’s important to close it, as your bank may charge inactivity fees or monthly maintenance fees may continue being charged.

Chequing account FAQs

• Help! I've transferred money into the wrong bank account.

  If the account you've accidentally transferred to doesn't exist, then the transfer will likely bounce back and you may be charged a fee. If the account does exist, the owner is required to notify the bank if they notice funds that have been wrongfully deposited into their account. As soon as you notice that you transferred to the wrong account, call your bank to fix the problem ASAP.

• Help! I think someone is trying to take money from my bank account.

  If you're suspicious that someone is trying to take money from your account or steal your identity, speak to your bank right away. Ask exactly what information would have had to be provided to your bank for them to be able to access your account. If you're worried about identity fraud, speak to your local police straight away.

• How do I find out what my chequing account transfer and transaction limits are?

  You can typically view your chequing account transaction and transfer limits by logging into your online banking portal or your bank's mobile app. These details will also be stated on the account documents the bank provided when you opened an account.

• Can overdrawing my chequing account affect my credit history?

  No, overdrawing on your bank account should not affect your credit score. However, if you apply for a loan with the same bank in the future, any overdrawn account balances would be displayed in your records, and your bank may ask why this is.

• How long does it normally take for a bank to refund an error in my chequing account?

  It varies depending on the bank, but the process usually takes around 7–14 business days, as your bank will need to contact the merchant. However, it can take up to one month or longer.

• How do I find out what my chequing account number is?

  You can find this information on your most recent bank statement or by logging into your online banking platform. Alternatively, call your bank directly and ask or visit a branch.

• My debit card has been frozen. What should I do?

  You will need to contact the bank or financial institution that issued the card as soon as possible to find out why the card has been blocked. Learn more about frozen bank accounts.

• Do I need to be an existing customer to get a chequing account bonus?

  No. In most cases, you'll need to be a new customer who has never held a particular account to be eligible for a new chequing account offer.

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To make sure you get accurate and helpful information, this guide has been edited by Stacie Hurst as part of our fact-checking process.

Written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio