Pick a chequing account if …
- You need unrestricted access to your money
- You plan on making multiple transactions per month
- You want features like overdraft protection
Chequing and savings accounts are both used to keep your money safe but one is better for saving, and one is better for spending. Read on to see how these two accounts are related, compare their features, learn about their differences and see how they are often used together to compliment your financial needs.
A chequing account is designed for everyday spending. It comes with a debit card and gives you a convenient access to your money to pay bills, withdraw cash, transfer funds and deposit money. On the other hand, a savings account provides a safe place to store your money for later use while most times giving you the opportunity to earn interest. Compare each account’s features in the table below to see which makes the most sense for your financial situation.
|Cheque writing||Yes||Rarely — varies by bank|
|Minimum deposit or balance required||Varies widely, typically starts at $0||Varies widely, typically starts at $0|
|Withdraw restrictions||Depends on your banking plan||Depends on your banking plan|
(Varies by bank)
(Varies by bank)
To find out if you need a chequing account or a savings account, think about features such as:
Chequing accounts are transactional and designed for everyday use, while savings accounts are historically have been more restrictive. They serve different purposes, but they can also work together. However, if you’re only looking for one, the best option will depend on what you plan to use it for.
Having both a chequing account and a savings account could help you manage your money and save better. Your chequing account provides flexible access to cover expenses, bills and more, and you can transfer any extra money to your savings account to earn interest. Plus, some banks allow you to set up overdraft protection that uses funds from your savings account to cover chequing transactions.
It depends. One of the benefits of keeping your accounts at the same bank is that many institutions will waive monthly fees or provide free overdraft protection for your linked accounts. Plus, it’s easy to transfer funds between accounts almost instantly. But this can work against you if you’re tempted to dip into your savings and spend the money on other things. If you prefer to keep your savings “out of sight, out of mind,” you may be better off keeping both accounts at separate institutions.
rate With no everyday banking fees and free transactions, open an EQ Bank Savings Plus Account and get an interest rate of 2.00%.
EQ Bank Savings Plus Account
With no everyday banking fees and free transactions, open an EQ Bank Savings Plus Account and get an interest rate of 2.00%.
Chequing and savings accounts have quite a few things in common. They’re both insured up to $100,000, and they both can have common fees for monthly maintenance, ATM usage, number of transactions and more. But they each have unique pros and cons:
Use the tabs on the table to explore chequing and savings accounts. To compare multiple accounts side-by-side, click the “Compare” box next to your top picks for an alternative view.
Open a chequing account to get easy access to your money or a savings account to earn interest and limit spending — or open both to cover all of your financial bases. Either way, compare your options to find the right one for your financial needs.
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