What are the typical features of a chequing account?<\/h3><\/div>Not good for earning interest<\/h4>
Since chequing accounts are designed for spending money as opposed to storing money away, banks either don\u2019t pay interest on the balance or pay a very small amount of interest. If you\u2019re looking to earn a high interest rate on your money, look for savings accounts instead.<\/p>
Linked debit card<\/h4>
A debit card<\/a> is a spending card that\u2019s linked to your chequing account so you can access your money at ATM\u2019s, 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.<\/p>Free in-network ATM access<\/h4>
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\u2019s overseas.<\/p>
International ATM access (for a fee)<\/h4>
If your bank doesn\u2019t have a global ATM network, you\u2019ll have to pay a fee when withdrawing funds from an ATM while travelling outside of Canada. If you frequently travel internationally, it may be worth opening a chequing account that offers free international ATM withdrawals and doesn\u2019t charge currency conversion fees<\/a>.<\/p>Link to your savings account<\/h4>
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.<\/p>
What are the different types of chequing accounts?<\/h3>
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- Basic personal chequing account. <\/strong>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.<\/li>
- No-fee chequing account<\/a>. <\/strong>It\u2019s 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.<\/li>
- Interest earning chequing account<\/a>. <\/strong>Most chequing accounts don\u2019t pay interest in your balance, but some do, but the rate will probably be much lower than a high interest savings account.<\/li>
- Cash back chequing account. <\/strong>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.<\/li>
- Student account<\/a>. <\/strong>These chequing accounts are designed for students or youth under 18 who are looking for low-cost everyday banking solutions. You\u2019ll usually need to meet eligibility criteria like age and education requirements.<\/li>
- US dollar chequing account. <\/strong>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<\/a>.<\/li><\/ul>
Chequing vs savings account: What\u2019s the difference?<\/h3>
The typical account holder should have a chequing account for everyday use and a savings account<\/a> to hold their savings. Here are the key savings vs chequing account differences.<\/p>
Not good for earning interest<\/h4>
Since chequing accounts are designed for spending money as opposed to storing money away, banks either don\u2019t pay interest on the balance or pay a very small amount of interest. If you\u2019re looking to earn a high interest rate on your money, look for savings accounts instead.<\/p>
Linked debit card<\/h4>
A debit card<\/a> is a spending card that\u2019s linked to your chequing account so you can access your money at ATM\u2019s, 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.<\/p> 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\u2019s overseas.<\/p> If your bank doesn\u2019t have a global ATM network, you\u2019ll have to pay a fee when withdrawing funds from an ATM while travelling outside of Canada. If you frequently travel internationally, it may be worth opening a chequing account that offers free international ATM withdrawals and doesn\u2019t charge currency conversion fees<\/a>.<\/p> 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.<\/p> The typical account holder should have a chequing account for everyday use and a savings account<\/a> to hold their savings. Here are the key savings vs chequing account differences.<\/p>Free in-network ATM access<\/h4>
International ATM access (for a fee)<\/h4>
Link to your savings account<\/h4>
What are the different types of chequing accounts?<\/h3>
<\/p>Chequing vs savings account: What\u2019s the difference?<\/h3>
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