A chequing account is a fundamental banking tool that facilitates the management of your day-to-day finances. It allows you to handle various transactions, including ABM withdrawals, electronic salary deposits, bill payments, and money transfers.
While specific features may vary between banks, common functionalities of chequing accounts include ABM transactions, in-person transactions with bank tellers, online or telephone bill payments, provision of paper cheques, issuance of a debit card for online and in-store purchases, and the ability to send Interac e-Transfers.
Unlike savings accounts, chequing accounts typically offer minimal to no interest, as they are primarily intended for the convenient management of funds rather than long-term savings or investment growth.
Canada’s major banks, known as the Big 6, offer appealing chequing accounts, but the rise of online-only options is challenging their dominance. Based on our research, here are the top Canadian chequing accounts we recommend:
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Scotiabank offers a range of chequing accounts, including student and youth options, with monthly fees ranging from $0* to $30.95, discounted for seniors. Each account includes a debit card for earning rewards through the Scene+ TM Program.3 The standout account is the Ultimate Package, featuring:
Tangerine focuses on its No-Fee Daily Chequing Account, providing value with no fees and tiered interest rates starting at 0.01%. It offers unlimited daily transactions, Interac e-Transfers, and email money transfers. While there are no branches, banking is available online or via phone. Tangerine customers can use Scotiabank ABMs worldwide free of charge and access Apple Pay and contactless payments with their debit card.
TD Bank offers four personal chequing accounts, a youth account, and a student account. Monthly fees range from $3.95 to $29.95, with rebates available for maintaining account balances. Notably, TD provides US dollar chequing accounts, including the TD US Daily Interest Chequing Account and the premium Borderless Plan. The US Daily Interest Chequing Account has no monthly fee and facilitates easy cross-border banking, bill payments, and currency exchanges. Daily interest is calculated on balances over $1,000, starting at 0.01% and increasing in tiers.
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RBC offers four primary chequing accounts, a youth account, and discounts for seniors. Monthly fees range from $4 up to $30, with various additional features and rebates included in the top-tier account. Every account comes with a debit card, mobile app access, and the option for low-cost overdraft protection. Additionally, each account includes a multi-product or credit card fee rebate.
RBC’s Day to Day Banking account is a standout basic chequing option. With a monthly fee of just $4, and potential waivers for seniors, Registered Disability Savings Plan beneficiaries, or those with two or more eligible RBC products in the same region, it offers excellent value. Features of this account include:
A chequing account is an essential tool for efficiently receiving payments, such as monthly earnings, and securely holding funds. Opting to keep cash under the mattress poses significant safety risks. With a chequing account, you not only facilitate payments from employers and friends but also ensure the security of your money.
While most individuals are eligible for a basic chequing account, banks may reject applicants with a history of mismanaging prior accounts. In such cases, alternatives like prepaid debit cards can be considered for making payments.
For those interested in opening a chequing account, it’s vital to understand that different account types cater to different needs. To select the best chequing account in Canada, we recommend comparing available options based on the specific features you require.
Most Canadian banks offer various iterations of the following account types, each tailored to serve slightly different purposes.
A personal or basic chequing account is the standard offering in Canada. Depending on the chosen account, you’ll receive a set number of monthly transactions along with additional features. Monthly fees typically range from $4 to $30, varying based on the features and transaction limits provided.
A no-fee chequing account is a personal account that doesn’t charge monthly fees. While this is advantageous for those seeking to save money, it often comes with limitations. Compared to fee-based accounts, you may receive fewer features and be restricted to a set number of transactions per month. Additionally, maintaining a minimum average bank account balance might be required to avoid fees. Direct or virtual banks may offer exceptions to this rule due to their lower operational costs, allowing them to provide chequing accounts with no monthly fees and minimal transactional fees.
Some digital financial institutions offer hybrid accounts that combine essential payment and cash management features with perks like earned interest, cash back, or rewards typically associated with savings accounts or credit cards. These accounts provide accountholders with a debit or prepaid card, along with support for bill pay, Interac e-Transfers, and direct deposit of paycheques. However, they usually do not offer paper cheques, overdraft protection, wire transfers, or traditional in-branch customer service. While most consumers use these accounts alongside traditional chequing accounts, this trend may shift as society becomes increasingly cashless and cheques become obsolete.
A notable example of this new account type is KOHO, which allows users to load and spend money via a KOHO Prepaid Mastercard® or by withdrawing cash at ATMs. KOHO stands out for offering cashback rewards, even with no annual fee subscription. For instance, the KOHO Easy plan provides 1% cash back on Groceries + Transportation, up to 5% extra cash back at partnered merchants, and the opportunity to earn 0.5% interest on the entire account balance with no minimum deposit requirement.
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Student accounts are tailored specifically for full-time students, often with age restrictions typically ranging between 18 and 25, although these criteria may vary. These accounts typically feature lower or no banking fees and may offer limited perks and rewards.
Youth chequing accounts are designed for individuals below the provincial age of majority. These accounts typically offer no or low bank fees and may provide opportunities to earn interest on deposited funds.
U.S. dollar chequing accounts are designed for individuals who want easier cross-border transactions. They usually let you withdraw your money in U.S. dollars from the right ABM without any currency exchange fees and make it easy to pay for transactions in U.S. dollars.
Before opening a chequing account, consider the following questions:
For individuals requiring numerous monthly transactions, the Scotiabank Ultimate Package is a viable option, offering unlimited debit transactions3 for a monthly fee of $30.95. This fee can be waived by maintaining a minimum daily closing balance of $5,000 in your Ultimate Package or a combined balance of $30,000 across your Ultimate Package and MomentumPLUS Savings Account.
Conversely, if you have relatively few transactions, consider an account like the CIBC Everyday Chequing Account, which allows up to 12 transactions per month for a low fee of $3.90.
Various banks provide different banking platforms tailored to diverse needs:
Certain bank accounts offer benefits for maintaining a minimum monthly balance:
Certain accounts charge no monthly fees regardless of the account holder’s balance. For example, the Tangerine No-Fee Daily Chequing account incurs no monthly fee for unlimited self-serve transactions.
If you anticipate frequent Interac e-Transfers, ensure your chequing account doesn’t impose fees for this service. BMO provides free Interac e-Transfers on all its chequing accounts, including the Practical Plan, which has a monthly fee of $4.
For frequent travelers to the US, consider an account tailored to that lifestyle. The TD Borderless Plan facilitates quick and easy currency exchange between US and Canadian dollars, offers unlimited transactions, and charges a monthly fee of $4.95.
Alternatively, the RBC US Personal Account charges $2 per month for 6 monthly transactions in either US or Canadian dollars.
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If earning money on your account balance or purchases is important to you, consider chequing accounts that offer these features. Tangerine’s No-Fee Daily Chequing account provides interest on account balances, while all Scotiabank chequing accounts can earn rewards on debit transactions through the Scene+ TM Program.
The rise of digital banking has introduced numerous competitive online chequing accounts to Canadians. If you’re tired of paying excessive fees for basic banking services, now is an opportune moment to explore more competitive offers from financial institutions competing for your patronage. Some individuals are even choosing to transition from traditional bank accounts to digital accounts entirely. If you currently lack any type of chequing account, consider the security and convenience that a chequing account can offer in accessing financial services and conducting commerce.
Chequing accounts typically don’t require daily attention if set up properly. However, it’s beneficial to periodically review your account to ensure it still meets your needs. Here’s a helpful checklist for when you should take a moment to assess whether your current chequing account is still suitable:
For many Canadians, the basic requirements for a chequing account are straightforward: receiving direct deposits from employers, using Interac cards for payments, sending e-Transfers, paying bills online, and automating savings contributions. These features are typically standard across both free and paid chequing accounts. Therefore, when comparing banks, considerations might include whether they offer free e-Transfers or provide opportunities to earn points or interest on the account balance.
However, there are additional services that some individuals may need or desire in a chequing account, and these differences can be more significant than just the distinction between “free” or “paid.” For example, if occasional access to in-person services such as bank drafts or certified cheques is necessary, it may be worthwhile to opt for an account with branch access, such as Scotiabank’s Basic or Basic Plus account.
Moreover, certain less common situations, such as accepting international wire transfers, may be common in some individuals’ lives. In such cases, if the free account doesn’t support this function, maintaining a separate paid account at an in-person branch with the necessary capabilities might be necessary, despite the associated fee.
When it comes to choosing a chequing account, comparison shopping is essential and can actually enhance your experience rather than diminish it. Before committing to an account, take the time to explore different banks and what they offer in terms of services and fees.
By researching various banks, you’ll gain insight into competitive rates for services such as wire transfers and unlimited chequing accounts. While price shouldn’t be the sole determining factor, understanding these costs empowers you with knowledge.
Moreover, keep in mind that there are opportunities to secure great deals with minimal hassle. For instance, if you already have other services with a bank, consider their package offerings for chequing accounts. For example, with the Scotiabank Ultimate Package, you could potentially pay nothing if you maintain a certain balance in savings with them. Additionally, this package can enhance the interest rate on your savings, and for a limited time, you can earn up to 4.50% on your MomentumPLUS Savings Account.
Furthermore, Scotiabank waives the annual fee on a Scotiabank credit card if you have one, up to a specified dollar amount, every year.
If you’re considering a new chequing account, it’s essential to be aware of the enticing promotions currently available. Researching your options can lead to significant benefits.
For example, Scotiabank is currently offering a generous $350 welcome bonus for eligible customers who sign up for an Ultimate package. If this package aligns with your needs and overall financial situation, taking advantage of the free money is a smart move.
Considering that switching accounts can be a hassle, it’s important to choose a chequing account that will be a long-term companion in managing your finances. By conducting thorough research and selecting wisely, you can save both time and money in the long run.
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