- The EDB Performance Chequing Account – is a high-quality chequing account that offers unlimited transactions with no fees, the ability to add accounts for family members, and a 5% bonus interest rate with the Savings Amplifier Account. Plus, customers can receive up to a $40 rebate on eligible BMO credit cards’ annual fees and OnGuard® Identity Theft Protection at no charge.
- BMO Performance Chequing – is a low-cost, easy-to-use bank account designed specifically for newcomers to Canada. With unlimited free transactions, access to BMO ATMs across Canada, and excellent customer support, it’s the perfect way to manage your finances and stay on top of your banking needs.
- The BMO CDCB Chequing – is a financial product designed specifically for members of the Canadian Armed Forces, veterans, and their families. It offers no monthly banking fees, unlimited transactions, and a range of features and benefits that are tailored to meet the unique needs of military members and their families.
- BMO Student Chequing – is a banking solution designed specifically for students in Canada. With no monthly fees while in school and for up to 12 months after graduation, unlimited transactions and Interac e-Transfers, and overdraft protection, it offers a range of benefits to help students manage their finances effectively.
- The Simplii Bank Account with Global Money Transfer (GMT) – is a comprehensive banking solution for Canadians that offers no monthly fees, unlimited transactions, and international money transfers to over 120 countries. With easy online account management and competitive exchange rates, it’s the perfect choice for individuals looking to manage their finances at home and abroad.
What are Chequing Accounts?
Chequing accounts are deposit accounts offered by various banks and credit unions. They allow users to deposit and withdraw funds, pay bills, and make purchases with a debit card, checks, or electronic cheques. These accounts are designed for daily use and offer a lot of liquidity. They have no limitations in terms of deposits and withdrawals, which means they also rarely offer any interest.
Types of Chequing Accounts
There are several types of chequing accounts, including personal or commercial accounts, business accounts, student accounts, and joint accounts. Personal or commercial accounts are the most common type of chequing account, and they are suitable for individuals who want to manage their day-to-day finances. Business accounts are designed for small and large businesses, and they offer additional features such as overdraft protection and payroll services. Student accounts are designed for students who are enrolled in a Canadian post-secondary institution. They offer various features such as no monthly fee, unlimited transactions, and access to online banking services. Joint accounts are shared accounts between two or more individuals, and they are ideal for couples or family members who want to manage their finances together. Also See: Banking in Canada
Features of Chequing Accounts
Chequing accounts offer a range of features that make them an essential tool for managing finances and payments. Some of the most important features to look for in a chequing account include:
- Automatic Payments: Most accounts offered today let you set up automatic payments. They can be used for recurring expenses like rent, bills, or some monthly installments.
- Security: Banks usually have several security features with these accounts, including account monitoring, chips, photo ID verification, etc. You can even add virtual locks to reinforce security further.
- Debit Card: If you have a chequing account, you need to get a debit card for it. This card lets you pay for anything easily without having to go through the trouble of writing checks or carrying money with you. Whenever you use a card, you will spend money from your account, simple as that.
- Direct Deposits: Direct deposits are an easy and safe way to receive a paycheck into your account instantly. You don’t have to lift a finger.
- Online Banking: All of the top banks in Canada offer online banking. You can even find completely online banks that offer lower fees for chequing accounts.
Benefits of Chequing Accounts
Chequing accounts offer several benefits that make them an attractive option for managing finances and payments. Some of the benefits of chequing accounts include:
- Easier Money Management: Chequing accounts allow you to track your spending and see what you are doing with your money. You will see all the bills, payments you’ve made, and how you are spending in general.
- Improve Credit Score: If you maintain a chequing account properly, it can help boost your score. Pay bills regularly, don’t make any bounced checks, and ensure that your balance isn’t zero, and you will demonstrate financial responsibility.
- Get a Debit Card: It’s always a good thing to use a card. Stop carrying cash with you and make your payments easier.
- Earn Through Interest: Some chequing accounts are high-yield, meaning that they offer interest when you earn money. However, this earning potential is only possible if you have lots of money on your balance.
Advantages and Disadvantages of Chequing Accounts
Chequing accounts offer advantages such as tracking spending, the potential to earn through interest, low or no ongoing costs, and easier money management. However, they also have disadvantages that should be considered. Some of the disadvantages of chequing accounts include:
- Your account can be blocked: Banks have the right to block or freeze your account if they suspect fraudulent activity or unauthorized access. This can be a major inconvenience, especially if you need to access your funds urgently.
- Not all account activities are reported to credit bureaus: Chequing accounts are not typically reported to credit bureaus, which means they don’t have a direct impact on your credit score. However, some banks may report overdrafts or missed payments, which could negatively affect your credit score.
- They can have fees: While some chequing accounts are free, others may come with fees for monthly maintenance, transaction fees, and overdraft fees. It’s important to read the terms and conditions carefully to understand the fees associated with your account.
Choosing a Chequing Account
When choosing a chequing account, there are several factors to consider. These include:
- Fees: Look for accounts with low or no fees for monthly maintenance, transactions, and overdrafts.
- Interest Rates: If you want to earn through interest, look for high-yield chequing accounts that offer competitive rates.
- Account Features: Consider the features that are important to you, such as online banking, mobile banking, ATM access, and overdraft protection.
- Bank Reputation: Choose a bank with a good reputation for customer service, security, and financial stability.
Chequing accounts are an essential tool for managing finances and payments in Canada. They offer flexibility and convenience, but it’s important to choose the right account for your needs. Consider factors such as fees, interest rates, and account features when selecting an account. With the right account, you can manage your finances easily and efficiently, and take advantage of the benefits that chequing accounts have to offer.