- The EDB Performance Chequing Account is a high-quality chequing account that offers unlimited transactions, unlimited Interac e-Transfers, and no-fee Global Money Transfers to up to 50 countries. Customers can add family accounts at no additional monthly fee, earn a 4.65% bonus interest rate with the Savings Amplifier Account, and receive up to a $40 rebate on annual fees for eligible BMO credit cards.
- BMO Performance Chequing is a low-cost bank account designed for newcomers to Canada. It offers no monthly plan fee for 2 years, unlimited transactions, unlimited Interac e-Transfers, and access to BMO ATMs across Canada. Eligible customers can also receive up to $900 in cash and a Walmart Delivery Pass subscription for up to 12 months.
- The BMO CDCB Chequing is a financial product designed for members of the Canadian Armed Forces, veterans, and their families. It offers no monthly banking fees, unlimited transactions, and banking features made to support the daily financial needs of military members and their households.
- BMO Student Chequing is a banking account designed for students in Canada. It offers no monthly fees while in school, unlimited transactions, unlimited Interac e-Transfers, and student-friendly banking access to help manage daily spending, payments, and school-year expenses.
- The Simplii Bank Account with Global Money Transfer (GMT) is an online banking account for Canadians that offers no monthly fees, unlimited debit transactions, and international money transfers to over 120 countries. It gives customers a simple way to manage daily banking and send money abroad online.
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 purchase with a debit card, checks, or electronic cheques. These accounts are designed for daily use and offer high liquidity. They have no limits on deposits and withdrawals, so they rarely offer interest.
Types of Chequing Accounts
There are several chequing account types, including personal, commercial, business, student, and joint accounts. Personal or commercial chequing accounts are the most common and are suitable for individuals who want to manage their day-to-day finances. Business accounts are designed for small and large businesses, offering additional features such as overdraft protection and payroll services. Student accounts are designed for students enrolled in a Canadian post-secondary institution. They provide 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 monthly installments.
- Security: Banks usually offer several security features for these accounts, including account monitoring, chip technology, and photo ID verification. You can even add virtual locks to further reinforce security.
- Debit Card: If you have a chequing account, you must get a debit card. This card lets you pay for anything quickly without writing checks or carrying cash. Whenever you use a card, you will spend money from your account, and it’s as simple as that.
- Direct Deposits: Direct deposits are an easy and safe way to receive a paycheck instantly into your account. You don’t have to lift a finger.
- Online Banking: All of the top banks in Canada offer online banking. You can even find online banks offering lower chequing account fees.
Benefits of Chequing Accounts
Chequing accounts offer several benefits, making them an attractive option for managing finances and payments. Some of the benefits of chequing accounts include:
- Easier Money Management: Chequing accounts let you track your spending and see how you use your money. You will see all the bills, payments you’ve made, and how you are spending in general.
- Improve Credit Score: Properly maintaining a chequing account can help boost your score. Pay bills regularly, avoid bounced checks, and ensure that your balance isn’t zero, and you will demonstrate financial responsibility.
- Get a Debit Card: Using a card is always a good idea. It lets you stop carrying cash and makes your payments more manageable.
- Earn Through Interest: Some high-yield chequing accounts pay interest on the money you earn. However, this earning potential is only possible if you have a large 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 to consider. Some of the disadvantages of chequing accounts include:
- Your account can be blocked: banks may freeze or block it 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 directly impact 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 charge monthly maintenance fees, 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
There are several factors to consider when choosing a chequing account. 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 essential features 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.
Conclusion
Chequing accounts are an essential tool for managing finances and payments in Canada. They offer flexibility and convenience, but choosing the correct account for your needs is vital. Consider factors such as fees, interest rates, and account features when selecting an account. With the correct account, you can manage your finances quickly and efficiently and take advantage of the benefits of chequing accounts.