bank account

The two most popular account types are chequing and savings accounts. They are each useful for different things, with varied strengths and weaknesses catering to all kinds of people. Chequing accounts are the most common and are well suited to everyday routine purchases. Savings accounts are created to serve longer-term goals. They impose limits on withdrawals per month, allowing money to build in the account. Most banks also offer youth accounts, which usually present lower fees and high interest rates. There’s also the option of merging your finances with a separate individual, known as a joint account. Basically, every one of the big old established banks will offer these accounts and more, though other fresher options exist. Financial Tech companies are constantly growing in number, size and influence. They can often cut the usual fees because of their fully online presence, making them a great option for those looking to save money. There are many differences between chequing and savings accounts and it may seem overwhelming. This article will help you better understand the landscape of bank accounts and what the best option is for you.

Chequing Accounts

RBC offer four levels of chequing account. At $4/month, the RBC Day to Day Banking option is the most inexpensive in the range. Interac and e-Transfers are free. If you don’t make many transactions, this account could work very nicely. The levels above offer greater rebates and other small advantages here and there. At the top level for $30/month transactions worldwide are free and unlimited, whereas the others are Canada wide only.

TD chequing accounts have the same 4 level mold as RBC. Their Minimum Chequing Account comes in at $3.95/month with up to 12 free debit transactions per month, just like RBC’s Day to Day Account. One difference is that e-transfers cost $0.5-1.00 each with TD. This is not the case with their higher level accounts, which also offer boosted amounts of free monthly transactions and free annual rebates at the top two levels.

BMO chequing accounts offer a similar style of levels but have an added fifth option. Once again, the most basic account costs $4/month and comes with 12 free transactions. The accounts scale up at a similar pace to their competitors. The Plus, Performance and Premium BMO bank accounts offer $0 in monthly fees if you maintain a certain balance in the account.

This also goes for Scotiabank’s three higher level chequing accounts. Scotia’s basic account is $3.95/month with features that match all the former.

Savings Accounts

If you’re looking to save money for the future, here are some Canadian savings accounts which can help you reach your financial goals. Savings accounts offer varying interest rates which build your money but most established big banks will likely give you a lower interest rate than some newer fintech competitors. Nevertheless, they are still widespread and grow your money. RBC offers a few types savings accounts, all without monthly fees. Their High Interest account has an interest rate of 0.8%. TD’s version of the high interest savings account offers only 0.05% interest, assuming you have at least $5,000 in the account. Scotiabank’s Momentum Plus Savings Account allows you to earn higher interest the longer you save. The base rate is 0.85%, and only grows the longer you wait. This Scotiabank Savings Account is really not made for spending but within one year you can really increase your interest rate. All these banks offer generally low interest rates. Neo Financial is an entirely digital company that offers you 1.80% interest with the Neo Money Account. This interest rate is exponentially higher than average. There are no monthly fees, and it doesn’t matter how much you have in the account. Any amount generates the same interest rate. To top this, the account simultaneously acts as a chequing account. Transactions are free and unlimited. All this and more is why this is one of the best no fee bank accounts Canada has to offer.

Specialized Accounts

Though the most common, normal savings and chequing accounts are not always perfectly suited to everyone’s needs. If you find yourself in a relationship or simply in a situation where it is pertinent to merge your money with somebody, a joint account could work perfectly. They are widely offered, from RBC joint accounts to Scotiabank. If you are a parent and want to teach your child about managing their money early on, check out CIBC’s youth account. It offers 0.05% interest, unlimited transactions and no monthly fee. RBC’s student account is also a good option with similar features for those ages 13 or higher.

No Fees with FinTech

If you’re a student or senior you will likely fall under the category of discounted or no fee accounts. However, the majority of people have to pay monthly and annual fees to their banks. If you are looking to save money, point your attention to digital financial institutions. Companies like Neo and EQ Bank are able to cut many costs for their clients. This is because they spend far less than other banks as they have a completely digital presence. Fintechs avoid fees and also allow for a very comfortable and convenient banking experience through their mobile apps and websites.

Best Canadian Chequing and Savings Accounts

When deciding on what kind of account might be best for you, you need to consider all factors. Coming to a conclusion may not be simple, but even when you do you will likely have to compromise depending on the account type you choose. This is not the case with Neo’s Money Account. It is one the best no fee bank accounts in Canada. There is no need to make a compromise with this account because it combines the best of chequing and savings accounts. The comparatively enormous interest rate is fantastic for your money, and everything is manageable easily through their mobile Neo app.

Although managing your finances may be an everyday part of life, there is a lot of important information that is commonly unknown. Information about your account and bank can be required in multiple situations. If you want to setup a direct deposit you’ll be asked to present your account number and your routing number. These numbers will also be required if you want to move money into a Canadian account. These two examples are common banking actions, yet understanding of what terms like routing and account numbers are is limited. We are here to help you understand the meaning of transit, branch, account, routing, and institution numbers so that you can bank more confidently in the future.

Routing Numbers

Routing numbers are made up of two parts. They are usually 8 digits long and are made up of an institution number and a transit number. Their format on paper is XXXXX-YYY. The X’s correspond to the transit number and the Y’s are the institution number. If the transaction is online then the format flips and a leading zero is tagged to the front, resulting in a 0YYYXXXXX format.

Institution Numbers

To put it simply, institution numbers are unique three digit codes which correlate to a given financial institution. They are used to identify various banks and are the most general of the numbers we’ll be covering. The institution number also makes up one part of the routing number. The institution numbers of some of the biggest Canadian banks are listed below.

Bank	Institution Number
BMO	001
Scotiabank	002
RBC	003
TD	004
National Bank of Canada	006
CIBC	010

Branch or Transit Numbers

It is easy to get confused with this number as some call it a transit number and others a branch number. All you need to know is that they mean the same thing. It is a five digit code which says which branch of the bank the account in question was formed at. Every branch has its own unique transit number and the branch you create your account at is also known as your home branch. The transit number makes up the other part of the routing number.

Account Numbers

An account number is usually a seven digit code which follows the routing number on cheques. BMO, RBC, TD, CIBC, and the National Bank of Canada all have seven digit account numbers. Scotiabank is one case where it is possible to have a number that is either 7 or 12 digits long. Unlike institution numbers and transit numbers, your account number is completely unique to you.

Where to Find Your Numbers

If you are in need of any of your personal numbers, there a few ways to find them. One way is to login to your online banking. From your bank’s website or app you can check your personal details and find out exactly what you need. You can also see your details such as routing number and account number on any paper statements that your bank sends you through the mail. Lastly, if you have a chequebook at home, look at any cheque and you’ll find all the numbers printed at the bottom of it. One thing to note is that on a physical cheque there will also be another number on the bottom. This one simply marks the individual number of the cheque you are handling within the chequebook.