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.
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.
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.
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.