Did you know Canadians make an average of 30 million financial transactions daily, with most flowing through their chequing accounts? A chequing account is a transactional bank account designed for managing your day-to-day money movements. With rising banking fees and various account options to choose from, selecting the right chequing account is essential to avoid unnecessary costs.
What is a Chequing Account?
A chequing account is a standard deposit account held at a bank or credit union to manage everyday spending. It offers features like unlimited check writing, access to an ATM card or debit card for purchases, online bill payments, and overdraft protection in case of insufficient funds.
Unlike savings accounts, chequing accounts allow account holders to easily deposit and withdraw money, making them quite liquid. Most chequing accounts do not earn interest on balances. All deposits are protected by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000.
Here are the common transactions you can conduct through a personal chequing account:
- Deposits and withdrawals in-person, using an ATM, online banking, or via mobile apps
- Writing cheques to pay bills or transfer money
- In-store and online purchases using a debit card or Visa Debit
- Electronic funds transfers (EFTs)
- Pre-authorized payments for bills
- Interac e-Transfers to send money to others
- Check deposits using a smartphone app
Now let’s explore the various types of chequing accounts available from Canadian financial institutions.
What Types of Chequing Accounts Exist in Canada?
Canada has eight specialized chequing accounts suited for different demographics and banking needs.
Personal Chequing Accounts
Personal chequing accounts allow account holders to safely manage daily finances through services like unlimited debits, bill payments, and debit card transactions. Monthly fees range from $0 to $30, depending on transaction volumes, account minimums, and bundled features.
Student Chequing Accounts
Student chequing accounts provide full banking functionality without monthly fees to post-secondary learners between 18 and 25 years old. Students enjoy everyday banking without fees while meeting minimum balance requirements. Discounted credit cards and GIC rates may also be offered exclusively to students.
Youth Chequing Accounts
Most banks offer free youth chequing accounts to young Canadians typically under 19 years old. These accounts have no monthly fees but have a limit on transactions. Once a youth account holder reaches the age of majority, they graduate into a standard chequing account.
Senior Chequing Accounts
Seniors aged 60 and over can access specialized chequing accounts with exclusive discounts on monthly fees and transactions. Perks like free printed statements, unlimited debits, and reduced safety deposit box rental fees make senior chequing accounts very appealing.
Joint Chequing Accounts
Joint chequing accounts allow two or more account holders to contribute, withdraw, earn interest, and pay bills from the same chequing account. Spouses commonly use these accounts to share finances. All account holders receive a debit card and PIN for ATM access.
Business Chequing Accounts
Companies and entrepreneurs open specialized business chequing accounts separate from owners’ personal finances. Features like unlimited transactions, debit cards for all employees, and bookkeeping integration establish optimal cash flow control for operations.
U.S. Dollar Chequing Accounts
Canadians who travel to the U.S. or receive American funds can benefit from a U.S. dollar chequing account. Deposits stay in USD without any conversion fees while also avoiding cross-border transaction charges associated with standard CAD chequing accounts. These accounts offer ATM access stateside.
Newcomer Chequing Accounts
Canada’s banks understand the unique banking transition needs of new immigrants and refugees. Special newcomer chequing accounts provide discounted fees, global money transfers, and cardless international cash pickups for the first 12 months. Support includes setting up Canadian payroll deposits, bill payments, and Interac e-Transfer capabilities.
What Are the Best Chequing Accounts in Canada by Category?
With endless options to choose from, finding the best chequing account for your needs can feel overwhelming. Based on expert analysis of Canada’s top financial institutions, here are the best chequing accounts to open in 2025 based on monthly fees, features, and new account bonuses.
| Category | Best Chequing Account | Notable Features |
|---|---|---|
| Best No-Fee Chequing Account | Simplii Financial | – No minimum account balance – Access to thousands of CIBC ATMs – Free Interac e-Transfers |
| Best for Newcomers | National Bank | – No monthly fees for the first three years – Unlimited debits and Interac e-Transfers |
| Best Welcome Bonus | CIBC Smart Account | – $450 Costco Cash Card offer – Fee waived with $4,000 balance |
| Best Hybrid Chequing & Savings Account | EQ Bank Personal Account | – Up to 3.50% interest paid monthly on deposits – Unlimited global money transfers – Free debit transactions in Canada |
| Best Student Chequing Account | Scotiabank | – No monthly account fees – Unlimited free Interac e-Transfers – Discounted credit cards and lines of credit |
| Best U.S. Dollar Chequing Account | EQ Bank USD Account | – 3% interest paid monthly on USD deposits – Free transfers between EQ Bank accounts – Unlimited debits within Canada |
| Best Premium Chequing Account Bundle | Scotiabank Ultimate Package | – Unlimited free transactions in Canada – Annual fee rebated on select Scotiabank credit cards – Preferred GIC rates and savings account interest boost |
How Do You Open a Chequing Account in Canada?
Opening a new chequing account only takes about 15 minutes, whether visiting a local branch or applying online. Follow these six easy steps:
Step 1: Gather Identification
Have your driver’s license or passport ready to confirm your identity and home address.
Step 2: Choose In-Branch or Online
Decide if you want to open your account in person or through a bank website.
Step 3: Complete Application
Provide your personal details, including occupation, income, and contact info.
Step 4: Fund Your Account
Transfer money into your new account from an existing bank account via EFT or wire transfer for immediate access.
Step 5: Set Up Direct Deposits
Supply your new chequing account and routing details to your employer for paycheque auto-deposits.
Step 6: Finish Admin Tasks
Activate your debit card when it arrives. Order cheques. Update existing bill payment and transfer links.
With the convenience of mobile banking and ATM networks, choosing online-only banks can score you better interest rates and fewer fees. An equally smooth in-branch experience awaits if you prefer face-to-face support.
Either way, remember to review bank account features annually and shop around to switch accounts as your banking needs change over time.
What Common Banking Fees Apply to Chequing Accounts?
Most financial institutions charge various service fees connected to chequing accounts that can quickly add up. Let’s take a closer look at typical chequing account fees:
Monthly Account Fees
Many banks charge an administration fee simply for keeping your account open based on factors like minimum balances and transaction volumes. Monthly fees typically range from $3.95 up to $14.95. Students, youth, and seniors often receive discounted or free accounts.
Transaction Fees
If your account includes a set number of free transactions per month, you will pay additional fees ranging from $1 to $2 for each transaction above that limit. Teller-assisted banking through a branch also usually incurs extra user fees compared to electronic self-serve options.
Interac e-Transfer Fees
Sending funds to another person via email money transfer typically costs between $1 to $2 per transaction. Thankfully, receiving Interac e-Transfers remains free across all financial institutions.
ATM Withdrawal & Inquiry Fees
When you use an ATM operated by another Canadian bank or credit union, you will pay fees averaging $2 per cash withdrawal or account balance inquiry. Maximizing the use of your own institution’s ATM network keeps costs at a minimum.
Paper Statement Fees
To encourage clients to go paperless, most banks now charge accountholders a $2 to $5 monthly fee for printed statements by mail. If you truly still prefer paper, be sure to set up electronic statements to avoid this pesky charge.
Ordering new cheques, making wire transfers abroad, overdraft interest charges, and non-sufficient fund (NSF) fees for rejected payments due to low balances also represent common chequing account costs.
Paying expensive NSF fees becomes avoidable once you understand the overdraft protection options available.
How Can You Save Money on Chequing Account Fees?
Trimming costly chequing account fees comes down to proactively managing account features and avoiding unnecessary transactions. Consider the following banking best practices:
Meet Minimum Balance Requirements
If your account’s monthly fee disappears by keeping an average minimum balance, be sure to maintain that cushion to maximize savings. Even $500 makes a difference annually.
Use Electronic Banking Whenever Possible
Opting for online bill payments, email money transfers, mobile deposits, and ATM withdrawals helps you avoid teller-assisted banking fees. Also, take advantage of your bank’s smartphone app and online account dashboard.
Stick Within Monthly Transaction Limits
If your account includes 20 free debits per month, avoid unnecessary purchases toward month-end that push you into paying fees. Carefully track transaction volumes through online banking.
Set Up Account Alerts
Receiving automatic notifications via email or text when your chequing account balance drops below a threshold helps avoid surprise NSF fees from missed payments. Some banks even alert before scheduled bill payments.
Request Cash Back for PIN Debit Purchases
Choosing the debit payment option while shopping and selecting “Cash back” allows you to withdraw extra money from your account without fees, avoiding extra ATM trip fees.
Bundling multiple financial products from your primary bank, like savings accounts, investments, and mortgages, also unlocks multi-product rebates, reducing overall monthly costs. Check your financial institution’s website for available discounts.
How Do You Choose the Right Chequing Account?
With endless options, choosing a chequing account means taking time to reflect on your personal banking habits and financial priorities. Follow this three step process:
Step 1: Understanding Your Banking Habits
Start by tracking your monthly transactions and classifying where they occur, via online/mobile banking, ATM, in-branch, etc. If you maintain a large balance but rarely transact, a basic account could suffice. Frequent bankers need accounts with higher limits or unlimited plans.
Step 2: Compare Account Features & Fees
Use online tools to identify the best fit. Compare monthly fees, interest rates, minimum balances, transaction volumes, and look for new client promotional offers.
Step 3: Make an Informed Decision
Before opening your chosen chequing account, speak with a representative to clearly understand all monthly fees, transaction charges, monthly statement delivery fees, and overdraft interest rates. Also, ask about any multi-product rebates or newcomer/student/senior discounts available. Choosing the right account saves unnecessary fees.
How Do Chequing Accounts Compare to Savings Accounts?
Chequing and savings accounts both allow account holders to safely store money, earn interest, and complete transactions, but they carry one major difference.
While chequing accounts focus on convenient everyday banking and liquidity, savings accounts emphasize interest generation from unused balances over the medium to long term:
| Feature | Chequing Accounts | Savings Accounts |
|---|---|---|
| Main Purpose | Everyday transactions like payments and purchases | Every day transactions like payments and purchases |
| Transaction Limits | Unlimited or higher monthly transaction volumes | Limited monthly transactions without fees |
| Interest Rates | Typically no or minor interest paid | Competitive interest paid monthly on balances |
| Access & Features | Debit card, cheque writing, bill payments | Limit banking features to protect savings |
FAQs about Chequing Account
How many chequing accounts can I have?
No legal limit exists but holding 3 or 4 allows you to separate budgets by goals or specify business usage. Too many look odd when the credit bureau checks on you.
Do I need to pay fees for a chequing account?
Plenty of options like Simplii Financial and Motusbank offer no-fee chequing accounts with unlimited transactions. But monthly fees of $10 or less bring additional features.
Can chequing accounts earn interest?
Most chequing accounts pay minimal or no interest because they emphasize convenient access to deposits. Combination accounts like EQ Bank Hybrid Savings and Chequing earn up to 3.50% interest while still enabling daily use.
Which bank has 100% free chequing accounts?
Simplii Financial's No-Fee Chequing Account offer unlimited daily transactions with no monthly costs, minimum balances, or hidden transaction overage fees.
How do I avoid bank fees?
Choosing accounts with higher monthly fees reduces transaction charges. Using your bank's ATM network minimizes withdrawal and balance check fees. Enroll in e-statements and make debit purchases for cash back to save extra.
The Bottom Line
Saving money comes down to aligning account features with your regular banking habits. Canadians conduct most everyday banking through chequing accounts for convenient access to deposits via debit card swipes, online bill payments, mobile check deposits, and withdrawals from one of over 70,000 ATMs nationwide.
While interest earnings stay low or non-existent across chequing accounts, what we gain is convenient, unlimited daily access to deposits without the withdrawal restrictions impacting standard high-interest savings accounts. By choosing accounts with monthly transaction volumes matching our payment and purchase activity, Canadians keep unnecessary chequing account costs at bay.
