Question 1

Which are the best Canadian banks for chequing accounts?

Accepted Answer

When it comes to top-tier checking accounts in Canada, EQ Bank and Tangerine stand out. These banks offer free accounts with unlimited transactions and a multitude of features. For fee-paying accounts, BMO and National Bank offer the best value for money.

Question 2

Is it possible to open a chequing account with no monthly fees?

Accepted Answer

Yes, many chequing accounts are available with no monthly fee. For example, the EQ Bank Everyday Account and the Tangerine no-fee chequing account are two popular options. However, charges may apply for specific services.

Question 3

At what age can I open a chequing account in Canada?

Accepted Answer

Most Canadian banks allow young people aged 13 and over to open a chequing account with the authorization of a parent or guardian. Anyone with the age of majority in their province can open a chequing account.

Question 4

How do I get a bonus when I open a chequing account?

Accepted Answer

For an opening bonus, look for accounts that offer a welcome promotion, such as Tangerine's no-fee chequing account or BMO's Performance Chequing Account. You may need to keep your account open for a certain period to be eligible.

Question 5

Where can I find my chequing account number?

Accepted Answer

Each chequing account has three numbers: a 3-digit institution number indicating the bank, a 5-digit transit number indicating the branch and a 7-digit account number. You can find these numbers on a cheque or online banking portal.

Question 6

How do I close a chequing account?

Accepted Answer

You can close a chequing account in person or by telephone. Make sure your account has sufficient funds to cover any charges before closing.

Question 7

Do chequing accounts earn interest?

Accepted Answer

Most chequing accounts in Canada offer little or no interest. A notable exception is the EQ Bank Current Account, which offers an interest rate of 2.5% to 4% on all deposits.

Question 8

What is the maximum overdraft limit for my chequing account?

Accepted Answer

Most banks require that you apply and be approved for overdraft protection. The amount of your authorized overdraft generally ranges from $100 to $5,000, depending on your credit history and income.

Question 9

What is overdraft protection?

Accepted Answer

Overdraft protection allows you to maintain a negative balance in your chequing account for a short period of time. Overdraft fees may apply on a monthly or per-use basis, and interest charges may also apply.

Question 10

Are chequing accounts secure in Canada?

Accepted Answer

Canadian chequing accounts are extremely secure. Deposits are insured by the Canada Deposit Insurance Corporation, which protects your balance up to $100,000 in the event of your bank's insolvency. What's more, many banks offer zero liability on fraudulent purchases made with your debit card.

Question 11

When to use a chequing account

Accepted Answer

Use a chequing account for day-to-day banking, including purchases, bill payments, direct deposits, transfers, ATM withdrawals and recurring payments. Using a chequing account to save or invest money is not recommended.

Question 12

What's the best bank to open an account with?

Accepted Answer

Choosing the right bank depends on your financial needs, lifestyle and spending habits. Some people open multiple accounts with different providers to take advantage of rewards programs or account features.

Question 13

How many chequing accounts can I have?

Accepted Answer

There is no limit to the number of chequing accounts you can open. You can even have several chequing accounts with the same provider. However, monthly fees for multiple accounts can put a strain on your budget.

Question 14

What’s the Difference Between a Chequing Account and a Savings Account?

Accepted Answer

While chequing accounts are intended for day-to-day transactions, savings accounts are designed to hold a sum of money over a longer period. What's more, savings accounts generally offer higher interest rates.

Question 15

Do I need a chequing account?

Accepted Answer

Yes, it's probably necessary to have a checking account to earn money and pay bills. Most employers and the Canada Revenue Agency make payments either by cheque or by direct deposit into your chequing account.

Question 16

How can I avoid bank charges in Canada?

Accepted Answer

To avoid banking fees in Canada, opt for online banks that offer accounts with no monthly fees, no minimum balance requirements and unlimited transactions. You should also be aware of the limits of each type of transaction to avoid additional charges.

Jean-Maximilien Voisine

Posts by Jean-Maximilien Voisine