In Canada, we’re fortunate to have a wide range of bank account options. From regular chequing accounts to hybrid accounts, online banking, and chequing accounts tailored towards specific audiences (youth, students, seniors’, newcomers, business, etc.). But do you know how to choose the right chequing account for you? In this article, we explore the elements to consider when choosing your chequing account.

You may be surprised by the number and variety of chequing account types in Canada. There are accounts for specific profiles: young people, students, newcomers, seniors, business, and more.

Here are the main types of chequing accounts available in Canada:

• Personal chequing account
• Joint chequing account
• No-fee chequing account
• High-interest chequing account (Hybrid account)
• Premium chequing account
• Digital chequing account
• Youth chequing account
• Student chequing account
• Chequing account for newcomers
• Seniors’ chequing account
• U.S. dollar chequing account
• Business chequing account

Choosing the right chequing account for your profile and needs is essential. For example, if you’re a student or newcomer to Canada, look at the chequing accounts in your profile for benefits such as unlimited transactions and waived monthly fees.

To find out more about the different types of chequing accounts, consult this guide:

Consider the location of bank branches and ATMs to avoid additional charges.

For example, if you regularly need in-branch banking services, choose a bank with branches nearby. Otherwise, you’ll pay withdrawal fees at other banks’ ATMs. Online banking are probably not the best option for you. If you regularly go on vacation, find out how accessible ATMs are elsewhere.

Bank charges are another key factor in choosing a chequing account. So consider the following fees before making a decision:

• Monthly fees – Chequing accounts usually carry a monthly fee. Sometimes these fees are waived if you maintain a minimum daily balance in your account. Alternatively, you can choose a No-fee chequing account with no monthly fee such as the EQ Bank Personal Account.
• Transaction fees – Chequing accounts generally have a limit on the number of free transactions. After that, you must pay a fee for each transaction. Alternatively, you can choose a checking account with unlimited transactions, such as the Tangerine No-fee daily Chequing Account
• ATM fees – Banks generally charge fees for withdrawals from other banks’ ATMs. So choosing a chequing account with a bank that has ATMs nearby may be a good option.
• Interac transfer fees – Some banks charge fees for your Interac transfer transactions. However, many banks offer free and unlimited Interac e-Transfer transactions (often with online banks).
• Overdraft fees – Financial institutions charge overdraft fees when you don’t have enough money in your account to cover a transaction. However, some offer free overdraft protection.

Do you have other banking needs? A savings account, a car loan, a line of credit, a mortgage, a brokerage account for online investing, insurance, etc.? Some financial institutions, such as neo-banks, offer rather limited products and services. Traditional banks and most online banks, on the other hand, offer a more comprehensive range of financial products and services.

In short, before choosing a chequing account, make a list of the products you need. Then, when comparing chequing accounts, make sure the bank in question offers these products.

Before choosing a checking account, make sure the bank offers quality customer service. Read consumer reviews on review sites like Google and Trustpilot. Then find out whether the bank has good customer service, and whether drawbacks are minor. Finally, consider the opinions of financial experts, such as:

Many financial institutions are launching promotional offers to attract new customers. These may include cash rebates or gifts (e.g. iPad). However, before choosing a chequing account based on these promotional offers, be sure to read the related terms and conditions. Direct payroll deposit and pre-authorized payments are often required. These offers are generally very attractive, and can be combined with credit card offers.

Deposits in Canadian bank chequing accounts are protected by the Canada Deposit Insurance Corporation (CDIC). Deposits in caisses populaires, credit unions and trust companies (provincially regulated) are protected by provincial insurers. For example, the Financial Services Regulatory Authority of Ontario (FSRA) in Ontario and the Autorité des marchés financiers (AMF) in Quebec.

This protection covers your bank account for up to $100,000 in the event of bank failure. However, bank failures are rare, thanks to the stability of the Canadian banking system and strict risk controls.

Choosing a chequing account is, of course, the first step. But then you need to open your new chequing account and take a number of steps. In particular, you’ll need to contact your employer to change the banking information on your paycheck deposit. You’ll also need to contact your government for family allowances and other transfers. Then, with your service providers for your monthly bills and much more.

This is a time-consuming markdown. So we recommend that you keep your old chequing account open for a few months. This way, you can make sure you haven’t forgotten anything.

Once all the steps have been completed, you can close your old chequing account to avoid paying any monthly fees or inactivity charges.

The best chequing account offers in Canada vary regularly. That’s why we update a list of the best bank account offers in Canada every month.