CHEQUING ACCOUNTS
Meet Justin
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Justin needs your help. Follow him along on a financial journey, as he makes mistakes, fixes them, and learns his lesson.
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Click-through time: ~8 minutes.
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Test your knowledge with a quiz and our game: "Talk Like a Banker"!
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Learn how to make decisions.
"Justin is at the mall chewing on a slice of pizza when a slick banker approaches him..."
What is it Used for?
Your chequing account is a waypoint for your income and expenses:
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Money you earn or receive is deposited in your chequing account.
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Use it to pay for things and store enough for your short-term expenses (transfer the rest to your savings / investment accounts).
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Every financial product you use will be linked to this account.
A debit card, which comes with your chequing account, identifies you as the bank's client.
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It allows you to withdraw (take out) and deposit (add) cash from / to your account, at a bank machine (ATM) or with a teller.
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You can use it in stores to buy things. When you spend with a debit card, the money comes from your chequing account.
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Don't make online purchases with a debit card. Use a credit card with a small limit if you have one - it's better protection against fraud.
The money in your bank accounts is in Canadian dollars. What do you do if you're travelling or shopping online and need to pay for something in another country's currency?
Key Features
Monthly Fee
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You get what you pay for. Free accounts tend to have fewer features but get the job done.
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If there is a fee, it may be waived if you keep a certain balance (amount) in the account, or purchase several products / services from the same bank.
Monthly Transactions and E-transfers
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A 'transaction' is money leaving your account (like debit purchases or ATM / teller withdrawals).
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Some banks limit your monthly transactions / e-transfers, but no bank limits deposits. Banks make money from their clients' deposits.
Debit Rewards
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Earn points / get cash back when you spend money with your debit card.
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Points can be redeemed for goods and services at participating retailers.
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Cashback refunds are sent to your account every month.
Key Features Tip
For your chequing account, look for no monthly fee, unlimited transactions, and free e-transfers.
Research & Compare Tip
Websites, like www.ratehub.ca or www.ratesupermarket.ca, can help you compare offers. But you still need to google the name of the bank and product you are considering. And read the fine print - which means you’ll need to learn ‘banker talk’...
Decision Tip
Traditional banks, like the Big 5, are more expensive but offer more services.
Online banks are cheaper and simpler (and they do have telephone customer service).
Credit unions are community banks. You are not just a customer. You are a member and you get a small share of profits back into your account.