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Some Canadian banks offer low- or no-fee chequing accounts, as well as generous welcome offers. Here’s how to compare chequing accounts.
Your chequing account could be the behind-the-scenes hero of your everyday banking activities, if you have the right one. The features can vary from bank to bank and financial institution to financial institution, so it makes sense to shop around if you’re opening a new chequing account or you want a better one. Some Canadian banks offer accounts with low or no fees, added services and generous welcome offers that can help you save and earn money.
How does your account measure up? Look at the features and perks when comparing chequing accounts.
Some chequing accounts have a monthly fee. Banks and other financial institutions may waive the fee if you keep a minimum balance—typically a few thousand dollars—in your account. Others, like the Simplii Financial No Fee Chequing Account, have no minimum account balance.
Even if your chequing account features no minimum balance, keep in mind how much money you need on hand to cover automatic bill payments, such as streaming subscriptions or a gym membership. If you don’t have enough money, you will be charged a non-sufficient funds (NSF) fee. It could be $45 or even more, depending on the fine print of your account.
Get free daily banking and earn $500 when you become a new client and deposit at least $100 a month for 3 straight months. Offer ends Oct. 31, 2024.
Chequing accounts have three main types of fees: monthly fees, transaction fees and international money transfer fees. Check these fees when shopping around for your next account.
As mentioned, some banks and other financial institutions charge a monthly fee simply for using the chequing account. However, they may waive this charge if you maintain a minimum account balance, usually a few thousand dollars, as noted above. Others, like the no-fee chequing account offered by Simplii Financial, have no monthly fee—even if your balance falls to $0 or is overdrawn. However, if you are overdrawn—that is, you have a negative balance—overdraft charges will apply.
It is possible to find a chequing account in Canada with unlimited e-transfers, bill payments and ATM withdrawals. But some financial institutions do charge fees for these services. Those fees can vary based on the number of transactions, as well as on frequency. This can really add up if you use your account often for things like paying a roommate or partner for shared expenses, for instance, on top of other expenses like bill payments or everyday spending.
How much would that cost you? Say you make 10 e-transfers and two bill payments a month, and your bank charges $1.50 per transaction. That’s $18 in a month. If you make roughly the same number of transactions each month, that adds up to $216 spent on transaction fees in one year. It may not seem like much, but wouldn’t you rather have that money in your account?
Also check for ATM fees. Some banks charge up to $2 for ATM transactions, and if you use an ATM outside your debit card’s network, you may have to pay an access fee on top of a convenience fee, too. For a single transaction, that could cost as much as $9.
What if the bank you’re looking at is digital only? Check to see if it offers ATM access through a bricks-and-mortar partner institution. Simplii Financial offers its customers free access to 3,400 CIBC ATMs across Canada, with zero transaction fees for cash withdrawals, e-transfers and bill payments.
If you want the option to send money to loved ones abroad, find out if you could be charged additional fees. Currency conversion fees usually apply to international money transfers, but your bank might also tack on a transfer fee. It could cost you as little as $6 or upwards of $25—the amount varies widely between service providers.
Look for a chequing account that doesn’t charge international transfer fees. For example, with Simplii Financial, you can send money anywhere in the world with zero transfer fees, and you can get up to $300 when you make your first global money transfer.
Welcome offers are as important to look at as features and fees. It’s not common, but some banks do offer generous cash bonuses when you sign up for a chequing account. Find out if promotions are available and if you qualify.
At Simplii Financial, for example, new clients could earn $400 when they open a No Fee Chequing Account by October 31, 2024. To receive the bonus, you’ll need to have an eligible direct deposit of at least $100 going into your account each month for three consecutive months. Eligible deposits include things like payroll, Canada Pension Plan (CPP) payments and certain government benefits or assistance programs.
While high-interest savings accounts tend to have better interest rates and fewer free transactions, so you can grow your money while you store it away for a big purchase or expense, some chequing accounts pay interest, too. Simplii Financial offers tiered annual interest rates depending on your daily closing balance: 0.01% for up to $50,000, 0.05% for $50,000.01 to $500,000, and 0.10% for $500,000.01 and up. (Rates current as of Jan. 13, 2023.) Interest is paid monthly.
Chequing accounts can include compelling perks that are worth looking into.
As you can see, not all chequing accounts are created equal. Finding the right account can save you money in the long run—and if there’s a juicy sign-up bonus, that’s even better.
This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers.
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