Best Chequing Accounts In Canada For May 2024

We’ve compared 239 chequing accounts at 19 nationally available banks and credit unions to find some of the best options available. See below to learn more about why we picked each account, the pros and cons of each, as well as details around fees and additional perks.

To create this list, Forbes Advisor analyzed 239 chequing accounts at 39 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 17 data points within the categories of fees, access, customer experience, digital experience, minimums and balance needed to avoid the monthly fee.

The following is the weighting assigned to each category:

• Fees: 50%
• Branch and ATM access: 15%
• Customer experience: 10%
• Digital experience: 10%
• Minimums: 10%
• Balance to avoid monthly fee: 5%

Specific characteristics taken into consideration within each category included monthly fee, ability to waive the monthly fee, overdraft fee, NSF fee, other fees, ATM network, branch access, Better Business Bureau rating, Trustpilot rating, live chat availability, mobile app ratings, online bill pay availability, online banking access, minimum deposit requirements and minimum balance requirements.

Chequing accounts offering no or very low fees scored the highest, as did those offering low minimum requirements and high customer service and digital experience scores.To appear on this list, the chequing account must be nationally available.

A chequing account is meant to be your primary bank account where all your transactions are conducted, your paycheques are deposited, your recurring payments are debited from and your bills are paid out of. This is your standard “money in” and “money out” account, which is called chequing because it was where your cheques were debited from when writing them was more common.

Learn more: What Is A Chequing Account? Everything You Need To Know

How Does a Chequing Account Work?

Chequing accounts allow you to deposit money at any time through ATMs, receiving Interac e-Transfers, wire transfers, direct deposits and more. You’ll either have a set amount of free transactions and pay after that or you’ll pay a monthly fee for unlimited transactions.

Conversely, money can be debited by writing cheques, through debit card purchases, bill payments, recurring payments and Interac e-Transfers without penalty through a fee because the goal isn’t saving here, but day-to-day banking and money management. However, your bank may still limit the amount of money you can withdraw in a single day.

Only a select few chequing accounts in Canada are interest-bearing and chequing accounts usually come with a monthly fee to keep your money in them. Usually if you maintain a stated balance in your account each month, this fee will be waived.

How Much Money Should You Keep in a Chequing Account?

Everyone has different financial pressures and situations they deal with, so there’s no set amount you absolutely have to have in your chequing account. Truly the amount you keep in your chequing account that’s comfortable is whatever works for you.

However, if you’re looking for a north star, it’s a good idea to have at least enough money to cover two months of living expenses. This is meant to provide a little bit of a financial cushion if hard financial times befall you.

The differences between chequing and savings accounts can be easily broken down into four areas:

• Purpose – Chequing accounts are for daily banking (spending) and savings accounts are for saving.
• Withdrawals – Savings accounts often charge you for making withdrawals to incentivize saving. While chequing accounts allow you to make as many withdrawals as you want, but you’ll need to pay ATM fees outside the home network in most cases.
• Features – Chequing accounts generally come equipped with debit cards, paper cheques, overdraft protection and other services for spending. Savings accounts may come with interest earnings and tools to reach your savings goals.
• Interest – Some chequing accounts pay interest, but this isn’t the norm. Savings accounts generally do pay interest.

Learn more: Chequing Vs. Savings Accounts

There are a variety of chequing accounts available in Canada to meet various banking needs:

• Traditional chequing accounts: An account that lets you perform basic banking functions such as depositing money, ATM withdrawals, bill payments and debit transactions.
• Premium chequing accounts: These accounts offer choice account benefits and perks if you maintain or exceed a certain balance. If you happen to be below the required balance, you’ll have to pay a monthly fee.
• Interest-bearing chequing accounts: These accounts aren’t very common in Canada, but they generate a small amount of interest on your balance.
• Rewards chequing accounts: These accounts allow you to earn rewards on your spending with your debit card, akin to a credit card. Typically these rewards are cash back deposited directly into your account each month.
• Student chequing accounts: These accounts are meant as the first chequing account for students enrolled in a post-secondary institution. They feature low or no fees, sometimes rewards and overdraft protection.
• No-Fee chequing accounts: No-Fee chequing accounts come as advertised – with no fees, including monthly fees, transaction fees, transfer fees, ATM fees, withdrawal fees and more.
• USD chequing accounts: These are chequing accounts based in Canada meant for people who regularly deposit U.S. dollars and want to keep their money in that currency or get a better exchange rate than their regular chequing account can offer when the money is converted into Canadian dollars. U.S. dollar chequing accounts often give that better exchange rate and allow account holders to keep their money in U.S. dollars until the conversion rate is most advantageous to them.
• Joint chequing accounts: These accounts can be shared between two or more people, such as spouses and partners or an entire family.
• Kids/Youth chequing accounts: These are meant to be first chequing accounts for kids and teens. They are meant to teach the young account holder how to handle money and often come with no fees and incentives for saving or depositing. They also can be opened by those under a certain age independently.
• Seniors chequing accounts: These chequing accounts are meant for seniors aged 60 to 65 or over. They feature no or low fees and often unlimited transactions.
• Newcomers chequing accounts: These are accounts meant for newcomers to Canada and often come with lower to no fees, no restrictive balances and unlimited transactions.
• Online-only chequing accounts: An online-only chequing account offers you the same features as a conventional chequing account, such as bill paying and money transfers, but without a bricks-and-mortar location. All transactions happen online, via an app or web browser.
• Business chequing accounts: A business chequing account is opened in your company’s name and allows you to conduct business-related transactions. A business chequing account keeps your business-related banking separate from your personal banking.

The best chequing accounts charge minimal fees. When comparing chequing accounts, it’s helpful to consider the following common chequing account fees:

• Monthly maintenance fees
• Paper statement fees
• Wire transfer fees
• Out-of-network ATM fees
• Foreign ATM fees
• Foreign transaction fees
• Overdraft fees
• Returned item (NSF) fees
• Cashier’s cheque, certified cheque and money order fees

Many banks waive monthly fees if you meet their requirements, such as maintain a minimum average balance or receive a certain number of direct deposits per month.

Online banks often charge no monthly fees and may even offer perks like interest on your chequing account or cash back on your transactions. With an online chequing account, fees for things like wire transfers or foreign ATM transactions may also be lower than what you’d pay with a chequing account at a traditional bank.

The first way to save on bank fees is to know what fees your bank charges so you don’t inadvertently do things that cost you fees. Along with that, you need to know your banking habits. For example, if you use your debit card frequently to make purchases, you won’t want to choose a choose a chequing account that has a low cap on transactions. A monthly fee may feel expensive until you add up all the extra $1.25 per transaction charges, for example. Or, if you prefer in-person banking, you won’t want to select a chequing account that charges you for transactions made with a teller.

In general, here are some tips to save on bank fees:

• If your chequing account has a minimum balance requirement, don’t go below that limit.
• If you do have a limit to your number of ATM transactions, rather than taking out small amounts of cash frequently, take out a larger amount at one time.
• Use the cash back option when shopping to avoid paying the ATM fee for a cash withdrawal.
• Limit the amount of times you use another bank’s ATM as those fees can add up.
• Keep track of the amount of money going out and coming in so you don’t get dinged with NSF charges or overdraft.
• Choose online statement instead of paper statements.

Kind of like a welcome offer with a credit card, these offers are often cash deposits that you receive in your account if you meet certain requirements like depositing your paycheque into the account, adding a recurring payment to the account or paying a bill from the account within the first 90 days or the first few months.

Chequing accounts are the most common bank accounts used for everyday banking, but they come with their own set of benefits and drawbacks.

Pros

• Easy access to your money when you want it.
• Send and receive money with features like Interac e-Transfers, direct deposits and transfers between multiple accounts in one bank.
• Most chequing accounts are insured by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000 if the bank where your account is held ever becomes insolvent.

Cons

• Chequing accounts charge fees or force you to keep a certain balance to avoid fees.
• The majority of chequing accounts don’t earn interest.
• A lot of money in your chequing account may dissuade you from saving.

Very few chequing accounts in Canada offer interest. When interest is offered on your balance it is usually between 0.01% and 0.05%. If you maintain a certain balance by the end of the month, you will usually receive more interest, but these accounts remain few and far between.

Some chequing accounts offer more than the customary 0.01% to 0.05%. For example, the EQ Bank Savings Plus Account offers 2.50% on all deposits calculated daily. In a lot of cases, that’s more interest than some savings accounts currently generate.

There are a number of factors to keep in mind when choosing a chequing account.

• Fees: Since you’re doing your day-to-day banking in your chequing account, it won’t take long for fees to add up. That’s why you should monitor your banking habits, see what kinds of things you do the most and look for accounts that don’t charge for your most common banking habits.
• Minimums: Try to either avoid chequing accounts that require a minimum balance or deposits to stay open or evaluate whether you are able to regularly maintain those minimums without any trouble.
• APY: See if you can find an account that offers an annual percentage yield (APY) by collecting interest.
• Customer service: Regardless of whether you bank online or at a branch, it’s important to be able to get in touch with a customer service representative should a problem or question arise. It’s also important that they are helpful and responsive.
• Digital experience: If you bank online or use mobile apps or digital wallet technology, find a bank that offers that kind of technological innovation.
• Safety: Make sure your deposits are insured by the CDIC wherever you bank so you are covered if the place you bank fails.

You also need to choose chequing accounts that have the features that align with your banking habits. For example, if you go into overdraft a lot, find an account that provides flat rate overdraft and doesn’t charge you every time you use it.

Each of the chequing accounts listed here have special features or rewards that will appeal depending on your financial goals and banking needs. Some of the most common include:

• High APY
• Unlimited transactions
• No or low monthly fee
• Free ATM transactions
• Cash back rewards
• Welcome bonus
• Overdraft protection
• Compatible with Apply Pay and Google Pay

Chequing accounts provide several ways to access and use the funds in your account. The most common ones include:

• Deposits: This can include a cash or cheque deposit through your ATM, bank branch or app, or regular deposits, such as your paycheque.
• Withdrawals: You can access your chequing account through an ATM or bank branch. You can also access funds when shopping if your retailer offers a cash back option.
• Payments: There are several ways to make payments with a chequing account including:
  • Writing a cheque
  • Setting up a pre-authorized payment where money is withdrawn at a predetermined amount and time
  • Interac e-Transfer allows you to send money to anyone using online banking
  • Electronic fund transfer (ETFs) sends money between bank accounts in your name
  • Debit card purchases

There are three main ways to access your chequing account:

• Branch or in-person banking
• Over the phone
• Online banking, via a web browser or app

Once you know how you want to access your chequing account, for example, whether you prefer to do your banking in person at a branch or on the go via an app, then you can choose an account that meets those needs.

To open a chequing account, enter a branch or call telephone banking at a particular bank and provide the following information to verify your identity.

• Full name
• Physical address
• Driver’s license or other government-issued photo ID
• Social insurance number (SIN)

If you’re approved for an account, you can usually fund it using cash, a cheque or a transfer from an external account.

Opening a chequing account online is similar to opening one in-person.

Once you find a chequing account that’s right for you, fill out an application on the bank or credit union’s website and submit any required documents. After that, you should be able to fund your account online.

If you’re opening a chequing account at a bank that you already have an account with, making your initial deposit may be as simple as transferring money from your other account. If you’re opening a chequing account at a new bank, you’ll need to link your existing account by providing your bank account and routing numbers. You can then transfer funds from your old account to your new one. You can also do this using Interac e-Transfer if both banks support this method.

When opening chequing accounts online, consider how much you’ll need to get started. You may need $25, $50, $100 or more to open a chequing account at a traditional bank. Online banks, on the other hand, may require an opening deposit as low as $1 or, in some cases, $0.

There’s no limit to the number of chequing accounts you can have and you may find it easier to manage certain pots of money used for certain things if they are in different accounts.

For example, maybe you and your spouse or other family member you live with need a joint account to handle common expenses, but you still have your own bank account to manage your own spending. Just be aware that each chequing account you have comes with fees and minimum balances.

Plus, you may be paying other fees to transfer money between banks if the accounts are at two different financial institutions. It may be cost prohibitive to have a lot of chequing accounts. But if you go that route, use a budgeting app to manage your accounts all in one place.

Having a chequing account will make your financial life easier because you’ll have a place to put your money to source your debit transactions, bill payments and other financial obligations. You’ll also have a place to deposit your paycheques and any other source of income. When choosing a chequing account, pick one that has low or no fees for the tasks you find yourself using a chequing account for most often. Prioritize the features and perks you want most and how much you’re willing to pay to have them. Then, compare chequing accounts at various banks before choosing one that most closely fits your financial situation and lifestyle.

Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motus Bank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union.