What Should You Look for in a Chequing Account?

A chequing account is a safe place to store and access your money. Brick-and-mortar banks, online banks, and credit unions all offer chequing accounts with unique features. Different types of accounts have different perks such as attractive interest rates, no monthly maintenance fees, unlimited withdrawals, and more. Choosing the right account with the right perks for your financial situation can help you make the most of your money.

FDIC Insurance

Financial institutions insure account holders’ deposit accounts against bank failure with the Federal Deposit Insurance Corporation (FDIC). Banks and savings associations are covered by the FDIC while credit unions are protected by the NCUA. Always read the fine print to make sure a financial institution is “Member FDIC” before opening a bank account and making a deposit.

Minimum Balance Requirements

Most chequing accounts have a minimum balance requirement to avoid monthly fees. Failing to meet balance requirements usually results in paying a monthly maintenance fee. There are ways to avoid monthly service fees, including receiving a certain total amount of monthly direct deposits, maintaining a minimum daily balance, or maintaining a combined total daily balance between a linked chequing account and savings account. Make sure to choose a chequing account that is either fee-free or has minimum balance requirements you can meet to waive monthly service fees.

A chequing account is the most common type of financial tool available. It’s a type of bank account that allows you to make direct deposits, withdrawals, online bill payments, transfers, and more. Canadian account holders have several types of chequing accounts to choose from, depending on their needs. The most common types of bank accounts in Canada include personal, business, senior, and youth accounts.

Your funds are available instantly and can be accessed with a debit card. The best way to understand your different account options is to read reviews from reputable personal finance sites like Wealth Rocket. They offer advice on how to choose the best chequing account for your financial needs. Whether opening a new account with a traditional bank, online bank, or credit union, it’s important to read the fine print about account fees, interest rates, features, accessibility, promotions, and rewards programs.

Account Fees

Chequing accounts charge account fees, as most financial products do. Different types of fees you’ll encounter include a monthly maintenance or service fee, overdraft fees, non-sufficient (NSF) fees, and ATM fees. Paying bank fees monthly can quickly add up, which is why you should look for an account with ways to avoid them. Online banks are known for offering no-fee chequing accounts that don’t charge monthly service fees and feature either no ATM fees or ATM fee rebates.

Mobile App and Banking

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People rely on the convenience of their mobile devices to get their daily tasks accomplished. Most bank accounts come with mobile features that put the convenience of banking in your hands. A mobile banking app allows you to make mobile cheque deposits, transfer money, view account activity, and check your account balance at any time. It’s a good idea to check the user ratings of a bank’s mobile app on the app store to see how user-friendly it is.

Fee-Free ATMs

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Look for a chequing account that doesn’t charge ATM fees or that offers ATM fee rebates. Most banks don’t charge for ATM withdrawals when you use a network ATM. Some bank accounts have a money withdrawal limit, and certain account types, like savings accounts, don’t offer ATM access.

When looking for the best chequing account for your banking needs, it’s important to consider whether the bank is Member FDIC, has minimum balance requirements, charges service fees, features online banking services, and offers fee-free ATMs.