TLDR
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A chequing account is an account you can use every day for buying essentials, paying bills and receiving a paycheque.
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Different chequing accounts offer different features, such as included transactions, rewards and rebates on other products.
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Choosing the right chequing account for you comes down to how you plan to use it, how often you intend to access your money and the features that meet your banking needs.
What is a chequing account?
A chequing account is a bank account you use for everyday spending. It’s where your money comes in and goes out – whether you’re buying groceries, paying bills or getting paid through direct deposit or cheque.
You can open a chequing account at a bank or credit union, and the name might vary depending on the institution and the country where it’s opened. Some call it a personal account, current account, deposit account or transaction account – but they all serve the same purpose: handling your daily money needs.
What do you use a chequing account for?
You can use a chequing account to withdraw money from an ATM, deposit paycheques, pay bills and make purchases with a debit card. You can access your chequing account at an ATM, in a branch or online on your bank’s website or mobile app.
You can even pay for public transit directly from your chequing account. Just tap your debit card or mobile wallet at the fare reader to pay for your public transit fare. Transit transactions are free and don’t count towards your monthly transaction limits (more on that later). Tap to pay is available on all transit systems that accept contactless debit payments at the fare card reader.
How is a chequing account different from a savings account?
A chequing account serves a different purpose compared to a savings account. The main distinctions between these types of accounts are:
- Account usage: While a chequing account is designed for your day-to-day money needs, the purpose of a savings account is to set your money aside and only withdraw it when you’re ready to use the funds you’ve saved. It’s important to note that debit transactions will likely cost extra from a savings account, so it’s best used mainly for parking money.
- Fees: Many chequing accounts come with a monthly fee that includes a set number of transactions. (There are some no-fee chequing accounts that come with limited transactions, and some all-inclusive accounts that come with a higher monthly fee). Savings accounts, meanwhile, don’t typically come with a monthly fee.
- Interest: You will earn interest on the balance you hold in a savings account, but typically not in a chequing account.
You can learn more about the differences between a chequing and savings account in our article, Chequing Account Vs. Savings Account. Which One Do I Need?
What else does a chequing account offer?
Besides the convenience of day-to-day money management, a chequing account can include additional features that offer great value.
Credit card annual fee rebates
Some chequing accounts include an annual fee rebate on certain credit cards (this may be a refund or a waiver of the yearly fee). For example, the RBC Signature No Limit account offers up to a $48 rebate on an eligible RBC credit card.
Rewards programs
With some chequing accounts, you can earn rewards points for spending on your debit card. For instance, if you enrol an RBC chequing account in the RBC Vantage program, you can earn Avion points for online and in-store purchases using your debit card. Avion points can be used for gift cards, travel, merchandise, bill payments and more.
Cross-border debits
You can access your chequing account from anywhere and use your debit card in the U.S. to make purchases.
Special promotions
In some cases, you may be eligible to receive a special offer or reward when you open a new chequing account.
What are benefits of opening a chequing account?
There are several benefits that come with opening a chequing account. Here are some of the highlights:
Flexibility: Pay bills, make purchases and transfer money quickly and conveniently.
Easy access to your money: Use your debit card, online banking, the mobile app or the ATM to manage your funds anytime.
Easy to open: Opening an account is fast and simple – you can open a chequing account online, over the phone or at a branch.
Direct deposits: You can have your paycheque or government benefits deposited directly into your account.
Automatic and pre-authorized payments: It’s easy to set up recurring payments for bills, so you never miss a due date.
Browse chequing accounts
Learn more about the benefits of a savings account and see which one may be right for you.
A few things to consider with chequing accounts
As you look into chequing accounts, there are some important details to learn about.
Transaction limits
Many chequing accounts come with a set number of transactions that are covered as part of your account. No-fee chequing accounts tend to offer around ten included debit transactions in Canada, while more premium accounts will have no limit to the number of debit transactions you can make in a month.
Monthly fees
Different chequing accounts come with different monthly fees, depending on what’s included with the account. No-fee and low-fee chequing accounts are good for individuals who don’t make a lot of transactions. All-inclusive chequing accounts will charge the highest fees but include valuable features.
Some accounts offer monthly fee rebates for certain groups, including students, newcomers and seniors. And, if you hold multiple products with a financial institution, you may qualify for a fee rebate on your chequing account.
Minimum balance requirements
Some chequing accounts have no balance requirements, while others charge a monthly fee if you go below a set minimum. Those that require a minimum balance often offer perks like free transactions or higher interest rates. If you have extra funds, consider whether you can direct them to savings or investment accounts where you could earn higher returns.
Fee to use non-bank ATMs
When you need to access cash, you may not always be close to your bank’s ATM. While you can withdraw cash at any ATM in Canada using your debit card, you may be charged a fee if it’s not your bank’s ATM. These fees range from $2 – $5. With some accounts, your bank may cover non-bank ATM withdrawals (but you’ll typically be charged by the other bank to use their machine).
Interest rates
Because chequing accounts aren’t designed to park your money, they typically pay little to no interest on your balance.
How do I choose the best cheuqing account for my needs?
As you decide which chequing account is best for you, consider these questions.
How will you use the account? Will this account be your primary account, which you’ll use to pay your bills, withdraw cash and make day-to-day purchases? Or will it be a secondary account used for a specific purpose, with low monthly activity?
What is the fee structure? There are no-fee chequing accounts where you pay for each transaction, low-monthly fee accounts that include a handful of transactions and basic benefits, and more premium accounts with higher monthly fees that offer unlimited transactions and valuable features.
Where is the branch located? If you feel you may wish to speak with a bank representative from time to time, or get in-person assistance for certain transactions, you may want to choose a bank that’s close to your home or work.
Do you have other banking products? Consider the added convenience of having your chequing account with the same financial institution as any investments, loans or credit cards you may hold. Making payments or deposits to other accounts is simple when everything is under one roof.
It’s easy to compare chequing accounts to see what features are available and how they meet your banking needs.
Frequently asked questions about cheuqing accounts
Our Account Selector Tool can help you find an account. Just answer a few questions to see options that match your needs.
If your chequing account requires a minimum balance to access rewards or higher interest rates, it’s best to maintain that balance so you can take advantage of the perks it offers and avoid extra fees. Otherwise, it’s a good idea to keep enough funds to cover your regular monthly expenses – any extra funds can be transferred to a savings account to earn interest.
Most banks offer specialized accounts for kids and students. For children under 12, available options tend to be savings accounts, designed to help young savers develop good financial habits. For those 13 and over, there are chequing accounts that offer the features students need most – such as unlimited debit transactions in Canada, Interac e-Transfer transactions and no fee for using other banks’ ATMs in Canada – all for no monthly fees.
There are many types of chequing accounts designed to fit the different needs of Canadians. To help determine the best option for you, explore the chequing accounts RBC has to offer.
