Is your chequing account working hard enough?

How does your account measure up? Look at the features and perks when comparing chequing accounts. 

1. What’s the minimum balance requirement? 

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.

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Simplii Financial No Fee Chequing Account

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Earn $500 when you become a new client and make an eligible direct deposit of at least $100 for 3 straight months. Conditions apply. Offer ends Feb. 28, 2025.

• No monthly or minimum balance needed
• Unlimited cheque transactions and e-transfers

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2. What are the account fees? 

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. 

Monthly fees 

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.

Transaction fees

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.

International money transfer fees 

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. 

3. Does it have a welcome offer?

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. 

4. Compare interest rates, too

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. 

5. What extra perks does the chequing account offer?

Chequing accounts can include compelling perks that are worth looking into. 

• Referral bonuses: If you get a friend or family member to sign up, too, you could earn a cash bonus. When you refer a new client to Simplii Financial, you each get $50 once they’ve opened their account. 
• Digital gift cards: Digital gift cards are a convenient way to send money to someone directly from your bank account, without going through a merchant. Simplii Financial’s Visa Digital Gift Card can be used in stores or online, wherever Visa is accepted. All you have to do, if you’re already a Simplii client, is select the amount for the card and enter the recipient’s email address. 
• Debit Mastercards: If you want a debit card you can use online and in-store, consider a Debit Mastercard. You can shop as you would with a regular credit card, but your purchases come from your chequing account. Simplii Financial’s Debit Mastercard can be used wherever Mastercard is accepted. 
• ATM access while abroad: Before you travel, find out which ATMs you can use at your destination (for example, which partner network symbols to look for). Check how much cash you can take out per day, and factor in the currency exchange rate to avoid exceeding your daily limit. If you do, you might be on the hook for overdraft charges.
• Ordering foreign currency: If you’re planning a trip and want to convert Canadian currency before you leave, find out if you can order foreign cash online. Simplii Financial offers free delivery of your foreign currency order to your home or local Canada Post office.
  

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.

Read more about banking:

• Does buying GICs still make sense after the recent rate cuts?
• The best chequing accounts in Canada
• What is an emergency fund and how to build one
• Video: How to close a bank account

About Margaret Montgomery

Margaret Montgomery is a former MoneySense editorial assistant and MoneyFlex columnist. She studied business administration at Wilfrid Laurier University and journalism at Centennial College.

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