Types of Bank Accounts in Canada

Understand the various bank accounts available in Canada...

There are many different types of bank accounts available in Canada. Banks will offer advice to find a bank account which suits a persons requirements. However the most common two are:

  1. Chequing account (sometimes called a banking or transaction account): These accounts are for day-to-day banking purposes. Interest rates are low but many have low (or no) monthly fees. Chequing accounts usually come with a bank (debit) card.
  2. Savings account: This type of account normally provides higher interest rates but may have a limit on the minimum amount of money allowed in the account. They may also limit how many withdrawals are allowed each month, so for day-to-day banking a chequing account is more efficient.

Another type of account offered is a US account. This is aimed at people who do a lot of transactions in US dollars or who travel to other countries where US dollars are used.

Transaction fees and the number of transactions allowed per month vary according to the bank and type of account, so it is necessary for a person to decide what their requirements are before choosing an account.

Monthly fees for banking transactions will depend on the type of bank account chosen. However, some banks do offer no-fee bank accounts.

Post Office savings accounts do not exist in Canada.