Chequing accounts

Why have a chequing account?

A chequing account is a type of bank account that helps you manage your finances. It gives you an easy way to make payments (e.g. e-Transfers) and lets people pay you (e.g. your employer). You’ll get a debit card with your chequing account, which you can use to make payments and withdraw cash from an ATM.

If you use other financial products like a credit card or a savings account, it will be your chequing account that lets you make payments into them.

It’s worth noting that your money is secure. The Canada Deposit Insurance Corporation (CDIC) automatically insures chequing deposits up to $100,000. So if your bank ever failed, your deposit would be protected as long as your bank is a CDIC member. You can find more information here about deposit insurance.

You can open a chequing account without having a job or no money to put into it. If you’ve claimed bankruptcy, you can also open a chequing account. By law, every Canadian has the right to access at least one personal bank account.

Chequing account types

There are many different types of chequing accounts available to you. They offer different features based on your life and banking needs.

Basic chequing account	The most common account available, this comes with the basics: a debit card and ATM access. You will likely pay a monthly fee to have this account.
No-fee chequing account	This account won’t have a monthly fee, but “no-fee” won’t be completely accurate. You may have to pay fees for using an out-of-network ATMs as an example.
Online-only chequing account	Online banks (such as Tangerine) provide online-only chequing accounts. These accounts are the same as a basic chequing account – you get a debit card and ATM access. Fees may be reduced or even eliminated but you won’t be able to visit a bank branch. Managing your account is done through the bank’s online banking or mobile app.
Student chequing account	Most student accounts are limited to post-secondary education and offer unlimited debit transactions with no monthly fees. Proof of enrolment in an education program will be needed to open the account.
Youth chequing account	These accounts are for children, teens and young adults. You usually get the same features as a student chequing account, but you don’t need to be a student to qualify. There is an age limit, usually set at the age of majority (18 or 19 depending on which Province you reside).
Seniors chequing account	Some banks offer senior chequing accounts for those aged 60-65 or older. These accounts usually include personal cheques, unlimited transactions for a low or no monthly fee. Some banks may also provide a senior discount on a basic chequing account too.
Newcomer bank account	These accounts are for those new to Canada. This can include landed immigrants, permanent residents and foreign workers. Some banks will offer dedicated newcomer chequing accounts, whilst some may waive fees on standard accounts based on their newcomer status.
Premium chequing account	These chequing accounts come with plenty of benefits. This could be free global transfers, preferred exchange rates and unlimited out-of-network ATM withdrawals. You should expect to pay a higher monthly fee, or maintain a minimum daily balance for the account.
Joint chequing account	A joint account is shared usually between two or more people. All account holders have equal responsibility for the account. Each holder can make transactions, deposits and withdrawals.
Foreign currency and USD accounts	These accounts are for sending, holding and receiving payments in foreign currencies. Typically these are USD-specific, or multi-currency. Having this account can help reduce exchange rate fees and may include discounted or free wire transfers. You can convert your money into Canadian Dollars whenever you want too.
Business chequing account	These accounts usually offer a higher number of allowed transactions or higher overdraft limit. The transactions and fees scale by the size of the business and it’s banking needs.

Applying for a chequing account

You can usually open a chequing account either in person, online or by telephone. The bank will need to confirm your identity through proper identification.

You’ll need some basic information, such as: your name, date of birth, social insurance number and contact details (phone number, address for example). You may need to provide two pieces of identification, that could be:

• Your driver’s license
• Current Canadian passport
• Birth certificate issued in Canada
• Certificate of Indian Status
• Provincial or territorial health insurance card
• Certificate of Canadian Citizenship
• Permanent Resident card

Information you must receive from your bank

As part of your application for a chequing account, your bank has to provide you the terms of the account agreement. This can be either in writing or electronic documents stating:

• A copy of the account agreement
• Information about any fees/charges associated with the account
• Information about how you will be notified about changes to the account
• Information about the provider’s complaint-handling procedures

This information must be provided to you within seven days of opening the account.

After submitting your application and agreeing to the terms of the account agreement, your chequing account should be approved very quickly. You may receive your debit card right away (if you applied in-person) or may have to wait a few days to receive your card in the mail. You’ll likely need to activate the card using the toll-free number on the card.

Setting up your chequing account

Once your account is open, you’ll want to set it up for the transactions you expect to make. The main three things to set up are:

• Payroll deposits. You’ll need to give your employer your bank details (bank, transit and account numbers) so you can receive payment directly. You can get this information through online or telephone banking. Additionally a void cheque for the account will also have this information.
• Bill payments. You can use online or telephone banking to set up your payees or the companies you need to pay (for example, for hydro or cable TV). You’ll need the company name and your account number with the company to set them up as a payee.
• Pre-authorized debits. You may wish to set up regular withdrawals (to a savings account for example). You will likely need to complete an authorization form, bank, transit and account numbers to set this up.

Overdraft protection

Being in overdraft occurs when there isn’t enough money in your chequing account to cover a payment or withdrawal. It is usually viewed as debt, and can be expensive. So it may be worth considering overdraft protection if you regularly incur declined transactions, late payment charges and non-sufficient funds (NSF) fees. You can read more about overdraft protection here.

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