The two main types of bank accounts in Canada are chequing accounts and savings accounts.
A chequing account allows you to write cheques, and sometimes includes the use of a debit card. Transaction fees are often lower on chequing accounts, with some having a flat monthly fee. Chequing accounts offer low or sometimes no interest rate therefore it is to your advantage to have your savings money in a high interest savings account. There are many different chequing account products on the market, so compare what is available and find the product that suits your lifestyle the best. This can save you money on your banking costs.
A savings account can be beneficial if you want to save some money for short-term needs. Depending on the financial institution and the many products available your interest rate, amounts required in account to benefit will vary. We suggest that you compare what is available in the Canadian bank account marketplace to find the best product for your needs.
Some institutions set limitations on a savings account for your to benefit, rules such as: limiting you taking your money out of a savings account at any time, the type and number of transactions you are allowed to make, and additional transactions may be expensive. An example would be if you want to pay your hydro and mortgage, write cheques and make more than two withdrawals per month from your savings account, you may eat up the interest you have gained in paying for transaction fees.
It may be to your interest to open a chequing account and maintaining at least the minimum amount in the account to avoid bank charges; and complete off your transactions from this account, and also to have a savings account where you complete minimum transactions and benefit from the high interest savings.