Is Your Checking Account Costing You Money?

Your chequing account can quietly shape your daily finances — especially if you choose the right one. Features and fees vary widely between banks and financial institutions, so it pays to compare options before opening a new account or switching. Many Canadian providers offer low- or no-fee accounts, extra services and welcome bonuses that can help you save money and get more value from everyday banking.

To find the best fit, evaluate an account’s features, fees and perks when comparing chequing accounts.

1. What’s the minimum balance requirement?

Some chequing accounts charge a monthly fee that can be waived if you keep a minimum balance — typically a few thousand dollars. Other accounts have no minimum-balance requirement. Even with a no-minimum account, you still need enough money to cover recurring bills and automatic payments. If you don’t, your bank may charge a non-sufficient funds (NSF) fee, which can be $45 or more depending on your account terms.

2. What are the account fees?

Chequing accounts typically involve three main types of fees: monthly maintenance fees, transaction fees and international transfer or currency conversion fees. Review each of these when comparing accounts, because fees you pay regularly can add up quickly.

Monthly fees

Some accounts charge a monthly fee that can be waived if you keep a minimum balance. Others advertise no monthly fee regardless of balance, though overdraft charges still apply if you spend more than you have. Read the terms carefully so you understand when fees apply.

Transaction fees

Some chequing accounts include unlimited e-transfers, bill payments and ATM withdrawals; others charge per transaction or limit the number of free transactions per month. Fees vary by institution and by transaction type, and they add up if you send frequent e-transfers, split bills with roommates, or use ATMs often.

For example, if your bank charges $1.50 per transaction and you make 12 chargeable transactions a month, that’s $18 monthly or $216 annually. It’s worth checking how many free transactions are included and how much extra ones cost.

Also check ATM fees. Using ATMs outside your bank’s network can mean paying both an access fee and a convenience fee. That can make a single withdrawal surprisingly costly.

If you use a digital-only bank, confirm its ATM access arrangements. Some online banks provide fee-free access to a partner network of physical ATMs nationwide.

International money transfer fees

If you plan to send money abroad, ask about currency conversion and transfer fees. Banks and transfer services may charge a conversion markup or a flat transfer fee — often anywhere from a few dollars to more than $20. If international transfers are important to you, look for accounts or services that minimize or waive those fees.

Some providers offer zero transfer fees for certain transactions and occasionally run promotions such as a bonus on your first global transfer. Check eligibility and any promotional deadlines in the terms.

3. Does it have a welcome offer?

Welcome bonuses can meaningfully increase the value of a new chequing account, so check whether offers are available and what you need to do to qualify. Promotions often require a certain number or amount of direct deposits or a minimum balance for a defined period.

For instance, some banks reward new clients who set up eligible direct deposits of a specified amount for a set number of consecutive months. Confirm what counts as an eligible deposit — common examples include payroll, Canada Pension Plan (CPP) payments and specified government benefits.

4. Compare interest rates, too

Chequing accounts don’t usually offer the same interest rates as high-interest savings accounts, but some pay a small amount of interest on balances. If earning interest on everyday funds matters to you, compare the rates and how interest is calculated and paid. Even a modest rate can help a bit over time, but for longer-term savings, a dedicated savings product may be a better fit.

5. What extra perks does the chequing account offer?

Many chequing accounts include add-ons that improve convenience and value. Consider which extras matter most to you:

• Referral bonuses: You may earn a cash bonus for referring friends and family who open an account and meet the qualifying conditions.
• Digital gift cards: Some banks let you purchase and send digital gift cards directly from your account, useful for sending gifts or reimbursing others quickly.
• Debit Mastercard or similar: A debit card that works online and in stores gives you the convenience of card payments without using a credit line; purchases are deducted directly from your chequing account.
• ATM access while traveling: If you travel, find out which ATM networks you can use abroad and what daily withdrawal limits and fees apply to avoid surprises.
• Foreign currency ordering: If you need cash for a trip, some banks let you order foreign currency online and arrange home delivery or pickup at a local post office.

Not all chequing accounts are the same. Carefully comparing minimum-balance requirements, fees, interest and perks will help you choose an account that suits your daily banking needs and saves you money in the long run. And if a sign-up bonus applies and you qualify, that can be an added benefit.

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