Quick Comparison
| Feature |
Chequing |
Savings |
| Purpose |
Daily transactions |
Holding money |
| Interest rate |
0-0.05% |
2-4%+ |
| Debit card |
✅ Yes |
Sometimes |
| Bill payments |
✅ Yes |
Sometimes |
| e-Transfers |
✅ Yes |
Often |
| Transaction limit |
High/unlimited |
Often limited |
| Monthly fee |
$0-$30 |
Usually $0 |
Account Purposes
Chequing Account Uses
| Use |
Why Chequing |
| Direct deposit |
Salary goes here |
| Bill payments |
Pre-authorized debits |
| Debit purchases |
Everyday spending |
| e-Transfers |
Send/receive money |
| Rent/mortgage |
Regular payments |
| Cheques |
If still needed |
Savings Account Uses
| Use |
Why Savings |
| Emergency fund |
Protected, earning interest |
| Goal savings |
Down payment, vacation |
| Excess cash |
Beyond monthly needs |
| Tax accounts |
TFSA, RRSP savings |
| Short-term holding |
Before investing |
Interest Rate Comparison
Typical Rates
| Account Type |
Interest |
| Big bank chequing |
0.00-0.01% |
| Big bank savings |
0.10-0.50% |
| Online bank chequing |
0.00-1.50% |
| Online bank savings |
2.00-4.00% |
| HISA (high-interest) |
3.00-4.50% |
Interest on $10,000 (Annual)
| Account |
Rate |
Annual Interest |
| Big bank chequing |
0.01% |
$1 |
| Big bank savings |
0.50% |
$50 |
| Online chequing |
1.00% |
$100 |
| High-interest savings |
3.50% |
$350 |
Difference: $349/year on just $10,000
Fees Comparison
Chequing Account Fees
| Fee Type |
Range |
| Monthly fee |
$0-$30 |
| Per transaction |
$0-$1.50 |
| e-Transfer |
$0-$1.50 |
| ATM (other network) |
$2-$5 |
| Overdraft |
$5 + interest |
Savings Account Fees
| Fee Type |
Range |
| Monthly fee |
Usually $0 |
| Excess transactions |
$1-$5 each |
| Withdrawal limit |
1-6/month at some |
| Transfer fee |
Usually $0 |
No-Fee Options
| Type |
Provider |
| No-fee chequing |
Tangerine, Simplii, EQ Bank |
| High-interest savings |
EQ Bank, Motive, Oaken |
| Both combined |
EQ Bank (hybrid) |
Transaction Limits
Chequing Accounts
| Account Tier |
Typical Limits |
| Basic |
12-25 transactions |
| Unlimited |
Unlimited |
| No-fee online |
Unlimited |
Savings Accounts
| Bank Type |
Transaction Limit |
| Traditional banks |
Often limited |
| Online banks |
Usually unlimited |
| US banks |
6/month (historical) |
Note: Canadian savings accounts have fewer restrictions than US.
Optimal Setup
Two-Account Strategy
| Account |
Purpose |
Where |
| Chequing |
Monthly spending |
No-fee bank |
| High-interest savings |
Rest of money |
Best rate bank |
Monthly Flow
| Step |
Action |
| 1 |
Salary deposited to chequing |
| 2 |
Transfer excess to savings |
| 3 |
Pay bills from chequing |
| 4 |
Move money back if needed |
How Much in Each
| Account |
Amount |
| Chequing |
1-2 months expenses |
| Savings |
Emergency fund + goals |
| Short-term |
Keep accessible |
| Long-term |
Consider TFSA/RRSP |
Best Chequing Accounts
No-Fee Chequing
| Bank |
Monthly Fee |
Features |
| Tangerine |
$0 |
Unlimited transactions |
| Simplii |
$0 |
Unlimited, CIBC ATMs |
| EQ Bank |
$0 |
Hybrid account |
| Neo Financial |
$0 |
Cash back |
| KOHO |
$0 |
Prepaid, cash back |
Big Bank (If You Need)
| Bank |
Lowest Fee |
Waived With |
| TD |
$4.95 |
$3,000 balance |
| RBC |
$4.00 |
$1,500 balance |
| BMO |
$4.00 |
$3,000 balance |
| Scotiabank |
$3.95 |
$4,000 balance |
| CIBC |
$4.00 |
$3,000 balance |
Best Savings Accounts
Highest Interest
| Bank |
Rate |
Type |
| EQ Bank |
2.50%+ |
Savings Plus |
| Motive Financial |
3.00%+ |
Savings |
| Oaken Financial |
3.25%+ |
Savings |
| Tangerine |
0.50-5%* |
Promotional |
| Wealthsimple Cash |
2.50-4%+ |
Premium tier |
*Tangerine offers periodic promotional rates.
Hybrid Accounts
Accounts That Do Both
| Product |
Interest |
Features |
| EQ Bank Savings Plus |
2.50%+ |
Chequing features |
| Motive Cha-Chingings |
3.00%+ |
Hybrid |
Hybrid Benefits
| Feature |
Available |
| Debit card |
✅ |
| Bill payments |
✅ |
| e-Transfers |
✅ |
| High interest |
✅ |
| No monthly fee |
✅ |
Common Mistakes
| Mistake |
Problem |
Solution |
| All money in chequing |
Missing interest |
Move excess to savings |
| Paying monthly fees |
Wasting money |
Switch to no-fee |
| Low-rate savings |
Losing to inflation |
Use HISA |
| Too many accounts |
Complexity |
Simplify to 2-3 |
Setting Up Automatic Transfers
Automate Your Savings
| Timing |
Transfer |
| Each payday |
Fixed amount to savings |
| Monthly |
After bills paid |
| Goal-based |
Specific savings goals |
Transfer Methods
| Method |
How |
| Internal transfer |
Same bank, instant |
| e-Transfer |
Different banks |
| Pre-authorized |
Scheduled automatic |
| EFT |
Bank-to-bank transfer |