Chequing accounts are the most popular financial product used by millions of people around the world. They are arguably an essential for Canadians today, offering a convenient way to manage daily expenses, pay bills, and make purchases. But not all chequing accounts are created equal. Banks and financial institutions often offer different tiers of chequing accounts, each with its own set of features, benefits, and fees.
Basic Chequing Accounts
Basic chequing accounts are the simplest type of chequing account. They are typically designed for customers who have minimal banking needs, such as paying bills and making purchases. Basic accounts usually have low monthly fees or no fees at all, but they may have limited transaction capabilities and fewer features than other account tiers.
One popular basic chequing account is the TD Minimum Chequing Account. With a low monthly fee of $3.95, it gives users up to 12 free transactions, but carries additional fees for most other activities. Here’s a quick breakdown:
Other than that, it’s a standard chequing account, nothing you wouldn’t expect. That’s what you get with the basic tier.
Standard Chequing Accounts
Standard chequing accounts are the next level up from basic accounts. They typically offer more features and benefits, such as unlimited transactions, overdraft protection, and free e-transfers. They may also offer perks like discounted or waived fees for other banking services, such as credit cards or loans.
One popular example is the RBC Advantage Banking account. It is available for $11.95/month, and offers unlimited transactions. Here’s the full list of advertised perks:
Overall, these standard accounts are typically a premium version of the basic accounts. It gives you access to everything you need, at a reasonable fee.
Premium Chequing Accounts
Premium chequing accounts are designed for customers who want a higher level of service and more extensive benefits. These accounts may come with higher monthly fees, but they offer a wide range of features, such as unlimited transactions, overdraft protection, higher interest rates, and exclusive access to financial advisors. Some premium accounts also offer perks like free travel insurance or airport lounge access.
The CIBC Smart Plus account could be considered a premium chequing account, in that it offers premium features at a significantly higher cost. Not only do you have to pay $29.95/month, but you also must meet a minimum daily balance of $6000, or $100,000 in investments. The perks you get for paying this fee are listed below:
These accounts are certainly not designed for the average consumer, but those who wish to indulge have access to premium features.
Student Chequing Accounts
Student chequing accounts are designed for students who are enrolled in post-secondary education. These accounts usually have low fees or no fees at all, and they may offer additional perks like free or discounted banking services, waived ATM fees, or cashback rewards. Student accounts may also offer financial education resources to help students learn how to manage their finances more efficiently.
Most traditional banks offer a student account of some sort, and one popular option is the Scotiabank Student Banking Advantage Plan. Of course, it comes at no monthly fee, and offers the features of a standard account including unlimited transactions and e-transfers. Here are some of the features for this particular account:
Most student accounts are essentially just standard tiered accounts offered at no fee.
Seniors’ Chequing Accounts
Seniors’ chequing accounts are designed for customers over the age of 60. These accounts may offer special features, such as free cheques, reduced fees for banking services, and higher interest rates on deposits. Some seniors’ accounts also offer additional benefits, such as travel insurance, prescription drug discounts, or access to financial advisors. Some of the basic or standard accounts with fees, like the TD Minimum Chequing account, offer their services to seniors at no charge.
A specialized account designed for seniors offered by BMO, is the Practical Senior Bank Account. With no monthly fee, users are given 12 transactions per month, with unlimited e-transfers. These accounts are often very similar to their student counterparts.
Digital Banking
One of our favourite topics is digital banking. When it comes to chequing accounts, digital banking shows its true strength. They are able to use their low overhead to offer accounts with unlimited transactions, no fees, and unique perks.
One example is the Wealthsimple Cash account, which offers a no fee digital bank account. They offer up to 4% interest for clients who meet certain thresholds. It also integrates very well with their investing platform, where you can transfer the rewards you earn from using your debit card, or interest, directly into your TFSA!
The obvious downfall is that they don’t have physical branches, but it’s a tradeoff many are willing to make in the digital age.
In conclusion, the different tiers of chequing accounts offer a wide range of features, benefits, and fees to suit a variety of customer needs. When choosing a chequing account, it’s important to consider your banking habits, financial goals, and budget to determine which account tier is right for you. Whether you’re a student, senior, or simply looking for a convenient way to manage your daily expenses, there’s a chequing account out there that can meet your needs.
Let us know what unique perks your chequing account offers!