If you are new to the country or new to banking, or simply looking to learn more about chequing accounts, AstroWealth is here to help. In this post, we will explore what is a chequing account and the different types of chequing accounts that exist.
What is a Chequing Account?
A chequing account is a bank account, most commonly used for everyday purchases. This is typically considered the main account for day-to-day expenses. These accounts are accessed using your debit card and are used to deposit your paychecks, make purchases, withdraw funds and pay bills. These chequing accounts typically come with a set plan that includes monthly fees for the account features that best suit your needs.
Chequing accounts are designed with the intention of money movement. This means that there is typically a lower transaction and interest fee, if any, on these account types.
Now that we have answered: What is a chequing account? Let’s understand the different types of chequing accounts that exist.
Different Types of Chequing Accounts:
These are the most basic account types and are used for everyday expenses. Depending on your transaction history, you might be recommended an account that allows unlimited transactions and withdrawals vs. one that has a monthly limit. Typically, more features and perks entail a higher monthly fee.
These accounts are senior friendly and tailored towards their needs. Some helpful features in seniors chequing account include free monthly paper statements, waived fees on drafts, and discounts on safety deposit boxes.
Youth accounts are for those under the age of 18, up to 26 years of age depending on the bank. Majority of younger Canadians fall in this category and can benefit from the perks. If you are under the age of 18, oftentimes, a parent or guardian will be the primary account and the authorized user will be the youth. These accounts are usually free of charge, allow unlimited transactions and switch to another account type once the account holder reaches a certain age.
Like a senior chequing account, these are tailored for specific needs. Student accounts are usually free and are designed to help students save money. While each bank has their own rules, proof of enrollment in a post-secondary educational institution is requirement a to qualify for this account type.
This account is pretty intuitive. It is designed to hold American currency and is suited for account holders that get paid in USD and don’t need to convert it. If you often travel to the US to do business or visit family, this is best suited for you.
Business chequing accounts are the same as personal chequing accounts and are used for business only. Typically these accounts are tracked closely and are audited for tax purposes.
This account can be opened with any other personal chequing account. Joint accounts are chequing accounts that are shared between two or more people. It can be set up so that anyone can use it or all account holders need to be present to access the account. Similarly, joint accounts are also common between business partners.
How to Open a Chequing Account
A chequing account usually requires an in person visit but can also be opened online with certain banks. The process is simple as it requires standard personal information such as name, phone number, address and a social insurance number (in most cases). You will need two pieces of identification such as a passport, driver’s license or a photo ID. You can also use a credit card or student ID with your name on it as a secondary ID.
These accounts are very easy to create and a great introduction into banking!
Now you can answer the questions:
What is a chequing account, the different types of chequing accounts that exist, and how to open a chequing account!
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