Chequing vs savings account in Canada: what is the difference?
A chequing account is for everyday money: your pay goes in, and bills, debit card purchases and Interac e-Transfers come out. It usually pays little or no interest and often has a monthly fee. A savings account is for money you are not spending yet: it pays interest and usually has no monthly fee, but some charge for withdrawals or transfers. Most people in Canada have both.
Chequing account
Used for salary deposits, rent and bill payments, debit card purchases, cheques and Interac e-Transfers.
Many accounts charge a monthly fee for a set number of transactions or for unlimited transactions. Banks often waive the fee if you keep a minimum balance, and for students, seniors or newcomers for a limited time.
Since December 1, 2025, banks that signed the federal commitment offer a low-cost account for no more than $4 a month, and at no cost for some eligible groups.
Savings account
Pays interest on your balance. High-interest savings accounts pay more and often advertise a higher promotional rate for the first few months.
Usually has no monthly fee, but some accounts charge for withdrawals or transfers.
Can be held inside a TFSA, RRSP or FHSA, which changes how the interest is taxed.
Which one do newcomers need first?
Start with a chequing account, because you need one to get paid, pay rent and build a banking history. Add a savings account once you have money you will not need for a few weeks or more.
Both account types are eligible for CDIC deposit insurance at member institutions, up to $100,000 per insured category.
What is a chequing account called in Chinese?
支票戶口 in Traditional Chinese and 支票账户 in Simplified Chinese. It does the job that a current account (往來戶口) or everyday savings account does in Hong Kong, and that a 活期 debit card account does in mainland China.
Do I have to write cheques to use a chequing account?
No. Most people use a debit card, online bill payments and Interac e-Transfer. A landlord or employer may still ask for a void cheque or a direct deposit form, which you can download from online banking.
What is an NSF fee?
A fee charged when a payment bounces because there is not enough money in the account. Since March 12, 2026, federally regulated banks cannot charge more than $10 for it.
Official sources
- Financial Consumer Agency of Canada: chequing accounts
- Financial Consumer Agency of Canada: savings accounts
- Financial Consumer Agency of Canada: commitment on low-cost and no-cost accounts
- Financial Consumer Agency of Canada: new NSF fee regulations (March 2026)
- CDIC: what's covered
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