Having a chequing account to deposit and withdraw money is convenient, but choosing one from the countless options available can be difficult.
If you consider opening a chequing account, here are five top tips to choose the best option for your specific needs.
1. Minimum balance requirements
Some chequing accounts require not only a minimum opening deposit but also a minimum monthly balance. However, when you meet certain requirements each month, some banks may waive the monthly fee. For example, For the first six months, there are no monthly fees with the HSBC Advance Chequing Account. Also, there will be no monthly fees when you maintain a combined balance of $5,000 in deposits and investments, including chequing, savings, RRSPs, TFSAs, and more.
You must read the requirements before opening a chequing account to make sure you can meet them.
2. Linking cards and their cost
Another factor to take into account is the linking of the account with credit cards. You need to know which cards can be linked to the account, whether they are credit, debit or both, what maintenance cost they entail or the interest rate that would be applied in case of deferrals with the credit card. Many accounts do not allow you to link credit or debit cards or charge a maintenance fee for them. However, some accounts like the Scotiabank Ultimate Package Chequing Account provides up to a $139 annual fee waiver each year on select credit cards.
3. Atm service
Having a wide network of ATMs to access immediately to have cash in the shortest time possible and at no cost is a great advantage. For this reason, it is necessary to analyze the size of the network that each Bank has, if it is free or carries a cost. You also have to consider the amount you need to pay for access to other non-related ATM networks.
The HSBC Student Chequing Account provides free withdrawals from their Exchange® Network ATMs. Other banks may offer refunds of a certain amount every month. But at worst, you will have to pay the fee. It’s important to find a bank with a friendly ATM fee policy if you use a lot of cash.
4. Rewards
Banks offer different incentives and features with Chequing accounts, such as cashback rewards and loyalty programs. Some of these rewards come in the form of a welcome bonus, and it varies between banks. For example, you can get a $250 welcome bonus when you open an HSBC Advance Chequing account, whereas you earn a $300 welcome bonus with the Scotiabank Preferred Package.
If these incentives matter to you, you will certainly want to look for a bank that offers a chequing account incentive program that helps you maximize your account’s features.
5. Bank Transfers
Transfer fees have been a common banking practice. However, some banks do not usually charge management fees or provide several free services every month. It is frustrating to be charged an outrageous fee every time you transfer funds between accounts, so you should consider this when opening your chequing account. Banks like HSBC and Scotia Bank offer unlimited Interac e-Transfer† transactions.
In conclusion
These are just a few of the factors you may want to consider when opening your chequing account. However, there are many others that you may wish to consider based on your needs.