Best Chequing Accounts From Smaller Banks & Credit Unions

forum.immigrantscanada.com

If you are a newcomer to Canada, you may be wondering how to choose a bank account that suits your needs and budget. While the Big Six banks (RBC, TD, Scotiabank, BMO, CIBC and National Bank) dominate the Canadian banking landscape, (see my "Best accounts for Newcomers from the Big Six Banks") they are not your only options. There are many smaller or digital-only banks and credit unions that offer free or low-cost chequing accounts that can help you save money on fees and earn rewards.

What is a chequing account?

A chequing account is a bank account designed for everyday transactions, such as paying bills, making purchases, transferring money and receiving deposits. Unlike a savings account, a chequing account usually does not pay much interest on your balance, but it gives you easy access to your money through a debit card, cheques or online banking.

What are the benefits of a free chequing account?

A free chequing account is a chequing account that does not charge a monthly fee or requires you to maintain a minimum balance. Some of the benefits of a free chequing account are:

• You can save money on fees that can add up over time. According to CBC News, Canadians pay more than $200 in annual bank fees on average.
• You can enjoy unlimited transactions without worrying about paying extra charges for each debit, withdrawal or transfer.
• You can earn interest on your balance or cash back on your purchases with some free chequing accounts.
• You can access your money through a network of ATMs across Canada or abroad without paying surcharges.
• You can manage your money online or through a mobile app with features like budgeting tools, spending alerts and instant transfers.

What are the best free chequing accounts in Canada?

(Please note that the interest rates and other figures are only current at the time of publication of this post. Always check with the bank's website for latest figures.)

There are many free chequing accounts available in Canada from different financial institutions. Here are some of the best ones based on their features and benefits:

• Simplii No Fee Chequing Account: This account is offered by Simplii Financial, an online-only bank owned by CIBC. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 0.05% interest on your balance and gives you access to over 3,400 CIBC ATMs across Canada for free. You also get free personalized cheques, free Interac e-Transfers and free overdraft protection up to $250.
• Tangerine No Fee Daily Chequing Account: This account is offered by Tangerine Bank, an online-only bank owned by Scotiabank. It has no monthly fee, no minimum balance and unlimited transactions. It also pays up to 0.10% interest on your balance depending on how much you have. You also get access to over 3,500 Scotiabank ATMs across Canada and 44,000 ATMs worldwide through the Global ATM Alliance for free. You also get free Interac e-Transfers and free email money transfers.
• EQ Bank Savings Plus Account: This account is offered by EQ Bank, an online-only bank owned by Equitable Bank. It is not technically a chequing account but a hybrid between chequing and savings. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 2.50% interest on your balance, which is one of the highest rates in Canada. You also get free Interac e-Transfers and free bill payments. However, this account does not come with a debit card or cheques, so you will need to link it to another bank account to access your money.
• Motive Financial Chequing Account: This account is offered by Motive Financial, an online-only bank owned by Canadian Western Bank. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 0.15% interest on your balance and gives you access to over 3,700 ATMs across Canada for free through the Exchange network. You also get free personalized cheques, free Interac e-Transfers and free overdraft protection up to $500.
• Alterna Bank No Fee eChequing Account: This account is offered by Alterna Bank, an online-only bank owned by Alterna Savings Credit Union. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 0.05% interest on your balance and gives you access to over 43,000 ATMs across Canada and the US for free through the Exchange and Accel networks. You also get free Interac e-Transfers, free bill payments and free overdraft protection up to $250.
• Coast Capital Free Chequing Account: This account is offered by Coast Capital Savings Credit Union, a member-owned financial cooperative based in British Columbia. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 0.01% interest on your balance and gives you access to over 4,000 ATMs across Canada for free through the Ding Free network. You also get free Interac e-Transfers, free bill payments and a $200 welcome bonus when you open an account online.
• Neo Money Account: This account is offered by Neo Financial, a fintech company that partners with Concentra Bank. It has no monthly fee, no minimum balance and unlimited transactions. It also pays 2.25% interest on your balance and gives you up to 2% cash back on your purchases with over 100 partner brands. You also get access to over 75,000 ATMs across Canada and the US for free through the Cirrus network. You also get free Interac e-Transfers and free bill payments.
• KOHO Account: This account is offered by KOHO Financial, a fintech company that partners with Peoples Trust Company. It is not technically a chequing account but a prepaid Visa card that acts like one. It has no monthly fee, no minimum balance and unlimited transactions. It also pays up to 2% interest on your balance and gives you up to 5% cash back on your purchases depending on your subscription plan. You also get access to over 8,500 ATMs across Canada for free through the Visa Plus network. You also get free Interac e-Transfers and free bill payments.

Conclusion

You don't have to settle for the Big Six banks that charge high fees and offer low interest rates. You can take advantage of the many free or low-cost chequing accounts offered by smaller banks and credit unions that offer more benefits and rewards.

forum.immigrantscanada.com