What Is a Chequing Account? How Do I Use One?

Feb 4, 2025

A chequing account is a bank account for everyday transactions, such as cheque deposits, bill payments, cash withdrawal and more.

Written by Hannah Logan

Lead Writer

Edited by Siddhi Bagwe

Content Management Specialist

Written by Hannah Logan

Lead Writer

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What is a chequing account?

A chequing account is what most people consider to be their main account for day-to-day banking. You will use this account to deposit your earnings, withdraw cash, pay bills, send and receive e-transfers, or make debit card purchases. Because of all these transactions, chequing accounts are referred to as “transactional” accounts.

There are different types of chequing accounts, most of which charge monthly fees.

How to open a chequing account

You can open a chequing account in person at the bank or, in some cases, banks will allow you to open one online. It’s a relatively quick and simple process. Be prepared to provide personal information such as your name, phone number and home address. You may also need to know your social insurance number, or SIN, so make sure to have that handy.

If you are going into a branch to open your account, bring two pieces of identification with you, just in case. For individuals who don’t have two pieces of government-issued ID, another banking card or credit card with your name on it can do the trick. Recent tax assessments or government benefits statements can suffice as one of your pieces of identification.

As long as everything is in order, financial institutions will approve chequing accounts instantly. If you apply in person, you will receive a temporary banking card until yours arrives by mail. If you apply online, you can use the online platform but will have to wait a few days for your card to arrive by mail.

How is a chequing account different from a savings account?

Since your chequing account is used for transactions, the expectation is that there will be a lot of money movement: money in from paycheques, money out for expenses. As such, a chequing account usually has lower transaction fees than a savings account.

The tradeoff, however, is that chequing accounts typically accumulate little to no interest on deposits. That’s why it may be worth having both chequing and savings (or multiple savings) accounts to fit your financial needs.

Are there different types of chequing accounts?

Yes, there are several types of chequing accounts. These are the most common:

Personal chequing account

Personal chequing accounts are the most common and basic type of chequing account out there. Individuals use personal chequing accounts to manage their everyday banking interactions.

Senior chequing account

Senior chequing accounts are designed to cater to older members of the community by offering reduced rates and other perks. Typically, these accounts include free monthly paper statements, teller-assisted transactions and discounted services such as safety deposit box rentals. Some banks remove monthly account fees for seniors.

Youth chequing account

Youth chequing accounts are for young Canadians under the age of majority. Usually, these accounts are free until the age of 18. After this point, you can look at switching to a student account if you meet the requirements or transition to a standard personal chequing account.

Student chequing account

Similar to youth accounts, student chequing accounts are usually free to help students save money on fees. However, there are specific requirements to open and maintain student bank accounts. Each bank will have its own rules, but all require you to be enrolled as a full-time student in a recognized post-secondary educational institution.

US-dollar chequing account

US-dollar chequing accounts are specifically designed to hold American currency. These accounts are handy for those who get paid in USD and don’t want to convert to Canadian dollars because they travel or do business in the United States.

Business chequing account

Business chequing accounts work the same way as a personal chequing account but for business purposes.

Joint chequing account

Joint accounts are chequing accounts that two or more individuals can share. Everyone on the account has equal access to the funds within the account. These accounts are helpful for their convenience and are popular with spouses, family members or even business partners.

Frequently asked questions

Can I earn interest in a chequing account?

Earning interest on a chequing account is rare in Canada. However, there are a couple of exceptions, mostly with no-fee accounts offered by digital banks. Keep in mind rates are pretty low, so it’s not a substitute for savings accounts.

Are chequing accounts free?

Most big brick-and-mortar banks charge a small fee even for their basic chequing accounts. Some online banks such as Tangerine, Wealthsimple, and Motusbank do have free chequing account options.

What’s a good deal on a chequing account?

No monthly account fee is always appealing, but don’t forget to factor in convenience. Even bank accounts that charge monthly fees can offer rebated and features that may complement your lifestyle. If you have multiple accounts with the same bank — for example, a chequing, tax-free savings account (TFSA) and a credit card — then you may be able to get promotional rates or charged reduced fees for certain products. It’s always worth looking for new bank account offers.