In this video, we take a look at the bank accounts offered by major Canadian banks, and we discover which is the best free bank account in Canada, that also offers the best feature for your needs.
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It is first important that we understand the difference between a chequing account and a savings account. A checking account is an account that is used for frequent transactions, including debit cards, e-transfers, bill payments, bank transfers, ATM withdrawals, etc. On the other hand, a savings account is used for saving money and getting a higher interest rate on your balance.
For the purposes of this video, we take a look at the chequing accounts offered by all major Canadian banks, as well as some other notable financial institutions, and we will compare the fees associated with each account, as well as the features offered for said fee.
The CIBC Chequing account has a $6.95 monthly fee, and for that you get unlimited free debit transactions, unlimited free ATM usage at CIBC locations, unlimited free bank transactions and bill payments, as well as 12 e-transfers/month. For each additional e-transfer, you will be charged an additional $1.25 on top of the monthly fee, but if you have more than 20 e-transfers, then you will just be charged $16.95. It is important to note that if you have a minimum daily balance of $4000, then your monthly fee will be wavered, and you will not be charged anything for your account.
The TD Chequing account has a $16.95 monthly fee, and for that you get unlimited free debit transactions, unlimited free ATM usage at TD locations, unlimited free bank transactions and bill payments, as well as unlimited free e-transfers. Similar to the CIBC chequing account, if you maintain a minimum daily balance of $4000, this account's monthly fee will be waivered and you will end up paying no fee. So unless you have a balance of less than $4000 and you use less than 12 e-transfer each month, this account is pretty much the same as the CIBC chequing account.
The RBC Chequing account has a monthly fee of $4-$11.95 depending on your debit card usage; however, this account does not waive the monthly fee for any balance, so compared to the CIBC and the TD accounts, it is not worth it.
The BMO Chequing account has a $16.95 monthly fee, and for that you get unlimited free debit transactions, unlimited free ATM usage at BMO locations, unlimited free bank transactions and bill payments, as well as unlimited free e-transfers. Similar to the CIBC and the TD chequing accounts, if you maintain a minimum daily balance of $4000, this account's monthly fee will be waivered and you will end up paying no fee. In other words, this account is also similar to the TD and the CIBC chequing accounts.
Although, there is a bank account that blows away all the competition, and that is the EQ Bank Savings Account. Now although this account is labeled a "Savings Account", it truly is a combination of savings and chequing accounts, as it has no monthly fee, and it also offers unlimited free debit transactions, unlimited free ATM usage at EQ Bank locations, unlimited free bank transactions and bill payments, as well as unlimited free e-transfers. In addition to this, this account also offers a %1.25 interest rate on your balance, which is by far the highest interest rate for any savings account offered in Canada. For comparison, the highest interest rate on any other savings account, is a %0.10 interest rate on the TD Savings account, which is 12.5 times smaller than the rate offered by EQ Bank.
The only downside of this account however, is the fact that EQ Bank ATMs are not easily accessible everywhere in Canada, and the best solution for this would be to open up a Simplii Financial chequing account alongside your EQ Bank savings account.
The Simplii Financial chequing account offers the same unlimited free transactions of any kind forgo monthly fee, as well as free ATM usage at all CIBC locations, which are far more accessible than EQ Bank ATMs. The only thing that the Simplii Financial chequing account lacks in comparison to the EQ Bank savings account, is the amazing %1.25 interest rate on your daily balance, which is why you should open both accounts together for the best return, not just the Simplii Financial chequing account.
0:00 Intro
0:58 Chequing Vs Savings Accounts
1:38 CIBC
2:34 TD
3:41 BMO
4:03 EQ Bank
5:24 Simplii Financial
6:02 Recap