Chequing and savings accounts are the most basic types of bank accounts in Canada. However, you can get perks and tax advantages by opening additional accounts built for retirement and specific savings goals.
Account features vary by bank, so be sure to choose the right combination of accounts to save the most money and achieve your financial goals with ease.
From RRSPs and FHSAs to student, senior, and hybrid accounts, here’s an overview of bank accounts available in Canada – and who should consider each one.
Key Takeaways
- The three basic types of bank accounts are chequing, savings, and hybrid accounts.
- There are paid, low-cost, and free accounts available in most categories.
- Education/youth accounts include products like kids accounts, student accounts, and RESPs.
- Certain types of savings goals require specialty accounts, like FHSAs, HISAs, and RRSPs.
- International accounts and global currency accounts are valuable for those who save or spend in foreign currencies.
Primary bank account types
There are three basic types of bank accounts in Canada: chequing, savings, and hybrid.
Features do vary from bank to bank, each type of account generally shares similar features.
Chequing accounts are designed for everyday spending and to receive paycheques:
- You get a debit card to make purchases and cash withdrawals at ATMs
- You can pay bills online, automatically or manually
- You can transfer money to other people
- You may get paper cheques
- You can link your account to other accounts, like a savings account
- You may earn extra rewards or benefits, depending on the bank
It's important to be aware of these details regarding chequing accounts:
- You may have minimum balance requirements
- You may be charged a monthly maintenance fee
- You may be charged fees for overdrafts and ATM usage
- You don’t usually earn interest
Savings accounts are designed to hold money for longer periods of time:
- You earn interest on your balance (rates vary by bank)
- You can choose a high-yield account to get even better interest
- You may enjoy special features if you’re a youth, student, or senior
There are a few details about savings accounts to remember, though:
- You may have minimum balance requirements
- You may have withdrawal limits
- You may have monthly maintenance fees
- You can’t write cheques from a savings account
- You don’t usually get a debit or ATM card
Hybrid accounts offer a blend of chequing and savings account features:
- Lower fees or fee-free, compared to chequing accounts
- You earn interest while also using it for daily banking
Be aware of these hybrid account details:
- Usually only available with online-only banks
- May not offer ATM access
Variations of these primary accounts
For each of these three account types, there are variations:
- Joint account: Two (or more) people share the same account (joint chequing, joint savings, joint hybrid)
- Business account: Features are specific to a commercial enterprise (business chequing, business savings, business hybrid)
- Senior account: Eligibility and features are specific to older Canadians (senior chequing, senior savings, senior hybrid)
- Student/youth account: Eligibility and features are specific to young Canadians (student chequing and youth chequing, student savings and youth savings)
Some banks are online-only, which means you manage your account 100% online with no access to branches or in-person services. You can also go with a Big 5 bank.
Paid vs. free and low-cost accounts
Some bank accounts in Canada charge you a monthly account fee in exchange for extra features. There are also some accounts that will rebate this fee if you maintain a minimum balance.
Other accounts are completely free, either including all transactions or charging only for specific transactions that exceed the limit for that account.
Premium accounts are top-tier chequing accounts, where you pay a fee for perks.
Example: Scotiabank Ultimate Package
- Average cost is $30 per month
- Fee can be rebated if you keep a minimum balance (usually $3,000 or $4,000)
- Opportunity to earn extra points and rewards
- Better rates and discounted prices on some financial products
Low-cost accounts charge a smaller account fee and offer fewer perks:
Example: Scotiabank Basic Bank Account
- Average cost is about $4 per month
- Fee can be rebated for some account holders, like seniors
- Some features are included in your account fee, like a limited number of transactions
- Other features trigger a fee, like additional transactions
Free or no-fee accounts charge no monthly fees for chequing or savings:
Example: Simplii No Fee Chequing Account, Motive Savvy Savings Account
- Zero monthly account fee
- Zero fee for basic transactions up to a limit
- May charge fees for additional transactions (depends on the bank)
Seniors may be able to get partial or full rebates on account fees, even for premium accounts.
Education and youth accounts
Kids bank accounts may be chequing or savings accounts. Age limits apply, and kids may need a parent or guardian to open an account if they’re under 12 or 13. Features are specific to kids’ needs:
Example: Mydoh from RBC, TD Student Chequing Account, RBC Leo's Young Savers Account
- May have special rewards, like discounts on Starbucks or Scene+ points
- May offer budget tools for families, like allowance management
- May earn interest on balance to encourage savings
- May include a debit card to reach responsible spending
- May include unlimited transactions
- May include free overdraft protection
Student bank accounts are geared toward high school, college, and university students:
Example: BMO Performance Chequing Account for Students
- Require proof of enrollment
- Enticing welcome offers (like pizza) and referral bonuses
- Usually no monthly fee
- Usually unlimited transactions
- Usually unlimited in-network ATM withdrawals
- May offer special perks like SPC+ membership
- May offer discounts on other financial products, like investor accounts
- Usually convert to a paid account after student graduates, or after a set period
An RESP (Registered Education Savings Plan) is a registered account for adults to invest and save money toward a child’s education. It’s a government-supported plan and it’s eligible for grants.
Example: RBC’s Self-Directed RESP
- Child must be under 21
- Child must be connected to you by blood relationship or adoption
- Can hold investments in an RESP
- Contributions are taxable but growth is tax-free
- Eligible for government grants like CESG
- There is a lifetime limit of $50,000
- School and program must be eligible
- Can pay for expenses like tuition, books, tools, transportation, and rent while in school
Specialty accounts: savings, retirement, and investment
Some accounts are designated for specific purposes. You can only use the funds for that purpose.
Registered vs. unregistered: Registered accounts have tax advantages and are registered with the Canada Revenue Agency (CRA). That’s because there are limits and rules for contributions and withdrawals. These accounts include RRSPs, TFSAs, RESPs, FHSA, RDSPs, and RRIFs. In a non-registered account, you can save as much as you like.
An FHSA (First Home Savings Account) is a tax-advantaged registered account to save and invest money toward buying your first home.
Example: Questrade FHSA
- Can hold a variety of investments, from GICs to stocks and cash
- Can self-manage or pay a broker
- Some offer interest on your cash balance
- May require a minimum investment
- May charge fees
- Can only withdraw to buy your first home
- Transfers to RRSP or RRIF at age 71 if unused
A HISA (High Interest Savings Account) is a savings account that is intended for longer-term savings. It gives you a higher-than-average interest rate:
Example: Simplii High Interest Savings Account, KOHO Earn Interest
- Can access your money anytime, unlike with GICs
- May include fewer transactions than a standard savings account
- Interest rates are higher, especially with online-only banks
An RDSP (Registered Disability Savings Plan) is a registered account to save and invest money to support a person with a disability:
Example: TD RDSP
- Eligibility criteria apply
- Maximum lifetime limit is $200,000
- Eligible for government grants and bonds
- Withdrawals are tax-free but RDSP income is taxable
- Disbursed at age 60 in Lifetime Disability Payments (LDAPs)
- Penalty for early withdrawals.
RRSP (Registered Retirement Savings Plan) is a tax-advantaged registered account to save for retirement with cash and others investments:
Example: Desjardins RRSP
- Can hold cash, stocks, mutual funds, ETFs, GICs
- Annual contribution limits apply ($31,560 in 2024, $32,490 in 2025)
- Can stay open for contributions until age 71
- Contributions are taxed at withdrawal
- Can withdraw from RRSP for other purposes if you repay it
An RRIF (Registered Retirement Income Fund) is a registered tax-sheltered investment account for post-retirement Canadians that facilitates withdrawal from your RRSP while still earning gains:
Example: Questwealth RRIF
- Move money to your RRIF from your RRSP
- Can hold investments like GICs, stocks, bonds, ETFs
- Receive minimum scheduled withdrawal amounts every year
- Withdrawals are taxed as income
- Growth inside your RRIF is tax-free
- You may open an RRIF until age 71
A TFSA (Tax-Free Savings Account) is a tax-advantaged registered savings account that can hold cash and investments:
Example: Questrade TFSA, Scotiabank TFSA
- Money is tax-free while in the account
- Earnings are tax-free at withdrawal
- Can withdraw at any time
- Annual contribution limits apply ($7,000)
- Must be 18 to open
- Available at most big banks and some online banks
International accounts or global currency options
If you spend time in another country or if you need to send money abroad, you need a bank account that can handle global currencies.
US Dollar Accounts are based in Canada but built to hold and spend US dollars without converting to CAD:
Example: EQ Bank US Dollar Account
- Chequing, savings, and hybrid US dollar accounts exist
- May earn interest
- May come with a debit card
- Exchange rates and cross-border ATM fees vary by bank
- Send and receive money in a variety of currencies
- 80+ countries listed
- Well-designed mobile and desktop experience
- Exchange rate is the Reuters rate
- Fees are cheaper than big banks
- Transparent fee structure
- Registered with FINTRAC for security
How to choose the right bank account for your needs
All Canadians should have a savings account and a chequing account. Then, look for a retirement account and specialty accounts to align with your financial strategy. Remember to combine multiple accounts to get the best results.
Young people under 21:
- Chequing and savings accounts built for youth or students
- Hybrid account to earn some interest
- Student credit card
- Youth investor account
Age 21+:
- No-fee chequing account or premium chequing account
- High-interest savings account for short-term goals
- Long-term savings account like TFSA or FHSA
- Retirement investment account like RRSP
- Additional brokerage account for non-retirement investments like GIC laddering
Parents:
- Mydoh app
- RESP for your child
Business owners:
- Business chequing account
- Foreign currency account for cross-border transactions
Older Canadians:
- RRIF to pair with your RRSP
- Senior-specific chequing account
- High-interest savings account
Make sure to compare the features of similar accounts at different banks:
- What fees will you be charged?
- What interest rates will you get?
- What kind of transactions are included?
- What ATMs can you use?
- Are there branches nearby?
- Do you get extra perks like free cheques or a safety deposit box?
- Can you earn any points or rewards?
- Are the website and mobile app easy to use?
- Is the customer service experience positive?
- Are there welcome bonuses?
- Are there discounts for students or seniors?
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.FAQ
What kind of accounts does TD Bank offer?
As one of the country's largest banks, TD Bank offers a large variety of accounts and other financial products. It offers chequing, savings, business, and investment bank accounts as well as mortgages and credit cards.
What are the 2 most common accounts in a bank?
Chequing and saving accounts are the two most common accounts in a bank. A chequing account is intended for daily spending, whereas a savings account usually has features built to reward saving money instead of spending it.
What are the different types of bank accounts?
In Canada, you'll generally find 9 main types of bank accounts – chequing, savings, hybrid, business, joint, kids, students, investment, and retirement. Depending on your needs, you may hold one or more of these accounts at once.
Which bank account is best in Canada?
The best bank account depends on your needs. Look for an account with perks and fees that match your usage. For instance, students should look for an account with no minimum balance and unlimited transactions.
Are there any free chequing accounts in Canada?
There are some excellent no fee chequing accounts in Canada. The best overall free chequing account is the Simplii No Fee Chequing Account, but the Tangerine Chequing Account, EQ Bank Personal Account, and others are also excellent choices.
What is a hybrid bank account?
A hybrid bank account is a cross between a chequing account and a savings account. These are usually offered by newer, smaller banks, and usually include a prepaid credit card as part of the package.
What is the easiest bank account to open online?
It’s easiest to open an account online with an online-only bank like Tangerine or Simplii. If you choose a Big 5 Bbank or you need a specialty account, you may need to visit a branch in person.
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