When income starts flowing in from your employment, you will need to have a bank account ready to receive it. A chequing account is an account where your money or income can be deposited, so you can use it when needed. You can use it for daily financial transactions, like paying bills, making purchases with a debit card, depositing your paycheque and sending or receiving money transfers. However, every bank offers a different banking package or account which caters to different needs. They will have different interest rates and fees, depending on the services offered. In Canada there are over hundred consumer bank account packages offered. All you need is proper identification to open a savings account. With so many banking packages available, confusion may arise on which one to take.
There are four basic types of accounts, which are:
- Basic chequing and savings accounts
- Full service accounts including many types of transactions
- Low fee or no fee accounts
- Special accounts for youth, student and senior citizens
Here is a guideline to help you rise up from the confusion and make a decision.
Understand yourself: You should first understand your needs and own banking habits. Your business may require a banking account that can be accessed twenty-four hours to take deposits and make payments. For ease of access, you may prefer using automated banking machines (ABMs). You will want to make sure that your bank has ABMs located around, and is not just too localized If you travel a lot across the country or abroad, you will want a bank account that you can access national and internationally. How often do you conduct financial transactions such as cash withdrawals, bill payments, debit card purchases and much more?
These features will play a deciding factor in the sort of bank package you will require.
Shop Around: Since there are so many banking packages available, you will want to search for one that will fulfil all your needs. The right service plan can save you time and money. Decide if it would be better for you to have an account package for a fixed fee with an unlimited or fixed number of transactions in a month or would you rather pay for each individual transaction?
Additional services cost more, but they could result in saving time for you. So decide how often you would need services such as personalized cheques, overdraft protection, safety deposit box, money orders and drafts.
Each bank will have different offers, so drop by their websites and research on them.
Low Fee or No Fee Accounts: The government of Canada assures that everyone has access to financial institutes.
A low fee account will take a monthly fee of C$4 and offering services such as:
- no charge on deposits
- the use of a debit card
- cheque-writing privileges
- 8-15 debit transactions per month
You are exempted from paying a fee if:
- You have a no-fee service package (because you are a senior citizen or student)
- Your bank waives your fees when you maintain a minimum monthly account balance (usually C$1,000)
- Your bank offers rebates on service fees if you have additional products with that bank, such as a mortgage or credit card
Final Decision: Once you have found out your banking habits, you are aware of your banking requirements. On doing research on various banking packages you can check which one meets those requirements in the best possible price and time.
