Have you ever wondered which the best option is? Chequing or savings account? Want to know the difference between the two types of accounts?
It is normal not to know the exact difference between chequing and savings accounts. Because there are different types of bank accounts, and each account has its characteristics.
So, to get rid of this doubt once and for all, read everything we have to share in this article!
What is a chequing account?
A chequing account is an account model offered by banks that allows the customer to move and use available money in the way they prefer.
The chequing account is the most popular type of account and millions of Canadians use it. The most common functions for this type of account are: receiving a salary, paying bills, performing transfers, among other types of banking transactions.
What is a savings account?
A savings account is a type of account that is easier to open because it does not require proof of income. In addition, the amount deposited in the savings account generates an automatic return after 30 days of deposit.
It is one of the main bank accounts used by Canadians who want to save money and have an automatic income.
How does the chequing account work?
The chequing account allows the account holder, who is the individual who opened the account, to make banking transactions through the ATM, branch office, internet banking, or through the bank’s application.
Generally, when opening a chequing account, the bank can offer a credit limit to the customer when he needs it.
A debit card is also available for the account holder to make discounted payments directly to the account.
You can get a $250 welcome bonus when you open an Advance Chequing account with HSBC today. It’s hassle-free, and you can open it from the comfort of your home. HSBC Chequing Account is a flexible, all-inclusive chequing account that allows you to bank on your terms.
How does the savings account work?
The savings account of any bank is regulated by the Central Bank, which determines how much the income will be on the money saved.
This type of account has the advantage that opening it is not bureaucratic, and even people who have been denied access to a chequing account can open a bank savings account.
With the Neo Savings Account, you can make bill payments, send and receive Interac e-Transfers. You can also make bank to bank transfers to and from an existing bank account. All this comes with no monthly fees or minimum balances and unlimited free transactions.
Difference between chequing and savings accounts
If you’ve made it this far, you’ve probably already identified some differences between a chequing account and a savings account. In summary, the chequing account is the most common type of account. It serves to receive money and carry out basic banking transactions, such as withdrawals, payments, deposits, transfers, among others.
The savings account is used to save money and earn income. Therefore, the ideal is not to move the amount invested in the savings account.
In conclusion
The chequing account and the savings account are two important tools in managing your money. The chequing account gives you easy access to your funds to pay for everyday purchases, and the savings account can help you reach your longer-term financial goals.
Together, these accounts provide a solid foundation for managing your personal finances.