Want to find the best chequing account?
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Chequing accounts are the most basic form of bank account we use to perform transactions each month. We have our paycheques deposited into them, pay for goods, services, and bills like credit card and utilities, with the money that's in the account. However, not all chequing accounts work the same way; some only offer a very limited number of transactions. If you're someone who performs a large number of transactions each month and consistently go over the number included in your existing account, your best bet is to switch to an unlimited chequing account. Here's how they work.
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An unlimited chequing account is exactly what it sounds like: a chequing account that includes an unlimited number of transactions for a set fee. And, like all chequing accounts, any amount you deposit up to $100,000 is protected by CDIC insurance.
The advantages of using an unlimited chequing account are obvious:
Of course, there is one drawback of the unlimited chequing account:
Emma currently uses TD's Every Day Chequing Account. She pays $10.95/month, which only includes 25 transactions. For each transaction Emma goes over her limit, TD charges her an extra $1.00. After noticing the additional charges on her last few statements, she decides to look at TD's Unlimited Chequing Account, which is $14.95/month and comes with unlimited transactions.
In the past three months, Emma has made an average of 35 transactions each month, which is 10 more (35 – 25) than what's included in her package. Should she stick with using TD's Every Day Chequing Account or could she save money by switching to their Unlimited Chequing Account?
|TD Chequing Accounts||Monthly Fee||Additional Transaction Fees||Total Monthly Fees|
|Every Day Chequing Account||$10.95||10 x $1.00 = $10.00||$20.95|
|Unlimited Chequing Account||$14.95||N/A||$14.95|
Greg uses CIBC's Everyday Chequing Account. The account is just $3.90/month and only includes 10 transactions; that may seem low, but Greg doesn't use his account often. His paycheques are deposited into it, but he pays for everything with his travel rewards credit card, so he only logs into his online banking account a couple times each month to pay off his credit card bill. At most, he uses up his 10 transactions in a month.
Would it make sense for him to switch to their unlimited chequing account instead, just for the peace of mind?
|CIBC Chequing Accounts||Monthly Fee||Additional Transaction Fees||Total Monthly Fees|
|Every Day Chequing Account||$3.90||$0.00||$3.90|
|Unlimited Chequing Account||$13.95||N/A||$13.95|
If you're tired of being limited by the number of transactions you can make each month and want to make the switch to an unlimited chequing account, congratulations! You'll soon be saving money on fees. However, there are a few things to consider, when comparing unlimited chequing accounts:
As soon as you find the unlimited chequing that will give you the most value for its monthly fee, you can apply and start banking almost immediately.