So I had a meeting with a financial advisor not long ago, and she strongly recommended i set up a chequing account for my payroll to go into, as opposed to it going directly into my savings account like it always has been. I said yes without really thinking it through, but…before I talk to HR about where they deposit my payroll, what is the difference between a chequing account and a savings account? This is for Canadian banking btw.
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A savings account often has limits on how often you’re allowed to withdraw money from it. Like at my bank, they charge me a fee if I withdraw money from it more than 6 times per month.
A chequing account usually has no limits, you can withdraw from it every day, multiple times a day.
The idea is chequing accounts are for money that’s *moving*, savings accounts are actually for saving. Only reason you’d even want a savings account is that sometimes they pay you a little bit of interest on your savings (we’re talking very small though, like often less than 0.1% a year), whereas checking accounts rarely pay interest.
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