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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I don’t see people mentioning the primary reason to keep a separate savings and checking account: protection from theft. Ideally you should be using a credit card and paying it off out of your checking account, which is the safest way to handle day-to-day transactions, but if you are someone who doesn’t want to use a credit card and you regularly pay for things with a debit card, having that card attached to a checking account where you only keep a little money limits how much can be stolen out of it if you lose your card, get defrauded, etc. If you’re keeping all of your money in one big account then the damage that someone else can inflict on you is way bigger. Sure if you get your money stolen the bank and government will probably get it back to you, but that’s a process that can take weeks or longer.
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