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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You should check out /r/personalfinancecanada for questions like these!
I assume you are talking to a big bank like RBC, TD, CIBC etc.? If so, the savings account they will offer you will provide a small amount on interest on your deposits, but you will be limited/charged on the number of transactions you can make with that account. The chequing account will give no interest, but you’ll be able to make more transactions.
I would recommend not using the savings accounts offered by the big banks. Instead you can check out High Interest Savings Accounts at small online banks, such as EQ Bank, Motive Financial, Tangerine, etc. Those accounts will have much higher interest for your savings. For example Motive is offering over 4% right now. But you may be even more limited on number of transactions per month (without paying a fee) with these accounts. So it’s best for parking money you don’t need in the short term.
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