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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Checking accounts are meant for more regular inflows and outflows of money, meaning there may be more variability in balance. Savings accounts are more stable in their balances, which allows banks to pay interest on them as they can use those deposits to make loans bringing in more interest to the bank than they pay out to account holders. As such, checking accounts typically have limited on transactions a month, so if you’re paying rent, utilities, credit cards, etc. it may be more transactions that you’re allowed for a savings account.
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