A chequing account is for everyday spending (bills, debit, e-Transfers) and earns little or no interest. A savings account earns meaningfully more interest, though exact rates vary by institution and change frequently — but may limit transactions. Most Canadians benefit from using both accounts together.
Quick answer: Chequing = spending. Savings = growing money. Use both: keep 1–2 months of expenses in chequing; move the rest to a HISA or TFSA. Always confirm current rates directly with each bank before opening an account.
Chequing vs. Savings — Key Differences
| Feature | Chequing | Savings (HISA) |
|---|---|---|
| Purpose | Daily transactions | Store and grow money |
| Interest rate | 0%–0.01% (most banks); EQ Bank Personal Account 1.00%–2.75% | Varies by institution — confirm current rate |
| Debit card | ✓ Yes | Usually no |
| Unlimited transactions | ✓ Yes (most) | Often limited |
| e-Transfers | ✓ Yes | Varies |
| Monthly fee | $0–$30.95 | Usually $0 |
| CDIC protected | ✓ Yes | ✓ Yes |
| Best for | Bills, rent, groceries | Emergency fund, goals |
When to Use a Chequing Account
- Receiving payroll direct deposit
- Paying rent, mortgage, utilities by pre-authorized debit or cheque
- Making everyday debit card purchases
- Sending and receiving Interac e-Transfers
- Receiving CRA payments (tax refunds, GST/HST credits, CCB)
When to Use a Savings Account
- Emergency fund — 3–6 months of living expenses earning interest
- Saving for a specific goal (vacation, car down payment, home purchase)
- TFSA savings — tax-free interest growth
- RRSP savings — tax-deferred growth for retirement
- Any cash you won’t need for at least 30 days
How to Use Chequing + Savings Together — Step by Step
- Open a no-fee chequing account (Simplii, Tangerine, or EQ Bank — all $0/month)
- Set up direct deposit to your chequing account
- Open a HISA or TFSA at the same institution or a separate one (EQ Bank, Tangerine HISA)
- Set an automatic transfer from chequing to savings on payday
- Keep 4–6 weeks of expenses in chequing; move everything else to savings
Worked example (illustrative): Monthly take-home pay of $4,500. Monthly fixed expenses of $2,800 (rent, car, insurance, subscriptions). Keep $3,200 in chequing ($2,800 + 2 weeks’ buffer). Auto-transfer $1,300 to a HISA — at an illustrative rate of 3.00%, that’s $39/month in interest, versus near $0 in chequing. Confirm the current rate at your chosen bank before relying on this estimate.
TFSA vs. HISA — Which Savings Account?
Both TFSAs and HISAs earn interest, but they serve different purposes:
| HISA | TFSA (as savings account) | |
|---|---|---|
| Annual contribution limit | None | $7,000 (2026) |
| Tax on interest | Yes — taxed as income | No — completely tax-free |
| Withdrawal rules | Anytime, no limit | Anytime; room restored next Jan |
| Best for | Short-term savings | Long-term and tax-sensitive savings |
Strategy: Put your emergency fund in a HISA for easy access. Maximize TFSA room with remaining savings — the tax-free growth compounds significantly over time.
Important: Don’t use a TFSA as a transactional account. Frequent withdrawals and re-contributions can cause you to over-contribute if you’re not tracking room carefully, triggering a 1%/month penalty on excess.
EQ Bank: A Hybrid Account
EQ Bank’s Personal Account functions as both a spending and savings account — it pays interest on the everyday balance (1.00% base rate, rising to 2.75% with qualifying monthly direct deposits of $2,000+, confirmed at eqbank.ca in September 2026) while allowing unlimited free transactions, e-Transfers, and bill payments. It’s one of the few Canadian accounts that combines chequing and HISA-style benefits — confirm the current rate structure at eqbank.ca before opening, as rates are variable.
EQ Bank limitation: No physical debit card (a Mastercard prepaid is available). Not ideal if you regularly need cash from ATMs, though EQ reimburses ATM fees. Works best for Canadians who use contactless payments for most purchases.
Chequing Accounts That Pay Interest
Most Canadian chequing accounts pay 0.00%–0.01% — effectively nothing. Notable exceptions, with rates confirmed directly at each provider in September 2026:
- EQ Bank Personal Account (1.00% base, up to 2.75% with qualifying $2,000+/month direct deposits)
- Wealthsimple Cash (up to 2.25%, tiered by client status and qualifying direct deposits)
Both of these are best suited for users who keep a larger everyday balance. Confirm current rates directly with each provider, as they are variable and change with the Bank of Canada policy rate.
Best Savings Accounts to Pair with Your Chequing Account 2026
| Savings Account | Rate (confirm current rate) | No Fee | CDIC Insured |
|---|---|---|---|
| EQ Bank Personal Account | 1.00% base / up to 2.75% with qualifying direct deposit | ✓ | ✓ |
| Tangerine Savings | Variable base rate; periodic promotional offers for new clients | ✓ | ✓ |
| Simplii HISA | Variable base rate; periodic promotional offers for new clients | ✓ | ✓ |
Related Articles
- Best Chequing Accounts Canada 2026
- Best Savings Accounts Canada 2026
- NSF Fee Canada 2026
- Simplii Financial Review 2026
- EQ Bank Review 2026
- Tangerine Bank Review 2026
← Best Chequing Accounts Canada 2026
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