The headline feature, though, is that rewards are applied to your everyday spending. When you use your PC Money Account card, a prepaid card that effectively works like a debit card, you’ll earn valuable (and easy-to-redeem) PC Optimum points.
Use the PC Money Account bank card at Shoppers Drug Mart and get 25 points per dollar (equivalent of 2.5% in savings). You’ll earn 10 points per dollar (1%) everywhere you use the card. Plus, when you sign up you can get a bonus of up to 50,000 PC Optimum points, worth $50 in merchandise. These points can be used against grocery, drug store, and gas purchases at Loblaw Companies banner stores and partners, like Shoppers Drug Mart, No Frills and the Real Canadian Superstore. Simply redeem at checkout.
Points are redeemable starting at 10,000, which are worth $10—a threshold you’ll hit quickly with the PC Money Account. You needn’t worry about coverage, either. The PC Money card is accepted everywhere that takes Mastercard, making this a terrific alternative to a credit card for everyday spending with rewards. As for fees, there are no monthly fees or charges or limits for transactions or e-Transfers. There are some service charges, such as the $20 charge for inactivity, but that is easily remedied by using the account at least once a year.
- Monthly fee: $0
- # of transactions: Unlimited
- Interac e-Transfers: Unlimited
- Extras: Earn 25 PC Optimum points per dollar at Shoppers Drug Mart and 10 points per dollar on card purchases everywhere else
- Service charges: Some, including $1.50 for ATM withdrawals at non-PC machines, $3.50 for cancelling e-Transfers, and $40 for insufficient funds
Best account from an online-only bank:
Motive Chequing Account
This online-only bank touts itself for its simple but effective suite of products. The Motive Chequing Account grabs accolades in this category for its free, unlimited transactions and no daily banking fees, higher-than-average interest rate of 0.6%, and access to more than 3,600 ATMs on the Exchange Network—all accessible with a physical debit card with no monthly fee. Although e-transfers will set you back $1 each (receiving them is free).
- Monthly fee: None
- # of transactions: Unlimited, except for e-transfers
- Interac e-Transfers: $1 each to send; free to receive
- Extras: 50 cheques; free withdrawals from the Exchange Network’s surcharge-free ATMs (this group of banks and credit unions allows each other’s customers to share use of ATMs at no charge)
- Service charges: $1.50 for withdrawals from non-Exchange Network ATMs
Runner-up:
motusbank No-Fee Chequing Account
Owned and operated by Meridian credit union, motusbank doesn’t have any brick-and-mortar locations, which means you need to be comfortable with doing all your banking on your electronic devices. Your no-fee account includes unlimited transactions and e-transfers, 25 free cheques, and an interest rate of 0.25%. With motusbank, you’ll get only 25 free cheques, but sending money by e-Transfer is free, so how you prefer to pay will factor into your choice (for example, some people prefer to use cheques because you’re able to stop payment if necessary and use the digital cheque images for record-keeping). For those who want to do their day-to-day banking through a credit union, the motusbank No-Fee Chequing Account is an excellent choice.
- Monthly fee: None
- # of cheques: First order of 25 free; cost after that starts at $40.56 + tax for 25
- # of transactions: Unlimited
- Interac e-Transfers: Unlimited
- Extras: Mobile cheque deposits; Apple and Android mobile apps
- Service charges: None for daily banking, but there are some fees, including $30 for an inactive account
What is a chequing account? What do I use my chequing account for?
Typically, most young people start out by opening up a savings account to stash away allowances and birthday money. As you get older, however, your banking needs change and you’ll require something that allows you to move money in and out of your account easily. Often savings accounts will have higher interest rates and fewer free transactions while chequing accounts accrue less interest but have more free transactions, allowing you to use your chequing account as the main hub of activity for your finances. You may choose to have recurring payments, such as phone and utility bills, come out of your account, and have repeat deposits, such as payroll and GST rebates, set up to go into your account. When you look at your monthly cash withdrawals from ATMs, e-Transfers and cheque deposits, the transactions can really add up, hence why having a large number of free transactions (or unlimited transactions) can be advantageous. Most people have at least two accounts (a savings and a chequing), so that they can reap the rewards of high interest as well as flexibility with the number of transactions.
How to choose the right chequing account
Given that nearly everyone needs a chequing account, regardless of their income level and financial goals, financial institutions offer a huge range of options. Different people use their accounts in different ways, so it’s important to consider what your individual needs are. If you will never write cheques, for example, then you shouldn’t pay monthly service fees on an account that includes them. We’ve broken down the various aspects you should consider before signing up for an account.
Fees
- Banks have traditionally charged a monthly service fee for chequing accounts. Higher fee accounts generally include more features, while lower-fee accounts offer those features on a pay-per-use basis. With the advent of online-only banking services that don’t have to cover the costs of operating physical branches, some banks pass on those savings by offering no-fee chequing accounts. Many of these no-fee accounts even come with great features like unlimited transactions. If you don’t need to do your banking in person, these are worth looking into.
Features
- Interac e-Transfers allow you to send money easily to anyone with an email address. Some chequing accounts provide e-Transfers for free; others allow you to receive e-Transfers for free, but charge a fee to send them.
- Transactions generally include debit purchases, deposits, withdrawals, bill payments and transfers. You’ll want to consider whether there are charges for transactions after you’ve surpassed a certain number per month.
- Some banks may offer rewards debit cards that will accrue points toward programs like Scene, Air Miles or PC Optimum.
Accessibility
- Banks with more ATMs will provide easier access to cash withdrawals or ATM transactions. Note that using ATMs outside your own bank’s network usually results in additional fees.
- Branch access may be important for people who prefer to conduct banking in person or need assistance with transactions.
- Access to foreign currency may be important to frequent travellers or those who do business abroad. Some banks also offer foreign currency or borderless accounts, which offer favourable exchange rates.
Promotions
- Student accounts are usually no fee accounts with no transaction limits.
- Seniors can often qualify for discounts on existing accounts or low fee senior accounts.
- Small-business owners can find business accounts that cater to their needs.
- Banks are always looking to lure new customers. Look for cash signing bonuses or giveaways such as TVs or iPads.
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