Understanding the Unlimited Chequing Account
- The bank outlines the kind of transactions you can perform within the fee so you know exactly how to manage your account.
- Most banking institutions, small loan providers, credit unions, and other financial organizations provide the facility of an unlimited chequing account.
- You won’t need to maintain a minimum balance in the account.
- You’ll get CDIC insurance coverage for all the amounts you deposit not exceeding $100,000.
- Depending on the terms, you could earn rewards offered on student accounts, seniors accounts, or any others
- Some banks allow you to make online or e-transfers without paying a surcharge.
Factors to Keep in Mind When Choosing an Unlimited Chequing Account
Although unlimited chequing accounts have advantages, they do have a few possible downsides. Keep the factors in consideration before signing up.
- You must pay a fixed fee each month. This charge can range from $10 to $15 per month and even go up to $30 depending on individual bankers. Balance the costs with the services and conveniences offered by the bank and make your choice.
- The bank may offer to waive the fee if you maintain a minimum balance in the account. Again, this figure depends on individual bankers and if you like to have a back-up reserve in case of emergencies, then the unlimited chequing account is perfect for you. However, choose a bank that has limits you can comfortably maintain. Some may require say, $1,000 while others may set the minimum limit at $3,000. Take into consideration the other services offered before making your choice.
- You’ll also pick the bank according to your personal needs. For instance, if you expect to make a lot of online money transfers, you’ll choose a lender that offers free transfers or a particular limit of free e-transfers on the chequing account.
- Many banks offer discounts to students and seniors. Make sure you check around for a bank that has special offers for you.
Still Unsure About How Unlimited Chequing Accounts Work? Here’s an example!
Aaron has a chequing account with XYZ Bank. He pays a banking fee of $10.95 each month and is permitted 25 free transactions. Each time Aaron conducts additional transactions, he pays an extra $1 charge. Then, Aaron switches to an Unlimited Chequing Account that carries a monthly fee of $14.95 but allows unlimited transactions.
Earlier, if Aaron made 35 transactions, he paid an extra $10 for going above the limit. But, by switching to the unlimited account, he could save $6 every month which translates into $72 per year. Also, Aaron would not have to worry about keeping track of the number of transactions he was making.
Every smart user should keep a careful watch on the charges levied by the bank and look for options to lower banking costs. If you need more information about how that can happen, check out our listings on offerhub.com. You’ll get a clear overview of the charges and services offered by different bankers so you can choose the one that works best for you.