Types of Bank Accounts in Canada: A Guide

Whether you’ve just arrived in Canada or you’re opening your first bank account, navigating your options can feel a little overwhelming. A quick review on banking basics can go a long way—making it easier to find the right account(s) for you.

This guide will walk you through the most common types of bank accounts in Canada—whether it’s a chequing account, savings account or specialized account. By the end of it, we hope you feel confident choosing the ones that match your current needs and goals.

Chequing accounts

Chequing accounts are used for everyday transactions like paying bills, buying groceries and receiving deposits such as your paycheque.

Let’s explore some of the most common chequing account types in Canada, their features and drawbacks, and which one(s) could be right for you.

Common types of chequing accounts

Low fee chequing accounts
These accounts are a great option for anyone with simple banking needs. They offer very low fees and typically come with a limited number of monthly transactions. If you’re looking for a basic chequing account with no minimum balance requirement, a low-fee chequing account may be ideal.  

Student chequing accounts
Designed for full-time students, student chequing accounts usually have no monthly fee, a higher number of free transactions and convenient perks for students—like cash offers, rewards points, low (or no) ATM fees and more. These accounts can help students manage their money while building financial independence.

Joint chequing accounts
Shared between two or more people, a joint chequing account allows all account holders to deposit and withdraw funds. They’re a convenient option for partners, family members or caregivers who need access and visibility to the same chequing account. Most types of chequing accounts can be set up as a joint account.

U.S. dollar chequing accounts
If you travel often between Canada and the U.S. or frequently send and receive payments in U.S. dollars, this might be a good choice for you. These accounts allow you to hold and spend U.S. dollars from a Canadian bank, so you can avoid exchange rate fluctuations and conversion fees.

Comparing chequing accounts

Type	Purpose	Features	Minimum balance	Fees	Interest rates
Low-Fee Account	Affordable banking for basic needs	Limited monthly transactions with a fee for each additional transaction	Typically, none required	Low monthly fee	Typically, no interest
Student Account	Banking designed for full-time students	No monthly fees, extra free transactions and student perks	Typically, none required	Typically, no monthly fee	Typically, no interest
Joint Account	Shared access for two or more account holders	All parties can deposit and withdraw; shared balance visibility	Depends on account setup	Standard fees apply based on account type	Typically, no interest
U.S. Dollar Account	Manage money in U.S. and Canada	Hold/spend U.S. funds; avoid conversion fees	Often none, but varies	May have a monthly fee or transaction costs	Typically, no interest

Questions to ask when choosing a chequing account:

• How do I plan to use the account?
  Will you use your chequing account mostly for depositing paycheques and paying an occasional bill, or will you use it for day-to-day spending like groceries and transportation? Understanding how you’ll use the account can help you choose one that fits your lifestyle—whether you need unlimited transactions, low fees or easy access to online tools.

• What kind of access do I need?
  Do you like to bank online, using an app or in person? Make sure the bank offers services that match how you prefer to bank and manage your money.

• What features matter to me?
  If you plan to send money regularly, look for a chequing account that offers unlimited Interac e-Transfer transactions. Want a cushion in case your balance dips? Make sure the account you’re considering comes with overdraft protection.

Savings accounts

A savings account is a simple, secure way to set money aside and earn a little extra money as you go.

In Canada, there are several types of savings accounts. Some offer high interest, others more flexibility—but how do you know which one matches your goals?

Whether you’re building an emergency fund, saving for something specific or just looking to grow your money with minimal risk, a savings account is an important financial tool. Let’s walk through the most common types of savings accounts, important terms you should know and what to consider when opening an account.

Common types of savings accounts

Basic savings account

If you have some money you’d like to set aside, a basic savings account offers modest interest rates that will grow your balance over time. These accounts typically have no monthly fees or minimum balance requirements, so they are a good choice for anyone who wants to start saving.

Pro tip: Learn how interest is calculated as you consider which savings account is right for you.

High interest savings account (HISA)

A high interest savings account can help your money grow faster than a basic savings account because it offers a higher interest rate—which means every dollar you deposit earns more. This type of account can help you build up an emergency fund or save for a big purchase. HISAs are a popular choice because they offer growth potential and easy access to your funds.  

Joint savings account

If you are working toward shared financial goals with someone you trust—like a partner, caregiver or family member—a joint savings account might be right for you. These accounts allow multiple people to make deposits, withdraw funds and view statements. Most basic savings accounts, HISAs and other standard savings options can be opened as joint accounts.

Kids savings account

These accounts typically have no monthly fees, lower transaction limits and features like parental oversight and educational tools. Kids savings accounts are a great tool to help children build good financial habits, whether they’re putting away birthday money or saving for something special.

Tax-Free Savings Account (TFSA)

Although the name includes “savings account,” a TFSA is actually an investment account. It can hold a variety of investment products, including mutual funds, guaranteed investment certificates (GICs), stocks, bonds and cash. A TFSA allows you to save toward a big-ticket item or goal without paying tax on the investment income you earn. These accounts offer greater growth potential than HISAs and come with valuable tax benefits, but they also have annual contribution limits.

Registered Retirement Savings Plan (RRSP)

Like a TFSA, an RRSP can hold a wide range of investment products, and it has added benefits for those who are saving for retirement. This type of account offers tax-deductible contributions, which could help lower your annual taxable income. Meanwhile, the money in your RRSP grows tax-deferred, so you won’t pay tax on any interest, dividends or investment gains until you withdraw it—typically in retirement, when your income (and tax rate) may be lower.

Comparing savings accounts

Account Type	Purpose	Key features	Minimum balance	Fees	Interest rates
Basic	Keep funds separate from chequing	Straightforward savings; limited monthly debits	None or low	Typically, none or low	Low
HISA	Earn more interest and easily access funds	Higher interest; limited monthly debits	Varies by bank	May charge extra for transactions	Higher than basic savings
Joint	Mutual savings goals	Shared access between two or more people	Depends on the type of account	Depends on the type of account	Depends on the type of account
Kids	Help kids learn to save and manage money	No fees; low transaction limits; parental oversight; educational tools	Typically, none	None	Modest; varies by age group
TFSA	Saving and investing with tax-free growth	Interest/investment earnings not taxed; flexible withdrawals	None	May charge for transfer to another bank	Depends on investments held
RRSP	Saving for retirement	Tax-deductible contributions; tax-deferred growth	None	May be fees for investment products	Depends on investments held

Questions to ask when choosing a savings account:

What are my savings goals?

Are you setting aside money for an emergency fund, a big purchase or long-term goals like retirement? Your savings goal can help determine the right type of account—whether you need quick access, higher interest or tax advantages.

How often will I need to withdraw from savings?

Some savings accounts offer easy access with no withdrawal limits, while others may have restrictions or require transfers to a chequing account first. Choose an account that matches how and when you plan to use your funds.

Will anyone else need access to my savings account?

If you’re saving with a partner or family member, you might consider opening a joint savings account to manage shared goals. These are available with most basic and high interest accounts.

Specialized accounts

Some bank accounts are designed with specific people in mind—like newcomers to Canada or entrepreneurs. These specialized accounts offer tailored features to meet a unique need.

Accounts for newcomers to Canada

Newcomer accounts are designed to help people who’ve recently moved to Canada get started with everyday banking. Often, these accounts have simplified ID requirements and offer support in multiple languages, along with tools for setting up direct deposit, sending money internationally and building credit. Some banks have options tailored for newcomer entrepreneurs looking to start a business in Canada.

A newcomer account could be right for you if:

• You’re new to Canada and want support navigating the banking system

• You’re looking for an account with low fees and simple setup

• You need to send or receive money internationally

• You’re planning to establish credit or open a business

If you’re an international student studying in Canada, you’re considered a newcomer too! Be on the lookout for special offers for certain financial accounts and products.

Foreign currency accounts

A foreign currency account lets you hold and manage money in U.S. dollars or another currency without converting it to Canadian dollars. This helps you avoid exchange rate fees and fluctuations when travelling, shopping online or receiving international payments.

A foreign currency chequing account can help you make everyday transactions in foreign dollars while a foreign currency savings account can help you earn interest on your foreign dollars. Both work like regular chequing or savings accounts—just in the currency of your choice.

A foreign currency chequing or savings account could be right for you if:

• You earn or receive payments in a foreign currency

• You frequently shop online or travel internationally

• You want to save in another currency without conversion fees

• You’re managing cross-border expenses or income

Business accounts

This type of account helps entrepreneurs and business owners manage their company’s finances separately from personal spending. Business accounts often include digital tools for sending and receiving payments, tracking expenses and handling payroll. Some banks also offer business-specific savings accounts and foreign currency accounts, which can be especially valuable if you’re managing reserves, planning for future expenses or working with international clients.

A business account could be right for you if:

• You own a business or work as a freelancer

• You want to keep business and personal finances separate

• You need to accept payments or manage business expenses

• You’re planning to apply for business financing

Which type of bank account do I need?

The type of bank account you need will depend on your unique situation and financial goals. For example:

• A chequing account is a tool for daily transactions and deposits

• A savings account is great for stashing away money for both short- and long-term goals

• An investment account (like a TFSA or RRSP) can be ideal for big-ticket items or long-term goals, offering tax advantages and opportunities to earn even more money than a savings account

• A specialized account might work if you’re new to Canada, you’re a student or you want to hold foreign currency

• A business account is helpful if you’re an entrepreneur looking to separate your personal and company finances

You can reach out to an advisor to get professional recommendations on the types of bank accounts that fit your needs.