Savings and Checking Accounts to Deposit Money and Grow Your Savings

There is a selection of checking and savings accounts to deposit your money. Current accounts allow holders to deposit money, make withdrawals, and write checks. Savings accounts are intended for customers who want to save money and earn interest.

Benefits of Opening a Checking Account

One of the main benefits is that your money is safe. Deposits are FDIC insured up to $100,000. Customers can withdraw money whenever they need without having to carry large amounts of money. Having a checking account is convenient in that fund transfers are easy to make. You can transfer funds to customers, creditors, and other parties. Basic accounts come with overdraft protection, checkbook orders, and a routing number. Direct deposit is a convenient feature – your paycheck is deposited directly into the account. Different financial institutions offer checking accounts in Canada, including BMO, CIBC, Toronto Dominion, and many others. The big banks offer a selection of accounts for seniors, students, teenagers, and children.

Tax-Free and US Dollar Solutions

There are also US dollar and tax-free savings solutions. Tax-free accounts come with quarterly and semi-annual statements and no fees for transfers, withdrawals, and deposits. No fees are paid for TFSA transactions. There are also US savings and checking accounts for customers who make purchases and transactions in US dollars and often travel to the U.S. It is easy and convenient to convert Canadian to U.S. dollars. Savings solutions come with favorable interest rates and exchange rates. Some customers choose to open a checking and savings account in the same bank. In this way, they save on fees. The choice of product depends on the monthly balance and number of transactions.

Savings Solutions

A savings account offers many benefits to accountholders, including low monthly fees, guaranteed returns, and convenient access. It comes with no or low fees depending on the amount of money deposited, the type of product, and other features. There are usually restrictions on the number of withdrawals and deposits allowed per month. This is a great option for saving money for short- and long-term goals such as buying electronics, household appliances, and furniture, going on vacation, and emergencies. Customers can choose from different products such as money market, instant access, and basic accounts. Instant access solutions allow customers to make over-the-counter withdrawals, use an ATM, and deposit and withdraw funds online. You can use it to put cash aside for emergencies. Some banks feature an introductory interest rate during the first year. Financial institutions offer bonus interest rates to attract new customers. While this product allows holders to grow their savings, there are minimum balance requirements. Financial institutions charge penalty fees if holders fail to maintain the minimum balance. There are also service charges and fees.

Another option is to open a money market account. This product offers higher interest rates and returns than other solutions. On the downside, it comes with higher minimum balance requirements, and there are restrictions on the number of deposits and withdrawals (e.g. 3 checks per month).

Some people choose to open an account with a credit union. Unions pay interest on products that banks don’t and usually offer attractive interest rates. This is because they are customer-oriented.

Managing Your Account

Accountholders have a checkbook register that helps them to keep track of their deposits, withdrawals, and transactions. They also receive monthly statements which allow them to check the interest earned, fees, charges, and the number of transactions.