If you visit a bank, trust company, or credit union, you'll find there are many different options for savings accounts. Fees will vary from account to account. Here are three of the most common types of savings accounts:
1. Regular savings account
If you deposit money into the account, you will be paid a small amount of interest. You can get your money quickly and easily. There are often no fees.
2. Combined chequing and savings account
You earn a small amount of interest and you can also write cheques. You will likely get less interest than with a regular savings account. Often you will pay higher fees when you write cheques.
3. High-interest rate savings account
Banks that do most of their business by phone or on the Internet often have savings accounts that pay higher interest. They can do this because they don't have branch offices, so their costs are lower. They also don't provide cheques or bank books. You must put in a certain amount (a minimum deposit).
You may find that you have to wait a day or so to get your money out. Waiting may be worth it to get the higher interest rate.
What features may I be able to get?
- Direct deposit: Your workplace can deposit your pay right into your account
- Pre-authorized debits (PAD): You can have money taken out of your account automatically each month to pay bills or to save and invest
- Debit card: In any store that displays the Interac logo, you can use your ATM card to pay for items or get cash when you shop. The money is taken right out of your bank account
- Bank Machine/Automated Teller Machine (ATM) access: You can use your bank card at bank machines to make deposits, pay bills, move money between your accounts, and get cash
- Telephone banking and Internet banking: You may want the option of doing your banking from home or work using the telephone or Internet. You will have to contact the bank?s service centre and arrange a special password before you can use these services.
Remember: Interest rates vary for different savings accounts
It's always best to shop around and compare before you choose a savings account. Rates often change, but you can use the Internet to compare them.
offers a survey of interest rates for savings and chequing accounts from banks and other companies across Canada.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.