Compare Bank Accounts

Bank accounts aren’t something that we think about very often. Most people get a youth account when they’re very young from the same institution that their parents bank at, then stay with them forever.

It may not occur to you, but you could actually be paying substantial bank fees without realizing you are, or that you don’t even have to! There are plenty of free banking options that offer the exact same features you would get from a Big 5 bank account.

“What’s the catch?” you might ask. But I’ll ask you, “What’s the catch with your current bank account?” Usually, they catches are minimum balances or $10 - $15 per month just for having somewhere to put your money. It doesn’t have to be this way!

If you’re fed up with paying high fees for the privilege of saving your own money, then it’s time to compare bank accounts. But don’t limit your search to one of the other big banks – take a look at smaller banks, online banks, or even credit unions. They often offer better service or better fees, and sometimes both!

How to compare bank accounts in Canada

There are a few things you should think about for your next bank account, and none of them are “Which bank is the best?” Usually, each separate bank account has its own advantages and disadvantages that don’t usually impact the rest of their offerings. Scotiabank, for instance, doesn’t have the best savings accounts in Canada but they do have some of the best credit cards.

The things you want to look for are the monthly fees, number of free Interac e-Transfers, and the interest rate. I ranked these in order of my personal preference, but all are important for finding the< strong> best bank account in Canada.

Monthly Fees

Unless you have a lot of money, it’s probably not worth it for you to deal with savings accounts with monthly fees and/or minimum balances. To put it in perspective, a savings account with $5,000 in it would only earn $9.60 a month in interest in a bank account with 2.3% interest. If you pay a monthly fee of $10, you actually come out behind despite “earning” money!

Free Interac e-Transfers

Interac e-Transfers are one of the most convenient, quick, and safe ways to send money to friends and family. It makes splitting the bill at restaurants, events, or road trips incredibly simple since you don’t have to break your 20’s into a bunch of 5’s and coins.

I tend to use e-Transfers a couple times a month, and at a normal cost of $1 each that’d be too much for comfort. Luckily, many banks offer anywhere from 2 – unlimited monthly transfers for free!

Interest Rate

Obviously you want to get the most money for your savings. Most big banks have interest rates that hover around 1% or less – even in their so-called “high interest” savings accounts.

Putting it together

The best personal bank accounts have the following three things:

1. No monthly fee

2. Free ways to move your money to and from other accounts (like Interac e-Transfers)

3. High interest rates

Don’t settle for less!

Best Business Bank Accounts

Business bank accounts are a bit different from personal bank accounts. If you own or run a business, it’s incredibly important to get a business bank account to separate your personal and business finances. Keeping them all together may make it seem easier to manage your finances, especially when your income is a large portion of your business revenue, but it will become a nightmare come tax time.

But don’t just get any business bank account because you need one. If you don’t compare business bank accounts, you run the risk of getting one that’s too restrictive with its withdrawal policies or has fees that outweigh the benefit of banking there.

The best business bank accounts in Canada are not the same as the best personal bank accounts. Many of the best personal bank accounts are not suitable for business use, and may even be closed by the institution if you use it for business purposes!

Compare business bank accounts on RateShop.ca before choosing one so that you know you’re getting one that fits your business’ needs.