*** 2012 update: this article is getting very out of date and is no longer actively maintained. However, please see our free chequing table that is more actively updated.
Recently, I needed to switch my daily bank account (my chequing account). I had been with my previous bank for over 13 years so I had not had the need to be educated or informed on what was out there. When I started looking into a couple of options, I realized that what I really needed was a comparison chart of all my options so that I could weigh the benefits of each one. Instead of just keeping such valuable information to myself, I thought I would share it with you.
First of all, you should have some information on what my financial background is like and what my banking needs are. I am a conservative investor, holding most of my funds in high interest savings accounts and in term deposits (or GICs), registered and non-registered. I am at a stage in my life where I am looking to purchase a place, so I need access to my funds either tomorrow or in months when I actually find a place that I want to buy.
In terms of my banking needs, it is very simple: I don’t want to be limited and I don’t want to pay fees. Sounds simple, but it really isn’t. I am looking for an account where I can perform as many transactions as I need, including bill payments, transfers, deposits, withdrawals and Interac direct payments. I also want to have cheques and easy access to ATM machines if I need one.
Based on this, I did a comparison of accounts at banks and credit unions, large and small. I focused first on finding accounts that did not have any fees and then on the features they provided for daily banking. I did not include accounts that were free but limited, for example only providing 4 free transactions a month; this would just not meet my needs.
Please note that this comparison table is accurate to the best of my knowledge as of August 28, 2007. Please let me know if you see any errors and I will correct them. Also, please check with the specific banks to confirm any information.
| PC Financial | Citizen’s Bank | Coast Capital | Vancity | TD Canada Trust | Bank of Montreal | Scotiabank | HSBC | |
|---|---|---|---|---|---|---|---|---|
| Account Name | No Fee Bank Account | Chequing/Savings | Free chequing, free debit, and More Account | E-Package Account | Infinity Account | Performance Plan | Scotia Powerchequing Account | Performance Chequing-Unlimited |
| Monthly Fee | $0 | $8 | $0 | $7 | $12.95 | $13.95 | $3.95 | $11.95 |
| Daily Banking | ||||||||
| ATMs | Free at CIBC Machine or President’s Choice Terminal | "Exchange" or "Acculink" ATMs, found at most credit unions and HSBC | Coast Capital ATMs or "Exchange" ATMs | Vancity ATMs or "Exchange" ATMs | Green Machine TD ATMs | BMO Machines | Scotiabank Machines; ***15 self-serve transactions per month | HSBC, "Exchange" ATMs, BMO ATMs |
| Other ATMs | $1.50 Interac Fee + the other institution’s fee | $1.50 Interac Fee + the other institution’s fee | $2.00 + other institution’s fee | $1.50 + other institution’s fee | $1.50 + other institution’s fee | 1 free debit at any Interac machine | $1.50 + other institution’s fee | $1.50 + other institution’s fee |
| Withdrawals per month | Depends on credit bureau | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – unlimited |
| Withdrawals – Maximum Withdrawal per day | Depends on credit bureau; on average $200 per day | Depends on credit bureau; on average $1,000 per day | $500 a day | $400 a day | $500 a day usually | Depends on your credit and relationship with the bank | Depends on your needs | Depends on customer needs |
| PC Financial | Citizen’s Bank | Coast Capital | Vancity | TD Canada Trust | Bank of Montreal | Scotiabank | HSBC | |
| Deposits – Holding Period | Depends on credit bureau; could be up to a max. of 7 days | Depends on credit bureau; usually $2,500+ usually has a 7 day hold | Depends on credit bureau; usually $5,000+ has a hold | Depends on credit bureau; $2,500+ usually has a 7 day hold | No holds | 5 business day for first 6 months; then it can change based on your history | 5-7 day on all deposits; cash – 24 hours | Depends on deposit amount and customer |
| Account Minimum Balance | Not required | $1,000 to waive monthly fee (based on end of day) | Not required | $1,000 to waive monthly fee (based on end of month) | $3,000 to waive monthly fee (based on end of day) | $2,500 to waive monthly fee (based on end of day) | $2,000 to waive monthly fee (based on end of day) | $4,000 to waive monthly fee (based on end of day) |
| Interac Direct Payments | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – unlimited |
| Online Banking | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – Unlimited |
| Telephone Banking | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – Unlimited |
| Bill Payments | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – Unlimited |
| Statements | ||||||||
| Online Statements | Free | Free | Free | Free | Free | Free | Free | Free |
| Paper Statements | $1.00 per month if you want it | Free | Free | Free | Free | Free | Free | Free |
| PC Financial | Citizen’s Bank | Coast Capital | Vancity | TD Canada Trust | Bank of Montreal | Scotiabank | HSBC | |
| Cheques | ||||||||
| Actual Cheques | Free; personalized | Free; personalized | First 10 are free; must purchase after that | Must Purchase | Must Purchase | Must Purchase | Must Purchase | Free; personalized |
| Chequing | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Free – Unlimited | Self-serve*** | Free – Unlimited |
| Transfers | ||||||||
| External Transfers | Free – Unlimited; takes 2 – 3 business days; subject to regular holding period | Free – Unlimited; takes 2 – 3 business days; no holds | Free – unlimited; takes approximately 1 week; no holds | Free – unlimited; 3 business days; no holds | Free – unlimited; 2 – 3 business days; no holds | ***According to the rep I talked to, they can’t do this – somehow I doubt that is true | Self-serve***; 2 – 3 business days; no holds | Must get the HSBC Direct* account to perform such transfers; 1 – 2 business days; no holds |
| Transfers between internal accounts | Free – Unlimited; takes approx. 24 hours | Free – unlimited; real time, no holds | Free – unlimited; real time; no holds | Free – unlimited; real time, no holds | Free – unlimited; real time; no holds | Free – unlimited; real time; no holds | Self serve***, real times; no holds | Free – unlimited; real time; no holds |
| PC Financial | Citizen’s Bank | Coast Capital | Vancity | TD Canada Trust | Bank of Montreal | Scotiabank | HSBC | |
| Extra Info | ||||||||
| Annual Interest Rates (up to $25,000 balance) | 0.1% – 0.5% | 0.5% – 1.0% | 0% | 0% | minimal | no | 0.25% on balances over $10,000 | 0.025% for balances over $5,000 |
| Other | Earn PC Points | Can add the "Even More Package" for $5 per month for extra features | Only one in-branch transaction per month; after that $0.70 each | Earn Airmiles by using your debit card |
*HSBC Direct Savings Account is a high interest savings account with no minimum balance required and no monthly fees.
I also noted that there are some banks that do not offer such an account: RBC, CIBC, and Envision Credit Union.
*** 2012 update: this article is getting very out of date and is no longer actively maintained. However, please see our free chequing table that is more actively updated.