Types of Bank Accounts: A Guide

Bank accounts are a key feature in our financial lives. It’s nearly impossible to exist in today’s world without a chequing account, debit card, and savings account, at the very least. Still, 17 million Americans hobble through life without the benefit of a financial institution for their capital.

The truth is that while some people forego the use of a bank account, many of us carry multiple accounts across each type, and even participate in stock trading through a variety of different outlets as well. Financial accounts are in abundance in Canada, the United States, and all around the world.

Finding the right bank account for you begins with an introspective look into your personalized needs (just like using The Rack for your personalized wardrobe requirements). Start with this guide to understand account types and a few providers that can get you into the right financial situation for your requirements, circumstances, and future plans and goals.

The Chequing Account

Canadians and U.S. citizens alike need a chequing account. This is where your debit card draws funds from when you make purchases, and it’s the place into which your employer will deposit your salary payments every month. Without a debit card and corresponding EQ bank account or account from another local bank in your area, many of the simple tasks that we take for granted on a daily basis just aren’t feasible. A network of bank account products starts with this function and branches out from there.

It’s a great idea to check out an EQ Bank review, as well as reviews for other banks that you are thinking of opening accounts with. This is the first step toward understanding the virtues of the specific bank and how they prioritize the needs of their customers. Every bank is different, and will offer specific options that benefit different types of consumers depending on their geographic location, clientele, and many other factors. EQ Bank (or Equitable Bank) is a mainstay in online banking. As a provider of financial services that lives in the digital realm, EQ Bank is able to offer its clients with fee free accounts in a variety of different types.

EQ Bank and many of its competitors offer excellent chequing account opportunities for those looking for zero deposit requirements, Guaranteed Investment Certificates (GICs) and low cost international transfer options (powered by TranserWise, a partner financial institution) all baked into the single online bank account. These types of account features are simply not feasible for many U.S. based banks and those with brick and mortar presences that take up a significant portion of the operating costs.


Savings Account Options

Savings accounts are where online banks really shine. Online banks are often the greatest savings account providers because their low overheads allow for a boosted interest rate on the cash left in the account. Many online banks provide their clients with GICs and other locked savings options, however unrestricted savings accounts also provide savers with uniquely strong interest rates as well. An EQ Bank savings account is a a great way to start building savings in the form of an emergency fund or holiday planning. The high-interest savings opportunity offered through online banks like EQ Bank are second to none and far exceed the big bank experience that so many Canadians deal with every day.

Opening a savings account to keep your money safe, easy to access, and constantly growing is a highly important step for anyone that’s currently working with cash or only their chequing account. Add in this additional layer of security for greater peace of mind.

Credit Cards

Finally, many banks offer credit card accounts to their customers. This is a great way to add additional emergency spending power with a competitive interest rate to your wallet. It’s important, however, to remember that credit cards often come with a significantly higher interest rates than direct deposit personal loans. Eventually you will have to pay back all that you’ve borrowed, plus the addition of the interest rate tacked on every month. Smart spending begins with a budget, and so too does the use of a credit card for emergency or other purchases from sneakers to other essentials like groceries or food for your toddler.

Utilize the power of an online bank to take each of your accounts to the next level.