Chequing account

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A chequing account is a transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a chequing account is very liquid, and can be withdrawn using cheques, automated cash machines and electronic debits, among other methods.

A chequing account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Chequing accounts can include business accounts, student accounts and joint accounts along with many other types of accounts which offer similar features[1].

In exchange for the liquidity, chequing accounts typically pay little or no interest. If held at a chartered banking institution, the account balance will be covered by deposit insurance, up to set limits. Chequing accounts, like most bank accounts, typically have fees (transaction, service, minimum balance, and NSF cheque fees[2]) associated with the account. Most financial institutions offer a variety of fee plans.


Cheques are on means of transferring money between parties. Financial institutions have no involvement in the agreement between you and the person who owes you money, but simply act on the instructions provided by the cheque and withdraw the money from one account and deposit it into another. Generally cheque processing in Canada is very efficient and few problems arise. Common problems include non-sufficient funds (NSF), post-dated cheque cashed early, cheque cashed by a different individual (counter-signed cheques), stop payment, and fraudulent cheques.[3]

See also


  1. Checking Account, on Investopedia
  2. Chequing account fees | Bank accounts | Investor Education Fund, viewed August 20, 2013.
  3. Canadian Bankers Association, Cheques – What You Need to Know, viewed December 16, 2014.

External links