Chequing account

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 Money held in a chequing account is very liquid, and can be withdrawn using cheques, automated cash machines and electronic debits, among other methods.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.

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 ) associated with the account. Most financial institutions offer a variety of fee plans.

Cheques
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. Cheque use is steadily declining as electronic alternatives gain in popularity, but Canadians still use close to a billion cheques each year. Generally cheque processing in Canada is very efficient and few problems arise.

The Payment Canada rules and standards do not address what a financial institution needs to verify on a cheque. It is a business decision on their part to determine what they verify on deposited items (ex. signature, endorsement, etc.)

Common problems
Common problems with cheques include:
 * non-sufficient funds (NSF),
 * post-dated cheque cashed early,
 * cheque cashed by a different individual (counter-signed cheques),
 * stop payment,
 * fraudulent cheques.