Choosing where to deposit your hard earned money doesn’t have to be a struggle of weighing the pros and cons. Instead it can be a win-win scenario, when the balance you use to pay your bills earns you interest with zero fees.
Learn more about the EQ Bank Savings Plus Account in this profile from Mediaplanet.
Earning interest on chequing accounts is virtually unheard of in the banking sector. That’s why the EQ Bank Savings Plus Account is a different way to bank.
Consider a savings account that functions like a chequing account. It lets you pay bills and transfer money instantly with no transaction or account fees — and earn percent interest.* The EQ Bank Savings Plus Account does exactly that.
EQ Bank is a subsidiary of Equitable Bank, a wholly Canadian-owned Schedule 1 bank with approximately $31 billion of assets under management, over 830 staff, and a member of CDIC. EQ Bank, its digital bank, combines the security, stability, and reliability of a traditional bank with the speed, convenience, and agility of online banking. “We’re seeking to deliver a unique value proposition to customers that hasn’t existed before,” says Mahima Poddar, Senior Vice President, Digital Banking and Strategy at Equitable Bank. “Because we are a digital bank and 100 percent branchless, we operate at a lower cost position than traditional banks and can translate the cost savings into better value for customers,” says Poddar.
EQ Bank Savings Plus Account is distinctly different
“We’ve created a product that allows customers to transact from a savings account that pays an attractive everyday interest rate. For at least the last year, that interest rate has been 2.30 percent” says Poddar. In addition to making unlimited free bill payments and e-transfers to any other Canadian bank, customers can make mobile cheque deposits and — as of recently — buy GICs at very attractive rates directly from their Savings Plus account. “It’s a really simple way to let customers take advantage of GICs without having to call a branch, talk to an advisor, or worry about the commission that the sales agent may be earning on the GIC purchase,” says Poddar.
Benefits to customers
A key benefit to customers with the EQ Bank Savings Plus Account is the ability to earn interest while their money is in a resting position — like during the gap period between getting paid and paying monthly expenses like rent, mortgage, and utility bills. “With a traditional chequing account, you are not earning anything on your balance or float, plus you’re often paying minimum fees to keep the account active,” says Poddar.
Considering the average Canadian holds anywhere between five and ten thousand dollars in their chequing account to manage their bills, 20 or 30 days of interest can add up. “And even if the money is only sitting in the account for three days, customers still earn interest because EQ Bank calculates interest daily,” says Poddar.
That helps Canadians manage their money more prudently. “Making small financial decisions like this can improve your financial position in the long term because you’re saving on all of these fees and the compound interest of percent in a risk-free investment really adds up over time,” says Poddar.
Unlike many digital banks, EQ Bank does not offer temporary promotional rates on its Savings Plus account. “Offering an everyday rate of percent on every dollar to each customer takes away the worry about wondering whether they should be shifting money from one account to another when the promo expires, which we don’t feel is a very good customer experience,” says Poddar.
Finally, the EQ Bank Savings Plus Account is built on a platform that’s designed for simplicity, ease of use and for people on the move 24/7. “Customers can manage their money from wherever they happen to be — on the go or at home — via their mobile app or desktop,” says Poddar.
Canadians looking for a personal banking solution that makes a difference might want to consider a different way to bank by opening an EQ Bank Savings Plus Account — available only through EQ Bank. Open an account today within minutes at EQ Bank.
* Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
(This article was originally featured in Mediaplanet)
FAQs
The main difference between checking and savings accounts is that checking accounts are primarily for accessing your money for daily use while savings accounts are primarily for saving money. Checking accounts are considered “transactional,” meaning that they allow you to access your money when and where you need it.
Is it better to have a cheque or savings account? ›
How checking and savings accounts differ. The primary benefit of a checking account is to provide you with access to your money for everyday needs. Savings accounts, on the other hand, enable you to set aside money for longer-term goals. Savings accounts pay interest on balances.
What is the difference between a chequing and savings account? ›
What is a savings account? If chequing accounts are for day-to-day transactions, savings accounts can help you achieve short and long term saving goals. Instead of being used for day-to-day transactions savings accounts may be more appropriate for saving goals since these accounts earn interest3.
Do savings accounts have Cheques? ›
In addition, savings accounts don't usually come with checks or debit cards, though they have a routing number that you can use to send or receive money electronically.
What is a cheque account? ›
A chequing account is used to store your daily spending money. It's designed for everyday transactions, such as depositing paycheques, paying bills, debiting purchases, transferring money online or making ABM withdrawals. A chequing account typically comes with a debit card and a chequebook.
What is meant by cheque? ›
A cheque is a document you can issue to your bank, directing it to pay the specified sum mentioned in digits as well as words to the person whose name is borne on the cheque. Cheques are also called negotiable instruments.
What are the disadvantages of a Cheque account? ›
Disadvantages
- It is not legal tender money and hence, payment via a cheque can be refused.
- Individuals without bank accounts will be inconvenienced by crossing of cheques.
- Depositing cheques into one's account is time consuming and requires one to go to a bank branch.
You can usually withdraw money from your savings account at an ATM. All you'll have to do is use an ATM card or debit card, and select that you want to take out money from a savings account. Bear in mind that financial institutions have daily ATM withdrawal limits as well.
How does a chequing account work? ›
A chequing account is what most people consider to be their main account for day-to-day banking. You will use this account to deposit your earnings, withdraw cash, pay bills or make debit card purchases. Because of all these transactions, chequing accounts are referred to as “transactional” accounts.
Is it better to keep money in savings or checking? ›
It's advisable to have both types of bank accounts. You can: Use a checking account for spending and paying off expenses, and. Use a savings account to build and hold your emergency fund while earning interest.
Unless your bank has set a withdrawal limit of its own, you are free to take as much out of your bank account as you would like. It is, after all, your money. Here's the catch: If you withdraw $10,000 or more, it will trigger federal reporting requirements.
Do I need both a checking and savings account? ›
The money in savings accounts typically earns interest, so the more you save, the more you earn. A good financial strategy is to use both types of accounts in tandem, moving funds from savings to checking for big purchases like vacations or home improvements.
Can a savings account have checks? ›
You typically can't write checks from your savings account, as most banks simply don't allow for it. They also don't issue debit cards with savings accounts for making payments or purchases. Your best bet for writing checks is to use your checking account to make payments quickly and safely.
Can you issue a cheque on a savings account? ›
Savings accounts are designed for saving money, meaning they're built to hold your deposits for an extended period of time. So, they don't typically come with features that let you make payments, like checks and debit cards.
Can you put a cheque into a savings account? ›
Pay in a cheque by post
You can use the post to deposit cheques into your current account, credit card account or savings account with a sort code and account number.
How to check if your bank account is cheque or savings? ›
Normally it is written on your passbook or cheque book. You can also call toll free no or visit nearest branch. Generally people keep a savings and a checking account.
What is the meaning of savings account? ›
Savings Account Definition:
A savings account can be defined as a deposit account held at a bank or financial institution, allowing customers to save money while earning interest.
Is debit card cheque or savings? ›
The terms "debit card" and "check card" mean the same thing. A debit card withdraws money from your checking account as a check does; therefore, it debits your account. It can also withdraw money from your savings account, if you have it set up that way when you ask for a card.
Should I deposit my check into savings or checking? ›
If you're planning to use these funds for regular, monthly expenses like rent or mortgage payments, utility bills, or student loan payments, you'll probably want to put your direct deposit into a checking account. That way, you can easily pay your bills and have access to your money as needed.
