How to Choose the Right Bank Account

When deciding on a bank account, it’s important to find one that works for your current goals and needs. This guide outlines key considerations when comparing chequing and savings accounts 

September 26, 2025

By: Declan Sweeney, Experiential Programming & Outreach Coordinator (Financial Literacy)

Identify your needs

Ask yourself, what do you need out of your banking? Here are some considerations to keep in mind. 

  • Monthly fees: Does the account have a monthly fee? If so, is it based around a minimum balance? For example, the TD Unlimited Chequing Account fee is waived if you have a minimum balance of $4,000.
  • Free transactions and e-transfer fees: Are there any limits per month?
  • ATM fees and locations: Try to find a bank with nearby ATMs. Still, find out how much you would be charged to use an ATM from a different provider.
  • Overdraft protection: This service is provided to prevent declined transactions. This is a last resort and should be used appropriately if you feel it is necessary. There are fees and interest included.
  • Interest rate: Will your banking provider be giving interest on the amount within your account? What ranges for your balance are set for different interest rates?
  • Personal needs: Do you expect to use cash? How accessible will your funds be? Will you need overdraft protection at some point?

        Different types of accounts

        • Chequing accounts: Best for daily banking. They have low or no fees, but little to no interest. Read more: Chequing Account Comparison
        • Savings accounts: A savings account is best for setting aside funds that do not need to be accessible at the moment. They offer higher interest rates than chequing accounts. There are potential limits to transactions or transfer limits. Read more: Savings Account Comparison
        • High-interest savings account: These have higher interest rates, but access to your limited access and withdrawal restrictions. Read more: High-Interest Savings Account Comparison

        Shop around

        Use Rate Hub to determine the right account for you and review the following articles for the pros and cons for student accounts in Canada — Nerd Wallet: Student Bank Account Review and Loans Canada: Student Bank Accounts.

        Note: Welcome bonuses and gifts for opening an account should be your last consideration. Only consider these if you have multiple accounts that meet your needs and are similar in their product offerings.

        Email money@mcmaster.ca for an appointment to review your banking options and what you need for your banking. We are here to help and support you!