Chequing VS Savings Accounts: Which account is best suited for me?

Most banks provide a range of products to help you manage the things that you feel are the most essential to you.

These products can come in the form of bank accounts. There are several types of bank accounts to choose from, but the most common are chequing and savings accounts.

Below is a breakdown of the difference between a chequing and savings account and why, depending on your financial goals – you may need to consider having both.

What is a chequing account?

A chequing account is the most basic transactional account you can have. It’s considered an account you can use every day. When you need to buy gas, grab groceries, or make a bill payment, people generally use their chequing account.

This makes sense, as it’s usually the account paycheques are deposited into and therefore a more appropriate account for daily transactions. Your funds in this account can be easily accessed at an ATM, online, mobile or in a branch.

You can use your chequing account to conduct the following transactions:

  • Deposits (cash and cheques)
  • Withdraw money (at ATMs, bank tellers, etc.)
  • One-time purchases (groceries, gas, etc)
  • One-time or pre-authorized payments
  • Transfers (between accounts of the same institution)
  • Interac e-Transfer® transactions

Different chequing account types offer a specified number of transactions per month and features, so it's important to budget and figure out how many transactions you need depending on how you bank. If you require unlimited transactions per month you may want to consider the TD Unlimited Chequing account. Along with unlimited transactions1, it also includes no TD ATM fee2 at any ATM in Canada. Alternatively, if you need more or fewer transactions or other benefits than what the Unlimited Chequing account offers, TD also offers other types of chequing accounts with different types of benefits and monthly fees if you're looking for an account that may suit your needs better.

If after browsing all of our chequing accounts you’re still not sure which one is right for you, consider trying out this simple tool, to help you find the right match.

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. Although these accounts do not have a monthly fee, fees may be incurred if you go over your transaction limit1.

If you’re saving up for a larger purchase, such as a vacation, a car, or even a down payment for your house – a savings account is probably right for you. It’s also a great account for your ‘rainy day fund’. You know, for when you need money for things you didn’t plan for, like car repairs or when the washing machine stops working.

TD offers a range of different savings accounts to help people achieve different goals. If you’re still unsure which might be the best savings account for you, consider using this helpful Discovery tool to help you find your match.

Chequing vs. Savings: A Summary

Now that you’ve gone through the differences between the two types of accounts, you probably understand that the main differences between the two types of accounts is how many transactions you can use per month, the fees and potential to earn interest.

If you’re like most, you need an account for daily spending, but you may also want an account for short or long-term saving.

Below is a quick breakdown of both.

Chequing Accounts


  • Ideal for every day purchases, such as making bill payments or buying groceries
  • Higher number of transactions you can perform per month


  • You don’t earn any interest on the balance you maintain in your account*

* Except for TD Student Chequing Account (which accumulates daily interest)

Savings Accounts


  • Some savings account may earn interest depending on the tier and your account balance3
  • Back up fund for unplanned expenses or can help you achieve your financial goals


  • Can incur additional transaction fees
  • Not meant to be used as an account for day-to-day transactions

You know you have your chequing account to access money at any time, and you know savings account is there for putting money away for later. Training yourself not to dip into your savings account now is an important step in preparing you for a financially succesful future.

1 For more information about transactions and a complete list of account fees, click here for Account and Other Related Service Fees. For information on our general services, please view our General List of Services.

2 You may pay a fee to the ATM provider, and for foreign currency withdrawals at an ATM outside of Canada you will pay the foreign exchange related fee.

3 For information on how our interest is calculated, learn more about how our interest is calculated.

Share this article

Explore related articles and tips

Explore TD’s Chequing and Savings accounts