Personal Finance

Can I just have a savings account with a bank and close my chequing account?

  • Last Updated:
  • Nov 25th, 2019 10:00 am
[OP]
Newbie
May 7, 2014
62 posts
12 upvotes
Winnipeg , MB

Can I just have a savings account with a bank and close my chequing account?

Hi ,

I have 3 chequing accounts (2 with BMO and 1 with TD) with minimum balance of around 6k . I checked and there are no free accounts with these banks. I generally perform very few transactions in those chequing accounts . Is it possible to close the chequing account and keep the savings account only (which will be free)?

For the major transactions , I will open a new chequing account with tangerine .
19 replies
Sr. Member
Feb 28, 2014
543 posts
643 upvotes
stevesingh wrote: Hi ,

I have 3 chequing accounts (2 with BMO and 1 with TD) with minimum balance of around 6k . I checked and there are no free accounts with these banks. I generally perform very few transactions in those chequing accounts . Is it possible to close the chequing account and keep the savings account only (which will be free)?

For the major transactions , I will open a new chequing account with tangerine .
For BMO, no, everything at BMO except the credit card revolves around the chequing account. When you close the BMO chequing account, the savings account underneath them will be closed. With loans, without a chequing account, you can't see them on their banking portal. BMO is weird like that.

For TD, you can but honestly, I wouldn't bother with their anemic savings account.

Honestly, if you don't use branch services, just close all of them and move it to an online bank.

You can also do better than Tangerine as well. Consider high paying banks like Alterna Bank, B2B Bank (no registered/joint account support though) and Motus Bank. They all pay at least 2% interest with their accounts, and come with unlimited eTransfers (Tangerine includes none). Tangerine is also hiking their fees in 2020 as well.

If you need branch access, consider your local credit union instead. Some offer free chequing accounts with branch access like DUCA in the Toronto area, FirstOntario in the Hamilton/Niagara area and Coast Capital Savings in BC.

All the banks & credit unions I've listed are part of The Exchange Network for ATM access. You get free ATM access at any financial institution that's on the network which includes HSBC, National Bank, Canadian Western Bank, other small banks and a number of credit unions in BC, Ontario and the Maritimes.
Member
Feb 9, 2018
379 posts
277 upvotes
I would prefer Simplii chequing over tangerine due to free interac e-transfers and always free cheque books. Otherwise both are owned by big banks and offer free access to their respective parent bank's ATMs.
[OP]
Newbie
May 7, 2014
62 posts
12 upvotes
Winnipeg , MB
deltatux wrote: For BMO, no, everything at BMO except the credit card revolves around the chequing account. When you close the BMO chequing account, the savings account underneath them will be closed. With loans, without a chequing account, you can't see them on their banking portal. BMO is weird like that.

For TD, you can but honestly, I wouldn't bother with their anemic savings account.

Honestly, if you don't use branch services, just close all of them and move it to an online bank.

You can also do better than Tangerine as well. Consider high paying banks like Alterna Bank, B2B Bank (no registered/joint account support though) and Motus Bank. They all pay at least 2% interest with their accounts, and come with unlimited eTransfers (Tangerine includes none). Tangerine is also hiking their fees in 2020 as well.

If you need branch access, consider your local credit union instead. Some offer free chequing accounts with branch access like DUCA in the Toronto area, FirstOntario in the Hamilton/Niagara area and Coast Capital Savings in BC.

All the banks & credit unions I've listed are part of The Exchange Network for ATM access. You get free ATM access at any financial institution that's on the network which includes HSBC, National Bank, Canadian Western Bank, other small banks and a number of credit unions in BC, Ontario and the Maritimes.
Thank you very much for the reply. Very much appreciated .
Sr. Member
Jul 16, 2019
730 posts
745 upvotes
I closed my TD chequing account and now only have their Every Day Savings Account. I made a thread about it here. The downside is it only allows one free withdrawal per month (and unlimited deposits).
Sr. Member
Feb 28, 2014
543 posts
643 upvotes
stevesingh wrote: Thank you very much for the reply. Very much appreciated .
Just saw that you're from Manitoba, I would encourage you to take a closer look at the credit union scene there. There's tons of choices, a lot of great credit unions in the country are from Manitoba. DGCM coverage is so much better than what CDIC offers.

One of the credit unions you should check out is Cambrian Credit Union. You can get free banking with them with their Unfee program.
Sr. Member
Apr 23, 2017
980 posts
1650 upvotes
I have an old savings account at CIBC and no chequing account with them, and it lets me me use their online banking, sends me a debit card in the mail, allows Interac e-transfers into the account and ATM deposits into it without fees. However, taking money out (in branch, ATM, etc) is subject to a fee. Not sure why I still have this account - it is sort of abandoned - I transfer $5 in every year to keep it non-dormant. I never added a chequing account as there was no way to do that without paying a monthly chequing account fee at CIBC, although now with SmartPlus there is a way, but I have no incentive as I have a no-fee chequing account with another big 5 bank.
Deal Addict
Jun 18, 2018
1290 posts
802 upvotes
Toronto
Store your money in a high interest earning account - no point in sitting in a chequing earning nothing. You got the right idea of closing your chequing accounts, but need to switch banks too. Big banks have shit interest rates.
Last edited by Electrah on Nov 15th, 2019 6:02 pm, edited 1 time in total.
Sr. Member
Feb 28, 2014
543 posts
643 upvotes
HermanH wrote: I have an old savings account at CIBC and no chequing account with them, and it lets me me use their online banking, sends me a debit card in the mail, allows Interac e-transfers into the account and ATM deposits into it without fees. However, taking money out (in branch, ATM, etc) is subject to a fee. Not sure why I still have this account - it is sort of abandoned - I transfer $5 in every year to keep it non-dormant. I never added a chequing account as there was no way to do that without paying a monthly chequing account fee at CIBC, although now with SmartPlus there is a way, but I have no incentive as I have a no-fee chequing account with another big 5 bank.
If this is the case I would just close the account, is there a reason why you kept it? Seems like it's sitting there doing nothing anyways...
Sr. Member
Apr 23, 2017
980 posts
1650 upvotes
deltatux wrote: If this is the case I would just close the account, is there a reason why you kept it? Seems like it's sitting there doing nothing anyways...
It has $50 in it. I opened it years back as CIBC was the closest branch to where I lived (walking distance) and no other bank had branch was within walking distance (two other banks once did, but closed the branches). So it was a dip the toe into the CIBC waters moment, when I walked in and opened the savings account while on my way to the grocery store. However, looking at their offerings at the time more closely, I decided better to stay at the bank I was at and drive to a branch, so the toehold at CIBC never was expanded upon.
Sr. Member
Nov 6, 2015
899 posts
506 upvotes
Guelph, ON
I have a TD savings account whose sole purpose is a conduit for buying E-Series funds. I've never had a chequing account with them.
Sr. Member
Jul 16, 2019
730 posts
745 upvotes
JoeBlack23 wrote: I have a TD savings account whose sole purpose is a conduit for buying E-Series funds. I've never had a chequing account with them.
Do you have to pay transaction fees on it or does buying E-Series funds not count as a transaction? And which particular savings account do you have?
Sr. Member
Nov 14, 2010
941 posts
219 upvotes
I have a savings account at TDCT, no chequing. For the rare time I need tellar service. I occasionally push/pull money from EQ or Tangerine to keep it active with no charge.

My TDCT e-series mutual funds are linked to my Simplii account, so you don't even need it for that.

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