You can have any number of bank accounts in Canada. There is no restriction on the upper limit. The more you have, the better you can plan for your future.
Bank Accounts in Canada
The major bank account types in Canada are Chequing account and a savings account. A chequing account is a day-to-day transaction account where you receive a salary and pay bills. A savings account is where you park emergency funds. It is important for every person to have a bank account as it offers safety and security against fraud. You can have a track of your savings using bank statements. In addition, you can quickly complete transactions at the convenience of your home.
How many bank accounts can you have in Canada?
You can have multiple bank accounts in your name. There is no upper limit on the number of bank accounts you have in Canada.
Pros of having multiple bank accounts
- You can use each bank for each goal – one for emergencies, one for transactions, holidays, health, one in US dollars etc.,
- Apart from a personal bank account, you can open a joint account with your spouse to share, track and track your monthly expenses.
- It will help you stay organised.
- It minimises risk. The Canada Deposit Insurance Corporation (CDIC) insures only $100,000 per participating bank. If you have multiple accounts with different banks having a maximum of $100,000 in each bank, then all your funds will be protected.
Cons of having multiple bank accounts
- You need to maintain a minimum balance in each of your bank accounts.
- You need to pay multiple account keeping fees
- Auto transfers can get complicated.
- It is difficult to manage and supervise all your accounts.
Canadian bank accounts
It is important that you check interest rates, minimum balance, customer service, fees, technological advancement, promos and offers before opening a bank account. Similarly, you need to plan and ascertain your long term and short term financial goals before opening multiple bank accounts.