Chequing

Chequing refers to a chequing account, a bank account designed for everyday financial transactions rather than long-term saving. The term is commonly used in Canada and other Commonwealth countries; in the United States the equivalent is a checking account, and the spelling cheque is used for the instruments themselves. A chequing account typically provides ready access to funds for paying bills, making purchases, and transferring money, often through a linked debit card, checks, and electronic payments.

Typical features include a debit card, online and mobile banking, direct deposits, and automatic bill payments. Many accounts support multiple payment methods, such as Interac e-Transfer in Canada or ACH transfers in the United States. Chequing accounts are designed for high liquidity; some accounts impose limits on free transactions or require a minimum balance to avoid fees, while others offer no-fee options with different requirements. Access to funds is usually immediate, subject to bank processing times.

Fees and features vary by institution. Chequing accounts may charge monthly maintenance fees, per-transaction fees, or overdraft charges. If offered, interest is typically modest compared with savings products. Overdraft protection or linked credit facilities are commonly available to cover shortfalls, sometimes for a fee or at higher interest.

Security and protections: Deposits in many countries are protected by government-backed deposit insurance schemes. For example, in Canada deposits in chequing accounts are insured by the Canada Deposit Insurance Corporation up to 100,000 CAD per insured category; similar schemes exist in other countries with differing limits. These protections aim to reduce the risk of loss if a financial institution fails.