The Money Club for Young Adults
Bank Accounts
Chequing - are for money that you plan to use for day-to-day spending or to pay bills
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earns little interest
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debit card is usually attached to this account. Amount you can spending using your debit card will be limited to amount on money you have in your account.
Savings - allow you to set money aside for emergencies, save for a large purchase or build funds for your education - while keeping your money readily accessible.
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earns some interest
We use RBC for most of our banking needs.
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chequing account: Advantage
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self directed investment accounts:
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registered: TFSA, RRSP, FHSP (coming in 2023), RESP
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non-registered: cash account
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Money Tip: If you bundle your financial needs with one institution you will save on fees and greatly simplify the management of your financial affairs. In short, the value we receive is worth the cost.
Pay yourself first: automatically routing your specified savings contribution from each paycheck when it is received.
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create a savings account separate from your other accounts
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as soon as you receive money (pay from a job or gifts) set aside a fixed amount and deposit it into this account
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never touch this money; let it accumulate and let the power of compound interest work its magic
Good Bank Account Option:
RBC Advantage Banking (chequing)
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for students: no monthly fee
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unlimited debit transactions
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free Interac e-Transfers
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No RBC fee to use another bank's ATM in Canada
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up to $48 rebate on annual fee of eligible credit card
Debit and credit cards are not the same:
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Debit cards can only spend the money you have in your checking account.
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Credit cards enable you to spend money than you do not have (by taking on debt).
Beware of Overdraft Charges:
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overdraft: a deficit in a bank account caused by drawing more money than the account holds.
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you will be charged a fee by the bank if you mistakenly use your debit card (or cheques) on purchases and spend more money than you have in your account.