Do you need both a savings and chequing account?

May 14, 2021

What do your groceries and Saturday night bar tab have in common? They probably belong to your chequing account. We generally keep our daily expenses separate from our rainy day fund. But here’s an idea: you don’t need both a savings and chequing account. 

You only need one.

Let’s think about it. Chequing accounts were made for everyday transactions that cover your basic needs–groceries, gas, even those wild Saturday nights. The drawback though is that these accounts come with monthly fees and you often have to keep a minimum balance.

Savings accounts, on the other hand, are meant for your money to grow in a safe place. They’re not usually muddled with your day-to-day withdrawals, so you don’t accidentally dip into your emergency fund or that trip of a lifetime you’ve been planning for months. 

Plus, you can earn some interest, even if it’s not much. The national average interest rate is 0.06% APY and we’ll take what we can get. But many banks still limit the number of free withdrawals in a month.

So what’s all this about not needing both accounts? 

Neo Savings is Canada’s most rewarding high-interest savings account that earns you 1.30% interest on all your money with no strings attached. This is more than what traditional banks offer, especially for an account that lets you make everyday transactions. We simplify your financial life, so you can earn more and reach your goals faster. 

The power of two in one

We blend together the best of both worlds from a chequing and savings account, but it’s a whole lot more than just high-interest savings that you get out of it (although that’s a pretty sweet deal).

Shuffle your money around as you like–pay bills seamlessly, add direct deposit and easily make transfers in and out. Even for those late-night snack runs, you can take out cash from the nearest ATM if you use your Neo Card, or pay your friends back with Interac e-Transfer or Neo-to-Neo transfers (coming soon).

No need to worry about monthly fees, keeping a minimum balance or getting dinged for making too many withdrawals. Think of all the money you can save without these costs in the mix. That’s hundreds of dollars right back into your account.

Simplify your finances

With Neo, there’s no need for both a savings and chequing account. All you need is one that earns you more each day, allows you to move money with ease, and doesn’t cost you a thing.

Neo simplifies your financial life with the seamless experience you’d expect from a tech company. Grow your money and hit one milestone after another. We make your money work harder and faster for you, so you can live your most rewarding life.

To learn more, check out Neo Savings.

*Savings interest rate is calculated daily on the total closing balance and paid monthly. Rates are per annum and can change without notice. Neo Savings interest rate last updated May 17, 2021.

The Neo Savings account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor.