How Many Chequing Accounts Can I Have in Canada?

You probably don’t need me to tell you, but managing money isn’t a one-size-fits-all endeavor. Some Canadians choose to keep things simple, putting their everyday cash in one single chequing account. Others prefer to use multiple accounts, separating business income, household expenses, and savings goals, for example. But, is this allowed? 

Can You Have More Than One Chequing Account in Canada?

In short, yes. There is no federal rule on how many accounts you can open in Canada, which means that it is possible to hold multiple chequing accounts at the same bank. Or even across several institutions.

In practice, though, each financial institution has its own policy. Some banks offer numerous chequing accounts under a single plan, while others charge fees. If you want to open a joint or business account, though, you will need to provide additional documentation as well. Even single-name accounts must meet identification and verification requirements.

Why Someone Might Have Multiple Chequing Accounts

Many Canadians use multiple chequing accounts in order to separate their business and personal transactions. This strategy can also come in handy for managing joint finances or simply making solo budgeting easier.

Here are a few reasons why you might want to have multiple chequing accounts:

1. Budgeting purposes. Having separate accounts for day-to-day spending, bills and savings goals can make it easier to stay organized. For example, you can have one account that covers recurring bills like rent and utilities, while relying on another account for discretionary spending. This approach helps you track where your money is going each month.
2. Business vs personal use. Anyone self-employed or running a side hustle may want to have a separate chequing account for their business cashflow. This aids in record-keeping and makes tax time much less stressful.
3. Joint accounts. A joint account is a tool that can be useful for couples, families, or even roommates who need to manage shared costs like rent or travel expenses.
4. Access to foreign currency: If you spend time abroad or regularly shop on foreign websites, you may find it helpful to open a US dollar chequing account. Not only can it help to simplify transfers between Canadian and US accounts, but it can also save you money on the currency conversion.
5. Banking promotions: It is sometimes possible to open a chequing account to take advantage of new customer bonuses or no-fee offers. If your goal is to benefit from these perks, be sure to read the fine print, as some accounts require minimum balances.

Pros and Cons of Multiple Chequing Accounts

Having more than one chequing account might make budgeting easier, but it’s not always the right move for everyone. Consider both the benefits and the drawbacks before opening an extra account (or two).

Pros of multiple chequing accounts

• Separation between business and personal funds
• Ease of budgeting
• Prevents accidental overspending by having different accounts for each category of spending
• Potential access to additional perks through sign-up offers or cash rewards
• Flexibility across financial institutions, broadening your access to services and ATM options

Cons of multiple chequing accounts

• Potential for higher fees as each account may have its own monthly charge
• Additional complexity when it comes to managing multiple accounts, putting you at risk of overdrafts and more complicated tax reporting
• CDIC coverage remains $100,000 per insured category per member institution (even if you hold more than one chequing account)

Tips to Manage Multiple Chequing Accounts

If you decide to keep more than one chequing account, it is best to stay organized to make managing your money easier. Here are a few practical ways to use your accounts efficiently:

• Automate your transfers. Set up automatic transfers between your accounts to ensure your bills, savings and spending are all covered without having to move the funds manually. Consider, for example, sending a set amount from each pay cheque into your “bills” account as well as your vacation fund.
• Track your cashflow. Keep an eye on monthly charges, avoid overdrafts and ensure you maintain the required balance so you can prevent additional fees. Consider using mobile banking tools or third-party budgeting tools to help you.
• Label each account clearly. Most banks let you rename the account in your online banking. Use nicknames like “groceries,” “business” or “travel fund” so you always know what each account is for.
• Close any unused accounts. Empty accounts can still incur monthly fees or maintenance charges. To avoid paying for an account you don’t need, close the ones you no longer use.
• Review CDIC limits. If you hold over $100,000 in chequing accounts at one bank, consider splitting it up between multiple institutions to expand your CDIC coverage.

When Multiple Chequing Accounts Doesn’t Make Sense

Having many different chequing accounts might make money management easier, but it isn’t for everyone. If you struggle to keep track of balances or miss regular payments, then this strategy could make your life more difficult and more expensive as fees can add up. The key is to find the balance between organization and simplicity.

Takeaway: How to Choose (And Manage) Multiple Chequing Accounts

You can legally open multiple chequing accounts in Canada, but the question is: Should you? The right number of accounts depends on your goals and your specific financial situation. If you believe that you can benefit from having more than one account, begin by comparing monthly fees and minimum balance requirements.

Consider pairing one traditional chequing account with a no fee digital account from institutions like Simplii Financial. This can provide flexibility without the added cost and ensure your deposits remain within CDIC (or provincial deposit insurance program) limits for protection.

There is no set number of chequing accounts you should have. Instead, it comes down to what fits your lifestyle best. If having multiple accounts helps you stay organized and budget better, then it’s worth it. But keep an eye on the fees and avoid opening accounts you don’t actually need.