Chequing or savings accounts? Good question.

What we see is that both types of accounts often end up serving the same purpose. One is more accessible than the other. If you're an impulsive buyer, you'll thank yourself later for taking the time to create a savings account! But beware, each type of account comes with its own benefits and limitations. Learn about them from the experts at Pierre Dauth Financial Services.

Let's start by getting it right. With multiple deposits and withdrawals, a chequing account is a transactional account. For example, direct deposits from your employer, routine purchases or automated bill payments are all common transactions made through this type of account. In terms of profitability, you will make little or no interest. Depending on your bank and the plan you choose, certain fees may be attached to this type of account. Think of it as the one that accompanies you in your daily life. 

The savings account is used to set aside an emergency fund. The funds in this account are not always accessible via your debit card, so they are less subject to daily expenses. You will receive interest on the amounts deposited. This is why it is interesting to put funds in this account for a long period of time. The interest rate can vary, which can significantly increase your earnings. However, if your cash inflows and outflows are unstable, it is better to opt for a chequing account. 

Many banks charge a fee for each cash outflow, which would reduce your savings. You'll thank your savings account if the brakes on your car fail you or you need to take a week's vacation at your own expense to enjoy the sun.

The savings account is a gateway to the world of investing. Once you have enough emergency funds to cover an unforeseen event, you can consider taking it to the next level - investing in other types of high-interest accounts or a TFSA, for example.

Sound portfolio management starts with understanding your assets. We are here to guide and advise you according to your short, medium and long term goals. 

This article leaves you wanting more and you have many questions? We are here to answer them! 

This article was prepared by Pierre Dauth, who is a mutual fund representative with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views (including any recommendations) expressed in this article are those of the author alone, and are not necessary those of Investia Financial Services Inc.