Why don't banks offer a combined chequing and savings account option?
A few Canadian banks offer a combined chequing and savings account — see beneath for a generic example. Most do not though.
A combined account seems better for the following reasons.
You must keep money in a chequing account, but they pay little to no interest.
Chequing accounts charge for overdrafts. My landlord deposits my pre-dated cheques monthly. A year ago, he cashed the check for Jan in Feb, thus cashing two cheques in Feb. I didn't notice he didn't cash the check for January during the month of January, thus my chequing account had NSF and I got charged for an overdraft.
It's annoying and unhandy to check every month if you have enough money in your chequing account, even if you set up automatic transfers.
Why don't some or all banks offer a combined arrangement as a convenience for customers?
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After taking a glance on the OP said bank account charges and small print, I think OP just didn't realise there are pitfalls awaiting while not fixing the problem. Worst, the said merged account doesn't prevent potential overdraft but also incurred an 21% APR when it happens.
Most of the local bank that maintains a good account relationship with the client will inform the client before the overdraft. Today, some bank may even offer mobiles that notify the user on account activities. So I think OP should aim for the bank that provides such services than a merging account service that doesn't fix the problem.
There isn’t really anything special about this “combined savings/checking account.” It is just a checking account, one that happens to have, for the moment, a higher-than-average interest rate associated with it. The “combined account” terminology is just a marketing gimmick.
With any bank/credit union, there is nothing stopping you from putting all your money in your checking account and either closing the savings account or just leaving a small deposit in it to keep it open.
With any account, you need to look at the entire feature/interest rate/fee schedule to evaluate whether it is a good fit for you, and realize that the interest rate, fees, and even account features/services can change at any time. In my opinion, when it comes to my checking account, I prefer a credit union with low fees and great customer service, even if I get a lower interest rate return on my balance.
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