Chequing account fees can cost you more than you expect. A monthly charge here and a transaction fee there add up over a year. This guide explains how chequing account fees work in Canada, so you can choose an account that fits your habits.
What Chequing Account Fees Usually Cover
Most Canadian chequing accounts charge you in one of two ways. Some charge a flat monthly fee for a package of services. Others charge nothing each month but keep the feature list simple.
Full-service packages often bundle more transactions, branch access, and extras. In return, you pay a monthly fee unless you meet certain conditions. As a result, the amount you actually pay depends on how you use the account.
How Minimum-Balance Waivers Work
Many banks waive the monthly fee if you keep a minimum balance. Usually, your balance must stay above a set amount for the whole month. If it dips below that level for even one day, you may pay the full fee.
Before you rely on a waiver, read the rules closely. Check whether the bank uses your lowest daily balance or your average balance.
Keep in mind that a waiver has a hidden cost. Money you park in chequing to avoid a fee usually earns little or no interest. So a “free” account can still cost you some savings growth.
Transaction Limits and Per-Transaction Fees
Some accounts include a set number of transactions each month. Once you go over that limit, the bank charges a fee for each extra one. Debit purchases, bill payments, and withdrawals often count toward the limit.
Other accounts offer unlimited transactions. These suit people who tap their debit card often. Meanwhile, a limited plan can work well if you only make a few moves each month.
Other Common Chequing Account Fees
Beyond the monthly charge, a few other fees show up often. Here are the usual ones to watch:
- Interac e-Transfer fees: some accounts include transfers, while others charge you for each one.
- Out-of-network ATM fees: using another bank’s machine can trigger a charge from your bank and from the ATM owner.
- NSF fees: if a payment bounces for non-sufficient funds, banks typically charge you a fee.
- Paper statement fees: some banks charge extra for mailed statements, while online statements usually cost nothing.
Fees vary from bank to bank. So ask for the full fee schedule before you open an account.
Low-Cost and No-Cost Accounts in Canada
If you want simple banking, low-cost accounts deserve a look. FCAC says all Canadians can get an account with a monthly fee of $4 or less. Banks that offer these “low-cost accounts” can’t require a minimum balance.
These accounts include at least 18 debit transactions per month. They also come with certain features at no extra cost. You can review the details on the FCAC page about low-cost and no-cost accounts.
No-cost accounts offer the same features with no monthly fee. FCAC says you’re eligible if you are:
- 18 or younger
- a student
- a senior who receives the Guaranteed Income Supplement (GIS)
- a Registered Disability Savings Plan (RDSP) beneficiary
- a newcomer to Canada, during your first year here
You may also qualify if you’re Indigenous, a Disability Tax Credit recipient, or you receive social assistance from select provincial or territorial programs. However, not every institution covers these extra groups, so ask yours directly.
Compare Accounts Against Your Real Habits
The best account is the one that matches how you actually bank. So start with your last three months of statements. Count your debit purchases, bill payments, e-Transfers, and ATM withdrawals.
Next, list the chequing account fees you already paid. Look for monthly charges, extra transaction fees, and ATM fees in particular. Then multiply your monthly total by 12 to see your true yearly cost.
Finally, compare that number with a few other accounts. FCAC’s Account Comparison Tool can help you narrow the list.
When a No-Fee Online Account Makes Sense
A no-fee online account suits you if you bank mostly on your phone. It also works well if you rarely visit a branch. In that case, paying monthly for in-person service may not add much value.
For example, the Simplii Financial No Fee Chequing Account charges no monthly fees. Simplii says it includes unlimited debit purchases, bill payments, and withdrawals. It also offers free Interac e-Transfers and free access to over 3,400 CIBC ATMs across Canada.
Still, read the full fee list before you switch. Simplii lists costs for special requests and other items in its Products and Services Agreement. Before you apply, check the Simplii Financial No Fee Chequing Account rebate at Great Canadian Rebates.
When a Full-Service Package Is Worth It
A full-service package can make sense if you use many extras. For instance, you might value branch visits or personal advice. If you already keep a large balance, a waiver may also cover the fee.
However, be honest about what you’ll really use. A package only pays off when its value beats the fee. Otherwise, a simpler account will likely save you money.
The Bottom Line
Chequing account fees are easy to cut once you know how they work. Track your habits, compare a few accounts, and check whether you qualify for a low-cost or no-cost option. Over time, small monthly savings add up.
Ready to open a new account? Before you sign up, visit Great Canadian Rebates to see if you can earn cash back on it. That way, your new account starts paying you back from day one.