Review of banking fees in Canada
Account maintenance fees
Background
Account maintenance fees are fixed, recurring fees that consumers pay to maintain an account—most commonly chequing accounts—or, in some cases, bundled packages that include both chequing and savings accounts. These fees generally cover a defined set of services and vary in cost depending on the account plan.
Chequing accounts offer a range of services that are grouped into an account plan. These plans generally include either a set number or unlimited use of core transactions, such as debit purchases, bill payments, Interac e-transfers, and ATM withdrawals, as well as optional services such as overdraft protection. These can generally be grouped into 3 main categories:
Basic accounts represent entry-level chequing accounts. These accounts are designed to provide basic access to everyday banking services. Basic accounts typically carry a low account maintenance fee.
Standard accounts represent the mid-tier offering. These accounts typically offer an increase in or removal of certain transaction limits. Standard accounts typically carry higher account maintenance fees than basic accounts. The fee may be waived by maintaining a minimum daily balance.
Premium accounts represent all-inclusive banking packages. These accounts include various services that would otherwise result in additional fees (e.g., safety deposit boxes, overdraft protection, fee waivers or rebates on credit cards). Premium accounts typically carry higher account maintenance fees than standard accounts. The fee may be waived by maintaining a minimum daily balance.
Digital-only banks and fintechs have emerged as providers of personal deposit accounts with alternative fee structures. Rather than relying on account maintenance fees, these institutions offer no-fee or lower fee models but may charge fees for subscription services or optional premium features such as cashback rewards, higher interest on account balances, or credit-building services (see Tables 1, 2, and 3).
Fee structure
Account maintenance fees vary based on the types and number of account services that are provided. These fees may be waived under promotional offers, which may be time-limited, such as discounts for students, seniors, or newcomers to Canada. In addition, banks typically waive the fee if a minimum daily balance is maintained. Depending on the bank and account tier, the minimum daily balance ranges from $500 to $6,000. If the account balance falls below this threshold, the fee waiver is forfeited, and the account maintenance fee is charged.
Some consumers remain in legacy account monthly plans. These plans are no longer available to new deposit account openings but remain in use by existing account holders. Comparisons between legacy account monthly plans and current offerings suggest that they are often associated with higher fees, lower transaction limits, and separate charges for services that are commonly included in newer products.
| Bank type | Basic accounts | Standard accounts | Premium accounts |
|---|---|---|---|
| Big Six banks | Monthly account maintenance fee: $3.95–$4.00/month Debit transactions: 18 per month (excess transaction fee applies after the limit) Interac e-transfers: Included in the monthly transaction limit ATM: Fees are charged for using ATMs that are not owned by the bank |
Monthly account maintenance fee: $11.95–$17.95/month Debit transactions: Unlimited, some 25 per month (excess transaction fee applies after the limit) Interac e-transfers: Included in the monthly transaction limit ATM: Fees are charged for using ATMs not owned by the bank Fee waiver: Maintain $3,000–$4,500 minimum daily closing balance |
Monthly account maintenance fee: $28.95–$30.95/month Debit transactions: Unlimited Interac e-transfers: Unlimited ATM: Some free out-of-network withdrawals Fee waiver: Maintain $5,000–$6,000 minimum daily closing balance Other: May include additional benefits (e.g., free cheques, drafts, waived or discounted credit card annual fees, access to a safety deposit box) |
| Small and medium-sized banks | Monthly account maintenance fee: $0–$5.00/month Debit transactions: Unlimited or up to 18 per month (excess transaction fee applies after the limit) Interac e-transfers: Included in the monthly transaction limit, or pay-per-use at $1.00-$1.50/Interac e-transfer ATM: Up to $2.50/out-of-network withdrawal Fee waiver (where applicable): Maintain $500-$1,500 minimum daily closing balance |
Monthly account maintenance fee: $7.50–$16.95/month Debit transactions: Unlimited, some 20–30 transactions per month (excess transaction fee applies after the limit) Interac e-transfers: Included in the monthly transaction limit, or 0–5 free Interac e-transfers per month ATM: Up to $2.50/out-of-network withdrawal Fee waiver (where applicable): Maintain $3,000–$6,000 minimum daily closing balance |
Monthly account maintenance fee: $16.95–$29.95/month Debit transactions: Unlimited Interac e-transfers: Unlimited ATM: Up to $2.50/out-of-network withdrawal, some offer 0–2 or unlimited free withdrawals Fee waiver (where applicable): Maintain $4,000–$6,000 minimum daily closing balance. |
| Digital-only banks | Monthly account maintenance fee: $0/month Debit transactions: Unlimited Interac e-transfers: Unlimited ATM: Fees are typically charged for withdrawing cash at any ATM unless the ATM is owned by the customer’s bank, its affiliate or a division thereof |
N/A—digital-only banks generally only have 1 tier of accounts | N/A—digital-only banks generally only have 1 tier of accounts |
FCAC examined the structure and level of fees across a range of Canadian financial service providers—including the Big Six, small and medium sized banks, digital-only banks, provincially regulated financial institutions and fintechs—to better understand pricing strategies and variations across products. A detailed comparison is presented in Annex 10: Market scans of chequing accounts in Canada.
| Financial service provider type | Basic accounts | Standard accounts | Premium accounts |
|---|---|---|---|
| Provincially regulated financial institutions, credit unions and caisses populaires | Monthly account maintenance fee: $0–$6.00/month Debit transactions: Unlimited, some up to 60 per month (excess transaction fee applies after the limit) Interac e-transfers: Unlimited, some from 0–99 per month ATM: Fees are charged for using ATMs that are not owned by that institution Fee waiver (where applicable): Maintain $1,000–$2,000 minimum daily closing balance |
Monthly account maintenance fee: $6.50–$19.25/month Debit transactions: Unlimited or 25–50 per month (excess transaction fee applies after the limit) Interac e-transfers: Unlimited, some from 0–99 per month ATM: Fees are charged for using ATMs that are not owned by that institution Fee waiver (where applicable): Maintain $1,500–$5,000 minimum daily closing balance |
Monthly account maintenance fee: $15.00–$27.00/month Debit transactions: Unlimited Interac e-transfers: 10 per month to unlimited ATM: Many offer free out-of-network withdrawals, while others charge up to $2.00/withdrawal Fee waiver (where applicable): Maintain $5,000–$6,000 minimum daily closing balance |
| Financial service provider type | Basic accounts | Standard and Premium accounts |
|---|---|---|
| Fintechs | Monthly account maintenance fee: $0/month Debit transactions: Unlimited Interac e-transfers: Unlimited, or 120 for some accounts ATM: Free (for withdrawals at ATMs located in Canada) |
Monthly account maintenance fee: $0–$22.00/month (for some tiered accounts) Debit transactions: Unlimited Interac e-transfers: 120 per month ATM: Free (for withdrawals at ATMs located in Canada) Other: Additional perks available (e.g., credit building, premium credit card, other promotions, and discounts) |
Low-cost and no-cost bank accounts
All Canadians can open a chequing account that charges a monthly account maintenance fee of $4 or less. These products are referred to as “low-cost accounts.” Many banks offer these accounts as part of their commitment to provide basic banking services.
Banks that entered into the Commitment on Low-Cost and No-Cost Accounts offer similar accounts at no cost to any eligible individual who is:
- 18 or younger
- a student
- a senior receiving the Guaranteed Income Supplement (GIS)
- a Registered Disability Savings Plan (RDSP) beneficiary
- a newcomer to Canada (eligible during their first year)
Some banks may also offer no-cost accounts to any eligible individual who is:
- Indigenous
- a recipient of the Disability Tax Credit (DTC)
- a recipient of social assistance from eligible provincial or territorial programs
Low-cost and no-cost accounts must include at least 18 debit transactions per month. However, the types of transactions that are included can vary by institution. Consumers should contact their bank to confirm:
- which eligibility groups they recognize
- which debit transactions are included in low-cost and no-cost accounts
These accounts also include other features like no minimum balance requirement, no fees to switch accounts within the same bank, and no extra charges for deposits, debit card, and pre-authorized payment forms. For more information, please see the Commitment on Low-Cost and No-Cost Accounts.
Disclosure
Banks are required to disclose all applicable fees in account agreements. Information related to the maintenance fees and services that are included is disclosed as part of the broader account agreement and fee schedule. For deposit accounts, banks are required to notify customers of changes to certain fees and to provide periodic statements. Some banks also provide their customers with access to tools and information to help them monitor their accounts, track transactions and fees, and manage their finances.
These disclosure requirements are intended to ensure that consumers are informed of the fees and services associated with different account plans, so that they can compare plans and find the best fit based on their banking needs.
Key findings and implications
Key finding 1: Misalignment between account features and usage can increase costs
Account maintenance fees vary depending on the type of financial service provider and the range and level of services included in the account plan.
Selecting an account with multiple features can be complex. Consumers are not simply comparing a single fee, but also account plans with varying features, limits and conditions. Consumers who maintain higher‑tier accounts but use only a limited subset of features may pay for services they do not need, while others may incur additional fees by exceeding the limits of lower‑tier accounts. For example, access to branch services and ATM networks may justify higher monthly fees for some consumers but offer limited value for those who bank online.
Usage patterns may evolve over time
The cost-effectiveness of a deposit account depends on how well its features align with a consumer’s usage pattern. However, usage patterns can evolve over time, and consumers may select an account plan that fits their needs at one point but not revisit that choice as circumstances change. When asked why they use their main financial institution, over 1 in 4 Ipsos survey respondents answered, “It’s the bank I’ve always had; I’ve never bothered to change it.”
Reassessment can improve outcomes
Adjusting account type or switching providers may reduce overall costs and better align products with individual needs.
Consumers may lack information (e.g., tools, resources, etc.) to compare products across financial service providers
New tools and policy measures may be needed to bridge this gap to shift from static, generic disclosures toward dynamic, personalized, and usage-based insights. Other opportunities to enhance transparency are discussed in the “Transparency” chapter of this report.
Consumer scenario: Sara’s story
A few years ago, Sara frequently travelled for work and preferred dealing with a teller for certain banking activities. She selected a premium chequing account at $30.95/month, which offered unlimited transactions, access to in‑branch services, and rebates on a travel credit card. Although her maintenance fee can be waived by maintaining a $6,000 balance, she occasionally fails to keep sufficient funds in her account.
Today, while Sara still makes the same number of transactions each month, some of her needs have changed: she now works remotely, travels rarely, and manages her finances from her phone. Without reassessing whether her account features align with her current usage, she will continue to incur fees for services she no longer needs. Sara may be able to reduce her fees by switching to a different account.
| Account feature/usage | Current: Big Six premium account | Alternative: Current-bank unlimited account | Alternative: No-fee digital account |
|---|---|---|---|
| Monthly account fee | $30.95 | $17.95 | $0.00 |
| Branch access | Yes | Yes | No |
| Rebate on travel credit card | Yes | Yes | No |
| Monthly debit transactions included | Unlimited | Unlimited | Unlimited |
| Monthly debit transactions made | 30 | 30 | 30 |
| Minimum daily balance to waive the maintenance fee | $6,000 | $4,000 | N/A |
| Annual months in which the minimum daily balance is not maintained | 6 | 6 | N/A |
| Total annual cost | $185.70 | $107.70 | $0.00 |
Key finding 2: Fee waivers with a minimum daily balance can reduce banking costs, but may also involve hidden trade-offs
Fee waivers with a minimum daily balance can reduce the cost of banking for some consumers and can provide access to bundled services and benefits that might otherwise have to be purchased separately. However, the financial benefit depends on the consumer’s ability to consistently maintain the required balance and the alternative uses of those funds. If the account balance falls below the threshold—even by $1—the fee waiver is forfeited, and the account maintenance fee is charged.
Holding funds in an account to meet minimum daily balance requirements also involves opportunity costs, since those funds could be used for other purposes that could yield greater financial benefits. For example, instead of holding $4,000 in a low- or no-interest chequing account, those funds could be used to:
- Pay down debt: With a 21.99% interest rate on a credit card, this could reduce interest charges by approximately $974 over 1 year
- Generate investment returns: At an interest rate of 2%, this would yield about $80 over 1 year
| Minimum daily balance held | Monthly interest lost @ 1.0% | Monthly interest lost @ 2.0% | Monthly interest lost @ 3.0% |
|---|---|---|---|
| $3,000 | $2.50 | $5.00 | $7.50 |
| $4,000 | $3.33 | $6.67 | $10.00 |
| $5,000 | $4.17 | $8.33 | $12.50 |
| $6,000 | $5.00 | $10.00 | $15.00 |
| Minimum daily balance held | Monthly debt interest @ 9.99% | Monthly debt interest @ 13.99% | Monthly debt interest @ 21.99% |
|---|---|---|---|
| $3,000 | $26.15 | $37.31 | $60.87 |
| $4,000 | $34.87 | $49.74 | $81.16 |
| $5,000 | $43.58 | $62.18 | $101.45 |
| $6,000 | $52.30 | $74.62 | $121.73 |
The calculations in the table above assume that interest is calculated daily but charged monthly. For illustrative purposes, annual interest charges over 1 year were divided by 12 to estimate average monthly values. These estimates do not consider multi-year compounding.
Consumers who are unable to consistently maintain minimum daily balance requirements and/or who face opportunity costs from holding idle funds may benefit from considering alternative financial service providers that offer comparable lower-cost account plans with interest-bearing accounts. Depending on the consumer’s needs and usage, the value of the waived fee and included benefits may equal or exceed the generated investment returns or the debt avoided.