Review of banking fees in Canada
Excess transaction fees
Background
Debit transactions are transactions that reduce the balance of a deposit account. They include cash withdrawals, bill payments, cheque payments, Interac e-transfers, and in-store or online debit purchases.
Consumers can make debit transactions through a variety of channels, including at bank branches, at ATMs, and through mobile, online or telephone banking.
Deposit accounts typically include either a set limit of monthly debit transactions or unlimited transactions. If consumers exceed the number of transactions per month included in their account plan, excess transaction fees apply.
Fee structure
For chequing accounts, monthly transaction limits vary by account type. Among branch-based banks:
- Basic accounts generally include 12 to 18 transactions free of charge
- Standard accounts typically include at least 25 transactions free of charge
- Premium accounts generally include an unlimited number of transactions
Digital banks and fintechs typically offer an unlimited number of transactions across their entire account offerings.
Compared to chequing accounts, savings accounts typically include fewer transactions free of charge and impose higher fees for excess transactions.
| Account type | Typical transaction limit | Typical excess transaction fee |
|---|---|---|
| Basic chequing | 12–18 | $1.25 |
| Standard chequing | 25, or unlimited | $1.25 |
| Premium chequing | Unlimited | N/A |
| Savings | 0–2 | $5.00 |
Excess transaction fees
Among branch-based banks, excess transaction fees are generally assessed on a per-transaction basis and are typically $1.25 per transaction. Savings accounts typically impose higher excess transaction fees, often $5 per transaction. Accounts that offer unlimited transactions do not charge excess transaction fees.
Digital banks and fintechs do not charge excess transaction fees, as their products are structured without fixed transaction limits.
Interac e-transfer fees
An Interac e-transfer is an electronic payment service that allows individuals to send or receive money directly between bank accounts in Canada using online or mobile banking.
Interac e-transfers are typically included within the transaction limit associated with the account plan. However, exceptions remain:
- Deposit accounts with no included transactions treat each Interac e-transfer as an individual transaction and apply charges accordingly
- Some account plans apply separate monthly limits for Interac e-transfers in addition to overall transaction limits, and charges apply when either or both limits are exceeded
- Legacy account plans may continue to charge separate Interac e-transfer fees even where newer account offerings include them at no additional cost
Financial service providers set maximum amounts that can be transferred daily, weekly, and monthly by Interac e-transfer (see Table 2). Among Big Six banks, daily limits are typically in the range of $3,000–$10,000, while small and medium-sized banks and fintechs permit significantly higher transfer amounts. Consumers who need to transfer amounts above these limits may be required to use multiple transactions that count towards their monthly limit, or to use alternative transfer services (e.g., wire transfers) that carry additional fees.
| Institution type | Daily limit | Weekly limit | Monthly limit |
|---|---|---|---|
| Big Six banks | $3,000–$10,000 | $10,000–$14,000 | $20,000–$30,000 |
| Small and medium-sized banks | $3,000–$10,000 | $10,000–$20,000 | $20,000–$50,000 |
| Digital-only banks | $3,000–$5,000 | $10,000–$20,000 | $20,000–$50,000 |
| Fintechs | $5,000–$50,000 | $10,000–$100,000 | $20,000–$250,000 |
Self-serve and full-service transactions
Some account plans distinguish between self-serve and full-service transactions. Self-serve transactions generally include activities conducted through digital channels or ATMs, while full-service transactions involve assistance from branch staff.
Certain account plans impose separate limits on full-service transactions in addition to overall monthly transaction limits. As a result, a single transaction could count toward multiple limits and trigger more than 1 fee.
For example, a branch-assisted cash withdrawal could count toward both the overall monthly transaction limit and the account plan’s full-service transaction limit, triggering separate fees if both limits have been exceeded.
Disclosure
Banks are required to disclose all applicable fees in account agreements. Information related to excess transaction fees is disclosed as part of the broader account agreement and fee schedule. The disclosure of transaction limits and excess transaction fees is intended to ensure that consumers are informed of the applicable charges before making transactions.
Excess transaction fees are typically assessed at the end of the billing cycle based on total monthly usage and are disclosed on the customer’s monthly account statement.
Key findings and implications
Key finding 3: It may be difficult for consumers to avoid paying excess transaction fees without a way to monitor transaction usage
Consumers may find it difficult to monitor their transaction usage throughout the billing cycle and to anticipate when excess transaction fees will be charged. Industry data indicate that some consumers incur significant excess transaction fees, which suggests that they could reduce their total banking fees by switching to a more expensive plan that includes more transactions.
Excess transaction fees depend on cumulative account activity over the billing cycle. Given current requirements:
- Excess transaction fees are assessed after they have already been incurred
- Banks are not required to notify consumers when they are approaching or have exceeded their transaction limits
As a result, consumers may only become aware that excess transaction fees have been charged after the end of the billing period.
Existing disclosure requirements (e.g., low-balance alerts) could be adapted to provide timely notifications when consumers are nearing their transaction limits or incurring excess transaction fees. Repeated reminders would increase the salience of these costs and may prompt consumers to reassess their account usage or consider alternative options that better align with their needs.
Other opportunities to enhance transparency are discussed in the “Transparency” chapter of this report.
Key finding 4: Legacy account plans may result in higher costs for common banking activities
Approximately 10% of 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 with current offerings suggest that legacy account monthly plans are typically associated with higher fees, lower transaction limits, and separate charges for services that are commonly included in newer products.
A notable example is Interac e-transfer pricing. While most current account plans include Interac e-transfers within the monthly transaction allowance, many legacy plans continue to impose separate Interac e-transfer fees. As of 2025, consumers who incur Interac e‑transfer fees are most often using legacy account plans.
Consumers have increasingly adopted mobile and online channels for day-to-day banking. For example, online transfers—which in Canada consist almost exclusively of Interac e-transfer transactions—tripled between 2017 and 2022.Footnote 1
As transaction usage patterns evolve over time, a legacy account plan may no longer align with a consumer’s needs. Consumers should review their account plans to assess whether newer options better fit their needs, or whether their legacy plans continue to offer better value.
Consumer scenario: Robert’s story
Robert opened his chequing account at a Big Six bank back in 2009 when he started his first full-time job. At the time, the account plan worked well with his needs, and over the past 17 years he has never revisited his choice.
However, both Robert’s banking habits and the market have evolved. He now makes approximately 4 Interac e-transfers per month and about 15 other transactions, reflecting a shift toward more frequent digital payments. During this time, his bank introduced newer account options with lower maintenance fees and Interac e-transfers included within the transaction allowance.
As a result, without changing how he banks, Robert could save $134.40 per year simply by switching from his legacy plan to a current offering better aligned with his usage pattern.
| Feature | Legacy plan | Modern plan |
|---|---|---|
| Monthly maintenance fee | $11.95 | $4.00 |
| Transactions included | 25 | 18 |
| Interac e-transfers included | 1 | Included in transaction limit |
| Fee per excess Interac e-transfer | $1.50 | N/A |
| Excess transaction fee | $1.25 | $1.25 |
| Robert's 4 e-transfers | 3 excess transactions × $1.50 = $4.50 | Counted in transaction limit —no extra charge |
| Robert's 15 other transactions | Within limit—no extra charge | 1 excess × $1.25 = $1.25 |
| Total monthly cost | $16.45 | $5.25 |
| Total annual cost | $197.40 | $63.00 |
Key finding 5: Consumers using savings accounts for transactions often incur avoidable fees
Savings accounts are designed primarily for holding funds and earning interest. Compared with chequing accounts, they typically include lower transaction limits and impose higher excess transaction fees. As a result, consumers who use savings accounts for day-to-day transactions may incur higher costs than those conducting similar transactions through chequing accounts.
Industry data suggest that some consumers use savings accounts in ways that are not aligned with the account’s intended purpose or pricing structure.
In many cases, savings account transaction fees can be avoided. Consumers can transfer funds between their chequing and savings accounts held at the same bank, and these transfers generally do not count toward transaction limits or trigger excess transaction fees. As a result, consumers can retain funds in savings accounts and transfer money to their chequing account as needed for day-to-day transactions, which can help them avoid incurring additional fees.
Consumer scenario: Yasmin’s story
Yasmin, a young customer, has 2 accounts with a Big Six bank:
- a basic chequing account that includes 18 transactions per month
- a savings account that includes 1 free transaction per month, with a $5.00 fee charged for each additional transaction
Like many younger consumers, Yasmin relies heavily on debit for everyday purchases. One afternoon at a store, she taps her debit card and inadvertently selects her savings account instead of her chequing account on the payment terminal. She doesn’t notice—the payment goes through normally.
Over the rest of the month, this happens a few more times without her noticing. At the end of the month, Yasmin reviews her statement and realizes that multiple transactions were processed through her savings account, including $15 she incurred in fees.
| Transaction routing | Intended outcome (all transactions processed through chequing account) | Actual outcome (transactions processed through savings account in error) |
|---|---|---|
| Chequing — transactions made | 14 | 10 |
| Chequing — transactions included | 18 | 18 |
| Chequing — excess transaction fees | $0.00 | $0.00 |
| Savings — transactions made | 0 | 4 |
| Savings — transactions included | 1 | 1 |
| Savings — excess transaction fees | $0.00 | 3 × $5.00 = $15.00 |
| Total fees for the month | $0.00 | $15.00 |
| Annual impact (if recurring) | $0.00 | $180.00 per year |
Key finding 6: Consumers continue to incur excess transaction fees
Digital banks and fintechs offer deposit accounts with alternative fee structures. Some digital-only banks and some fintechs offer lower-cost unlimited accounts that do not require consumers to hold funds to meet minimum daily balance requirements. Despite the availability of these lower-cost alternatives, many consumers continue to incur excess transaction fees and maintain account plans with transaction limits that may not align with their banking needs. As a result, they may not fully benefit from available opportunities to reduce banking costs.
| Feature | Option 1: Unlimited account with a branch-based bank |
Option 2: Unlimited account with a digital bank |
Option 3: Unlimited account with a fintech |
|---|---|---|---|
| Unlimited transactions | Yes | Yes | Yes |
| Branch access | Yes | No | No |
| Maintenance fee | $16.95–$30.951 | $0 | $0 |
| Total fees for the year | $203.40–$371.40 | $0 | $0 |
1 Consumers who maintain a minimum daily balance could pay an opportunity cost instead. Unlimited accounts may include other benefits, not shown here, which could affect the optimal strategy.
Switching to a digital-only bank or fintech can help reduce fees. However, this option may be less appealing to consumers who value branch access or other benefits associated with branch-based banks’ unlimited accounts.
| Feature | Option 1: Unlimited account with a branch-based bank |
Option 2: Basic account with a branch-based bank combined with an unlimited account with a digital bank or fintech |
|---|---|---|
| Unlimited transactions | Yes | Yes |
| Branch access | Yes | Yes |
| Maintenance fee | $16.95–$30.951 | $3.95 |
| Total fees for the year | $203.40–$371.40 | $47.40 |
1 Consumers who maintain a minimum daily balance could have the maintenance fee waived but could pay an opportunity cost instead. Unlimited accounts may include other benefits, not shown here, which could affect the optimal strategy.
Depending on their needs and preferences, some consumers may choose to use a combination of accounts, such as a basic account that provides branch access alongside a no-fee digital account for day-to-day transactions.