13 Bank Fees in Canada and How to Avoid Them

Bank fees in Canada can quietly drain your wallet, costing the average Canadian over $300 annually. From monthly maintenance charges to NSF fees, these costs quickly add up. Understanding these fees and how to avoid them can save you hundreds of dollars each year.

Key Takeaways:

Monthly Account Fees: Range from $4 to $25. Opt for low-cost or no-fee accounts like those from EQ Bank or Simplii Financial.
NSF Fees: Currently $45–$48 but will drop to $10 starting March 12, 2026.
ATM Fees: Out-of-network withdrawals cost $2–$9. Stick to your bank's ATMs or use fee-free networks.
Overdraft Protection: Costs $5/month or per use, plus 19–22% interest. Avoid by linking accounts or setting up alerts.
e-Transfer Fees: Free with some banks like Tangerine; others charge $1–$1.50.
Paper Statement Fees: Average $2/month. Switch to digital statements.
Foreign Transaction Fees: Typically 2.5%. Use no-foreign-fee credit cards like the Rogers Red World Elite Mastercard.
Inactive Account Fees: $5–$20/month after inactivity. Make occasional transactions to avoid charges.

Quick Tips to Save:

Choose no-fee or low-cost accounts.
Use in-network ATMs and fee-free transfer services.
Monitor balances to avoid NSF and overdraft fees.
Opt for digital banking to eliminate paper fees.
Compare accounts and switch if fees outweigh benefits.

Hidden Costs of Banking in Canada: What You Need to Know 🇨🇦

How Bank Fees Work in Canada

Banks in Canada charge fees to cover the costs of services like account monitoring, issuing statements, and providing customer support [2].

The fees you pay often depend on the type of account you have, as banks design accounts with specific purposes in mind. This directly impacts how fees are structured.

Chequing accounts are built for everyday transactions, offering high or unlimited usage [6]. Monthly fees for these accounts typically range from C$10 to C$50. However, many banks waive these fees if you maintain a minimum balance [2][5]. The downside? Chequing accounts usually don’t pay interest on your balance [6].

Savings accounts, on the other hand, are designed for storing money and earning interest. While they generally don’t have monthly fees, you may face charges if you exceed the account’s transaction limits [6]. These accounts often have stricter transaction caps, and exceeding them can result in additional fees [6]. The advantage is that savings accounts can earn interest, which depends on your account tier and balance [6]. Recent regulatory updates have further refined how these accounts operate.

In March 2025, the government introduced new rules to cap NSF (non-sufficient funds) fees at C$10, effective March 12, 2026 [4]. This is a dramatic drop from the previous fees, which ranged between C$45 and C$48 [3][4]. Under these rules, NSF fees are limited to once every two business days and are completely waived for accounts overdrawn by less than C$10 [4]. Banks are projected to lose about C$619 million in NSF fee revenue in the first year alone [4]. Over the next decade, these changes are expected to save Canadians approximately C$4.1 billion in fees [7].

"A cap of $10 was chosen to balance the need to protect consumers from high fees with the need to maintain the integrity of the payments system by incentivizing consumers to honour their payments", explained the Department of Finance [7].

The government is also pushing for more affordable banking options. Some financial institutions already offer basic accounts with fees capped at C$4 per month [8]. The Financial Consumer Agency of Canada is working with banks to improve these low-cost accounts and broaden their eligibility [8].

"Whether it is ensuring Canadians have access to high-quality, affordable banking options and are not subjected to unfair fees, or making sure they receive the mortgage relief they need, our government will continue working to ensure Canadians are treated fairly by their banks", said Deputy Prime Minister Chrystia Freeland [8].

1. Monthly Account Maintenance Fee

Monthly account maintenance fees are a standard expense for many Canadians. These charges help cover the cost of maintaining your bank account and the services that come with it.

"Consider your monthly fee as a charge for maintaining your account and its associated services." - Scotiabank [11]

Traditional banking accounts typically cost between C$5 and C$25 per month, so choosing an account that fits your financial habits can make a big difference. The goal is to understand which account type aligns with your needs to minimize or even avoid these fees.

Low-Cost Accounts

For those looking to save, low-cost accounts are capped at C$4 per month [1]. Here’s a quick comparison of low-cost options from some major Canadian banks:

Bank	Account Name	Monthly Fee	Monthly Transactions
BMO	Practical Plan	C$4.00	12 transactions
CIBC	Everyday Chequing Account	C$4.00	12 transactions
RBC	Day to Day Banking	C$4.00	12 transactions
Scotiabank	Basic Banking Account	C$3.95	12 transactions (4 in-branch)
TD Canada Trust	Minimum Chequing Account	C$3.95	12 transactions (2 in-branch)

Some banks also waive fees if you maintain a minimum balance. For instance, Industrial and Commercial Bank of China (Canada) eliminates their C$4.00 monthly fee if your account holds at least C$1,000, while KEB Hana Bank Canada requires just C$500 to waive their C$3.00 fee [1].

No-Fee Accounts

If you’re tired of monthly fees altogether, no-fee accounts from online banks are an excellent alternative. These banks can offer fee-free accounts because they operate without the costs associated with physical branches [9].

EQ Bank’s Personal Account: Provides unlimited transactions and up to 3.50% interest, earning a Forbes Advisor Rating of 5.0 [10].
Tangerine’s No-Fee Daily Chequing Account: Offers unlimited transactions and access to Scotiabank’s ATM network, though branch access is limited [10].

Negotiating Fees

Did you know you can often negotiate your fees? If you’ve been a long-term customer or have multiple accounts with the same bank, you might be able to secure discounts or even fee waivers [12]. A good banking history can go a long way in these discussions.

Why It Matters

On average, Canadians spent about C$250 on bank fees in 2022 [12]. Depending on your account choice, you could save anywhere from C$48 to C$300 annually just by switching to a low-cost or no-fee account. Up next, we’ll cover strategies to help you avoid ATM and other banking fees altogether.

2. ATM Withdrawal Fee (Out-of-Network)

Using an out-of-network ATM can hit your wallet with two separate charges: a bank fee (usually ranging from C$1.50 to C$2.50) and a surcharge imposed by the ATM owner (anywhere from C$1.00 to C$5.00). Together, these fees can add up to between C$2 and C$9 per withdrawal. "White label" ATMs, which are independently operated, often have even steeper fees.

"ATM fees are usually preventable when you choose ATMs owned by your bank or financial institution." – Huntington [13]

To sidestep these extra charges, take advantage of fee-free networks and adopt smarter withdrawal habits.

Fee-Free Networks and Partnerships

Many Canadian banks are part of networks designed to help customers avoid ATM fees. For instance, Scotiabank customers can access the Global ATM Alliance, which offers fee-free withdrawals at over 44,000 ATMs in more than 40 countries. This includes machines operated by Bank of America in the U.S. and Deutsche Bank in Germany [16].

"Scotiabank is a member of the Global ATM Alliance so you pay no surcharge or access fees when you withdraw cash at select bank ATMs around the world." – Scotiabank Canada [16]

CIBC customers also have options to dodge fees by using ATMs at specific Pioneer gas stations and Ontario ONroute highway stops. Similarly, credit union members who are part of Canada's Exchange Network can access 40,000 U.S. ATMs in the Allpoint network without paying surcharges [15].

Smart Strategies to Avoid ATM Fees

Make use of your bank's ATM locator tool to find in-network machines nearby. Another option? When shopping, ask for cash back at retailers that offer this service - it’s a simple way to avoid ATM fees altogether [14].

If you find yourself frequently using out-of-network ATMs, you might want to switch to a bank account that reimburses those fees. Alternatively, reduce your need for cash by using peer-to-peer payment apps. Keep in mind, even withdrawing cash from an out-of-network ATM just once a week could cost you approximately C$242 a year based on average 2022 fees [13].

3. Non-Sufficient Funds (NSF) Fee

When your account doesn’t have enough money to cover a transaction, banks charge a Non-Sufficient Funds (NSF) fee. This happens when a cheque bounces, pre-authorized payments fail, or electronic transfers are declined. In the past, NSF fees in Canada ranged from C$45 to C$48 per transaction, impacting around 34% of Canadians through 15.8 million instances annually.

"NSF fees represent a source of financial hardship for consumers. These fees disproportionately harm low-income Canadians and contribute to cycles of debt." – Department of Finance [7]

New Federal Regulations Provide Relief

Starting March 12, 2026, federal regulations will limit NSF fees to a maximum of C$10 per occurrence for personal and joint accounts [7]. This change is expected to reduce total NSF fee revenues by C$4.1 billion over the next decade. Banks will also be restricted to charging the fee only once every two business days, and only when the overdraft exceeds C$10 [7].

"A cap of $10 was chosen to balance the need to protect consumers from high fees with the need to maintain the integrity of the payments system by incentivizing consumers to honour their payments." – Department of Finance [7]

Tips to Avoid NSF Fees

To steer clear of NSF fees, keep a close eye on your account balance and take advantage of bank alerts that notify you of low funds [7]. Many banks also offer overdraft protection, which can act as a safety net when your balance dips below zero.

Another practical option is linking a secondary account to cover transactions if your primary account runs short [18]. When shopping online, use your debit card’s Client Card Number to avoid triggering an NSF fee - this ensures the transaction is simply declined instead [17]. Also, be aware of your bank's deposit hold policies; spacing out transactions and waiting for deposits to clear can help you avoid unnecessary fees [17].

"To avoid these fees, customers can regularly monitor their account balances, set up balance alerts and consider overdraft protection services." – Maggie Cheung, Media Relations Manager for the Canadian Banking Association [7]

Next, we’ll look at how to manage overdraft protection fees effectively.

4. Overdraft Protection Fee

Overdraft protection steps in when your account balance dips below zero, covering transactions up to a set limit [19]. It applies to various transactions like debit purchases, bill payments, pre-authorized debits, cheques, ATM withdrawals, and account transfers. This service helps you avoid declined transactions and potential late fees.

How Overdraft Protection Fees Work

Canadian banks typically offer two fee structures for overdraft protection: a flat monthly fee (around C$5) or a per-use fee (up to C$5) combined with interest rates of about 21–22% annually [19]. Some banks waive the monthly fee if you don’t use the service that month, while others won’t charge a fee for small overdrafts (C$5 or less) or if you repay the overdrawn amount by the end of the day [19].

Low-Cost Overdraft Options

If you’re looking to save on overdraft fees, some Canadian financial institutions provide more affordable options compared to the big banks:

Tangerine: Charges C$5 per overdraft incident (if your account remains negative overnight, limited to once per month) with a 19% interest rate [21].
Simplii Financial: Applies a fee of C$4.97 per month only when the service is used, plus 19% interest on the overdrawn balance [38,39].
ATB: No monthly fee, but charges C$4 or 19.25% interest (whichever is higher) when the overdraft is used [21].
Meridian: Offers overdraft protection for just C$1 per month, with a 21% interest rate on the balance [21].

These options can help reduce the cost of overdraft protection, but there are also ways to avoid these fees entirely.

Smart Ways to Avoid Overdraft Fees

Keeping an eye on your account balance and setting up low-balance alerts can help you sidestep overdraft fees [30,34]. Linking your chequing account to a savings account or a line of credit is another effective way to cover shortfalls without incurring high charges. If overdrafts are rare for you, consider opting out of overdraft protection altogether; this way, transactions will simply be declined, and you won’t face any fees [34,35].

If you do get hit with an overdraft fee, don’t hesitate to call your bank. Many banks are willing to waive fees if it’s not a recurring issue. As Laura Sterling, Vice President of Marketing, explains:

"Most financial institutions are forgiving when it comes to these fees. If you contact your financial institution, many times they will refund the fee – as long as it is not a normal occurrence. We understand that mistakes can happen." [20]

Next, we’ll look at how Interac e-Transfer fees can add up and explore ways to send money without paying extra charges.

5. Interac e-Transfer Fee

Interac e-Transfer

Interac e-Transfer is a widely used service in Canada for quick and easy money transfers between accounts at participating financial institutions [25]. It’s free to receive and deposit an Interac e-Transfer, but sending one usually costs between $1.00 and $1.50 at most banks and credit unions [22]. This fee structure makes it essential to weigh the costs of fee-based versus fee-free transfer options.

How Much Banks Charge for e-Transfers

Most major banks charge between $1.00 and $1.50 per Interac e-Transfer for personal accounts, while business accounts often face fees on the higher end of that range [23][24][26].

Be mindful of additional charges like cancellation fees. For example, CIBC imposes a $3.50 fee for cancelling an e-Transfer, which can add up quickly if not managed carefully [26].

Banks Offering Free Interac e-Transfers

Some financial institutions in Canada provide free Interac e-Transfers with select chequing accounts. EQ Bank is a standout, offering a Personal Account with no everyday banking fees. Their straightforward approach is summed up in this statement:

"We're all about zero monthly banking fees! We don't charge account fees, fees for sending or receiving Interac e-Transfers®, fees for bill payments, overdraft fees, or dormant account fees. After all, your money is your money." [28]

Traditional banks like Scotiabank also offer free Interac e-Transfers under certain conditions. For instance, Scotiabank’s Basic Plus Bank Account waives the e-Transfer fee if you maintain a daily balance of $3,000 [27]. Choosing the right account can help you completely avoid these fees, making account selection a key part of smart financial management.

Smart Ways to Avoid e-Transfer Fees

The easiest way to avoid e-Transfer fees is to open an account that includes unlimited free transfers. Online banks like Simplii Financial, Tangerine, and Alterna Bank offer no-fee chequing accounts with unlimited free Interac e-Transfers, making them a practical choice for frequent users.

To make transfers smoother and avoid unnecessary charges, double-check recipient details and enable Autodeposit. This feature eliminates the need for security questions and streamlines the process [26].

Up next, we’ll take a closer look at paper statement fees and how opting for digital alternatives can help you save money.

6. Paper Statement Fee

Canadian banks typically charge a monthly fee for mailing out physical account statements. These fees, introduced around 2012–2013, were designed to encourage customers to transition to online banking [29]. On average, the cost is $2.00 per month [29]. Recognizing these charges is the first step toward avoiding them.

Interestingly, a survey revealed that 74% of Canadians disapprove of being charged extra for paper bills, and over 80% believe that receiving paper bills without additional fees should be standard practice [32].

What Banks Charge for Paper Statements

The fees for paper statements can vary depending on the bank and the type of statement requested:

Monthly paper statement: $2.00 [29]
Monthly statement (with cheque images): $2.00–$2.50 [29]
Additional paper statements: $2.00–$5.00 each [29]
Interim account statements: $4.50–$5.00 [29]

Banks Offering Free Paper Statements

While most banks charge for paper statements, a few still offer them for free under certain conditions:

RBC: Provides free paper statements across all account types, making it the only member of Canada's Big Five banks to do so [29].
Scotiabank: Offers free paper statements with its Basic Banking Account and Student Banking Advantage Plan but charges $2.25 per month for other accounts [30].
TD Bank: Waives paper statement fees for customers holding specific accounts like the All-Inclusive Banking Plan, Plan 60, or TD Wealth Private Banking accounts. Other accounts may incur a $2.00 fee [31].

However, some Scotiabank savings accounts, such as the MomentumPLUS and Savings Accelerator accounts, are digital-only and do not provide paper statements at all [30].

How to Avoid Paper Statement Fees

The simplest way to sidestep these fees is by opting for electronic statements through your bank's online platform. With this option, you’ll typically receive an email containing a PDF copy of your statement or a link to access it online [29]. Additionally, most banks offer mobile apps where you can view your statements at no cost [29].

To make the switch, log in to your online banking account and update your preferences to receive electronic statements. Double-check that you’ve successfully opted out of paper statements to avoid any unexpected charges [33]. If you prefer paper statements, consider banking with institutions like RBC, which still provides them for free, or explore account options that include free paper statements as a perk [33].

Next, we'll take a closer look at how cheque order fees can add to your banking expenses.

7. Cheque Order Fee

For many Canadians, cheque order fees are one of those sneaky banking costs that can add up quickly. Banks typically charge between C$25 and C$70, plus taxes and shipping, for a new chequebook. These chequebooks are often sold in quantities of 50, 100, or 200 and come with custom designs. Even though digital payments are becoming more popular, cheques remain a go-to option for things like rent, business dealings, and personal transactions. Since banks outsource cheque printing to third-party companies, they often pass on the marked-up costs to their customers [34].

What Banks Charge for Cheque Orders

The cost of ordering cheques in Canada varies depending on the bank, the style of the cheques, and the quantity you need. For instance, CIBC bases its fees on the style and number of cheques ordered [35]. Similarly, Scotiabank adjusts its pricing based on cheque design and volume, though some accounts offer perks like one free set of personalized cheques every 12 months [30]. If you have a premium chequing account, cheque orders might already be included in your plan. However, for most basic accounts, ordering cheques comes with an additional fee [34].

How to Avoid Cheque Order Fees

If you're looking to cut down on costs, consider ordering cheques from independent printers. For example, ASAP Cheques offers a 200-cheque book for just C$13 [34], which could save you as much as 70% compared to bank prices [36].

Before you place an order, take a moment to compare prices between your bank and independent providers. This is especially important if you frequently use cheques. For occasional use, you might want to ask your bank teller for counter cheques, which usually cost C$1–C$2 each. Keep in mind, though, that these are not personalized and are best used in emergencies [34]. Another option is upgrading to a premium account that includes free cheque orders - this could be more economical if you find yourself ordering chequebooks often.

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8. Foreign Transaction Fee

After tackling common domestic fees, it's just as important to understand how to avoid foreign transaction fees when shopping internationally or travelling. These fees often catch Canadians off guard, especially when making purchases online or during trips abroad. They apply to any purchase made in a currency other than Canadian dollars, whether you're shopping on an international website or using your card overseas.

What Banks Charge for Foreign Transactions

Most Canadian credit cards impose a 2.5% fee on purchases made in foreign currencies. Some banks go further, charging up to 3.5% for foreign ATM withdrawals. This fee is calculated based on the amount converted from the foreign currency into Canadian dollars[37]. For instance, if you spend $100 USD and the bank's conversion rate translates that into C$135, you'd pay an additional C$3.38 in foreign transaction fees. This setup is standard across many financial institutions, making it essential to choose the right card for international spending.

For reference, institutions like RBC and BMO typically charge 2.5% on foreign transactions, while CIBC fees range between 1% and 3%, depending on the card[39]. These charges can add up quickly for frequent travellers or those who regularly shop with international retailers.

How to Avoid Foreign Transaction Fees

Avoiding these fees is easier than you might think - start by selecting a credit card that doesn’t charge them. There are several Canadian options to consider:

Rogers Red World Elite Mastercard: This card has no annual fee.
Meridian Visa Infinite Travel Rewards Card: It charges a C$99 annual fee[39].

If you frequently travel to the U.S., opening a U.S.-based bank account or applying for a U.S.-based credit card can help you bypass foreign exchange fees entirely. Cross-border banking packages are another option, offering better exchange rates and savings on wire transfers for those who frequently move money between countries[40].

Another smart choice is the Wise travel card, which offers low conversion fees, no transaction fees, and mid-market exchange rates. It supports over 40 currencies, making it a versatile option for international travellers[38].

When paying abroad, always choose to pay in the local currency if given the option. Paying in Canadian dollars often allows merchants to set an unfavourable exchange rate, costing you more[37][38].

For occasional international purchases, prepaid cards like the EQ Bank Card or the Wealthsimple prepaid Mastercard are worth considering. These cards use Mastercard’s currency conversion rate, helping you avoid additional foreign exchange fees[41].

For Canadians looking for more detailed comparisons and strategies, Wealth Awesome provides comprehensive guides on avoiding these fees.

9. Account Closure Fee

When it comes to bank fees, knowing the rules and timing your actions wisely can save you from extra costs. For instance, closing a bank account or switching to a new financial institution might result in an account closure fee if done within the first 90 days[42][43].

What Canadian Banks Charge for Account Closures

Canada’s Big Five banks each handle account closure fees differently:

BMO: Charges $20 for accounts closed within 90 days, plus $20 for domestic transfers and $50 for international transfers[43].
CIBC: Applies a $20 fee for early closures along with $19.50 to transfer your balance to another institution[42][43].
RBC: No charge if an account is closed within 15 days, but a $15 fee applies if closed between days 16 and 90. This fee is waived if you close the account in person at a branch[44].
Scotiabank: A flat $20 fee for accounts closed within 90 days[42][43].

In March 2025, Arshi Hossain from RATESDOTCA examined the closure processes, fees, and dormant account policies of major Canadian banks. She noted that some banks require customers to visit their home branch in person to close an account[43].

How to Avoid Account Closure Fees

The key to avoiding these fees is understanding your bank’s policies and planning accordingly. Most banks waive closure fees after 90 days, so waiting out this period can save you money. If you’re considering switching banks, build this waiting period into your plans to avoid unnecessary costs.

Some banks, like TD, don’t charge any account closure fees at all, offering more flexibility[43]. Before closing your account, review your bank’s fee structure, ensure your balance is zero, and redirect any automatic payments or deposits. For RBC customers, closing the account in person at a branch can save you up to $15[44].

"Follow your bank's closure process and note any dormant account policies to ensure a smooth transition", advises Arshi Hossain from RATESDOTCA[43].

Make sure all pending transactions have cleared before officially closing your account. Finally, always request written confirmation of the closure from your bank. This documentation can help protect you from any future issues or unexpected charges.

10. Wire Transfer Fee

Wire transfers are a secure way to send money, but they often come with hefty fees that can catch you off guard. Knowing these costs upfront can help you avoid unnecessary charges. Banks impose these fees to cover their operating costs, currency exchange services, fraud prevention measures, and, of course, to generate revenue [45].

What Canadian Banks Charge for Wire Transfers

Wire transfer fees vary significantly between Canadian banks and depend on whether the transfer is domestic or international. Here's a breakdown of what some major banks charge:

CIBC: Outgoing transfers are tiered - $30 for amounts up to $10,000, $50 for $10,000.01 to $50,000, and $80 for amounts over $50,000. Incoming transfers cost $15 [45][47].
BMO: Charges 0.2% of the transfer amount plus a $10 communication fee for outgoing transfers, while incoming transfers range from $14 to $16 [45][47].
TD Bank: Flat fee of $50 for outgoing transfers and $17.50 for incoming ones [45][47].
Scotiabank: Select accounts enjoy outgoing transfers at $1.99, while standard accounts pay $9 plus 1% through Western Union. Incoming transfers cost $15, though premium account holders may have this fee waived [45][47].

Bank	Outgoing Wire Transfer	Incoming Wire Transfer
CIBC	$30-$80 (based on amount)	$15
BMO	0.2% + $10 communication charge	$14-$16
TD Bank	$50	$17.50
Scotiabank	$1.99 (select accounts) or $9 + 1%	$15 (free for premium accounts)

These differences make it crucial to understand your bank’s fee structure, especially when deciding between domestic and international transfers.

Domestic vs. International Wire Transfer Costs

Domestic wire transfers within Canada are generally more affordable, typically costing between $10 and $50 [46]. International wire transfers, however, are more expensive, ranging from $30 to $80 due to additional factors like currency conversion and cross-border regulations [46].

For international transfers, intermediary banks and currency exchange markups often add hidden costs. Most banks apply a 2-3% markup on the mid-market exchange rate, meaning the true cost of sending money abroad can be higher than the advertised fees [2].

How to Avoid or Reduce Wire Transfer Fees

To cut down on wire transfer fees, consider these strategies:

Compare fees: Check the charges at different banks before making a transfer [46].
Use alternative services: Platforms like Remitbee or Wise (formerly TransferWise) often provide better rates and lower fees, particularly for international transfers [46][47].
Opt for online banking: Transferring funds online is usually cheaper than in-branch transactions [46].
Consolidate transfers: Instead of multiple small transfers, send a single larger one to reduce overall fees [46].
Look for promotions: Banks sometimes run special offers with reduced or waived transfer fees [46].
Open a multi-currency account: This can help you avoid repeated currency conversion fees and transfer costs, especially if you frequently send money abroad [48].
Negotiate with your bank: If you have a strong banking relationship, you might be able to request a fee waiver [48].

"Wire transfers are one type of electronic global payment method. Wire transfer fees are higher than costs of other types of payments", explains Barbara Cook, Financial Writer for Tipalti [49].

Lastly, always double-check recipient details, including the correct IBAN for international transfers, to avoid errors that could result in cancellation fees or delays [45]. Paying attention to these details can save you both time and money. Up next, we’ll explore more ways to manage your banking expenses effectively.

11. Bank Draft/Certified Cheque Fee

When you're dealing with large transactions - like purchasing a car or finalizing a real estate deal - you’ll likely need a guaranteed payment method. Banks typically charge a fee for these secure options, which include bank drafts and certified cheques. These methods are backed by your financial institution, ensuring the recipient gets their money without issues.

Understanding the Costs

Guaranteed payment methods, like bank drafts and certified cheques, are a reliable way to handle significant transactions. However, the fees for these services vary across Canadian banks. Bank drafts are usually the less expensive option, with fees ranging from no cost (for certain premium accounts) to $9.95 [50]. Certified cheques, on the other hand, tend to be pricier, with fees between $10 and $25 depending on your bank [50]. For example:

TD Bank charges the lowest fee for certified cheques at $10.
Scotiabank sets its fee at $15.
BMO charges $20.
National Bank has the highest fee at $25.

Some premium banking plans include these services at no extra cost or at reduced rates. If you use these payment methods often, choosing the right account can save you money.

Payment Method	Fee Range	Best Option
Bank Draft	$0 – $9.95	National Bank ($9)
Certified Cheque	$10 – $25	TD Bank ($10)

When You'll Need These Services

Both bank drafts and certified cheques are designed to provide guaranteed funds, but they serve slightly different purposes. Bank drafts are ideal for large transactions, international payments, and business dealings where security is paramount [51]. Certified cheques, which are quicker to obtain, are commonly used for real estate transactions and other time-sensitive purchases [51].

"Choose based on transaction size, speed, and recipient needs. Certified cheques are faster to get, while bank drafts are more secure and preferred for international or high-value deals", advises The Lotly Team [51].

Keep in mind that neither method can be cancelled once issued, providing the recipient with guaranteed funds [51].

Strategies to Reduce These Fees

While it’s tough to completely avoid fees for guaranteed payment methods, there are ways to lessen the financial impact. Many premium banking packages include these services at a discount or even for free. For instance, the RBC VIP Banking package offers 12 free bank drafts annually as part of its perks [52].

If you don’t need a bank draft or certified cheque, consider alternatives like money orders. Canada Post charges $8.50 for money orders, while banks typically charge between $5 and $9.95 [50]. For international transactions, compare the total costs - including exchange rates and potential wire transfer fees - to find the best deal.

Ultimately, shopping around for the right banking package can save you a lot over time. If you frequently require guaranteed payments, factor these fees into your decision when choosing a bank or account type. Some institutions offer better rates or include these services in their premium accounts, potentially saving you hundreds of dollars each year. For more tips on lowering bank fees and comparing account options, visit Wealth Awesome (https://wealthawesome.com). Let’s now look at more ways to cut your overall banking costs.

12. Inactive Account Fee

Banks may charge fees if your account remains unused for a long period. These fees can apply to savings accounts, chequing accounts, and even credit card accounts [53].

Why These Fees Exist

Banks charge inactive account fees to offset the costs of maintaining dormant accounts. These costs include generating statements, monitoring accounts for fraud, and meeting regulatory requirements [53].

How Major Canadian Banks Handle Inactive Accounts

Inactive account fees vary between $5 and $20 per month, depending on the bank and its policies. Here’s a quick look at how Canada’s Big Five banks manage dormant accounts:

Bank	Timeframe to Become Inactive	Years Inactive	Inactivity Fee
BMO	2 Years	2 Years 5 Years 10 Years	$30 $30 $40
CIBC	2 Years	2–4 Years 5–8 Years 9 Years	$20 $30 $40
RBC	12 Months	2 Years 5 Years 9 Years	$20 $20 $40
Scotiabank	6–12 Months	2–4 Years 5–8 Years 9 Years	$20 $30 $40
TD Bank	2 Years	2–10 Years	No fees

TD Bank is the only major institution that doesn’t charge fees for accounts inactive for up to 10 years. However, after 10 years of inactivity, all Canadian banks must transfer unclaimed funds to the Bank of Canada [54]. Knowing these policies can help you manage your accounts and avoid unnecessary charges.

Tips to Keep Your Account Active

You can avoid inactivity fees by making occasional transactions or setting up automatic transfers. If you no longer need an account, close it after redirecting any automatic deposits to another account.

Keep your contact information up to date so that you receive notifications about potential inactivity charges. Banks are required to send written notices before an account is considered dormant [87,89]. For accounts you want to keep but rarely use - such as an emergency fund - reach out to your bank. Many institutions may offer alternatives or waive fees if you explain your situation. A quick financial review every six months can help you spot and manage any forgotten accounts before they start costing you money.

13. Excess Transaction Fee

If you exceed the number of free transactions allowed by your account each month, you’ll be charged an extra C$3–C$5 per transaction [55]. Most basic chequing and savings accounts come with a set number of free transactions, and going over that limit triggers these fees. To save money, it’s worth consolidating your spending.

Why Banks Charge These Fees

Banks set limits on transactions to encourage customers to upgrade to accounts with unlimited transactions. Basic accounts typically include 10 to 25 transactions per month, while premium accounts often allow unlimited transactions for a higher fixed monthly fee.

When to Consider Switching Accounts

If you find yourself paying more than C$12 to C$15 per month in excess transaction fees, it might be time to switch to an account with unlimited transactions. For example, in March 2024, Sunrise Credit Union recommended that customers review their account usage and consider options like their Loyalty Package, All-In-One Chequing, Golden Chequing, or Personal Chequing accounts to avoid these fees [55].

Major Bank Options for Unlimited Transactions

Canada’s major banks offer accounts with unlimited transactions, but these accounts usually come with higher monthly fees. Here are some examples:

Bank	Account Name	Monthly Fee	Balance to Waive Fee
TD	Unlimited Chequing	C$17.95	C$4,000
BMO	Performance Chequing	C$17.95	C$4,000
RBC	Signature No Limit Banking	C$16.95	Not available
CIBC	Smart Plus Account	C$29.95	C$6,000 or C$100,000 in eligible investments

Compare these options carefully to find the one that best fits your needs.

How to Avoid Excess Transaction Fees

Here are a few practical ways to keep these fees in check:

Use your banking app or set up alerts to track your transactions and stay within your monthly free limit.
Consolidate your purchases. Instead of making multiple small transactions, combine them into fewer, larger ones [2].
Choose an account that aligns with your spending habits. If you frequently make electronic payments, transfers, or debit purchases, an unlimited transaction account could save you money in the long run.

For more tips and detailed comparisons on managing bank fees in Canada, check out Wealth Awesome (https://wealthawesome.com).

No-Fee and Low-Fee Bank Account Comparison

Picking the right bank account can help you avoid unnecessary fees and save hundreds of dollars each year. In Canada, there are plenty of no-fee and low-cost options available, tailored to different banking needs. Here's a look at some of the standout choices.

No-Fee Accounts
Online banks like Simplii Financial and EQ Bank offer no-fee accounts with a range of benefits. Simplii Financial’s No Fee Chequing Account provides unlimited online transactions, free Interac e-transfers, and access to CIBC’s extensive ATM network across Canada - all with no monthly charges. Plus, new clients who open an account by October 30, 2025, can earn a C$300 bonus [57].

EQ Bank’s Personal Account is another excellent option, combining chequing and high-interest savings in one. It features no monthly fees, unlimited transactions within Canada, free e-transfers, and affordable international money transfers through Wise. It also offers a competitive interest rate on deposits, making it a smart choice for those who keep higher balances [57].

Low-Cost Accounts
For those who prefer traditional banks, low-cost accounts are available with fees capped at C$4 per month, following government guidelines. Starting December 1, 2025, updates to the Commitment on Low-Cost and No-Cost Accounts will ensure these accounts remain budget-friendly [1].

Here’s a quick comparison of no-fee and low-cost accounts:

Bank	Account Name	Monthly Fee	Transactions Included	Minimum Balance to Waive Fee
No-Fee Options
Simplii Financial	No Fee Chequing	C$0	Unlimited online	-
EQ Bank	Personal Account	C$0	Unlimited	-
Low-Cost Options
National Bank	Minimalist Chequing	C$3.95	12	-
Scotiabank	Basic Banking	C$3.95	12	-
TD Canada Trust	Minimum Chequing	C$3.95	12	-
BMO	Practical Plan	C$4.00	12	-
CIBC	Everyday Chequing	C$4.00	12	-
RBC	Day to Day Banking	C$4.00	12	-

Who Should Choose What?

Online Banks: Perfect for tech-savvy individuals who prefer digital banking and want unlimited transactions without paying fees. Keep in mind, these banks typically don’t have physical branches, so in-person service is limited.
Traditional Banks: Low-cost accounts work well for those who need branch access and only make occasional transactions. These accounts often include basic services like cheque writing, debit cards, unlimited deposits, printed monthly statements, and pre-authorized payment setups [1].

Special Perks
Some banks offer free accounts for specific groups, such as youth, students, seniors receiving the Guaranteed Income Supplement (GIS), and Registered Disability Savings Plan (RDSP) beneficiaries [1].

When deciding, think about your transaction habits, how often you use ATMs, and whether you require in-person banking. The Financial Consumer Agency of Canada’s Account Comparison Tool can help you weigh the features and fees of various accounts [56].

For more detailed comparisons and tailored advice, check out Wealth Awesome at https://wealthawesome.com.

How to Reduce Your Bank Fees

If you're tired of watching small charges pile up over the year, it's time to take action. Cutting down on bank fees isn't just about choosing the right account - it's about adopting smarter habits. Here's how you can keep more of your money in your pocket.

Maintain Minimum Balances

Avoiding monthly maintenance fees can be as simple as keeping your account balance above the required minimum. Many banks will waive these fees entirely if you meet their set thresholds. For instance, Scotiabank's Basic Plus Bank Account waives its $11.95 monthly fee if you maintain a daily balance of $3,000 [30]. While this means keeping a chunk of your funds tied up in your account, it often saves more than you'd earn in interest from other investments.

Go Digital

Switching to digital banking can make a big difference. Online banks like Simplii Financial and EQ Bank operate with lower overheads, so they can offer fee-free accounts. These accounts often include perks like unlimited transactions and free Interac e-Transfers - services that traditional banks usually charge for.

Simplify with One Bank

Consolidating your accounts with a single bank can save you money and headaches. Many banks offer "relationship pricing", which reduces or eliminates fees when you hold multiple products like chequing accounts, savings accounts, and credit cards with them. This not only streamlines your finances but could also grant you access to premium account features at a lower cost.

Negotiate Your Fees

Believe it or not, you can often negotiate with your bank. If you're a loyal customer with multiple accounts or products, call your bank and ask for fee waivers. Mentioning that you're considering switching to a competitor can also give you leverage.

Make Smarter Payment Choices

Changing how you make payments can also cut down on fees. For example, use your debit card for purchases instead of writing cheques, as cheques often come with processing fees [11]. For international transfers, avoid the expensive SWIFT network by choosing services that use local payment systems - this can save you up to $30–$80 per transfer, especially at major banks like CIBC [2].

Pick the Right Account

Sometimes, paying a higher monthly fee can actually save you money. Accounts with fees in the $15–$25 range often include perks like unlimited transactions and free Interac e-Transfers. If your banking habits align with these benefits, you could end up paying less overall [11].

Affordable Banking for All Canadians

The government is also stepping in to ensure fair banking options. By December 1, 2025, the updated Commitment on Low-Cost and No-Cost Accounts will ensure affordable choices remain available to Canadians [1]. As Deputy Prime Minister Chrystia Freeland explained:

"Whether it is ensuring Canadians have access to high-quality, affordable banking options and are not subjected to unfair fees, or making sure they receive the mortgage relief they need, our government will continue working to ensure Canadians are treated fairly by their banks" [8].

For more tips and tools to compare account options and save on fees, check out Wealth Awesome (https://wealthawesome.com). Their guides and calculators can help you find the best banking solution for your needs.

Conclusion

Avoiding bank fees isn’t just about saving a few dollars here and there - it’s about holding onto more of your hard-earned money. Canadians collectively spend over $7.7 billion annually on bank fees, a staggering amount that could be significantly reduced with smarter choices [58]. By selecting accounts that align with your spending habits, you can cut down on these often-overlooked expenses.

The key to managing bank fees lies in understanding your banking habits and tailoring your account to fit your needs. Natasha Macmillan, director of everyday banking at Ratehub.ca, emphasizes this point:

"The best way to manage bank fees is to understand what you're using it for and whether there are some key features that you need or not." [58]

Take the time to review your statements regularly, compare account options, and make informed decisions. While individual fees might seem minor, they can add up to hundreds of dollars annually. With a little effort and strategic planning, many of these charges can be avoided altogether.

If you encounter a fee you don’t understand, don’t hesitate to call your bank for clarification. As Macmillan suggests:

"If you are looking at a specific fee that you've been charged, I have found it's actually personally helpful to call the bank directly and have them kind of explain some of those fees." [58]

Banks are often open to waiving fees, especially for loyal customers or those considering switching to a competitor. It never hurts to ask.

For ongoing support in managing your finances and finding the best banking solutions, platforms like Wealth Awesome provide tools and resources tailored for Canadians. From account comparisons to investment advice, these guides can help you make smarter financial choices.

FAQs

What’s the best way to decide between a low-cost and a no-fee bank account in Canada?

Choosing between a low-cost and a no-fee bank account comes down to your personal banking habits and what you value most. If you tend to make a lot of transactions, a no-fee account with unlimited transactions can save you from racking up extra charges. However, a low-cost account with a small monthly fee might be a better option if it comes with perks like in-branch service access or higher interest rates.

When weighing your choices, look closely at factors like transaction limits, minimum balance requirements, and extra fees for services such as e-transfers or overdraft protection. Understanding your needs and priorities will help you pick the account that aligns best with your lifestyle and financial goals.

How can I avoid or reduce NSF fees in Canada before the new rules in 2026?

To sidestep or cut down on non-sufficient funds (NSF) fees before new regulations kick in on 12 March 2026, here are some straightforward tips:

Use overdraft protection to cover any shortfalls in your account.
Keep an eye on your spending and regularly check your account balances.
Turn on real-time banking alerts to get notified about low balances.
Keep a small buffer amount in your account as a backup.
Set up automatic payments to avoid missing due dates.

From 2026 onward, NSF fees in Canada will be limited to $10 per incident. Banks will also no longer be allowed to charge these fees more than once within two business days or when the overdraft is under $10. Until then, staying on top of your finances can save you from paying unnecessary fees.

Can paying a higher monthly fee for a bank account actually save me money over time?

Yes, sometimes paying a higher monthly fee for a bank account can actually save you money over time. Premium accounts often come with benefits like unlimited transactions, free e-transfers, waived ATM fees, or even discounts on loans or credit cards. If you frequently use these services, the savings you gain could outweigh the extra monthly cost.

For instance, if you often surpass the transaction limits on a basic account and end up paying extra fees, switching to an account with unlimited transactions could be a smarter choice. To figure out if a premium account is right for you, take a close look at the features offered and calculate your usual banking expenses. This way, you can see if the perks align with your financial habits.