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Recently, 14 financial institutions—including all 6 Big Banks—agreed with the Financial Consumer Agency of Canada (FCAC) to offer low- and no-cost bank accounts to all Canadians. Bank account shopping just got more profitable.
Is a different bank account really going to save me money?
If you already have a low- or no-cost bank account that meets your needs, making a change isn’t necessary. But for everyone else, there could be hundreds of dollars riding on it.
If you have a standard chequing account with any of the big banks, you’re probably paying between $15.95 and $17.95 per month. Over a year, that works out to around $200! That’s a couple hundred you could put towards your retirement savings (or into a rainy day fund).
About low- and no-cost accounts
On December 1, 2025, the Commitment on Low-Cost and No-Cost Accounts came into effect in Canada. It means that 14 financial institutions agree that for no more than $4 per month, all Canadians can access a bank account that includes:
- A minimum of 18 transactions per month
- Free digital monthly statements
- Cheque writing privileges
- No minimum balance
- No account switching fees with the same signatory
- No extra charge for deposits, debit card, pre-authorized payment forms
- No extra charge for monthly printed statements, and cheque image return or on-line cheque image viewing
- Joint accounts, if the situation is warranted (e.g., married/common-law couple etc.)
- Other services, for a reasonable fee
A $4.00 banking fee over twelve months is only 48 bucks.
The best online banks and credit unions in Canada
Some Canadians might even be eligible for a full fee waiver. Check with your bank if you are:
Other options for low- and no-cost bank accounts
Even if your bank hasn’t joined the FCAC agreement, it’s likely they still offer low-fee accounts. If you’re a member of any of the identified groups above, ask whether they will reduce your fees. Research accounts or banking packages for students, seniors, and newcomers.
Digital banks frequently offer no-fee accounts. They also tend to have very competitive interest rates and unique financial products. If you’re comfortable with doing your finances online, check into this option.
A step-by-step guide for how to switch bank accounts
One of the main reasons people hesitate to switch banks is that they worry it will be a hassle. Switching accounts, or even moving to a new bank, is actually quite simple. Here’s how:
If you’re switching accounts within a bank, you can usually do this in person, online, or via your bank’s app.
- Open the new account.
- Transfer your money from the old account to the new one via a teller or online/mobile banking.
- Redirect any automatic withdrawals, scheduled bill payments, and direct deposits to the new account.
- Close the old account.
You’ll follow the same steps to switch banks; the only difference is in how you move your money. Since it will be between two different financial institutions, you’ll need to use Interac e-Transfer or an electronic funds transfer. Some banks may ask you to make the deposit through their bank machines.
One of the benefits of moving to a digital bank is that money transfers are simple. Usually, you can connect your new account to your old one—all online—and transfer the funds there. Check with both banks before you begin.
Still not convinced?
There are lots of reasons why people put off moving their money, even when they see the real costs of bank fees. Some people worry that they’ll make a costly mistake doing the transfer. Others feel secure when all their financial products are with the same institution. Some people just don’t like change—a fact the banks depend on to keep collecting your fees!
Still, if you’re looking for a way to cut household costs, starting with unnecessary bank fees is a pretty simple one. Just four steps and you can start planning what you’ll do with the extra cash in your account.
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Keph Senett
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