Avoid Monthly Banking Fees in Canada
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If you’re new to Canada, you might be surprised to learn that banks charge monthly fees just to hold your money. Most Canadians pay between $200 and $300 per year in banking fees, but newcomers have unique opportunities to avoid monthly banking fees in Canada entirely. Whether you choose a digital bank with permanent no-fee accounts or a Big Five bank with newcomer programs offering up to three years of fee waivers, you can keep more money in your pocket while you settle into your new life.
This guide explains exactly how to sidestep monthly account fees, compares the best no-fee options, and shows you what to watch for once promotional periods end.
Why Banking Fees Matter
Canadian banks typically charge between $4 and $30.95 per month for chequing accounts. That adds up to $48 to $371 annually—money that could go toward groceries, transit passes, or building an emergency fund while you establish yourself in Canada.
Traditional banks justify these fees by pointing to branch networks, ATM access, and customer service. But the reality is that digital banking has made these services less expensive to deliver. Many online banks now offer the same core features—unlimited transactions, free Interac e-Transfers, and mobile banking—with no monthly fee at all.
How Much Do Canadians Pay?
The amount you pay depends on your account type and banking habits. Here’s what the Big Five banks charge for their main chequing accounts, along with the minimum balance required to waive the fee.
| Bank | Basic Account | Unlimited Account | Balance to Waive Fee |
|---|---|---|---|
| RBC | $4.00/month | $16.95/month | $4,000 |
| TD | $3.95/month | $16.95/month | $4,000 |
| BMO | $4.00/month | $16.95/month | $4,000 |
| Scotiabank | $4.00/month | $16.95/month | $5,000 |
| CIBC | $4.95/month | $16.95/month | $6,000 |
Rates and terms may vary by financial institution. Most Canadians opt for mid-tier or unlimited accounts to avoid per-transaction fees, which means they pay $10 to $17 monthly unless they maintain the required minimum balance.
The trade-off with minimum balance waivers is that your money earns almost nothing—typically 0.01% to 0.05% interest. On $4,000 at 0.01%, you earn just $0.40 per year. Meanwhile, a high-interest savings account could earn you $100 or more on the same amount.
Digital Banks: Always Free
Digital banks in Canada operate without physical branches, which allows them to eliminate monthly fees entirely. These accounts are ideal for newcomers who are comfortable with mobile and online banking and don’t need in-person support.
Top No-Fee Chequing Accounts
| Bank | Monthly Fee | Transactions | ATM Access | Welcome Bonus |
|---|---|---|---|---|
| Simplii Financial | $0 | Unlimited | 3,400+ CIBC ATMs | Up to $300 |
| Tangerine | $0 | Unlimited | Scotiabank network | Cash back promo |
| EQ Bank | $0 | Unlimited | Free nationwide | 2.75% interest |
| Wealthsimple | $0 | Unlimited | Reimbursed fees | 1.25% interest |
| Alterna Bank | $0 | Unlimited | 3,300+ credit union ATMs | None |
Rates and terms may vary by financial institution. Simplii and Tangerine are backed by CIBC and Scotiabank respectively, which means they offer the reliability of major banks without the monthly costs.
- No monthly fees ever: These accounts never charge a monthly maintenance fee, regardless of your balance or transaction volume
- Unlimited transactions: No caps on debit purchases, bill payments, or Interac e-Transfers
- CDIC insurance: Your deposits are protected up to $100,000 per account category by the Canada Deposit Insurance Corporation
- Mobile banking: Full-featured apps for iOS and Android with real-time balance updates and spending alerts
- Direct deposit eligible: You can receive paycheques, government benefits, and pension deposits just like traditional accounts
- No physical branches: You can’t walk into a branch for in-person service or cash deposits
- Cash deposits are difficult: Most digital banks don’t offer easy cash deposit options, though some allow deposits at partner ATMs
- Less hand-holding: Customer service is by phone, chat, or email—helpful for basic questions but less comprehensive for complex financial planning
Big Bank Newcomer Programs
If you prefer in-person banking or want to build a relationship with a major institution for future credit products, every Big Five bank offers newcomer programs that waive fees for your first year or longer.
| Bank | Program | Fee Waiver Period | Bonus |
|---|---|---|---|
| RBC | Advantage Banking | 12 months | 15,000 Avion points |
| Scotiabank | StartRight Preferred | 12 months | Up to $700 bundle |
| TD | Newcomer Package | 12 months | Credit card access |
| CIBC | Smart Account | 12 months | Account bundle |
| National Bank | Newcomer Offer | Up to 36 months | Legal consultation |
Rates and terms may vary by financial institution. National Bank’s up-to-36-month waiver is the longest in Canada, making it particularly valuable if you’re still building income or deciding on your permanent banking setup.
These programs typically require proof that you’ve arrived in Canada within the past five years. Accepted documents include permanent resident cards, work permits, study permits, or refugee documentation.
Strategies to Avoid Fees
Whether you choose a digital bank or a traditional institution, these tactics will help you minimize or eliminate banking fees throughout your time in Canada.
Maintain Minimum Balances
If your account offers a fee waiver when you keep a certain balance, make that amount your baseline. Just remember to compare what you’re giving up in interest. If you can earn 2.75% in a savings account versus 0.01% in chequing, you might be better off paying the monthly fee and keeping your money in a higher-yield account.
Bundle Your Banking Products
Most Big Five banks offer fee rebates when you hold multiple products with them. For example, RBC’s Value Program can reduce your monthly fee to $0 if you have eligible credit cards, investment accounts, or mortgages and set up direct deposit.
Not a newcomer, student, or senior: some big banks also waive fees for clients who keep their products or assets with them. Here are the conditions 3 of them publish, as of October 2026. Before you park a large balance, compare what it would earn in a high-interest savings account.
- RBC Value Program: enrol an eligible account in the program and hold other RBC product categories (personal credit card, personal investments, residential mortgage, or a linked small business account). With 2 categories, the rebate reaches $6 per month, which covers the $4 fee on RBC Day to Day Banking; with 3 or more, it reaches $12.95 per month. RBC also requires monthly account activity, such as a direct deposit, an eligible bill payment, or a pre-authorized payment. Details on RBC's Value Program page.
- CIBC tiered banking: with $40,000 to $99,999 in average monthly eligible balances across your CIBC deposits and investments, the monthly fee on up to 3 CIBC Smart Accounts drops to $0, and you get up to $50 back on a credit card annual fee. From $100,000, that rebate reaches up to $139 for the primary cardholder. Details on CIBC's tiered banking page.
- National Bank: The Connected package ($15.95 per month) has no fixed monthly fees with a balance of $4,500 or more, and The Total package ($28.95 per month) with $6,000 or more. An eligible National Bank Mastercard instead cuts those fees by $5 or $10 per month. Details on National Bank's chequing packages page.
Use Digital Statements
Many banks charge $2 to $4 per month for paper statements. Switching to electronic statements is instant, free, and better for the environment. Log into your online banking and opt in for digital delivery—it takes less than two minutes.
Stick to Your Bank’s ATMs
Using another bank’s ATM typically costs $3 to $5 per withdrawal—you’ll be charged by both your bank and the ATM owner. Digital banks like EQ Bank reimburse ATM fees nationwide, while others like Tangerine give you free access to partner networks (Scotiabank has over 3,500 ATMs across Canada).
- Review your statements monthly: Check for unexpected fees like transaction overages, NSF charges, or service fees for features you don’t use
- Set up balance alerts: Most banking apps let you set notifications when your balance drops below a certain threshold, helping you avoid overdraft and NSF fees
- Negotiate with your bank: If you’re a long-term customer or have multiple products, call and ask if they can waive or reduce your monthly fee—retention teams often have discretion to offer 6 to 12 months of relief
- Match your account to your habits: If you only make 10 transactions per month, a basic account with 12 included transactions might save you money compared to an unlimited plan
Bottom Line
You don’t need to pay monthly banking fees in Canada, especially as a newcomer. Digital banks like Simplii Financial, Tangerine, and EQ Bank offer permanent no-fee chequing accounts with full functionality, while Big Five banks provide newcomer programs with fee waivers lasting 12 to 36 months. The right choice depends on whether you value branch access and in-person service or prefer to bank entirely online.
For most newcomers, starting with a digital bank makes sense—you’ll save immediately and have full access to your money without restrictions. If you prefer a traditional bank, take advantage of newcomer programs, but set a reminder to switch to a no-fee chequing account or meet minimum balance requirements before the promotional period ends.
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Avoid monthly banking fees Canada – FAQ
Which Canadian banks offer completely free chequing accounts?
Simplii Financial, Tangerine, EQ Bank, Wealthsimple, Alterna Bank, and several credit unions offer chequing accounts with no monthly fees and unlimited transactions. These accounts never charge monthly maintenance fees regardless of your balance or transaction volume.
How much can I save by switching to a no-fee account?
If you currently pay $16.95 per month for a chequing account, switching to a no-fee alternative saves you $203.40 per year. Over 10 years, that’s over $2,000—money that could go toward an emergency fund, TFSA contributions, or paying down debt.
What minimum balance do I need to avoid fees at Big Five banks?
RBC, TD, and BMO require a $4,000 minimum daily balance to waive monthly fees. Scotiabank requires $5,000, and CIBC requires $6,000. If your balance drops below the threshold for even one day during the month, you’ll be charged the full monthly fee.
Are newcomer banking programs available to all new arrivals?
Yes, newcomer programs are typically available to anyone who has arrived in Canada within the past five years, including permanent residents, skilled workers, international students, and refugee claimants. You’ll need to provide proof of arrival, such as a work permit, study permit, or permanent resident card.
What happens when my newcomer fee waiver expires?
When your promotional period ends, you’ll start paying the regular monthly fee unless you switch to a no-fee account, maintain the required minimum balance, or qualify for a fee waiver through bundled products. Set a reminder three months before expiry to review your options.
Can I deposit cash with a digital bank account?
Most digital banks don’t offer easy cash deposit options. Simplii and Tangerine allow deposits at CIBC and Scotiabank ATMs respectively, but EQ Bank and Wealthsimple don’t support cash deposits at all. If you regularly receive cash, a traditional bank or hybrid approach might work better.
Are digital bank accounts as safe as traditional bank accounts?
Yes. Digital banks in Canada are either subsidiaries of major banks (like Simplii/CIBC and Tangerine/Scotiabank) or members of the Canada Deposit Insurance Corporation (CDIC), which protects deposits up to $100,000 per account category. Your money is just as safe as it would be at a branch-based bank.
What other banking fees should I watch for?
Beyond monthly account fees, watch for NSF fees (capped at $10 as of March 2026), non-network ATM fees ($3 to $5 per withdrawal), overdraft protection fees ($5/month plus interest), foreign transaction fees (2.5% on purchases outside Canada), and paper statement fees ($2 to $4/month).
Should I open accounts at both a digital bank and a traditional bank?
Many Canadians use a hybrid approach: a no-fee digital bank for everyday transactions and a traditional bank for services like safety deposit boxes, certified cheques, or in-person financial advice. This gives you the best of both worlds—no monthly fees plus access to full-service banking when you need it.
How do I switch banks without losing track of automatic payments?
Before closing your old account, review three months of statements to identify all pre-authorized debits and direct deposits. Contact each payee to update your banking information, then run both accounts in parallel for one month to ensure all transitions are complete. Only close your old account once you’re certain everything has moved over.
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