How to Stop Paying Bank Fees in Canada (Without Switching to a Bank You’ve Never Heard Of)

A friend’s mom called me last spring, upset. She’d just gotten her bank statement and noticed she’d been charged $16.95 every month for the past four years. That’s over $800. For an account she barely used. When I asked why she hadn’t switched, she said the same thing I’ve heard from a dozen aunties and uncles: “I didn’t know I had a choice.”

Here’s the truth nobody at the bank is going to tell you: most Canadians are paying bank fees they don’t have to pay. The big banks count on you not knowing the alternatives exist. The system isn’t designed to point them out.

So let’s fix that. There are three real ways to stop paying monthly chequing fees in Canada, and you can probably do at least one of them this week.

First, figure out what you’re actually paying

Pull up your last three months of statements. Look for these charges:

• The monthly plan fee (usually $4 to $30 depending on the account)
• Per-transaction fees if you went over your limit
• Interac e-transfer fees ($1 to $1.50 each at some banks)
• ATM fees from using machines outside your bank’s network
• Overdraft protection charges

For a typical chequing account at RBC, TD, Scotiabank, BMO, CIBC, or National Bank, you’re probably looking at $11 to $17 a month for a basic plan, or $30+ for an unlimited one. That’s $130 to $360 a year. Over a decade, you’ve handed the bank somewhere between $1,300 and $3,600 — money that could’ve gone toward groceries, your kid’s RESP, or a long-overdue trip.

Option 1: Ask your current bank for a free account

This is the option most people skip because they don’t know it exists. Every Big Six bank offers free chequing accounts for specific groups of people. They just don’t advertise them loudly.

You probably qualify for one if:

• You’re 60 or older — most banks offer free or heavily discounted accounts for seniors
• You’re a student — full-time post-secondary students get free accounts at all major banks
• You’re under 18 or under 24 — youth accounts are free across the board
• You arrived in Canada within the last 1 to 3 years — newcomer programs at RBC, Scotiabank, BMO, TD, and CIBC waive monthly fees for the first year, sometimes longer
• You’re a long-time customer with multiple products — sometimes the bank will waive fees if you have a mortgage or investment account with them. You have to ask.

Call your bank or walk into the branch. Say: “I’d like to switch to whatever no-fee or low-fee chequing account I qualify for.” Bring ID and proof of eligibility — student card, PR card, study permit, or just your birth date if you’re a senior. Many people I’ve helped have been paying fees for years on accounts they could have switched for free with one phone call.

Option 2: Park a minimum balance to waive the fee

Most Big Six chequing accounts will waive the monthly fee if you keep a minimum balance in the account at all times. The amount varies:

• Basic accounts: $3,000 to $4,000 minimum
• Mid-tier accounts: $4,000 to $6,000
• Premium/unlimited accounts: $6,000 or more

If you can leave that money parked, the fee goes away. The downside? That money earns basically nothing — most chequing accounts pay 0% interest, or close to it. If you have $6,000 sitting in a chequing account to avoid a $16 fee, you’re saving $192 a year in fees but earning maybe $0 to $30 in interest. Meanwhile, that same $6,000 in a high-interest savings account could earn $150 to $200 a year (verify current rates — they change with the Bank of Canada).

The minimum-balance trick makes sense if you already keep that much in cash for emergencies and don’t want the hassle of switching banks. Otherwise, your money works harder somewhere else.

Option 3: Open a no-fee online bank account

This is the option I usually recommend, especially for people who don’t need to visit a branch often. There are several Canadian online banks that charge zero monthly fees, include unlimited free e-transfers, and are CDIC-insured up to $100,000 per eligible deposit category — the same protection your money has at any Big Six bank.

The main options:

• EQ Bank — no monthly fees, free e-transfers, pays interest on chequing balances. Owned by Equitable Bank.
• Simplii Financial — owned by CIBC. No fees, free e-transfers, ATM access through CIBC’s network.
• Tangerine — owned by Scotiabank. No fees on chequing, ATM access through Scotiabank’s network.
• Wealthsimple Cash — technically a hybrid spending/savings account, no fees, free e-transfers.

I want to address the elephant in the room: a lot of older Canadians don’t trust banks they can’t walk into. If you grew up handing cash to a teller you’ve known for twenty years, the idea of putting your savings somewhere with no physical branch feels risky. I get it.

Here’s how I explain it to my mom: CDIC insurance is the same. If EQ Bank or Simplii failed tomorrow — which is extremely unlikely — your money up to $100,000 per eligible category is protected by the federal government, the same as at RBC. The branch isn’t what protects your money. The insurance is.

The best setup for most people: keep both

You don’t have to fully leave your main bank. The setup I recommend to most family and friends:

• Keep one Big Six account — switch to the free or low-fee version. This is for branch access, talking to someone in person, getting bank drafts, depositing cash, and any time you need the full-service experience.
• Open a no-fee online account for daily spending, e-transfers, and direct deposit of your paycheque. This is where most of your day-to-day money lives.

This way you stop paying fees, but you still have a branch to walk into when life gets complicated — a mortgage application, an estate issue, helping your parents with paperwork. The online bank handles the boring stuff for free.

How to actually make the switch without breaking anything

Switching accounts trips people up because they forget how many things are connected to their bank. Do it in this order:

• Open the new account first. Don’t close anything yet.
• Make a list of every automatic payment. Hydro, internet, phone, insurance, gym, streaming, credit card payments, rent, mortgage. Check your last three statements to catch them all.
• Update your direct deposit at work. Give it one full pay cycle to confirm the money arrives correctly.
• Move your pre-authorized bills one at a time. Don’t switch them all at once — if something fails, you want to catch it before it becomes five missed payments.
• Keep some money in the old account for 60 to 90 days. This catches any forgotten automatic charges.
• Then close the old account properly. Call or visit the branch. Don’t just stop using it — banks will keep charging the monthly fee on a zero-balance account, and that can eventually get sent to collections and damage your credit.

What about cash deposits and cheques?

This is the question I get most from older relatives. If you run a small business and deal in cash, or you receive paper cheques from family or rent, an online-only bank is harder to use.

The workarounds:

• Most online banks let you deposit cheques with your phone camera — take a photo of the front and back, and the money shows up in a few days.
• Simplii and Tangerine give you free ATM access through their parent banks’ networks (CIBC and Scotiabank).
• For cash deposits, this is where keeping one Big Six account helps — deposit cash there, then transfer it to the online bank.

One more thing about e-transfer fees

If you send money to family members or split bills with roommates often, e-transfer fees add up faster than the monthly account fee. At a basic Big Six account, e-transfers can cost $1 to $1.50 each. Send 10 a month and that’s another $15 on top of your $16 monthly fee.

Every no-fee online bank includes unlimited free e-transfers. For families that send money around — to kids at school, to elderly parents, to siblings — this alone is worth switching.

The bottom line

An older generation of Canadians didn’t grow up with online banks. They grew up in a world where the bank was a building with a vault, and trust was built by walking through the door and seeing the same teller for 20 years. That’s not wrong — it’s just no longer the only option.

If you’re paying $16 a month in chequing fees right now, that’s $192 a year going to a bank that wouldn’t lose a minute of sleep if you left tomorrow. You don’t have to leave entirely. But you don’t have to keep paying for nothing, either.

Make one phone call this week. Either ask your current bank to switch you to a free account you qualify for, or open a no-fee online account and start moving things over. Twenty minutes of work for $200 a year back in your pocket — for the rest of your life.

Frequently Asked Questions

Are no-fee online banks like EQ Bank and Simplii safe?

Yes. Both are CDIC-insured up to $100,000 per eligible deposit category, same as RBC, TD, Scotiabank, or any Big Six bank. EQ Bank is owned by Equitable Bank, and Simplii is owned by CIBC. Your money is protected the same way.

Can I really get a free account at a Big Six bank?

Yes, if you qualify. Every Big Six bank offers free chequing for seniors (usually 60+), students, youth under 18 or 24, and newcomers within their first 1-3 years in Canada. You have to ask — they won’t volunteer it. Bring ID and proof of status to the branch.

What’s the catch with no-fee online banks?

No physical branches and no in-person service. If you need to deposit cash regularly or want someone to sit across a desk from you, an online bank won’t fully replace that. Most people solve this by keeping a free account at a Big Six bank for branch access and using the online bank for everything else.

Will closing my old chequing account hurt my credit score?

No. Chequing accounts don’t affect your credit score — only credit cards, lines of credit, and loans do. You can close a chequing account anytime without any impact on your credit.

What about Interac e-transfer fees?

Basic accounts charge $1 to $1.50 per transfer. EQ Bank, Simplii, and Tangerine all include unlimited free e-transfers. If you send money frequently to family or split bills with roommates, this alone can save you $10 to $20 a month.