Are You One of the Canadians Who Could Ditch Monthly Bank Fees?

Open your chequing account statement. See the “monthly fee” line? If it’s more than $4, there’s a good chance you’re overpaying.

Every Canadian is entitled to a basic bank account that costs no more than $4 a month — and some people qualify to get that account for free.

Recent rule changes mean those basic accounts now come with stronger minimum features, and even more Canadians are eligible for a no-fee version.

What "low-cost" accounts are available to Canadians?

If your bank has signed onto the Financial Consumer Agency of Canada (FCAC) “Commitment on Low-Cost and No-Cost Accounts,” it's required to offer:

This means most people can bank for $4 a month or less — and many shouldn’t be paying a monthly fee at all.

And, as of Dec. 1, 2025, the FCAC updated this commitment for federally regulated financial institutions — including Canada’s Big Six banks — that choose to participate.

The update makes it easier to qualify for the no-fee version, which means even more Canadians are now eligible to skip monthly fees entirely.

What are the new rules (and how much could they cut your bank fees)?

The $4 fee cap hasn’t changed — but basic accounts now come with more features, and even more Canadians can qualify for the $0 version.

Those changes can make a real difference if you’re currently in a higher-fee chequing account.

This is serious money, especially when almost half of Canadians say they’re within $200 of missing their monthly bills, according to MNP’s October 2025 Consumer Debt Index.

What a basic bank account gets you, under the new rules

Until now, these accounts were fairly bare-bones: under the original 2015 guidelines, banks that signed on had to offer at least 12 debit transactions a month and a few core features like cheque-writing and no extra charge for deposits or debit cards.

The modernized 2025 Commitment raises that floor. Now, whether you’re paying $4 or $0 per month, you can expect:

Do you qualify for a no-cost account?

Previously, four types of people qualified for no-fee versions of the basic account: youth, students, seniors receiving the Guaranteed Income Supplement (GIS) and Registered Disability Savings Plan (RDSP) beneficiaries. If that’s you (or someone you know), you still shouldn’t be paying a monthly fee for basic chequing at a participating bank.

The 2025 update widens that no-fee circle, so more Canadians can get a $0 account. Here are the new groups that now qualify, some with eligibility limits:

Each participating bank must waive fees for at least one of the last three groups, not necessarily all of them. (Don’t worry — we’ll keep tabs on who’s choosing to commit to providing no-cost accounts to that entire cohort.)

Banks must clearly show which groups qualify on their websites and in branches. You can also check eligibility using the FCAC’s Bank Account Comparison Tool.

Banks still make billions on fees — here's how to keep more of your money

Even with a $4 — or $0 — account on the table, many Canadians still end up paying their banks more than they need to.

In 2021, about 47% of Canadian banks’ income came from non-interest sources like fees and commissions, compared with roughly 40% in the U.S. and 27% in the U.K. Monthly account fees are just one slice of that.

Overdraft charges, non-sufficient-funds (NSF) fees, out-of-network ATM withdrawals and other penalties pile up quickly, helping Canada’s Big Five banks generate more than $17 billion in non-interest income in a single year.

The modernized Commitment mainly targets monthly fees — overdraft, NSF and ATM policies aren’t changing — so what you’re really getting is a better default option that’s not a stripped-down backup.

To really pay less, you have to watch every other fee your bank charges, not just the monthly account fee.

Basic banking should be the last thing that blows up your budget. The Big Six already squeezed Canadians for $16.45 billion in profit in Q4 2025 (up from $14.73 billion a year earlier) — your fees don’t need to help push that number any higher.