Banks charge fees for a number of things — not meeting minimum balance requirements, using out-of-network ATMs, monthly maintenance fees and more. Finding a chequing account that doesn’t charge any fees can be tricky, but they do exist. But if you can’t find a fee-free account, many banks will waive fees if certain conditions are met. Compare fee-free bank accounts and check out these tips on how to save money on bank fees.
Compare fees & features of popular chequing accounts
A truly free chequing account will waive the monthly fee no matter how much you deposit into the account. Here’s how some popular chequing accounts compare on monthly fees.
Earn up to 0.15% interest on your balance ($0 minimum balance required).
Offers an unlimited number of monthly transactions.
Allows free Interac e-Transfers.
You’ll have ATM access across Scotiabank's Global ATM Alliance network. A $1.50 fee is charged for using other ATMs across Canada.
TD Every Day Chequing Account
$10.95 per month.
Monthly fee will be waived if your account balance is $3,000 or more by the end of each day in the month.
25 free transactions ($1.25 for each transaction after that).
Offers free Interac e-Transfers.
Charges a $2 fee for using a non-TD ATM in Canada.
TD All-Inclusive Banking Plan
$29.95 per month.
Maintain a $5000 minimum balance to receive a monthly fee rebate.
An unlimited number of transactions.
Offers free, unlimited Interac e-transfers.
Provides an annual rebate on select TD credit cards.
There is no TD fee at ATMs worldwide.
CIBC Everyday Chequing Account
$3.90 per month.
There is no option for a fee rebate with a minimum balance.
12 transactions per month ($1.25 for each transaction after that).
You can send Interac e-transfers for $1.50 each.
Charges a $2 fee for using a non-CIBC ATM in Canada.
CIBC Smart Plus Account
$29.95 per month.
Opportunity for fee rebate with $6,000 daily balance or $100,000 in savings and investments.
An unlimited number of transactions.
Provides free, unlimited Interac e-Transfers.
Offers free ATM withdrawals in Canada, the U.S. and internationally, as well as personalized cheques, money orders and overdraft protection at no additional cost.
Scotiabank Basic Plus Bank Account
$3.95 fee per month.
There is no option for fee rebate with minimum balance.
Transactions: 12 free per month.
Interac e-Transfers: 2 free per month.
Choice of SCENE or Scotia Rewards points programs.
Offers free withdrawals within the Global ABM Alliance.
Scotiabank Preferred Package
$15.95 fee per month.
No monthly account fee will be charged by maintaining a minimum daily closing balance of $4,000 for the entire month.
unlimited transactions.
unlimited Interac e-transfers.
Choice of SCENE or Scotia Rewards points programs.
Offers free withdrawals within the Global ABM Alliance (the $1.50 fee waived on one non-Scotiabank ABM withdrawal per month in Canada).
BMO Performance Plan
$15.95 per month.
The fee is waived with a constant minimum balance of $4,000.
The number of transactions per month is unlimited.
Interac e-transfers are unlimited (up to a $3,000 daily maximum).
BMO Premium Plan Chequing Account
$30 per month.
The fee is waived with a constant minimum balance of $6,000.
Offers unlimited transactions per month.
Provides unlimited Interac e-transfers.
Includes free OnGuard Identity Theft Protection (annual value approx. $155).
Get access to a preferred U.S. dollar exchange rate.
All cheques, money orders and bank drafts are free.
Offers a rebate on annual fee for select BMO credit cards up to $150.
$0 BMO fee on ATMs worldwide.
Includes free overdraft protection.
RBC Signature No Limit Banking Account
$15.95 per month (through RBC's Multi Product Rebate program, pair this account with 2 other eligible RBC accounts in the same geographic region and get cashback for some or all of your monthly fees - only pay $9.95/month for this account).
Monthly transactions are unlimited.
Interac e-Transfers are unlimited.
5 free cross-border debits per month ($1.00 each afterwards).
Get a rebate on the annual fee of select RBC credit cards up to $39.
Additional features including getting 6 free bank drafts per year ($8.50 each afterwards), free personalized cheques and up to $12.00 per year off the cost of a safe deposit box.
If you have an RBC credit card that accumulates points for rewards, link your RBC debit card to a Petro-Points card and earn 20% more rewards points on your RBC credit card. Additionally, save 3 cents per litre at Petro-Canada gas stations.
RBC VIP Banking Account
$30 per month (through RBC’s Multi Product Rebate program, pair this account with 2 other eligible RBC accounts in the same geographic region and get cashback for some or all of your monthly fees – only pay $19.95/month for this account).
Monthly transactions are unlimited.
Interac e-Transfers are unlimited.
$0 fee for ATM usage worldwide.
Get a rebate on the annual fee of select BMO credit cards up to $120.
Get free overdraft protection.
Additional features including getting free cross-border debit transactions, free RBC VIP Style personalized cheques and up to 2 additional Canadian dollar accounts and 1 U.S. dollar account.
If you have an RBC credit card that accumulates points for rewards, link your RBC debit card to a Petro-Points card, and earn 20% more rewards points on your RBC credit card. Additionally, save 3 cents per litre at Petro-Canada gas stations.
Other free bank accounts may waive ATM fees, lost card fees and other fees or could offer cash back rewards. Most free chequing accounts still have backend fees for certain transactions, like overseas withdrawals and international transaction fees.
What fee do you want to avoid?
Bank accounts that avoid this fee
Monthly fees (no minimum balance required)
Tangerine Chequing Account
Monthly fees (minimum balance required)
TD Every Day Chequing Account
TD All-Inclusive Banking Plan
CIBC Smart Plus Account
Scotiabank Preferred Package
BMO Performance Plan
BMO Premium Plan Chequing Account
Domestic ATM withdrawal fees
Tangerine Chequing Account (free across Scotiabank's Global ATM Alliance network, while withdrawals from ATMs outside the network cost $1.50 each.)
TD All-Inclusive Banking Plan
CIBC Smart Plus Account
BMO Premium Plan Chequing Account
RBC VIP Banking Account
Transaction fees
Tangerine Chequing Account
TD All-Inclusive Banking Plan
CIBC Smart Plus Account
Scotiabank Preferred Package
BMO Performance Plan
RBC Signature No Limit Banking Account
RBC VIP Banking Account
Interac e-Transfers
TD Every Day Chequing Account
TD All-Inclusive Banking Plan
CIBC Smart Plus Account
Scotiabank Preferred Package
Scotiabank Basic Bank Account (only 2 free per month)
BMO Performance Plan
RBC Signature No Limit Banking Account
RBC VIP Banking Account
Overdraft fees
Tangerine Chequing Account (service is pay-per-use, so you don’t pay unless you use it and you won’t ever be charged more than $5 per month + interest)
TD All-Inclusive Banking Plan & TD Every Day Chequing Account (there are two overdraft fee options (1) pay a flat fee of $4 per month or (2) pay-per-use, where you pay no monthly fee and only get charged when you use the service; max. charge per day is $5 + interest)
BMO Premium Plan Chequing Account (interest charges may apply)
RBC Signature No Limit Banking Account (interest charges may apply)
RBC VIP Banking Account (interest charges may apply)
Do free bank accounts earn interest?
It depends on the account. Most free chequing accounts won’t reward you with interest, though you might get lucky and come across one that does, such as the Tangerine Chequing Account. If not, there are many free savings accounts that reward you with higher interest rates to help grow your balance.
How do I compare free chequing accounts?
Read the fee-free conditions
Some bank accounts will waive monthly fees when you meet conditions like balance requirements or making qualifying direct deposits each month. Requirements and conditions may vary, so you should read the terms and conditions to ensure that you won’t be charged.
Determine if your income can cover the direct deposit
If an account requires a direct deposit each month, your paycheques may be enough to waive the monthly fee. Find out what the requirements are, then sign up for direct deposit with your employer.
Look at the other fees that apply
Free chequing accounts will often waive the monthly service fee, but other fees could still apply. You may be charged for using your bank account overseas, sending or receiving money transfers, ordering cheques and more. Read the terms and conditions or fee schedule for a full breakdown of your bank’s charges.
Linked debit card access and credit card functionality
Many financial institutions will give you a debit card with a credit card logo called a Visa debit card, a debit Mastercard, or sometimes simply a virtual debit card. These cards are not combined debit cards and credit cards – they are simply debit cards designed so that payment machines will recognize them as credit cards wherever debit cards are not accepted. This allows you to pay even if you don’t have a credit card. Besides getting a Visa debit card or a debit Mastercard, find out if you can link other accounts, such as your savings account, to your debit card for easier access.
ATM network and fees
Most banks charge a fee when you make an ATM withdrawal from an ATM outside of the bank’s network, like if you use a TD machine to access funds from a CIBC account. These fees often range from $1 – $5, with private ATM networks (not operated by a financial institution) typically costing more than ATMs operated by financial institutions such as banks. You can save money by getting an account with the financial institution that has the largest ATM network, but you can also find banks that don’t charge ATM fees.
Other products offerings
Find out if the institution offers other products so that you can do all of your banking in one place and make instant transfers between your accounts.
How to avoid fees
Whether you open a fee-free chequing account or find an account that will waive the monthly service charge, there are still other fees to watch out for. Here’s how you can avoid getting charged fees on your chequing account:
Ensure you meet the conditions. If your bank will waive fees when certain conditions are met, ensure that you always meet the requirements.
Get cash back from purchases. Instead of visiting an ATM, consider getting cash back from retail locations when you shop in order to avoid ATM fees.
Avoid foreign transactions. Using your card abroad could rack up foreign transaction charges. Consider taking out cash before you travel, using a prepaid card or explore other types of travel money. Find out more about the best credit cards to use overseas here.
Don’t overcharge your account. You’ll likely be charged about a fee every time you make a transaction that brings your balance below zero. While overdraft protection can ensure that these purchases are covered, the type of protection you get can still mean you end up paying fees, although such fees might be reduced.
Use in-network ATMs. Try to avoid using out of network ATMs, as you’ll be charged by the ATM owner and again by your bank.
Make sure your deposits go through. Returned item fees can eat into your monthly budget even though you did nothing wrong. Try to avoid depositing cheques that might bounce, as you’ll be on the hook for this fee.
Pass on paper statements. Instead of getting a monthly statement in the mail, opt for online or e-statements and you could save a few dollars per month. Many types of account offer free e-statements.
Keep an eye on your transactions. Find out if your account has a transaction limit and make sure to stay below it to avoid unnecessary fees. On the contrary, make sure to make at least one transaction per month to avoid inactivity fees.
Minimize wire transfers. Most banks charge for outgoing wire transfers, while some will even charge for incoming ones. If possible, try to use Interac e-Transfers, email transfers or money transfer services from private providers to avoid wire fees.
What are the pros and cons of free chequing accounts?
Pros
There are no monthly fees. By choosing a free chequing account, you can save money every month.
You get ATM access. Some give you deals on domestic and international ATM transactions outside the bank’s network, while others don’t charge for transactions at non-partner ATMs.
Other benefits. Waiving the monthly service fee is the least you should expect. Some bank accounts give you other incentives like cash back or free cheques.
Cons
You still get charged other fees. Unfortunately, truly free chequing accounts aren’t common. Banks will still charge for certain activities, like foreign transactions, going into overdraft or sending e-transfers. However, it’s possible to get by without incurring any of these fees by choosing an account with the right benefits and by managing your activity.
You could give up perks. Fee-free chequing accounts are a low-cost option designed for people looking to save. By choosing this account, you might be giving up valuable features found in more premium-level accounts that might be worth paying a monthly fee for.
Bottom line
Fee-free chequing accounts are a great way to cut down on your monthly expenses without sacrificing the convenience of having a bank account. And while it is possible to find a free chequing account available, you can also find plenty that will waive the monthly fee when certain conditions are met. Compare bank accounts to find one that fits your financial situation.
Frequently asked questions
There are many accounts that waive the monthly transaction fee; however, other fees may still apply. Common back-end fees include:
Statement reissuing.
Additional card if yours gets lost, stolen or damaged.
Telephone banking transactions and staff-assisted transactions made at a branch.
Overdraft.
Purchases in a foreign currency.
Overseas ATM withdrawals.
If you have overdraft protection, you can to the extent that you’re covered. You can also link a credit card or different account to your chequing account and have funds withdrawn from these sources when there isn’t enough money in your chequing account to cover a transaction. But if you don’t have overdraft coverage or a linked account, you can’t. In such cases, banks may charge a non-sufficient funds fee (called an NSF fee) which could be as high as $50 per overdrawn transaction.
As the news editor at Finder, Ryan Brinks melds decades of experience in business news and online content into creating comprehensive and helpful comparisons of the companies you trust your money with. He loves to innovate and put money to work while keeping a careful eye on managing risk. Beyond work, Ryan's also passionate about his family and serving his community.
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