The average Canadian pays $150-$250 per year in bank fees — money that is entirely avoidable. Free banking alternatives like EQ Bank, Simplii Financial, and Tangerine offer unlimited transactions, free e-Transfers, and no monthly fees. Over a decade, switching from a Big 5 premium account to a no-fee bank saves $1,500-$2,200 — before counting the thousands more in interest you earn on a high-interest savings account versus the 0.01% your Big 5 bank pays.
Monthly Account Fees Comparison
Big 5 Banks
| Bank | Basic Account | Mid-Tier | Premium | Fee Waiver (Min Balance) |
|---|---|---|---|---|
| RBC | $4.00/mo (Day to Day, flat) | $16.95/mo (Signature No Limit Banking) | $30.00/mo (VIP Banking) | None — reduced via RBC Value Program bundling |
| TD | $3.95/mo (Minimum, flat) | $17.95/mo (Unlimited Chequing Account) | $30.95/mo (All-Inclusive Banking Plan) | $4,000 / $6,000 |
| Scotiabank | $3.95/mo (Basic Bank Account, flat) | $16.95/mo (Preferred Package) | $30.95/mo (Ultimate Package) | $4,000 / $6,000 |
| BMO | $4.00/mo (Practical, flat) | $17.95/mo (Performance) | $30.95/mo (Premium) | $4,000 / $6,000 |
| CIBC | $4.00/mo (Everyday Chequing, flat) | $16.95/mo (Smart Account) | N/A — no separate premium tier | $4,000 |
No-Fee Alternatives
| Bank | Monthly Fee | Transactions | Interac e-Transfer | Notable Feature |
|---|---|---|---|---|
| EQ Bank | $0 | Unlimited | Free unlimited | Earn interest on chequing |
| Simplii Financial | $0 | Unlimited | Free unlimited | CIBC ATM network |
| Tangerine | $0 | Unlimited | Free ($0.50 for some) | Scotiabank ATM network |
| Wealthsimple Cash | $0 | Unlimited | Free unlimited | 1% cashback option |
| Neo Financial | $0 | Unlimited | Free unlimited | Cashback rewards |
| KOHO | $0 (basic) | Unlimited | $0–$2 | Prepaid, cashback |
| PC Financial | $0 | Unlimited | Free | PC Optimum points |
| Motive Financial | $0 | Unlimited | Free | High HISA rate |
ATM Fees
Using another bank’s ATM in Canada typically costs $3-$5 total (a fee from each bank). This adds up quickly if you are not near your own bank’s ATMs. The best way to avoid ATM fees entirely is to use a no-fee bank that piggybacks on a Big 5 ATM network: Simplii customers get free access to 3,400+ CIBC ATMs, and Tangerine customers use 3,500+ Scotiabank ATMs. Credit union members can use THE EXCHANGE network of 3,700+ ATMs.
| Scenario | Fee | How to Avoid |
|---|---|---|
| Own bank ATM | $0 | Use your bank’s ATMs |
| Other bank’s ATM (domestic) | $1.50–$3.00 (per side, possibly $5+ total) | In-network ATMs |
| International ATM | $3.00–$5.00 + 2.5% FX | Use Wise card or partner ATMs |
| THE EXCHANGE network (credit unions) | $0 for members | 3,700+ ATMs across Canada |
| Simplii/CIBC ATMs | $0 for Simplii customers | 3,400+ CIBC ATMs |
| Tangerine/Scotiabank ATMs | $0 for Tangerine customers | 3,500+ Scotiabank ATMs |
Common Fee Schedule
Beyond the monthly fee, Big 5 banks charge for all sorts of individual services that no-fee banks include for free. Paper statements ($2-$4/month), excess transactions ($0.65-$1.50 each), international wire transfers ($25-$80), and NSF fees ($45-$48) are among the most common. The single most expensive fee most people encounter is the NSF (non-sufficient funds) charge — a single bounced payment costs $45-$48 at most Big 5 banks, compared to $0-$25 at online alternatives.
| Fee Type | Big 5 Bank | No-Fee Bank | Notes |
|---|---|---|---|
| Monthly account fee | $4–$17/mo | $0 | Waivable with min balance |
| Excess transactions | $0.65–$1.50/each | $0 | Basic plans only |
| Interac e-Transfer (send) | $0–$1.50 | $0 | Most banks now free |
| Paper statement | $2–$4/mo | $0 | Switch to e-statements |
| Cheque book (50) | $30–$50 | $20–$50 or free | Order online for cheaper |
| Certified cheque | $10–$15 | N/A | Not all banks offer |
| Bank draft | $7.50–$10 | N/A | Usually in-branch only |
| Stop payment | $12.50–$15 | N/A | Per cheque |
| Wire transfer (domestic) | $15–$30 | $0–$15 | Use e-Transfer instead |
| Wire transfer (international) | $25–$80 | N/A | Use Wise for cheaper |
| Overdraft (per use) | $5 | $0 (most no-fee banks) | Plan charges may differ |
| Overdraft interest | 21–22% | N/A | Annual rate on balance |
| NSF (bounced payment) | $45–$48 | $0–$25 | Non-sufficient funds |
| Safety deposit box | $45–$200/year | N/A | Size-dependent |
| Account closure (within 90 days) | $0–$25 | $0 | Some charge early closure |
Annual Cost of Banking at Each Tier
| Banking Style | Monthly Fees | ATM (est.) | e-Transfers | Other Fees | Annual Total |
|---|---|---|---|---|---|
| Big 5 basic account | $48–$54/yr | $30–$60 | $0–$18 | $20–$50 | $98–$182 |
| Big 5 mid-tier | $120–$144/yr | $0 (unlimited) | $0 | $10–$30 | $130–$174 |
| Big 5 premium | $192–$204/yr | $0 (unlimited) | $0 | $0–$20 | $192–$224 |
| No-fee online bank | $0 | $0–$30 | $0 | $0–$10 | $0–$40 |
Over 10 years, the difference between a Big 5 premium account and a no-fee bank is $1,500–$2,200.
Fee Waivers Available
If you want to stay with a Big 5 bank, you can often eliminate fees by qualifying for a waiver. Students, seniors (60+), youth, and newcomers typically get free accounts. For everyone else, maintaining a minimum balance of $3,000-$6,000 waives the monthly fee at TD, BMO, Scotiabank, and CIBC (RBC instead reduces fees through its bundled Value Program) — though keeping that much money sitting in a 0% chequing account has its own cost in lost interest. At 4% in an online bank, $5,000 earns $200/year.
| Group | Banks Offering Waivers | Savings |
|---|---|---|
| Students (18–25) | All Big 5 | $48–$204/yr |
| Seniors (60+) | All Big 5 | Standard monthly fee waived |
| Youth (under 18) | All Big 5 | Free youth accounts |
| New immigrants | All Big 5 (first 12 months) | 1 year fee waiver |
| Multi-product (mortgage + account) | Most Big 5 | Reduced or waived fees |
| Minimum balance ($3,000–$6,000) | TD, BMO, Scotiabank, CIBC (RBC uses bundled Value Program pricing instead of a balance threshold) | Monthly fee waived |
| Staff/employee plans | Varies | Various discounts |
The Bottom Line
There is no financial justification for paying $15-$17 per month for a bank account when free alternatives offer identical or better services. If you value branch access, keep a basic Big 5 account and waive the fee with a minimum balance. Move your savings to an online bank for 4%+ interest. And stop paying for services — e-Transfers, bill payments, unlimited transactions — that every no-fee bank includes for free.
For help with other banking problems — frozen accounts, declined cards, unauthorized charges, and NSF disputes — see the account issues guide for Canada.