How Canadians Can Tell If Their Bank Account Fees Are Too High

If you pay $15 a month for a basic chequing account, that’s $180 a year just to access your own money. Over a decade, that same fee adds up to $1,800 — and that’s before you factor in a single ATM withdrawal, e-Transfer, or paper statement. A 2025 survey by Money.ca found that 53% of Canadians have already switched financial institutions at least once because of rising fees, and another 13% are actively looking to move. That means nearly two out of three Canadians have either switched or are ready to. The question isn’t whether you’re paying fees — it’s whether you’re paying more than you need to.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

53%
of Canadians have already switched banks due to rising fees
Money.ca

$180
average yearly cost of a $15/month chequing fee
Hashtag Investing

$250
average annual bank fees paid by Canadians in 2022
Wealth Awesome

$10
new federal cap on NSF fees starting March 2026
Wealth Awesome

Those numbers don’t tell the whole story. A single out-of-network ATM withdrawal can cost you up to $9 in combined fees. A bounced payment can set you back $45 or more. And if you’re paying for paper statements, bank drafts, and a handful of e-Transfers each month, you could easily be spending $300 to $500 a year without noticing it. The good news is that most of these fees are avoidable — but only if you know what to look for and where to look. Here’s what you actually need to know.

What the Research Actually Reveals About Bank Fees

Monthly fees are the biggest drain
A $15 monthly chequing fee costs $180 a year. Many banks waive it if you keep a minimum balance, but if you don’t, you’re paying for nothing.

NSF fees are about to drop dramatically
The federal cap of $10 per NSF fee starting March 2026 will save Canadians an estimated $4.1 billion over the next decade. Currently, fees can hit $48 per occurrence.

Switching is more common than loyalty
Only 9% of Canadians remain loyal to their bank despite rising fees. Over half have already moved institutions at least once because of cost.

Hidden fees add up fast
ATM fees, e-Transfer charges, paper statement fees, and bank draft costs can quietly add $100–$200 a year on top of your monthly account fee.

When people talk about bank fees, they usually mean the monthly account maintenance fee. That’s the obvious one. But the real cost is often in the less visible charges — the ones that hit you when you’re not paying attention. A monthly account maintenance fee is the standard charge for keeping a chequing account open, typically ranging from $5 to $25 a month depending on the account type and the bank.

Monthly Account Maintenance Fee
A recurring charge for holding a chequing account, usually waived if you maintain a minimum daily balance or meet certain transaction thresholds.

What I tend to notice is that people focus on the monthly fee and ignore everything else. A $4 low-cost account looks like a bargain until you realise you’re paying $1.50 per e-Transfer and $3 every time you use the wrong ATM. The total picture matters more than the headline number.

Monthly Fees, NSF Charges, and the Thresholds That Catch You Off Guard

Monthly chequing fees vary widely by bank and account type. Low-cost accounts from the big banks cap out at around $4 a month with limited transactions — BMO’s Practical Plan, for example, costs $4 for 12 transactions. Standard accounts run $10 to $25, often with unlimited transactions. But the real difference is in how you can avoid them.

→ Scroll right to see all columns

Source: Wealth Awesome fee breakdown
Account TypeMonthly FeeTypical Way to Waive
Low-cost (e.g. BMO Practical Plan)$4Not usually waived; 12 transactions included
Standard chequing (e.g. RBC Day to Day)$10–$16Minimum daily balance of $3,000–$5,000
Premium chequing (e.g. TD All-Inclusive)$25–$30Minimum balance of $5,000–$6,000
No-fee online (e.g. Tangerine, EQ Bank)$0No minimum balance required

NSF fees are a different beast. Currently, a single bounced cheque or failed automatic payment can cost you $45 to $48. That’s a steep price for a timing error. The federal government’s new cap of $10 per occurrence, effective March 12, 2026, will cut that cost by roughly 80%. The new rules also restrict banks to charging the fee only once every two business days and waive it entirely for overdrafts under $10. The projected savings over the next decade: $4.1 billion.

The $10 NSF Cap Changes Everything
Starting March 12, 2026, NSF fees drop from as high as $48 to a maximum of $10 per occurrence. If you currently bounce a payment every few months, that’s a saving of $100–$200 a year without changing anything.

Out-of-network ATM fees are another trap. You get charged twice — once by your own bank (usually $1.50 to $2.50) and once by the ATM owner (anywhere from $1 to $5). That means a single $20 withdrawal from the wrong machine can cost you up to $9 in fees. If you withdraw cash once a week from an out-of-network ATM, you’re looking at roughly $242 a year in fees alone. Credit union members who are part of Canada’s Exchange Network can access 40,000 U.S. ATMs in the Allpoint network without surcharges, which is worth knowing if you travel frequently.

Where People Get Stung — and How to Fix It

Paying for paper statements you don’t need

Paper statement fees can run $2 to $5 per month. That’s $24 to $60 a year for something most banks offer for free in digital form. For people who need paper records — for disability needs, elder care, tax files, or limited internet access — this fee feels especially unfair. The fix is simple: switch to digital statements in your online banking portal. If you genuinely need paper copies, ask your bank about a fee waiver. Some will waive it if you hold multiple products.

Letting e-Transfer fees pile up

Interac e-Transfers typically cost $1 to $1.50 per transfer. If you send five a month, that’s $60 to $90 a year. Many accounts now include e-Transfers at no extra cost, especially no-fee online accounts from Tangerine or EQ Bank. If you’re paying per transfer, check whether your current account includes them or whether switching to one that does would save you money.

Overlooking bank draft and certified cheque fees

Need a bank draft for a down payment or a certified cheque for a deposit? Those can cost $10 to $20 each. For a one-off purchase, that’s manageable. But if you’re moving money regularly — for rental deposits, property purchases, or large transfers — these fees add up. Electronic transfers or direct deposits are almost always cheaper. If you must use a draft, ask your bank whether it can be waived as a loyalty perk.

Missing the minimum balance waiver by a few dollars

Many standard chequing accounts waive the monthly fee if you keep a minimum daily balance of $3,000 to $5,000. Drop below that by even a dollar on a single day, and you’ll be charged the full monthly fee. That’s a $15 fee for a one-day shortfall. The fix: set up a low-balance alert in your banking app, or keep a small buffer of $100 above the minimum to avoid accidental dips.

How to Check Your Own Fees and Decide What to Do

Start with your last three bank statements

Your monthly statement lists every fee charged — account maintenance, ATM withdrawals, e-Transfers, paper statements, NSF charges, and bank drafts. Go through the last three months and add up every fee. That’s your baseline. If you’re paying more than $10 a month in total fees, you’re almost certainly overpaying. Online banks like Tangerine and EQ Bank offer no-fee chequing accounts with unlimited transactions and no minimum balance. The trade-off is fewer physical branches, but if you rarely visit a branch anyway, that’s not a real loss.

Compare what you’re getting for what you’re paying

Premium accounts come with perks — free safety deposit boxes, discounted drafts, travel insurance, and higher interest rates on savings. If you use those perks, the monthly fee might be worth it. If you don’t, you’re paying for benefits you never touch. A good rule of thumb: if you’re paying more than $10 a month and don’t use at least two of the included perks, you’re better off in a no-fee or low-cost account.

Check exit fees before you switch

Switching banks isn’t free. TD raised its RRSP and TFSA transfer-out fee to $150 in 2025, matching RBC’s earlier change. If you have multiple registered accounts, those exit fees can add up fast. Before you move, total up what it would cost to close your accounts. If the exit fees are higher than a year’s worth of monthly fees, it might make more sense to keep the account open with a minimum balance and open a new no-fee account for everyday banking.

What’s changing in 2026 that you should plan for now

The March 2026 NSF fee cap is the biggest regulatory change in Canadian banking fees in years. If you currently bounce payments occasionally, you’ll save money automatically. But the cap doesn’t apply to business accounts, and it doesn’t stop banks from charging other fees. If you’re planning to switch, do it before the cap takes effect — some banks may adjust other fees to offset the lost NSF revenue. Keep an eye on your account’s fee schedule in early 2026.

Frequently Asked Questions

Can I negotiate my bank fees with my current bank?
Yes. Long-term customers or those with multiple accounts (chequing, savings, credit card, mortgage) often have leverage. Ask for a fee waiver or a downgrade to a lower-cost account. Banks would rather keep you than lose you to a competitor.
Do credit unions charge lower fees than big banks?
Generally, yes. Credit unions often have lower or no monthly fees, and many are part of Canada’s Exchange Network for fee-free ATM access. Their product range is smaller, but for basic banking they’re often cheaper.
What happens if I switch banks and miss updating a bill payment?
The payment will fail, and you could be charged a late fee by the biller plus an NSF fee by your old bank. Use a switching checklist: list every automatic payment and direct deposit, update them one by one, and keep your old account open for at least one billing cycle to catch anything you missed.
Are there any fees that online banks don’t charge?
Most online banks (Tangerine, EQ Bank, Simplii) charge no monthly fee, no e-Transfer fees, and no paper statement fees. They may still charge NSF fees (though capped at $10 from March 2026) and out-of-network ATM fees, though some reimburse a portion.
Does the $10 NSF cap apply to business accounts?
No. The federal cap applies to personal and joint accounts only. Business accounts are not covered by the new regulation. If you run a small business, check your account’s fee schedule separately.
How do I find out what my current bank charges for each fee?
Your bank’s fee schedule is available on its website or in your account agreement. You can also ask a branch representative for a printed copy. Compare it against the rates in this article to see where you’re overpaying.

The Real Cost of Doing Nothing

Bank fees are one of the few expenses you can reduce without changing your lifestyle. You don’t need to spend less or earn more — you just need to look at what you’re being charged and decide whether it’s fair. The 53% of Canadians who have already switched banks have proven that the market is competitive. The only person who loses by staying put is you. If you’re paying more than $10 a month in total fees and you’re not getting clear value in return, you have options. The 2026 NSF cap will help, but it won’t fix a monthly fee that’s too high for what you actually use.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read Smart Savings Strategies for Optimized Wealth Execution in Canada.

Sources and Further Reading

Save Big: Top Tips for Shopping at Wholesale Clubs in Canada — Practical ways to cut everyday costs, from grocery fees to membership strategies.

Money.ca (2025). Fed up with fees: Over half of Canadians have switched banks over fees. 🔗

Wealth Awesome (2025). 13 Bank Fees in Canada and How to Avoid Them. 🔗

Hashtag Investing (2025). 13 Bank and Service Fees Canadians Are Starting to Refuse in 2026. 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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