Save unnecessary costs with one simple change in your banking affairs: MoneySense

Recently, 14 financial institutions– including all six major banks – agreed with the Consumer Financial Agency of Canada (FCAC) to offer low-cost and free bank accounts to all Canadians. Bank account shopping just got more profitable.

Will another bank account really save me money?

If you already have a low-cost or free bank account that meets your needs, no change is necessary. But for everyone else, it could be hundreds of dollars involved.

If you have a standard checking account with one of the major banks, you will probably pay somewhere in between $15.95 and $17.95 per month. Over a year, that amounts to about $200! That’s a few hundred you could put toward your retirement savings (or into a rainy day fund).

About cheap and free accounts

On December 1, 2025, the Commitment to low cost and free accounts came into effect in Canada. It means that fourteen financial institutions agree on this no more than $4 per monthAll Canadians have access to a bank account with:

• Minimum 18 transactions per month
• Free digital monthly statements

• Check write permissions
• No minimum balance
• No account switching fees with the same signer
• No additional fees for deposits, debit cards and pre-authorized payment forms
• No additional fees for monthly printed statements and check returns or viewing checks online
• Joint accounts, if the situation is justified (e.g. married/common law couple etc.)
• Other services, for a reasonable fee

Bank fees of $4.00 over twelve months are only $48.

Some Canadians may even qualify for one complete waiver of fees. Contact your bank if you:

Other options for cheap and free bank accounts

Even if your bank hasn’t joined the FCAC agreement, they probably still offer low-fee accounts. If you are a member of one of the groups mentioned above, ask them to reduce your costs. Research accounts or banking packages for students, seniors and newcomers.

Digital banks often offer free accounts. They also typically have very competitive interest rates and unique financial products. If you are comfortable arranging your finances online, check this option.

A step-by-step guide to switching bank accounts

One of the main reasons people hesitate to change banks is that they fear it will be a hassle. Changing accounts, or even moving to a new bank, is actually very simple. Here’s how:

If you are change accounts within a bankyou can usually do this in person, online or via your bank’s app.

1. Open the new account.
2. Transfer your money from the old account to the new one via an ATM or via online/mobile banking.
3. Redirect any automatic withdrawals, scheduled bill payments, and direct deposits to the new account.
4. Close the old account.

You follow the same steps to change banks; the only difference is in how you move your money. Since it will be between two different financial institutions, you will need to use Interac e-Transfer or an electronic transfer. Some banks may ask you to make the deposit through their ATMs.

One of the benefits of switching to a digital bank is that money transfers are easy. Normally you can link your new account (all online) to your old one and transfer the money there. Check with both banks before you start.

Still not convinced?

There are many reasons why people delay transferring their money, even when they see the true cost of bank fees. Some people worry that they will make a costly mistake during the transfer. Others feel safe if all their financial products are with the same institution. Some people just don’t like change; a fact that the banks depend on to continue collecting your fees!

But if you’re looking for a way to cut household costs, it’s pretty easy to start with unnecessary bank fees. Just four steps and you can start planning what to do with the extra money in your account.

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