Stop Paying Monthly Bank Fees
Let’s do some quick math. If you are with a “Big 5” Canadian bank (TD, RBC, Scotiabank, BMO, CIBC), you are likely paying around $16 a month for a standard chequing account with unlimited transactions.
$16 x 12 months = $192 a year. Over 10 years, you will pay your bank $1,920 just for the privilege of letting them hold your money.
In the modern era of digital banking, paying a monthly fee for a chequing account is entirely optional. Let’s look at how to choose the right account for your lifestyle.
Option 1: The Zero-Fee Digital Banks (Best for 90% of People)
If you do not frequently deposit physical cash, need bank drafts, or require in-person teller service, you should immediately switch to an online-only bank. Because they don’t have to pay for expensive physical branches, they pass the savings on to you.
| Bank | Monthly Fee | E-Transfers | ATM Network | Standout Feature |
|---|---|---|---|---|
| Tangerine | $0 | Unlimited | Scotiabank ATMs (Free) | Backed by Scotiabank. Excellent mobile app and frequent promotional interest rates. |
| Simplii Financial | $0 | Unlimited | CIBC ATMs (Free) | Backed by CIBC. Offers free cheques (Tangerine charges for them). |
| Wealthsimple Cash | $0 | Unlimited | Any ATM (Rebated) | Earns 4%+ interest on your chequing balance. Operates more like a prepaid Mastercard but functions as a bank account. |
| EQ Bank | $0 | Unlimited | Any ATM (Rebated) | Excellent high interest rates, no foreign transaction fees on their card. |
The Verdict: If you just need a place for your paycheck to land, bills to be paid, and to send e-Transfers to friends, open a Tangerine or Simplii account today and save yourself $192 a year.
Option 2: The “Minimum Balance” Premium Accounts
What if you do need a Big 5 bank? Maybe you run a cash business, you need safety deposit boxes, or you frequently need certified cheques.
You can still avoid the $16 to $30 monthly fees. Every Big 5 bank offers a Minimum Balance Waiver.
- TD All-Inclusive Banking Plan: Costs $29.95/month. Fee waived if you keep a minimum balance of $5,000 in the account at all times.
- Scotiabank Ultimate Package: Costs $30.95/month. Fee waived if you keep a minimum balance of $6,000.
Is the Minimum Balance Worth It?
Leaving $5,000 sitting in a chequing account earning 0% interest has an “Opportunity Cost.” If you put that $5,000 in a Wealthsimple HISA earning 4%, it would generate $200 a year in interest. If you pay the TD monthly fee ($30 x 12), it costs you $360 a year.
Therefore, keeping $5,000 trapped in the account to save $360 is mathematically a winning move (you “save” more than you would have earned in interest). Plus, these premium accounts usually come with a premium credit card that waives the $120 annual fee, making the math even better.
Option 3: Student & Youth Accounts
If you are a post-secondary student, or under the age of 25 (varies by bank), you should never pay a banking fee. Every single Big 5 bank offers completely free, unlimited transaction accounts for students.
Pro Tip: The moment you graduate or age out, the bank will automatically transition you to an expensive $16/month account hoping you don’t notice. Set a calendar reminder for your graduation month to call them and downgrade or move to Tangerine.
Conclusion
Your chequing account is the central hub of your financial life. Don’t let it drain your wealth via “death by a thousand cuts.” Either move to a free digital bank, or park the minimum required balance at a big bank to waive the fees entirely.