Why Switching to a No-Fee Account Can Save You Over $100 a Year
Chequing accounts are meant to be simple tools for everyday banking. But simplicity doesn’t always come cheap. Canadians regularly pay $10 to $20 each month just to hold and use their own money. Multiply that across twelve months, and you’re easily over $120 a year, often for services you don’t fully use. Most people don’t realize how much they lose in fees because the charges are buried in bank statements, bundled into monthly plans, or deducted automatically without warning.
Switching to a No-Fee chequing Account in Canada is a good budget move. You don’t need to pay to access your money. You never did. But traditional banking models keep thriving on customers not paying attention. Here’s where those fees really come from, how they add up, and why ditching them saves you more than it seems.
Monthly Maintenance Fees
The most obvious cost is also the most overlooked: monthly account fees. Banks call them maintenance fees, service charges, or package costs. What they really are is a fee for keeping your money somewhere that profits off it.
Even basic accounts with fewer features often cost $4 to $10 monthly. Unless you consistently maintain a minimum balance (which freezes up thousands of your own dollars), you pay full price.
That’s $203.40 a year, just for access. Now layer on the smaller, less obvious fees.
ATM Withdrawal Charges
If you use your bank’s ATM network, withdrawals are usually free. The moment you step outside that network, you’re charged $2 to $3. Some machines pile on their own fees on top of that. You could be out $4 just to take out a $20 bill.
Independent ATM fees:
- Surcharge from the ATM operator: $1.50 to $3.00
- Bank fee for out-of-network ATM use: $2.00
Use a third-party ATM twice a month and you’re looking at $96 a year in withdrawal charges alone.
E-Transfer and Transaction Limits
Not all accounts include unlimited e-Transfers. Some charge per use, especially if you’re not on a premium plan. To break it down in general:
- $1 to $1.50 per Interac e-Transfer, on many entry-level accounts
- Some banks cap the number of free transactions (debit, bill payments, e-Transfers) per month, charging $1+ per extra use
If you send five e-Transfers a month on a plan that doesn’t include them, that’s $60 to $90 a year.
Overdraft Protection
Overdrafts aren’t free safety nets. Even when you have overdraft protection, it usually comes with a monthly fee and/or interest.
Let’s say you go into overdraft twice a year. That’s $10 in per-use fees or $48/year for monthly coverage. If interest is charged, that adds more.
Paper Statement Fees
Some banks charge $2 to $5 per month for sending paper statements. If you still receive physical copies, you could be spending up to $60 annually just for a piece of paper you didn’t ask for.
Account Closure or Transfer Fees
Even leaving can cost you an early account closure (within 90 days) fee of $15 to $20. Also, transferring to another institution may take up to $150 for registered accounts like TFSAs or RRSPs. These aren’t monthly but hit hard when they happen, especially if you weren’t expecting them.
No-Fee Accounts: What You Actually Get
A true no-fee account does more than eliminate monthly charges. It removes transaction limits, makes e-Transfers free, and keeps ATM access simple. Good no-fee accounts include unlimited transactions, free Interac e-Transfers, no minimum balance, and access to thousands of ATMs via ding-free networks.
That means:
- No monthly cost
- No transaction caps
- No penalty for accessing your own money
It doesn’t limit your access to service either. Many no-fee accounts still come with full mobile app features, debit cards, and bill payment options.
Common Myths That Keep People Paying
1. “You get what you pay for.”
Not in this case. Most paid accounts offer little more than marketing language around “peace of mind” or “premium banking.” The core services—transfers, withdrawals, deposits, bill payments—are identical.
2. “Higher balances make fees go away.”
Yes, but at a cost. Keeping $4,000 to $6,000 in a low-interest chequing account just to avoid a $16.95 fee is a bad trade. That money could be in a high-interest savings account or an investment vehicle, earning real returns.
3. “Free accounts must be missing something.”
Not necessarily. Some are limited, yes. But many credit unions and digital banks offer no-fee accounts with full features. The key is to check what’s actually included: free transfers, no transaction caps, and wide ATM access are the basics to look for.
The Bottom Line
Paying $100 or more per year just to access your own money doesn’t make sense anymore. Not when alternatives exist that offer the same services without the unnecessary charges.
Review your last few bank statements. Tally up the real cost. If you’re over $8 per month in account-related charges, switching saves you money without changing your habits.
