The average Canadian pays $200-$400 per year in bank fees. Here's how to reduce or eliminate them completely.
Monthly Account Fees
The Problem: Big banks charge $10-$30/month for chequing accounts.
How to Avoid
- 1. Switch to a no-fee bank – Tangerine, Simplii, EQ Bank charge $0/month
- 2. Maintain minimum balance – Most banks waive fees if you keep $3,000-$5,000 in your account
- 3. Bundle services – Some banks waive fees if you have a mortgage, credit card, or investment account with them
- 4. Student/senior accounts – Free banking for students under 25 and seniors 60+
Example: If you're paying $15/month in account fees, switching to Tangerine saves you $180/year.
ATM Fees
The Problem: Using an out-of-network ATM costs $3-$5 per withdrawal.
How to Avoid
- 1. Use your bank's ATMs only – RBC customers use RBC ATMs, TD customers use TD ATMs
- 2. Get cash back at stores – Free at grocery stores and pharmacies when you make a purchase
- 3. Use online banks – Tangerine uses Scotiabank ATMs free, Simplii uses CIBC ATMs free
- 4. Plan ahead – Withdraw larger amounts less frequently to minimize trips
Overdraft & NSF Fees
The Problem: Overdrawing your account costs $45-$48 per transaction (NSF fee).
How to Avoid
- 1. Link to savings – Set up automatic transfers from savings to cover overdrafts (usually $5 fee instead of $45)
- 2. Overdraft protection – Costs $5/month but prevents NSF fees if you occasionally overdraw
- 3. Low balance alerts – Set up text/email alerts when your balance drops below $100
- 4. Track your spending – Use budgeting apps or check your balance regularly
- 5. Keep a buffer – Always keep $100-$200 cushion in your chequing account
Warning: One NSF fee costs $45-$48. If you bounce 3 payments in a month, that's $135-$144 in fees. Avoid this at all costs.
Interac e-Transfer Fees
The Problem: Some banks charge $1-$1.50 per e-transfer.
How to Avoid
- 1. Use unlimited plans – Many accounts include unlimited free e-transfers
- 2. Switch to no-fee banks – Tangerine, Simplii, and most online banks offer free e-transfers
- 3. Upgrade your account – Premium accounts often include free e-transfers
Foreign Transaction Fees
The Problem: Using your debit card abroad costs 2.5-3.5% + $3-$5 per transaction.
How to Avoid
- 1. Use a no-fee travel credit card – Scotiabank Passport Visa Infinite, Home Trust Preferred Visa
- 2. Withdraw cash once – Take out a larger amount at the start of your trip instead of multiple small withdrawals
- 3. Use Wise (formerly TransferWise) – Multi-currency debit card with real exchange rates
- 4. Avoid airport ATMs – They have the worst exchange rates and highest fees
Inactivity Fees
The Problem: Some banks charge $20-$25/year if you don't use your account.
How to Avoid
- 1. Close unused accounts – If you're not using it, close it
- 2. Make one transaction per year – Even a $1 transfer keeps the account active
- 3. Set a calendar reminder – Check your old accounts annually
Paper Statement Fees
The Problem: Some banks charge $2-$4/month for mailed paper statements.
How to Avoid
- 1. Switch to e-statements – Free and instant via online banking
- 2. Download PDFs – Save digital copies if you need records
The Ultimate Fee-Free Setup
Zero Fees, Maximum Benefits
- Chequing: Tangerine or Simplii (no monthly fees, unlimited transactions, free e-transfers)
- Savings: EQ Bank HISA (3%+ interest, no fees)
- Credit Card: No-fee cash back card (2% on everything)
- Travel: Scotiabank Passport Visa Infinite (no foreign transaction fees)
Total annual fees: $0 (vs $200-$400 at a big bank)
By making a few strategic choices, you can eliminate bank fees entirely and keep more of your hard-earned money.