The Monthly Fee Nobody Talks About
When I first moved to Canada, I opened a CIBC account — one of the Big Five banks, lots of branches, seemed like the obvious choice. A few months later I noticed $13–$16 disappearing from my account every month. That’s $156–$192 a year, just for having a bank account. Once I looked into it, I found multiple legitimate ways to get that fee to zero. Here’s what actually works.
Option 1: Maintain the Minimum Balance
Most of Canada’s Big Five banks (TD, RBC, BMO, CIBC, Scotiabank) waive the monthly fee if you keep a minimum balance in the account at all times. The threshold varies by bank and account plan — typically between $3,000 and $5,000. Ask your branch directly: “What’s the minimum balance to waive the monthly fee on this account?” If you’re keeping a rainy day fund or short-term savings in a chequing account anyway, this is the simplest solution with no trade-offs.
Option 2: Switch to a No-Fee Online Bank
Several Canadian banks charge zero monthly fees, period. EQ Bank, Tangerine (owned by Scotiabank), and Simplii Financial (owned by CIBC) are the most established options. EQ Bank in particular offers high-interest savings rates significantly above what the Big Five pay on chequing balances, making it useful as both a daily banking account and a savings tool. The trade-off is limited or no physical branches and a smaller ATM network. For everyday transfers, bill payments, and Interac e-Transfers, these accounts work perfectly fine.
Option 3: Use a Newcomer Banking Package
All of Canada’s major banks offer Newcomer Banking Packages designed for new immigrants. These typically waive the monthly fee for one to three years, and often include a bundled credit card offer and sometimes a small loan product to help build your Canadian credit history from scratch. If you’re new to Canada and don’t yet have credit history, the newcomer package at a Big Five bank can be the most practical starting point — you get the fee waiver plus a structured path to building credit. TD, RBC, BMO, CIBC, and Scotiabank all have versions of this package; ask specifically about it when opening your first account.
Option 4: Senior or Government Benefit Recipient Discounts
If you’re 60 or older, or if you receive government benefits such as OAS (Old Age Security) or GIS (Guaranteed Income Supplement), some banks automatically waive monthly fees or provide a free basic account. This isn’t heavily advertised — you usually need to ask at the branch or check the bank’s account comparison page for senior-specific options.
Other Fees to Watch For
Monthly fees aren’t the only cost to watch. Many accounts include a limited number of free transactions per month — exceeding that limit results in a per-transaction charge of $1–$1.50. Using a competing bank’s ATM typically costs $2–$5 per withdrawal, on top of whatever the ATM operator charges. Interac e-Transfer is free on most standard plans, but check if your specific account has any restrictions. Reviewing your monthly account statement once when you first open an account — and again when switching plans — takes five minutes and can save you from quietly paying fees you weren’t aware of.
The Four Methods Compared
Here’s a side-by-side comparison so you can quickly see which method fits your situation. Start with the row that matches your balance, age, or residency status.
| Method | Best for | Key condition | Expected result |
|---|---|---|---|
| Keep a minimum balance | Those who can always maintain a set balance | Stay above the account’s threshold | Monthly account fee waived |
| Switch to a no-fee online bank | Those who rarely need a branch | Move your account to an online-only bank | $0 monthly fee |
| Student / newcomer package | Students or recent immigrants | Proof of eligibility (enrolment, landing, etc.) | Temporary fee waiver and perks |
| Senior / benefit recipient discount | Seniors or government benefit recipients | Meet age or benefit eligibility | Reduced fees |
If more than one applies to you, ask your bank whether they can be combined so you get the best possible arrangement.
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