Bank fee audit

In our data, personal chequing accounts with a monthly fee range from $3.95 a month (Scotiabank Basic Bank Account, Desjardins Basic Plan) to $30.95 a month (TD All-Inclusive Banking Plan, BMO Premium, Scotiabank Ultimate Package). That’s $47.40 to $371.40 a year before any extra transaction fees, unless you keep the minimum balance that waives the fee.

In our data, EQ Bank, KOHO, Neo Financial, PC Financial, Simplii Financial, Tangerine and Wealthsimple offer chequing accounts with no monthly fee. The big banks also have $0 accounts for groups like students, newcomers and seniors. Check each account’s eligibility and what it charges for things like ATM use outside its network.

Most big-bank accounts waive the monthly fee if you keep a minimum balance all month, for example $3,000 for the TD Every Day Chequing Account and $4,000 for the Scotiabank Preferred Package in our data. If your balance dips below it for even a day, you may pay the full month’s fee. The other option is switching to an account with no monthly fee.

Our data doesn’t list a minimum balance that waives the TD Minimum Chequing Account’s $4 monthly fee. It includes 12 transactions a month, then $1.25 for each extra one. Our data also notes a fee waiver for seniors, youth or students who meet its criteria.

Our data lists a $4,000 minimum balance to waive the $16.95 monthly fee on the Scotiabank Preferred Package Chequing Account, which includes unlimited transactions. Without the waiver, it costs $203.40 a year.

In our data, the CIBC Smart Account lists a $16.95 monthly fee, with a $3,000 to $4,000 balance for the fee waiver, and the CIBC Everyday Chequing Account lists $4 a month with 12 transactions, then $1.25 each. The audit shows the Smart Account’s cost with and without the waiver, because the wording gives a range.

An annual fee is what the issuer charges each year to keep the card, usually in exchange for richer rewards, insurance or perks. In our data they run from $0 to $799. Some cards waive the first year’s fee under a welcome offer, so check what you’ll pay from year two.

Most Canadian cards in our data charge 2.5% on purchases in a foreign currency, including online shopping. A few charge less and some charge none. At 2.5%, $500 a month of foreign spending costs $150 a year in fees.

Most cards in our data charge 19.99% to 21.99% on purchases. Carrying $2,000 all year at 20.99% costs about $420 in interest, and a little more in practice because interest compounds monthly. Paying the full balance by the due date avoids purchase interest entirely.

If you’re paying a monthly fee because you don’t keep the minimum balance, switching can save the whole fee: $203.40 a year on a $16.95 account. Weigh it against what you’d give up, like branch access, a bundled credit card fee rebate or unlimited transactions, and check the new account’s ATM and e-Transfer terms.