How to Save on Chequing Account Fees in Canada

As a Canadian, you probably need a place to store your money. Whether you choose to use a savings vs chequing account, the services associated with having a bank account unfortunately do not come for free. While you likely need to pay a cost, it doesn’t need to break the bank either. By understanding how these fees work, you can get a better idea of how to reduce the expense. Or, even, switch to a new bank or credit union if needed.

Common chequing account fees to watch for

Canadians often pay chequing account fees tied to everyday banking activity. Typical costs include the following:

• Monthly account fees. These vary by plan and often increase with added features.
• Transaction charges. Some chequing accounts have limits on transactions and will charge extra if you go over your allotment. But, as RBC explains, “the exact fee depends on the type of transaction” you make.
• Non-sufficient funds (NSF) fees. Historically, banks would charge $45 to $50 if your account balance was short on funds to cover a transaction. But, effective March 2026, the Government of Canada will limit this charge to $10 for federally regulated institutions.
• Overdraft fees. These costs accumulate anytime your account balance dips below zero. While access to overdraft protection often prevents NSF charges, the expense of the program can add up as well.
• Interac e-transfer charges. Some basic account plans charge extra to send money to someone else. Usually, incoming e-transfers are at no cost for most personal chequing accounts.
• ATM withdrawal fee. While there is typically no fee for ATM deposits within your bank’s network, some plans charge extra for withdrawals. Using an out-of-network ATM can also result in additional costs including a convenience fee from the ATM’s owner.

Even the biggest banks in Canada use these fees to offset some of their operating costs. It also encourages customers to select higher-tier plans.

Choose a chequing account that matches your usage

One of the easiest ways to save on chequing account fees is to find an account that fits how you actually use it. Banks offer everything from low-fee chequing accounts with transaction limits to premium plans and private banking. The catch? “Unlimited” programs often involve paying for services that many Canadians will never use.

To start searching for a new account, begin by looking at the lower-fee account options. Evaluate if the plan is right for you. Most allow a set number of monthly transactions which means if you go over the limit, you pay extra. This chequing account type will work well if you only use your account for a handful of debit purchases and rarely visit an ATM. Heavy users are another story. Frequent debit card spending, regular e-Transfers, and repeated cash withdrawals add up, pushing you past the limits and often lead to overage fees. Work your way up in the plan options until you find one that best suits your money management style.

Tip: Before you open a new bank account, review your habits. Count your monthly transactions, and be honest about your spending. Then, select a plan accordingly.

How to avoid monthly chequing account fees

It’s not always possible to prevent monthly chequing account fees altogether, but you can usually save some money on them. One common strategy to cut down on costs is to maintain a minimum balance in your account. Some banks, like TD, for example, will offer a fee rebate for certain accounts if you keep a minimum daily balance. This option works well, but only if you aren’t stretching your budget to maintain the funds. In some cases, though, the financial strain of a minimum balance is not worth the fee savings.

Another option is to bundle products. For example, opening a savings account in addition to a credit card and investment account can help you unlock fee rebates. You can also consider digital-only or no-fee chequing accounts, though the plan may limit your ability to access in-person services.

Also, consider asking your bank about a temporary fee waiver. If they do not have the option, they can instead help you to downgrade to a lower-cost plan. Policies do vary though, so check with your bank to see if it’s a possibility.

Reducing transaction and ATM fees

If you don’t track how often you actually use your chequing account, it's possible to see your transaction fees creep up. To minimize additional costs, start by staying within your monthly transaction limit. Many accounts include a set number of debit card purchases, bill payments, and e-Transfers. Exceed these caps, and each extra transaction will have an associated fee.

ATM use matters too. Stick to your bank’s ATM network whenever possible. Private or out-of-network machine use can mean paying two fees at once: one from the ATM’s owner and another from your bank. If you cannot access your bank’s ATM, consider consolidating your withdrawals. Take out a larger amount initially rather than making several small withdrawals. This is the difference between paying one and paying multiple fees, especially if you’re traveling and are dealing with foreign ATM charges.

Preventing overdraft and NSF fees

Overdraft and NSF fees add up quickly when you rely on them regularly. These charges hit your account anytime the balance goes negative or your transaction declines because of a lack of funds in your account. To reduce the risk, turn on low-balance alerts so you receive a notification anytime your account drops below a certain amount. It allows you time to move money into the account, in turn avoiding extra fees. You can also opt to link a savings account for overdraft protection. For some, personal preference may mean declining overdraft coverage altogether. Choose the option that allows you to stay in control while avoiding unnecessary penalties.  

Takeaway: When switching chequing accounts makes sense

While you can minimize the fees you pay with a few careful actions, in some cases, it’s worth switching chequing accounts to find one that better aligns with your spending habits. If you pay monthly fees you no longer offset, regularly exceed your transaction limit or shell out money for features you rarely use, it is a sign that your account type may no longer serve you. Fee creep often happens as prices rise or old discounts expire. It’s a signal to reassess. Consider reviewing your statements at least once a year and compare chequing accounts before costs climb any further. Remember, even a small change in your plan can add up to meaningful savings over time.