Financial Consumer Agency of Canada
www.fcac-acfc.gc.ca
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Banking and Insurance: Accounts
Low-Cost Accounts
The federal government has signed an agreement with certain financial institutions under its jurisdiction. Under this agreement, eight banks have agreed to offer low-cost accounts to consumers. These low-cost accounts meet guidelines set out by the Government in February 2001 to ensure that all Canadians have access to affordable banking services. FCAC monitors financial institutions to ensure that they respect their public commitments.
The low-cost account guidelines include:
- no charge for deposits;
- the use of a debit card;
- cheque-writing privileges;
- free updated account statement or passbook record;
- 8 to 15 debit transactions per month, at least two of which can be done in-branch; and
- a maximum monthly fee of $4.00, reflecting the number of in-branch and the total number of debit transactions allowed.
The following table illustrates the main features of the service packages that banks have designated as their low-cost account.
| Bank1 -- Account Name |
Monthly Fee | Maximum Number of Monthly Debit Transactions | Minimum Monthly Balance4 (for monthly fees to be waived) |
Handling Fee for Each In-branch Bill Payment | Other Features | |
|---|---|---|---|---|---|---|
| In-branch2 | Self-serve3 | |||||
| BMO Bank of Montreal -- Practical Plan |
$4.00 | 10 | $1,500 | — | Commission-free traveller's cheques (one-signature) included. Up to 20 of chequing/savings accounts can be included within one monthly fee. | |
| CIBC -- CIBC Everyday Chequing Account |
$3.90 | 10 | $1,000 | — | Free access to PC Financial ABMs | |
| HSBC -- Performance Chequing - Limited |
$4.00 | 10 | — | — | One free additional debit for each direct deposit. Free access to ABMs of THE EXCHANGE® Network and to BMO Bank of Montreal ABMs. | |
| Laurentian Bank -- Transact a little |
$2.95 | 2 | 6 | — | $2.00 | — |
| National Bank -- Accessible |
$3.95 | 2 | 10 | — | $2.00 | $1.00 handling fee applies for each ABM bill payment. Free access to ABMs of THE EXCHANGE® Network. |
| Royal Bank -- RBC Day to Day Banking |
$4.00 | 15 | — | — | One free additional debit per automated pay deposit. | |
| Scotiabank -- Basic Banking |
$3.95 | 12 (Maximum four in-branch) |
— | — (unless paid by cash or by cheque drawn from another financial institution, than a fee of $1.50 is charged) |
— | |
| TD Canada Trust -- Value Account |
$3.95 | 10 | $1,000 | — (unless paid by cash or by cheque drawn from another financial institution, than a fee of $1.00 is charged) |
— | |
1. Some banks that did not sign the agreement or other financial institutions that are not under federal jurisdiction (such as credit unions and caisses populaires) may offer accounts similar to the low-cost accounts listed in this table. Ask your financial institution if they offer such an account.
2. In-branch debit transactions include withdrawals, transfers of funds, bill payments and balance inquiries at a financial institution. CIBC and Royal Bank's in-branch balance inquiries do not reduce the number of monthly transactions permitted. Royal Bank’s bill payments also do not reduce the number of monthly transactions permitted.
3. Self-serve debit transactions include withdrawals, transfers of funds, bill payments and balance inquiries at an ABM or by Internet/telephone. They also include cheque writing, Interac® direct payments and pre-authorized debits. Network access (Interac®) ABM fees, usually charged when you use an ABM not belonging to your financial institution, are not included, unless otherwise specified. CIBC and Royal Bank’s self-serve balance inquiries do not reduce the number of monthly transactions permitted.
4. The minimum balance must be maintained throughout the month for the monthly fee to be waived.
