How Can I Save on Chequing Account Fees?

Chequing Account Fees

In Canada, chequing accounts are generally subject to the following fees:

• Monthly fees
• Transaction fees
• ATM fees
• Interac transfer fees
• Overdraft fees

However, you can easily reduce these costs by using our best tips.

Tips for Reducing Chequing Account Fees

Maintain a Minimum Monthly Balance

Some banks waive the monthly fee on your checking account if you maintain a minimum monthly balance. If possible, keep this amount in your account to avoid paying the monthly fee. However, if this isn’t possible, consider opening a no-fee chequing account with no minimum balance requirement. This type of account is generally offered, but not limited to, by online banks.

Change Your Banking Package

There are many different types of chequing accounts in Canada. There are accounts for young people, students, newcomers, seniors and more. If you fit one of these profiles, consider changing your banking package. You’ll be able to take advantage of benefits such as unlimited transactions and waived monthly fees.

For example, here are some chequing accounts for students:

For example, here are some chequing accounts for newcomers:

Additionally, most banks waive the monthly fee on your checking account if you maintain a minimum balance during the month. If you can’t maintain the required minimum balance, you may want to consider a low-fee banking package. These include fewer no-fee transactions each month, but they save you money. Conversely, if you always maintain a high balance in your chequing account, you may want to choose a higher-fee package to get more benefits.

Use Your Bank’s ATMs

To avoid paying unnecessary fees, always make your cash withdrawals at your bank’s ATMs. Otherwise, you’ll end up paying a few dollars for each withdrawal. While these amounts may seem small, they add up quickly over the course of the year. If you don’t have a bank ATM nearby, consider requesting cash back when you make in-store purchases with your debit card.

Avoid Transaction Fees

Chequing accounts generally have a limit on the number of free transactions. When you exceed this number of transactions, you have to pay a fee for each transaction. If you can, opt for a chequing account offering an unlimited number of transactions, such as the Tangerine Chequing Account or the EQ Bank Chequing Account.

Avoid Overdraft Fees

Banks offer overdraft protection plans to allow account holders to use their bank accounts even if they have a zero balance. These transactions include the use of debit cards or cheques. Interest charges are high and sometimes include additional fees.

To avoid these charges, make sure you always have the required amount of money in your account. Alternatively, some financial institutions offer free overdraft protection.

Take Advantage of Promotional Offers

Many financial institutions are launching promotional offers to attract new customers. These may include cash rebates or gifts (e.g. iPad). However, be sure to read the conditions attached to these offers. As a general rule, these offers are very beneficial and can be combined with eligible savings account and credit card offers.

Switch Banks to Reduce Chequing Account Fees

Finally, why not switch banks to save on chequing account fees? But also to get a chequing account that better suits your needs. After all, there are a number of chequing accounts available in Canada, including no-fee chequing accounts and target-client accounts. At the same time, this could be your chance to open a high-interest savings account. Before making your choice, compare chequing account fees using our bank account comparator.

How Do I Open a Bank Account?

Opening a bank account is relatively straightforward. If you choose a bank account with a traditional bank, you can open your chequing account at a branch. If it’s an online bank, then account opening is done online, of course. The online account opening process usually takes about 15 minutes. Make sure you have all your documents on hand, such as proof of identification.

Bottom Line

In summary, chequing account fees are quite high in Canada. These include monthly fees, fees for routine transactions, fees for Interac transfers, and so on. However, there are a large number of bank account options. Think about your needs and analyze your options. If you’re thinking of changing banking package or banks, compare chequing accounts with our tool. Reducing your banking costs will save you money in the long run.

Are there any fees associated with chequing accounts?

Yes, there are fees associated with chequing accounts. These include monthly fees, transaction fees and Interac transfer fees.

How much does a bank account cost?

Chequing accounts are generally subject to the following fees: monthly fees, transaction fees, ATM fees and Interac transfer fees. However, some banks offer no-fee bank accounts (often with online banks).