The monthly chequing fees charged by the Big Banks are largely avoidable and is why I am discussing the best free chequing accounts available to Canadians this year. Similar to investing fees (think mutual funds), Canadians pay some of the highest bank fees in the world. As per CBC News, Canadians pay more than $200 in annual bank fees.
Canadians do have free options when it comes to where they open their personal bank accounts – be it chequing or savings. While loyalty may be a good virtue, you definitely do not need to stay ‘married’ to your traditional bank, shelling out monthly bank fees month after month if there are no obvious and incremental benefits.
What are you looking for in a free chequing account?
The best no-fee bank account for you will depend on what your needs are. In general, you will want to ensure access to an account with:
- Zero monthly fees
- Unlimited free transactions including debits, POS payments, pre-authorized bill payments, transfers, and more
- No minimum balance
- Easy access to free ATMs (national and international)
- Excellent customer support
- Versatile mobile app with the ability to make mobile cheque deposits and a user-friendly website for online banking
- Easy and free money transfers
- CDIC insurance – up to $100,000 per category of deposit
- Free electronic statement
- Bonus: Interest earnings on your account balance. Yes, you can earn interest on your chequing account!
- Bonus: Free cheque books
If you noticed, I did not mention access to in-person banking because this is either unavailable or limited when you are seeking a no-fee bank account. Free chequing accounts are made possible when banks save on the operational costs it takes to maintain brick-and-mortar branches by functioning as online-only or keeping only a few branches.
How to get a free chequing account with the big banks
My top picks for the best no-fee bank accounts in Canada do not include any of the biggest banks – popularly referred to as the “Big Five.” This is no surprise. With monthly fees ranging from around $4 to $30, these banks make a lot of money for their shareholders, as they should.
That being said, there are some ways to operate a free or ‘cheaper’ chequing account with the big banks if you would rather not close your account with them. These include by:
- Maintaining a minimum balance in your account – anywhere from $1,000 to $6,000. This can be tricky because if you dip below this balance at any point during the month, the fee becomes applicable. Also, note that your account balance is not earning interest while your money is just sitting there.
- Opening multiple accounts e.g. when you have credit cards, mortgage, investments, and more with the same bank. I do not like this option either because if your bank does not offer you the best mortgage rate for instance, why would you obtain your mortgage from them?
If moving all your bank accounts to an online-only bank feels challenging to you, these two options above may help you avoid or pay much lower monthly fees.
The Best No-Fee Bank Accounts in Canada
These are some of the best no-fee banking available in Canada today.
1. Tangerine No-Fee Chequing Account
Tangerine (formerly known as ING Direct) is an online-only bank owned by Scotiabank. They offer a free chequing account and a high-interest savings account (offers a 2.80% promotional rate for 5 months).
Tangerine’s free chequing account offers:
- Zero monthly fees and unlimited transactions
- Access to 3,500 Scotiabank ATMs within Canada and 44,000 worldwide
- 24/7 phone support
- A versatile app that supports instant cheque deposits
- Interest payments of up to 0.15% on your account balance
- Free unlimited email money transfers
- Your first chequebook is free (50 cheques) and costs $20 after
Some fees to note include their $1 fee per Interac e-Transfer if you do not want to use email money transfer, and a $10/year inactive account fee. An account is considered ‘inactive’ if you do not make a single transaction for 12 months.
Promotion: Tangerine is offering a
$200 cash bonus when you open a free chequing account. And, this is how it works:
- Open an account using this link
and deposit at least $100 in your account to get a $50 bonus.
To receive the additional
- Switch your payroll direct deposit to your Tangerine Account, OR
- Switch 2 pre-authorized payments of at least $50 each to your new account
Your additional $150 bonus is paid after 3 months of payments/deposits.
2. Wealthsimple No-Fee Cash Account
Wealthsimple’s new cash account is the perfect combination of a savings and chequing account. This innovative account provides all the best features you have ever wanted to have in both accounts. Even better, it has no monthly fees. Note that some of the features below are still being rolled out over the next few months.
Features of Wealthsimple Cash include:
- No monthly account fee
- 0.90% interest rate on every dollar
- Unlimited withdrawals, e-Transfers and bill payments
- Free ATM withdrawals – coming soon
- No foreign exchange transaction fees (2.5% savings) – coming soon
- A premium tungsten metal debit card – coming soon
- No minimum account balance
- CIPF protection
This account is great for both spending (chequing) and savings and the interest rate is one of the best you will find in Canada. Read my complete Wealthsimple Cash review.
In addition to their savings and chequing accounts, Wealthsimple also offers an online investment service that’s worth checking out. You can invest up to $10,000 for free.
3. Motusbank No Fee Chequing Account
motusbank is Canada’s newest online-only bank. They are owned by the popular Meridian Credit Union and offer a no-fee chequing account, high-interest savings, mortgages, personal loans, investments, and more.
Features of motusbank’s free chequing account are:
- $0 monthly account fees
- Up to 0.50% interest payments on your account balance
- Free and unlimited Interac e-Transfers
- Unlimited free transactions, including debit purchases, withdrawals, and bill payments
- First cheque book is free (25 cheques)
- Mobile app with easy mobile cheque deposits
- Free access to more than 3,700 ATMs across Canada
A fee to note is their $30 inactive account fee if you don’t use your account in 12 months.
Read my complete motusbank review here.
4. Simplii Financial No Fee Chequing Account
Simplii Financial (formerly known as PC Financial) is owned by CIBC. They offer a no-fee chequing account, high-interest savings, mortgages, and more.
Features of their free chequing account include:
- No monthly fees and no minimum balance
- Free unlimited transactions including debit purchases and pre-authorized bill payments
- Free Interac e-Transfers
- Free access to 3,400+ CIBC ATMs across Canada
- Interest payments of up to 0.15% on your account balance
- Versatile app and user-friendly website
- Free cheque books
A fee to note is the $20/year inactive account fee if you do not conduct any transactions for 2 years or more.
Simplii Financial is currently offering a $200 cash bonus when you open a free chequing account. You receive an initial $100 when you set up direct payroll deposits and receive at least two payments. You can qualify for the remaining $100 bonus by:
- Setting up pre-authorized bill payments
- Adding your Simplii debit card to Apple Pay, Samsung Pay, or Google Pay
- Registering for Interac e-Transfer Auto-deposit
5. Motive Financial
Motive Financial (formerly known as Canadian Direct Financial) is a division of the Canadian Western Bank. They offer two free chequing accounts (Motive Chequing and Motive Cha-Ching Chequing), savings accounts, investments, and more.
Motive Chequing account offers:
- Zero fees and unlimited transactions
- Free access to the second largest ATM network in Canada
- Up to 0.25% interest is paid on your account balance
- Mobile app
- First cheque book (of 50 cheques) is free
Fees to note include a $1 fee per Interac e-Transfer and a $20 inactive account charge that kicks in after 2 years of no transactions.
6. Manulife Advantage Account
This one-of-a-kind account combines the features of a chequing and savings account, and offers:
- Free unlimited transactions (including Interac e-Transfers) with a minimum $1,000 account balance
- High-interest rates on your account balance
- Free access to over 3,000 ATMs across Canada
- A mobile app that supports cheque deposits, e-Transfers, and more
- 24/7 customer support
Note that an inactivity fee of $20 may apply after 2 years of no transactions.
Bonus: Credit Unions
There are several credit unions that offer a great chequing account package for free. Your deposits with them are also protected by provincial deposit insurance.
DUCA Credit Union
They have branches across Southern Ontario and offer a free chequing account with:
- Unlimited transactions and no minimum balance
- Free access to thousands of ATMs through The Exchange Network
- $100 bonus ($50 for you and $50 for a charity of your choice) when you open an eligible new account
First Calgary Financial
Based in Alberta, they offer a no-fee chequing account that requires no minimum balance, offers unlimited transactions, and pays you an interest rate of between 0.025% and 0.05%.
Cornerstone Credit Union
This credit union is based in Saskatchewan. Their no-fee chequing account offers unlimited transactions, unlimited Interac e-Transfers, a no-minimum balance requirement, and free access to thousands of ATMs across Canada.
Cambrian Credit Union
They are based in Manitoba and offer a free chequing account when you set up at least one recurring direct deposit (e.g. payroll) to your account.
There are many options to choose from if you are looking to stop paying monthly bank fees. Online-only banks have a few downsides and may not be attractive to individuals who prefer face-to-face transactions, or who conduct a lot of atypical or business transactions, such as bank drafts or international bank transfers. However, for most people, these are not going to be daily banking needs.
If you are anything like the average Canadian, a no-fee bank account means you could save $200+ every year! This is good money you could put towards other endeavours. My top pick for the best no-fee bank account is the Tangerine No-Fee Chequing Account!
KOHO: The KOHO prepaid Visa card and app will help you save on your banking fees, while also rewarding you every time you spend with a 0.50% cash back.
Open a KOHO account here and enter the promo code CASHBACK to get a bonus 1% cash back on all your purchases for 90 days.
Mylo: The Mylo app automatically saves your spare change, effortlessly helping you to build wealth without changing your lifestyle.
Sign up here for a Mylo account and get a $5 welcome bonus!
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