Best No-Fee Bank Accounts in Canada
Tired of paying monthly fees when you bank? If so, you may want to consider switching to a no-fee bank account. Unfortunately, Canada’s big banks offer little in the way of free chequing accounts, unless you can maintain a high balance in your account each month.
If you’re willing to consider dealing with a fintech or online bank, however, you can say goodbye to monthly banking fees, and earn interest on your spending money. To help you in your search, I’ve compiled a list of six top no-fee bank accounts in Canada.
Best No-Fee Bank Accounts in Canada
As you’ll see from the list below, the best no-fee bank accounts are offered by online banks and fintechs. While you can get a free chequing account with limited transactions from some of Canada’s big banks, they’re not competitive with the best no-fee bank accounts featured here.
1. EQ Bank Savings Plus Account
What We Like: Chequing and savings features in a single account
Key Features:
- No monthly fees
- Unlimited transactions
- No minimum balance requirement
- Unlimited debit purchases
- Competitive savings interest rate
- Unlimited e-transfers
- Mobile cheque deposit
- EQ Bank card
- Free ATM withdrawals in Canada
- No FX fees
- CDIC coverage
EQ Bank’s Savings Plus Account offers free, unlimited banking and a high interest rate on the full account balance. While you can’t write cheques on the account, it has most of the features people look for in a chequing account: unlimited transactions, a debit card, bill payments, free e-transfers, mobile cheque deposits, and more. As an online bank, there is no in-person banking option, but you can transfer funds to and from a traditional bank.
Open an EQ Bank Savings Plus Account
2. Wealthsimple Cash
What We Like: Earn a high-interest rate on your full balance
Key Features:
- No monthly fees
- no minimum balance requirements
- Earn interest on account balance
- bill payments
- no FX fees
- Earn 1% cash back on spending
- Send up to $5000 daily via e-transfer
Wealthsimple has developed a reputation as Canada’s top robo-advisor platform, but it’s so much more than that. With Wealthsimple Cash, you can enjoy a no-fee bank account that pays a high-interest rate on the entire balance in your account. At the time of writing, you can earn a minimum of 4% interest on your account balance. Wealthsimple doesn’t charge foreign exchange fees, and you can send up to $5000 daily via e-transfer.
If you open a Wealthsimple Invest account, you can set up your investment contributions to come directly from your Wealthsimple Cash account.
3. Neo Money Account
What We Like: Earn cash-back on purchases
Key Features:
- No monthly fees
- Unlimited transactions
- Earn interest on every dollar
- Unlimited cash back on purchases
- ATM access where Mastercard is accepted
- Set up recurring bill payments
- Automate your savings with the Auto-Save feature
- CDIC-coverage
Calgary-based Neo Financial is a fintech that offers a convenient, no-fee bank account. There are no transaction limits, and you can earn cash back whenever you make purchases with your Neo Money card at over 10,000 Neo retail partners. According to Neo Financial, the average cash back rate is 5%.
Balances in your Neo account are protected with CDIC coverage through Neo’s partnership with Concentra Bank, a CDIC-member institution. Note that the account doesn’t have cheque-writing privileges.
4. Tangerine No-Fee Daily Chequing Account
What We Like: Attractive welcome bonus
Key Features:
- no monthly fees
- Generous welcome bonus
- no minimum balance requirement
- unlimited transactions and bill payments
- Unlimited, free e-transfers
- Free ATM withdrawals at over 3,500 Scotiabank ATMs
- Set up automatic transfers
- CDIC-coverage
Tangerine is the digital banking arm of Scotiabank. They offer a wide range of products and services, including a no-fee chequing account, a high-interest savings account, GICs, a range of investment funds, credit cards, mortgages, and more.
Tangerine’s no-fee bank account features unlimited transactions, e-transfers, and ATM withdrawals at Scotiabank machines. However, what stands out is the attractive welcome bonus Tangerine always seems to be offering.
Currently, you can get up to $500 cash back and 6% interest for the first five months when you open a chequing and savings account with Tangerine. Terms and conditions apply, so check with Tangerine before opening an account.
5. Simplii Financial No-Fee Chequing Account
What We Like: Free access to all CIBC ATMs
Key Features:
- No monthly account fees
- No minimum balance requirement
- Generous welcome bonus
- Unlimited transactions
- Unlimited Interac e-Transfers
- Free access to the CIBC ATM network
- Transfer funds worldwide via Global Money Transfer
Simplii Financial is the online banking arm of CIBC. Their no-fee chequing account included unllimited transactions and e-transfers, and you can make free ATM withdrawals from any CIBC ATM. Like Tangerine, Simplii Financial offers a generous welcome bonus for new customers. The account is a great no-fee banking option if you’re wanting to stay connected to a traditional bank.
6. Motusbank No-Fee Chequing Account
What We Like: No-fee chequing account with interest, free cheques (first order)
Key Features:
- No monthly bank fees
- Unlimited free transactions
- no minimum balance requirement
- Interest bearing account
- Free access to Exchange Network ATMs
- First cheque order is free (25 cheques)
- Deposits are covered by CDIC
Motusbank is an online bank and a subsidiary of Ontario-based Meridian Credit Union. It offers chequing and savings accounts, GICs, investment products, mortgages, and loans. It’s chequing account has no monthly fees and unlimited transactions. And unlike some other online bank accounts, you can actually write cheques on this account. In fact, your first cheque order is free (25 cheques).
Do Any Banks Offer Unlimited No-Fee Bank Accounts?
None of Canada’s Big Five banks offer unlimited no-fee chequing accounts, however, most banks will waive the monthly fee if you maintain a specific minimum balance throughout the month. As mentioned in this article, Scotiabank and CIBC offer no-fee banking through their online bank subsidiaries, Tangerine and Simplii Financial, but they operate seperately from their big bank partners.
Pros and Cons of Bank Accounts with No Fees
There’s a lot to like about saving money with a no-fee bank accounts, but they’re not for everyone. Consider the following pros and cons before you open an account:
Pros
- Save money with no monthly fees
- Some no-fee bank accounts feature generous welcome bonuses
- Most no-fee accounts include free e-transfers
- Many no-fee bank accounts allow you to earn interest
Cons
- Not all no-fee bank accounts have cheque-writing privileges
- Most no-fee accounts are offered by online-only banks, which don’t offer in-person banking
Summary of the Best No-Fee Chequing Accounts in Canada
As you can see, there are plenty of options when it comes to no-fee banking in Canada. The top accounts feature unlimited transactions, free e-transfers and ATM access, and competitive interest rates. Some, like the Neo Money account, pay you cash back when you spend with your card.
If you’re comfortable dealing with an online-only bank and don’t need to write cheques, you’ll save a lot of money by opening one of the accounts on our list. However, if you prefer dealing with a brick-and-mortar bank and need to write cheques regularly, you may be better off sticking with a traditional bank account. Remember that you may be able to get your fees waived by maintaining a minimum monthly balance.
FAQs
Which banks offer accounts for low-income earners?
All Canadian banks governed by The Bank Act must offer a low-cost bank account (max. $4/month) with the following minimum features: 12 debit transactions per month (and two in-branch transactions if available), the ability to write cheques, debit card access, unlimited deposits, printed statements, pre-authorized payments, and cheque return or cheque image viewing.
For example, the TD Minimum Chequing account is $3.95/month and includes the abovementioned required benefits. If you collect the Guaranteed Income Supplement (GIS) and are considered a low-income earner, you can access this account with no fee.
Are there any no-fee accounts for newcomers to Canada?
Major banks such as CIBC, TD, RBC, BMO, and Scotiabank often provide special account packages for newcomers that include no monthly fees for a limited time. Be sure to check the specific features and benefits each bank offers and compare them to find the best fit for your financial needs.
Is there a no-fee account option at BMO?
BMO offers a Practical Chequing account with a low monthly fee, which can be waived if certain conditions are met, like maintaining a minimum balance or having multiple BMO accounts. While not completely free, this option may be suitable for individuals seeking a more affordable account at BMO.
Can I open a free online bank account without ID in Canada?
In Canada, all banks are required to follow strict know-your-client (KYC) regulations. This means they must verify the identity of all customers, either in-person or through online checks. Opening a bank account without providing a valid ID is not possible.
