Updated: March 2025 | bremo.io financial guides

Banking Options for Low-Income Canadians 2025

Having a bank account is essential for modern life — it is how you receive your government benefits, pay your bills, and access your money safely. But traditional banks have often made banking difficult for low-income Canadians through minimum balance requirements, monthly fees, and credit checks. Fortunately, there are excellent options available to everyone regardless of income or credit history.

Your right to a bank account: Under Canadian federal law, banks are required to open a basic bank account for any Canadian resident, even if you have bad credit, have been bankrupt, or have been refused before. You cannot be legally denied a basic account.

Why Banking Matters When Money Is Tight

When you are on a low income, bank fees hurt more. A $15/month maintenance fee is $180/year — significant when you are managing on $700/month. Avoiding bank fees is a concrete way to keep more money in your pocket.

Additionally, many government benefits (Ontario Works, ODSP, Canada Child Benefit, etc.) are paid by direct deposit. Having an account that accepts direct deposit ensures you get your money faster and more securely than a cheque.

Your Best Option: No-Fee Digital Banking

KOHO — Best Overall for Low-Income Canadians

KOHO is a Canadian fintech that offers a free prepaid Visa account with no monthly fees, no minimum balance, and no credit check. It is available to all Canadians regardless of income or credit history. Key features:

No monthly fees (free plan)
No minimum balance required
No credit check to open
Free interac e-transfers
Earns cash back on purchases
Accepted anywhere Visa is accepted
Instant spending notifications
Budgeting tools built in
Option to build credit history with the secured credit feature

KOHO is not a traditional bank, but it is a legitimate, regulated financial product used by hundreds of thousands of Canadians.

Open KOHO — Free Account, No Fees, No Minimum Balance

KOHO is available to all Canadians regardless of income or credit history. No monthly fees and no minimum balance. Use code 45ET55JSYA for a small bonus when you open your account.

Open KOHO Free — No Fees — Code 45ET55JSYA

Other No-Fee and Low-Fee Options

Credit Unions

Credit unions are member-owned financial institutions that typically have lower fees and more flexible policies than big banks. Many credit unions offer free or low-cost accounts with no minimum balance for members facing financial hardship. Find a credit union near you at cucentral.ca.

Big Bank Basic Accounts

Canada's major banks are legally required to offer basic accounts with low or no monthly fees. Under the Financial Consumer Agency of Canada's regulations, banks must offer a basic account for a maximum of $4/month (many are free). Ask specifically for a "basic account" or "no-frills account."

Tangerine Bank

Tangerine (owned by Scotiabank) offers free chequing and savings accounts with no monthly fees and no minimum balance. It operates entirely online, which keeps costs down. Deposits are CDIC insured.

EQ Bank

EQ Bank offers a no-fee savings account that also functions as a transaction account. No monthly fees, no minimum balance, and a competitive interest rate on your balance. Deposits are CDIC insured.

What to Look For in a Low-Income Banking Account

No monthly maintenance fee — or waivable with a very low minimum balance you can actually maintain
No minimum balance requirement — or a very low one ($0 is ideal)
Free e-transfers — sending money by Interac e-transfer should not cost you
No overdraft fee traps — consider disabling overdraft protection to avoid fees
Direct deposit compatible — for government benefits
No credit check required — if you have bad credit or no credit history

If You Have Been Refused a Bank Account

If a bank has refused to open an account for you, you have recourse:

Under the Bank Act, federally regulated banks must open a personal deposit account for any Canadian who provides acceptable identification — even with bad credit or past bankruptcies
Contact the Financial Consumer Agency of Canada (FCAC) at fcac-acfc.gc.ca or call 1-866-461-3222 if your rights are being violated

Building Credit From Zero

Once you have a bank account, you can start building credit over time:

KOHO's Credit Building feature lets you build credit history with a small secured amount
Secured credit cards (you put up a deposit) are available from most banks and some credit unions
Making on-time payments on any credit product improves your score over time