Bank fees quietly destroy savings returns. A savings account paying 1.5% while charging $15.95 per month in fees is actually costing you money on balances under $12,760. Understanding which fees to avoid — and where to bank for free — is one of the simplest ways to improve your financial position.
The most common fee at traditional banks. Ranges from $4 to $30+ per month. Many banks waive this fee if you maintain a minimum balance (often $3,000–$5,000), but that requirement ties up capital that could earn interest elsewhere.
Some savings accounts charge per-transaction fees — typically $0.50–$1.50 per debit, e-Transfer, or bill payment beyond an included allowance. Even modest activity can add up quickly.
Big banks sometimes charge $1.00–$1.50 per e-Transfer sent. Online banks typically include unlimited free e-Transfers.
Triggered when a payment or withdrawal exceeds your balance. Typically $45–$50 per occurrence at traditional banks.
EQ Bank's Personal Account charges no monthly fee, has no minimum balance, includes free unlimited Interac e-Transfers, and pays a competitive everyday interest rate. Simplii Financial and Tangerine also offer no-fee banking with periodic promotional savings rates.
If you prefer a traditional bank, know that minimum balance waivers are negotiable. Seniors, students, and newcomers to Canada often qualify for fee waivers or reduced-fee accounts. Also check whether bundling your chequing and savings accounts with the same bank unlocks better fee treatment.
Beyond the direct cost, fees force you to keep minimum balances at low-rate accounts to avoid charges. Moving to a no-fee online bank frees that minimum-balance capital to earn a competitive rate at zero ongoing cost.
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