Updated: April 2025  |  bremo.io financial guides

How to Avoid Bank Fees in Canada 2025

Bank fees cost the average Canadian hundreds of dollars per year. The good news: avoiding bank fees in Canada is entirely possible, and often takes less than 30 minutes to set up. Here's how to do it.

Option 1: Switch to a Free Chequing Account

The most direct way to avoid bank fees is to switch your everyday chequing to a free account. In 2025, Canada's best free chequing options include:

• KOHO Free: No monthly fee, Visa card with 0.5% cashback, Interac e-Transfer, budgeting tools
• Simplii Financial: Free unlimited chequing, CIBC ATM access, CDIC insured
• Tangerine: Free unlimited chequing, Scotiabank ATM access, cash-back credit card
• EQ Bank: No-fee account that also earns competitive interest on deposits

These accounts provide all the daily banking features most Canadians need, at zero cost.

Option 2: Maintain the Minimum Balance for Fee Waiver

If you prefer staying at a Big 5 bank, most mid-to-premium accounts waive the monthly fee when you maintain a minimum daily balance:

• TD Unlimited: $4,000 minimum balance → $0 fee
• RBC Signature No Limit: $4,000 minimum balance → $0 fee
• BMO Performance: $4,000 minimum balance → $0 fee
• Scotiabank Preferred: $4,000 minimum balance → $0 fee

If you already keep $4,000+ in chequing, use this to your advantage and ensure your account tier provides the fee waiver.

Option 3: Use Your Bank's ATM Network

Out-of-network ATM fees (your bank's fee + ATM operator surcharge) can add up to $4–$7 per transaction. Always use your own bank's ATMs, or switch to a bank that has convenient ATMs near you. KOHO and EQ Bank have no proprietary ATM network — plan accordingly for cash needs.

Option 4: Switch to Unlimited e-Transfer Plan

If you send frequent Interac e-Transfers, make sure your account includes unlimited e-Transfers. Lower-tier Big 5 accounts charge per e-Transfer beyond a monthly limit. Upgrading to an unlimited tier — or switching to KOHO/Simplii where e-Transfers are always free — eliminates this cost.

Option 5: Avoid Overdrafts

Overdraft fees ($40–$50 per NSF event) are easily avoided by:

• Setting up balance alerts so you know when your account is running low
• Maintaining a small buffer balance (even $100–$200)
• Using KOHO which naturally prevents overdrafts (prepaid)
• Linking a savings account as overdraft protection instead of paying monthly overdraft fees

Student and Senior Fee Waivers

All Big 5 banks offer free or reduced-fee chequing for:

• Full-time students (under 25 at most banks)
• Seniors (60+ at some banks)
• Newcomers to Canada (first 12 months free at TD, RBC, BMO, CIBC)

If you qualify for any of these, apply immediately — these programs are genuine and significantly reduce or eliminate banking fees at Big 5 institutions.

Verdict

Avoiding bank fees in Canada in 2025 is straightforward. KOHO and Simplii Financial make it genuinely free. EQ Bank makes your savings work harder. Stop paying fees that serve no purpose — the switch takes minutes.