Reduce unnecessary costs with a straightforward change to your banking

Recently, 14 financial institutions– including all 6 major banks – agreed Financial Consumer Agency of Canada (FCAC) to supply low-cost and free bank accounts to all Canadians. Shopping on bank accounts is now much more profitable.

Can I actually lower your expenses using one other checking account?

If you have already got a low-cost or free checking account that meets your needs, there is no need to vary. But for everybody else, it could cost a whole lot of dollars.

If you’ve gotten a typical checking account at one in all the main banks, you most likely pay in between $15.95 and $17.95 per 30 days. Spread over a yr, that is about $200! That’s a couple of hundred you would save for retirement (or an emergency fund).

Via low-cost and free accounts

On December 1, 2025, the Commitment to low-cost and free accounts got here into effect in Canada. This signifies that 14 financial institutions comply with this not more than $4 per 30 daysAll Canadians can access a checking account that features:

• At least 18 transactions per 30 days
• Free digital monthly statements

• Check write permissions
• No minimum balance
• No account switching fees with the identical signatory
• There aren’t any additional fees for deposits, debit cards and pre-authorized payment forms
• There aren’t any additional costs for monthly printed account statements and the return of check images or viewing check images online
• Joint accounts if the situation warrants (e.g. married/unregistered couple, etc.)
• Other services for an affordable fee

A $4.00 bank fee over twelve months is just $48.

Some Canadians may even be eligible for one full fee exemption. Check along with your bank to see when you:

More options for low-cost and free bank accounts

Even in case your bank hasn’t joined the FCAC agreement, it probably still offers low-fee accounts. If you might be a member of one in all the groups above, ask in case your fees shall be reduced. Research accounts or banking packages for college students, seniors and newcomers.

Digital banks often offer fee-free accounts. They also are likely to have very competitive rates of interest and unique financial products. If you’ll be able to easily handle your funds online, consider this selection.

The article continues below promoting

A step-by-step guide to changing bank accounts

One of the most important reasons people draw back from switching banks is the fear of problems. Changing your account and even switching to a brand new bank is definitely quite easy. Here’s how:

If yes Changing accounts inside a bankTypically, you’ll be able to do that in person, online, or through your bank’s app.

1. Open the brand new account.
2. Transfer your money from the old account to the brand new one via bank counter or online/mobile banking.
3. Redirect all automatic withdrawals, scheduled bill payments, and direct deposits to the brand new account.
4. Close the old account.

You will follow the identical steps Change banks; The only difference is how you progress your money. Since it is a transfer between two different financial institutions, you have to use E-Transfer or an electronic funds transfer. Some banks may ask you to make the deposit through their ATMs.

One of the advantages of switching to a digital bank is that cash transfers are easy. You can often connect your recent account to your old one online and transfer the cash there. Check with each banks before you start.

Still not convinced?

There are many the reason why people postpone moving their money, even once they see the true cost of bank fees. Some people worry that they are going to make a costly mistake when making a transfer. Others feel secure when all their financial products are with the identical institution. Some people just don’t love change – a undeniable fact that banks depend on to proceed collecting your fees!

However, when you’re in search of a strategy to reduce household costs, it is easy to start out with unnecessary bank fees. In just 4 steps, you’ll be able to start planning what you would like to do with the extra cash in your account.

Read more about banking:

About Keph Senett

Keph Senett writes about personal finance from a community-building perspective. Their goal is to clarify and actionable knowledge accessible to everyone.