No-Fee Chequing Accounts Explained: How They Work and What to Watch For

A chequing account is an important everyday account that you can use to buy essentials like gas and groceries, pay your bills and deposit your paycheque or government benefit.  So, a chequing account shouldn’t be complicated or come at a high price. 

Fortunately, there are chequing accounts available that come with no monthly fee and require no minimum balance – so it’s there when you need it and doesn’t cost you money when you don’t.

What is a no-fee chequing account?

A no-fee chequing account is as it sounds – it’s a chequing account that charges no monthly maintenance fees. In some cases, a no-fee chequing account also requires no minimum monthly balance, so there is literally no cost to hold the account.

Depending on the bank that issues the account, you may need to pay for certain transactions, but many features are included. For instance, with most no-fee chequing accounts in Canada, you get unlimited deposits, access to online and mobile banking, a debit card, and at least 12 debit transactions per month. 

Common chequing account fees

So, if the account doesn’t come with a monthly maintenance fee, what do you have to pay for? Here are some features and transactions that come with a charge:

• Debit transactions above a certain limit set by the bank

• Paper statements

• Wire transfers

• Use of an ATM outside your bank’s network 

• Use of an ATM outside of Canada

• A payment or purchase made via your account outside of Canada 

• Overdrawing your account

• Non-sufficient funds (NSF) fees

• Certified cheques and money orders

• Paper cheques

Benefits of a no-monthly fee chequing account

While you may need to pay for a few extras, the main benefit of a no-fee chequing account is that your essentials are covered. In other words, you can hold an account through which you can pay for day-to-day expenses, deposit money and access it easily online, through an ATM or at a branch. Many no-fee chequing accounts also come with free budget management and tracking tools to help you manage your money. Some of them even let you earn rewards and cash back. 

Is a no-fee chequing account right for me?

A no-fee chequing account can be a great option if your financial needs are straightforward, you don’t make a lot of transactions, and you want to keep your banking costs down. When deciding whether a no-fee chequing account is the right fit for you, it’s worth thinking about how many purchases you like to make using your debit card in a month, how many bill payments you have, and if you often withdraw money from an ATM. 

Then, look at whether you would have to pay extra for these transactions and how those costs (if any) compare to accounts that include more features but come with a monthly fee.

How do I find the best no-fee chequing account for me?

When looking at no-fee chequing accounts, there are a few things to consider to find the best fit for you. Here are some questions you can ask:

• Does the bank have ATM machines near me? Remember, one of the common extra fees is using an ATM outside your bank’s network – so if you like to withdraw cash regularly, you’ll want an ATM close to work or home.

• Does the account require a minimum balance? If carrying a balance in your account isn’t an issue for you, this question may not be important. But if maintaining a minimum balance isn’t realistic, you’ll want to find an account that charges no monthly fee, no matter what your balance is.

• Does the account come with any perks or rewards? Some offer budgeting tools, points, rewards or cash-back programs. For instance, RBC allows chequing account holders to collect Avion Points.

• Is there someone I can talk to if I have a problem? Many no-fee chequing accounts are offered through online financial institutions. While this works for many people, if you prefer to deal with someone face-to-face, an account from a more traditional bank may be best for you. It’s also worth reading customer reviews from banks you’re considering to understand their customer service reputation.

• Will the account help me avoid bank fees? Consider how you will use your account to figure out what to look for. Since some no-fee chequing accounts have limits on transactions or certain activities may trigger extra fees, you’ll want to understand exactly what you would be paying for (or not) with your account.

How do I open a no-fee bank account?

You can visit a bank branch to open your account, and many banks and credit unions allow you to open an account online. But at some point, you will need to verify your identity – when applying for a chequing account, you’ll normally need to provide information like your full legal name, address and a copy of your government-issued photo ID.

In some cases, you may also need to:

• Be the age of majority in your province or territory 

• Be a resident of Canada

• Provide your Social Insurance Number (SIN)

If you’re opening an account that requires an opening deposit, make sure you have that ready, too. 

Frequently asked questions about no-fee chequing accounts

Have more questions? Here are some common ones answered:

How can I avoid bank fees in Canada?

A no-fee chequing account can be a great option to avoid or minimize banking fees in Canada, particularly if you have straightforward financial needs. If you choose a no-fee chequing account, try to avoid activities that trigger extra fees – such as purchases in foreign currency, overdrawing your account or going over the monthly debit limit.

Some banks also waive fees for certain groups – if you’re a student, a senior or a newcomer, for instance, you may qualify for special rebates that result in no-fee banking. Several also offer bundled programs where if you have more than one product with them (i.e., a credit card, mortgage or investments), you can reduce or avoid bank fees.

It’s a good idea to compare the products, tools and customer service standards of banks near you to see how they can meet your financial needs – and then ask about discounts or rebates that could apply to you.

Which banks offer free chequing accounts in Canada?

Many online banks offer free chequing accounts, but you can also find no-fee options for students, youth, newcomers and seniors at traditional banks. Most banks will offer a no- or reduced-monthly-fee option if you maintain a minimum balance or multiple products.

Does a no-fee chequing account earn interest?

Every bank will offer different perks and features with their accounts. If a no-fee chequing account also comes with a no minimum balance requirement, it’s not likely you’ll earn interest. If the account waives the fee when you maintain a certain balance, you may earn interest on the funds in your account.

While every bank offers no-fee chequing accounts, they are different in many ways. It’s easy to explore the options RBC provides—compare chequing accounts to see the accounts and banking rebates RBC offers.

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