How to Avoid Banking Fees as a Newcomer in Canada

Newcomers can avoid banking fees in Canada by choosing no-fee online banks, utilizing special newcomer packages from major banks which often waive fees for the first year, or by maintaining a minimum monthly balance in a traditional chequing account.

Did you know the average Canadian pays approximately $185 per year in bank fees? For a newcomer, this is a significant and unnecessary expense when you're working hard to establish your new life. The Canadian banking system can seem complex, but avoiding monthly service charges, transaction fees, and other costs is easier than you think. By being strategic and informed, you can keep more of your hard-earned money.

This guide will walk you through six effective strategies to find a free bank account or significantly reduce your banking costs as a newcomer in Canada. From leveraging digital-only banks to understanding the fine print of your account, you'll have the tools to bank smartly from day one. If you're just starting, be sure to also review our complete guide on how to open a bank account as a newcomer.

1. Choose a No-Fee Digital Bank

One of the most effective ways to eliminate monthly banking fees is to open an account with a digital-first or online-only bank. These banks have very low overhead costs because they don't operate extensive networks of physical branches. They pass these savings on to customers in the form of no-fee accounts with unlimited transactions.

Two of the most popular digital banks in Canada are Simplii Financial and Tangerine Bank.

• Simplii Financial: Backed by CIBC, Simplii offers a No Fee Chequing Account with no monthly fees, no minimum balance requirements, and unlimited debit purchases, bill payments, and withdrawals. You also get free access to CIBC's extensive network of ATMs across Canada.
• Tangerine Bank: Owned by Scotiabank, Tangerine provides a similar offering with its No-Fee Daily Chequing Account. It includes unlimited transactions, free Interac e-Transfers®, and free access to Scotiabank's ABM network.

The primary trade-off is the lack of in-person service. If you prefer face-to-face interactions for complex banking needs, a digital bank might be best used in combination with a traditional bank, but for daily banking, they are often unbeatable for value.

2. Leverage Newcomer Banking Packages

Canada's "Big Five" banks (RBC, TD, BMO, Scotiabank, and CIBC) are all keen to attract newcomers. To do this, they offer comprehensive newcomer banking packages that typically waive monthly fees on a premium chequing account for the first 12 months. These packages are an excellent way to get full-service banking for free while you get settled.

These bundles often include:

• A chequing account with no monthly fees for one year.
• Unlimited transactions.
• A high-interest savings account.
• A credit card with no credit history requirement, which is a fantastic tool to start building your Canadian credit score.
• A free safety deposit box for a year.

Comparison of Newcomer Packages (Illustrative for 2026)

The key is to remember that the fee waiver is temporary. Set a calendar reminder for 11 months after you open the account to re-evaluate your banking needs before the monthly fees begin.

Pro Tip: When visiting a bank to open a newcomer account, bring your passport, permanent resident card or work/study permit, and your Social Insurance Number (SIN). Clearly state that you are a newcomer to ensure you are offered the correct package.

3. Maintain a Minimum Monthly Balance

After your newcomer introductory period ends, most traditional chequing accounts from the big banks will start charging a monthly fee of $15 to $30. However, nearly all of these accounts offer a way to waive this fee: by maintaining a minimum monthly balance.

For example, an account with a $16.95 monthly fee might require you to keep a minimum of $4,000 in the account at all times throughout the month. If your balance dips below this threshold, even for a day, the fee will be charged. While this ties up a significant amount of cash, it can be a good option if you prefer a full-service bank and can comfortably keep that balance as a form of emergency savings.

Before committing to this, ask yourself:

• Is the minimum balance realistic for my financial situation?
• Could that money be earning a better return in a high-interest savings account or investment, even after accounting for the monthly fee?
• How disciplined am I at tracking my balance to ensure it never drops below the minimum?

4. Understand and Track Your Transactions

Sometimes fees aren't about the account itself, but how you use it. Even a "free" account can incur charges if you're not careful. Here are the most common transactional fees to watch out for:

Exceeding Transaction Limits

Basic, low-cost accounts often come with a limited number of transactions per month (e.g., 10 or 15). Every transaction over this limit could cost you $1.25 or more. A "transaction" usually includes debit purchases, bill payments, pre-authorized payments, and withdrawals.

Interac e-Transfer® Fees

While most unlimited and digital accounts offer free e-Transfers, some basic accounts still charge a fee (around $1.50) to send money. Always check your account details. Receiving an e-Transfer is almost always free.

Non-Network ATM Fees

Withdrawing cash from an ATM that is not owned by your bank (or its partner network) will almost certainly cost you. You'll typically be charged a fee by your own bank (e.g., $2.00) AND a fee by the ATM owner (e.g., $3.00), costing you $5.00 for a single withdrawal. This is one of the easiest fees to avoid.

Pro Tip: Use your bank's mobile app, which has a built-in ATM locator, to find the nearest free ATM. This simple habit can save you over $100 a year if you frequently withdraw cash. Also, set up balance and transaction alerts to avoid accidentally over-spending or dipping below a minimum required balance.

5. Bundle Your Banking Products

Banks reward loyalty. If you hold multiple products with the same institution, you may qualify for fee waivers or rebates. This is often called "bundling." For example, some banks will waive the monthly fee on your premium chequing account if you also have a mortgage, an investment account (like a TFSA or RRSP), and a credit card with them.

As you become more established in Canada, this becomes a powerful strategy. When you're ready to apply for a mortgage or open an investment account, ask your bank if consolidating your products can help you eliminate your chequing account fees. This deepens your banking relationship and simplifies your finances, all while saving you money.

6. Use Rebates & Special Status Accounts

Finally, look for specific rebates or accounts designed for your demographic. Beyond newcomer status, banks offer fee waivers for other groups:

• Students: If you are enrolled in a post-secondary institution, you will almost certainly qualify for a student bank account with no monthly fees, regardless of your balance.
• Seniors: Most banks offer special accounts or rebates for seniors (typically age 60 or 65+), which can include no-fee daily banking.
• Youth: Accounts for minors are always free. If you have children, you can open accounts for them without worrying about fees.

It's always worth asking a bank representative if there are any special programs you qualify for. A simple question can lead to significant savings.

Pro Tip: Once a year, schedule a financial check-up. Review your bank statements from the past few months. Are you paying any fees? If so, call your bank and ask what you can do to avoid them. Sometimes they can switch you to a more suitable account over the phone.

Frequently Asked Questions