Best Free No-Fee Chequing Accounts in Canada
In this post, we’ll take a look at some of the best no-fee chequing accounts in Canada and make some comparisons between them
If you opt for one of the free everyday banking solutions, you can save an impressive $200+ per year in fees, compared to Canada’s major banks. You can benefit from all the same services, plus:
- You’ll have the ability to use the money usually blocked by minimum balance requirements,
- You can earn higher interest rates by depositing your money in savings accounts or other investment opportunities.
Most Big Banks in Canada charge users a monthly fee, which can add up to a shocking $200 a year. But, with a little smart thinking, you can avoid the charges you incur on personal bank accounts, whether chequing or savings accounts.
Check your regular bank for the terms and conditions along with the benefits and weigh the positives of maintaining the account. Alternatively, consider moving to more economical banks that charge no fee or only a small fee.
Here’s a list of the best No-Fee Chequing Accounts in Canada
Tangerine No Fee Unlimited Chequing Account Canada
Tangerine Bank (previously ING Direct) is a well-known online savings bank. It recently released a no-fee chequing account known as Chequing Account (formerly Thrive). As a bonus, Tangerine also offers free ABM access via the Scotiabank ABM network.
Tangerine’s chequing account is an online, no-fee daily chequing account that actually pays you interest on your hard-earned dollars. Users operate their accounts absolutely free of charge, as there are no monthly fees and the account doesn’t require a minimum balance. The bank also pays interest of between 0.25%-1.10% on the amount deposited.
Duca No Fee Chequing Account
Whatever your current circumstances, there’s a no-fee chequing bundle to suit your needs. Plus, there’s NO monthly fee and NO minimum balance! All our no-fee chequing bundles include:
- Unlimited deposits and withdrawals,
- Unlimited cheques and EFTs,
- Unlimited withdrawals when using DUCA and THE EXCHANGE® Network ATMs,
- Unlimited bill payments,
- Unlimited Interac® point-of-sale transactions.
Simplii No Fee Chequing Account
New clients can earn up to $200*… Open a no-fee chequing account today:
- No monthly fees with no minimum balance,
- Free daily banking: unlimited debit purchases, bill payments and withdrawals,
- Send money for free with Interac e-Transfer®
- Free access to over 3,400 CIBC ATMs across Canada
Features to Look for When Scouting Around for Banking Products
- $0 monthly fee
- No need to maintain a minimum balance in the account
- No limit on the number of free transactions such as funds transfers, POS payments, bill payments using the pre-authorized option, or any other
- Accessing national and global ATMs without an extra charge
- CDIC insurance on deposits of a maximum of $10,000 in any category
- Convenient and cost-free funds transfers
- Facility of banking on the go by using mobile apps to deposit cheques and other user-friendly interface features for internet banking
- E-statements available at no cost
- Efficient customer service
Other features that can prove helpful include the ability to earn interest on the balances in your chequing account and getting free cheque books.
How to Pay the Minimum Fee on Your Chequing Account
An important factor to remember about free chequing accounts is that most of the Big Banks don’t offer you this option and typically charge you anywhere from $4 to $30 in fees. Only smaller banks can offer you economical banking because they save on overheads and operational costs by having a limited number of physical branches. Most of their facilities are offered by way of online banking, so you may not get access to in-person banking services.
If you would prefer to remain with your existing bank in place of moving your chequing accounts, here are a few simple rules to keep in mind.
- Many banks offer you the benefit of waiving the monthly fees as long as you maintain a minimum balance in your account. This amount could range from $1,000 to $6,000. You’ll only incur a fee if the balance dips below this limit. Though, your money is not likely to earn any interest.
- If you opt for an online-only bank account, you could avoid paying the fee entirely or pay only a small sum.
- Moving all your banking needs to a particular bank including credit cards, investment products, and mortgages can help you bring down the total fee you pay. However, this option makes sense only if the bank offers you attractive rates on mortgages and any other loans you take.
No-fee chequing accounts are suitable for users who can conduct all or most of their transactions online. If you usually don’t require walk-in services, overdraft facilities, or bank transfers to international accounts, opting for the no-fee option is a smart move. You’ll save more than $200 in fee which you can divert to other uses or even, invest wisely.
For a quick overview of the chequing accounts available and the typical fees they charge, search around our website, offerhub.com. You’ll find detailed listings of the banks and accounts to choose from and their various features.
Banks that offer you free accounts
Duca Financial and Tangerine Bank are online banks that offer you everyday banking accounts at no charge. The Canadian Insurance Deposit Corporation also backs your deposits in both banks. Here are some of the other bonus features you can benefit from:
- These banks don’t have physical branches, but they offer personalized customer support via cafes and gazebos,
- You can make use of 24/7 online customer support, as well as customer services via mobile phone, mail, and telephone,
- Savings on the cost of maintaining physical branches are transferred to customers through lower service costs and higher interest rates,
- No-cost savings and chequing accounts,
- No limit on transactions, or requirement for minimum balances,
- Interac e-Transfers, fund transfers, pre-authorized bill payments, and direct deposit facilities are also available.
It’s also worth noting that Duca Financial and Tangerine Bank offer you free chequing accounts with no other applicable conditions. Whereas, mainstream banks such as TD Canada Trust, BMO, Scotiabank, CIBC, and RBC all have certain requirements that you must meet.
About Canadian banks and no fee chequing accounts.
The World Economic Forum has rated Canada’s banking sphere as the most sound. Indeed, our banking institutions have been leading the global industry for the past 7 years.
Canada’s Big Five banks have continued to show significant high-profit rates despite uncertain economic conditions. During the second quarter of 2017, analysts noted that these banks managed to surpass expectations.
These high profit rates are due to high service charges and the bank fees that Canada’s Big Five banks charge their customers. Since the fee raise of 2015, customers are paying rising account fees and transactions costs, while veterans and senior citizens have noted a reduction in the discounts they previously enjoyed.
Although the Big Five banks do offer free services, they also require that customers maintain a minimum balance each month. This is a major downside. It means that funds are blocked and cannot be invested or deposited in higher-interest savings accounts.