Low-Cost and No-Cost Bank Accounts — Switch to a Federally Backed Cheap Account Instead of Paying Full Retail Fees
What Is It?
Some federally regulated financial institutions offer low-cost bank accounts costing $4/month or less and no-cost accounts for certain eligible groups. These accounts include a minimum feature set and cannot require a minimum balance.
The loophole is simple: many people keep paying full chequing-account fees because they are never proactively moved into the cheaper account their bank already offers.
Do I Qualify?
- You are 18 or under
- You are a student
- You are a senior receiving the Guaranteed Income Supplement (GIS)
- You are an RDSP beneficiary
- You are a newcomer to Canada in your first year
Some signatories also make no-cost accounts available to additional groups such as certain Indigenous customers, Disability Tax Credit recipients, or some social assistance recipients.
What Most People Don’t Know
- The bank does not always volunteer the cheaper account.
- Low-cost accounts cannot require a minimum balance.
- The included services are standardized. These accounts must include a minimum number of debit transactions and other basic features.
- The rules are not limited to one big bank. Multiple signatory institutions participate.
Frequently Asked Questions
Do I need a minimum balance to avoid the monthly fee on a low-cost account?
A: No. FCAC says low-cost and no-cost accounts under the commitment cannot require a minimum balance.
Who can get a no-cost account?
A: FCAC lists groups such as youth, students, GIS seniors, RDSP beneficiaries, and newcomers in their first year, with some signatories offering additional no-cost eligibility groups.