Canadians can now sign up for bank accounts that cost no more than $4 per month. Fourteen federally regulated financial institutions, including the country’s biggest banks, have finished rolling out updated low-cost and no-cost account options.
These changes were part of a commitment first announced by the Financial Consumer Agency of Canada (FCAC) in June.
Banks that signed on must clearly show these low-cost accounts in branches and online, and staff are supposed to be trained to explain the options. The new version of the program increases the number of debit transactions included each month by up to 50%, covering things like everyday Interac e-Transfers.
Some groups may qualify for accounts that cost nothing at all. All banks must offer the zero-dollar option to newcomers in their first year in Canada, plus at least one extra group of their choice. That could include Indigenous peoples, people receiving certain provincial or territorial social assistance, or people who qualify for the Disability Tax Credit along with a supporting family member.
FCAC says it will monitor compliance to make sure banks follow the rules, but it is not yet clear how strict this oversight will be or how quickly issues will be addressed.
The federal government says these changes are meant to help lower everyday costs. Minister François-Philippe Champagne touted on Monday, “Our government is making strides to reduce costs for Canadians. The coming into force of the low-cost no-cost commitment will make banking more affordable and support people that need it most.”
The shift raises a few questions. Are banks promoting these accounts clearly enough for people to actually find them? And will the increased transaction limits be enough for most users?
Below is the list of 14 participating banks:
The newest addition compared to this summer is the Bank of China to the list. The sending of e-Transfers should be free from all banks, really.
For those comfortable with digital-only banks, other options available include the likes of Wealthsimple and Koho, which do not charge you any money to open an account, plus they offer free transactions and e-Transfers.
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