BANK FEES
What They Are & What You Need to Know to Avoid Them!

Curious about bank fees? Learn what they really are and what to keep in mind to avoid unnecessary charges!

What Are Bank Fees?

Banks charge fees for the services they provide to help you manage your money and carry out financial transactions. These fees can vary depending on the type of account, the services you use, and the bank you choose.

Common Bank Fees

Bank will charge fees every month to your account when it comes to a chequing account.  The only exception is usually for savings accounts, if you just transfer in and out of that account, to another account in the same institution, usually there is not a fee. 

Monthly Fees: This is a fee you pay each month.  It can be wrapped up in one package which charges you a setfee per month or it can include a number of different fees depending on what is happening each month in that particular account.  Here are some examples of fees that may incur:

• Transaction Fees: If your account has a limit on the number of transactions per month (e.g., debit payments, ATM withdrawals, or money transfers), you could be charged a fee if you exceed that limit.
• Statement Fees: If you prefer paper statements to be mailed to you may incur a fee. Electronic statements are typically free.
• ATM Fees: You’ll be charged a fee when you withdraw money from an ATM outside of your bank’s network or if you exceed the number of free withdrawals included in your account.
• NSF Fees: If a transaction exceeds your account balance and is declined, you may be charged a Non-Sufficient Funds (NSF) fee. Overdraft protection can help you avoid this charge.
• Overdraft Fees: If your account balance drops below zero, you’ll be charged both a fee and interest for each day your account remains in overdraft.
• Interac e-transfer Fees: Some accounts charge a fee for Interac e-transfers once you exceed the number of free transfers allowed each month.

Consider Banking Packages

Many of Canada’s major banks offer packages that bundle multiple services into one monthly fee. If you use these services frequently, a package could save you money compared to paying individual transaction fees.  Packages could also include waiving fees on credit cards with the same institution for those that may have an annual fee.

Minimum Balances could waive fees

Some banks waive monthly fees if you maintain a certain minimum balance. Be sure to keep track of your balance to avoid falling below this threshold, which could trigger a fee.

No-Fee Account

Branchless banks like Tangerine, Motus Bank, PC Financial, and EQ Bank often offer low- or no-fee chequing and savings accounts. While these banks tend to have fewer fees, they may offer fewer services compared to traditional banks. However, they offer some great options to reduce your monthly costs in operating a chequing and/or savings account. 

Read the Fine Print

Before signing up for a new bank account, make sure to read the terms, conditions, and fee structures carefully. These details are often hidden in the fine print or in the bank's Terms and Conditions section online. Understanding the fee structure will help you pick the account with the lowest costs.

Set Up Alerts

Enable text or email alerts to stay on top of your account activity. These can notify you when automatic payments are made, deposits are received, or when your balance drops below a set amount. Alerts help you avoid NSF fees, overdraft charges, and unexpected expenses. They can also help you spot potential fraud or identity theft early.

If you are still unsure, what is the best option for you, review the different banks online that you are considering, or give the customer service number a call.  It is important to review from time to time to ensure you are not paying too much, and if there are other options that fit better, and save you money at the same time.