Which banks in Canada have the lowest fees? – a simple comparison to choose better

Banking in Canada can quietly chip away at your wallet—often without you even noticing. One minute, you’re depositing your paycheque at regular banks, and the next, you’re wondering where that extra $13.95 went. Monthly account fees, ATM withdrawal charges, overdraft penalties, and e-transfer costs might seem small individually, but over the course of a year, they can easily add up to a few hundred dollars.

The truth is, many Canadians accept these charges as part of everyday banking. It’s common to assume that all banks are more or less the same, especially if you’ve been with the same one since your first job or your student days. But here’s the thing: not all banks charge the same fees—and some don’t charge them at all.

With more online options and digital-first banks entering the market, it’s now easier than ever to find banking services that are not only low-cost but also easy to use. The problem is knowing which ones are actually worth switching to.

That’s where this guide comes in.

In this article, we’ll take a clear, honest look at which banks in Canada offer the lowest fees. We’ll compare traditional and digital institutions, show you how much you can save, and walk you through real-life cases and practical steps to help you make an informed decision. Whether you’re tired of paying for basic banking or just looking to simplify your finances, this guide is here to help you choose smarter—without the fine print.

Why bank fees matter more than you think

Most Canadians stick with the same bank for years, often out of convenience or loyalty. But many don’t realize how much they’re losing in hidden or recurring fees.

According to a 2023 survey by Ratehub.ca:

• The average Canadian spends $220 per year on bank fees.
• Over 40% of Canadians are unaware of what they pay monthly for banking.

That’s why it’s worth taking a closer look. Changing banks could save you hundreds annually without sacrificing service or security.

Types of bank fees you should watch out for

Before diving into comparisons, here are the most common bank fees:

• Monthly account fees: Flat rates just to keep your chequing or savings account active.
• ATM fees: Extra charges when using machines outside your bank’s network.
• Overdraft fees: Penalties when your balance goes below zero.
• Transaction limits: Charges for exceeding a number of debit transactions.
• Interac e-Transfer® fees: Fees for sending or receiving money electronically.

Low-fee banks in Canada: quick comparison table

Bank name	Monthly fee	Free e-transfers	Minimum balance to waive fee	Interac ATM access	Notes
Tangerine Bank	$0	✅ Yes	N/A	Scotiabank network	No physical branches
Simplii Financial	$0	✅ Yes	N/A	CIBC network	Fully digital bank
EQ Bank	$0	✅ Yes	N/A	Limited*	High interest on savings
Motusbank	$0	✅ Yes	N/A	Exchange network	Subsidiary of Meridian Credit Union
Scotiabank (Basic)	$3.95	❌ No	$4,000	Extensive network	Traditional bank with branches
TD (Everyday)	$10.95	❌ No	$3,000	TD network	Waivable with conditions

*EQ Bank offers limited ATM access and recommends using linked accounts for cash withdrawals.

Spotlight on no-fee digital banks

1. Tangerine Bank

Tangerine is owned by Scotiabank, but operates as a fully digital institution. It offers:

• No monthly fees
• Unlimited free Interac e-Transfers®
• Free withdrawals at over 3,500 Scotiabank ATMs

Tangerine also provides free overdraft protection (if you qualify) and strong mobile banking features. The catch? No in-person service.

Real case: Laura from Calgary switched from RBC to Tangerine in 2022. She saved over $180 in her first year just by avoiding monthly fees and transfer costs.

2. Simplii Financial

Another great option, Simplii is backed by CIBC. Like Tangerine, it’s digital-only.

Benefits include:

• Free unlimited transactions
• Free global money transfers
• Full access to CIBC ATMs across Canada

Simplii even offers promotional bonuses for new customers, sometimes up to $400 just for switching.

Credit unions and community banks

Motusbank

Motusbank is run by Meridian Credit Union and provides:

• Zero monthly fees
• No transaction limits
• Access to over 3,000 ATMs via the Exchange Network

Although less known, credit unions like Motusbank often emphasize customer service and community reinvestment. They’re also federally insured, just like big banks.

Traditional banks: are they worth the extra cost?

Sometimes, you might value branch access and in-person service. If that’s you, here’s how to minimize fees:

Scotiabank Basic Package

• Monthly fee: $3.95
• Free self-service transactions
• Fee waived with a minimum daily balance of $4,000

TD Everyday Chequing

• Monthly fee: $10.95
• Fee waived with $3,000 balance
• Extra charges for Interac e-Transfers®

If you consistently meet the minimum balance, fees become less of an issue. However, if your balance fluctuates, you’ll be paying more than necessary.

Step-by-step: how to switch to a low-fee bank

Switching banks might feel like a hassle, but it’s easier than ever. Here’s how to do it smoothly:

Step 1: Choose your new bank

Use the comparison table above to find one that matches your habits—especially regarding ATM use and e-Transfers.

Step 2: Open your new account

Apply online for most digital banks. You’ll need:

• Government-issued ID
• SIN number (sometimes optional)
• Proof of address

Step 3: Move your funds and payments

Transfer your balance and update automatic payments or direct deposits. Many banks offer “switching tools” to help with this process.

Step 4: Close your old account

Once everything has cleared, close your old account to avoid maintenance fees. Make sure all pending transactions have been completed.

Choosing the right bank for you

If you’re looking to save money on banking, switching to a no-fee or low-fee bank is one of the smartest moves you can make. With digital banks like Tangerine and Simplii Financial, you get all the core features without the extra cost.

However, if you prefer face-to-face service, you can still reduce fees by maintaining minimum balances or choosing basic plans.

At the end of the day, the best bank is the one that aligns with your financial habits—and doesn’t eat into your savings.