Bank fees can be one of the most frustrating expenses we encounter. From monthly maintenance fees to ATM fees, these charges can easily add up over time. Fortunately, more Canadian banks are beginning to offer no-fee bank account options to give their customers more peace of mind and less financial strain.
But, what are the best no-fee bank account options in Canada? There are several banking institutions, including Tangerine, Simplii Financial, Wealthsimple, and President’s Choice Financial, that offer no monthly fees to pay. Although the no-fee accounts offered by these banks don’t typically pay much in interest, they can provide great options for customers looking to spend and move their money more freely.
Below, iCash, a top choice lender for small loans in Canada, has outlined what Canadian banks offer the best no-fee bank accounts, and what their features and benefits include.
Selecting the Best No-Fee Bank Accounts
With so many banks offering no-fee accounts, it can be challenging to choose the right one. But, with careful planning, you’ll be on your way to finding the best option for you.
Provided are some tips to help you make a more informed decision and find an account that works for you:
1. Evaluate the Rank of the Monthly Fees
Start by conducting some research on banks that offer no-fee banking services and rank them in order of service options. Popular options include Tangerine, EQ Bank, and Simplii Financial.
You should check the features of each of these banks, their sign-up process, and what they offer. It's also important to read online reviews and customer testimonials to get a better understanding of their customer service offering.
2. Check for Transaction Limits
Some no-fee bank accounts limit the number of transactions that customers can make per month. For instance, a bank may allow you to make five debit transactions per month, after which you will be charged.
Simplii Financial’s No Fee Chequing Account offers unlimited Interac and e-Transfer transactions at a $0 monthly fee, which may benefit someone who regularly uses their debit card. That’s why before opening a zero fee account, it’s important to check for any transaction limits and ensure that they align with your banking needs.
3. Look for Convenience
Select an account that offers conveniences like mobile banking and online banking options. This way, you can complete many transactions on the go without having to physically visit your bank branch. Also, choose a bank that has a good network of ATMs so that you can have easy access to cash when you need it.
4. Compare Interest Rates
While no-fee accounts do not attract maintenance fees, they can also mean lower interest rates for savings accounts. If you're opening a savings account, it's essential to compare interest rates to get the best deal. You can use bank comparisons online to help you find the most competitive rates in Canada.
5. Read the Fine Print
Even if a bank is labeled as no-fee, they may still charge fees for certain services. For example, some banks charge fees for ATM withdrawals, transfers, and bill payments. Make sure you read the terms and conditions of the bank account you want to open to understand what types of fees they charge. You do not want to open an account that promises no fees but ends up costing you money for the types of services you need.
6. Determine the Bank's Reputation
Lastly, it’s essential to determine the bank's reputation before opening an account. Research the bank's track record, reviews, and ratings to ensure that you are storing your money with a trustworthy institution. It’s also essential to ensure that the bank is a member of Canada Deposit Insurance Corporation (CDIC), which protects customers' deposits in case of bank failures.
No-Fee Bank Account Options in Canada
As you try to make the most out of your hard-earned money, you’ll want to find ways to save on banking fees. Luckily, there are many banks in Canada to give you options to choose from, saving you a significant amount of money over the long term.
Here's a breakdown of the best no-fee bank accounts in Canada, so you can make an informed decision when it comes to banking.
1. Tangerine No-Fee Daily Chequing Account
Tangerine is a popular online bank that offers a no-fee daily chequing account to its customers. This account comes with unlimited transactions, e-Transfers, and access to over 3,500 ATMs across Canada. Customers can also earn interest (up to 0.10%) on their chequing account balance, making it a great option for those who want to earn a little extra on their money.
2. Simplii Financial No-Fee Chequing Account
As mentioned, Simplii Financial offers a no-fee chequing account with unlimited free transactions and e-Transfers. Customers can also access over 3,400 CIBC ATMs across Canada. The chequing account comes with no monthly fees, no minimum deposit, and offers free online banking services to its customers.
3. Alterna Bank No-Fee eChequing Account
Alterna Bank offers a no-fee echequing account with unlimited e-Transfers and free access to over 3,300 ATMs across Canada. Customers can also earn a competitive interest rate on their account balance, making it a great option for those looking to save or grow their money.
4. Motive Financial Cha-Ching No-Fee Chequing Account
Motive Financial is another online bank that provides the cha-ching no-fee chequing account with unlimited transactions and e-Transfers. Account holders can also access over 40,000 ATMs across Canada through The Exchange Network, which is a group of banks and credit unions that have come together and agreed to let their customers use each other's ATMs without incurring a fee.
Motive Financial’s chequing account also offers a high-interest rate, which means that customers can earn more on their account balance.
5. EQ Bank Savings Plus Account
EQ Bank offers a savings plus account that has no monthly fees and comes with unlimited transactions and e-Transfers. You can also earn a high-interest rate on your account balance, making it a great option for those who want to see their money grow. EQ Bank is also a part of The Exchange Network, providing free access to thousands of ATMs across Canada.
6. Motusbank No-Fee Chequing Account
Motusbank zero monthly fee chequing account is an online bank account that provides free e-Transfers, unlimited transactions, and no monthly fees. The account has no minimum balance requirement and allows access to over 3,700 ATMs across Canada.
7. The PC Money Account
The PC money account offers absolutely no monthly fees, as well as unlimited transactions and free e-Transfers. Account holders can enjoy free cash withdrawals at PC Financial ATMs, including all CIBC ATMs without additional charges. The account also allows customers to set up personalized savings goals to track and manage spending.
How to Open a No-Fee Bank Account
Opening a no-fee bank account is straightforward and it can help you save money over time. Below, we’ll walk you through the steps on how to get started, including information on the required documents and eligibility criteria.
1. Choose the Right Bank
When opening a zero fee bank account, you’ll want to select the right bank. Several banks in Canada offer no-fee accounts, including Tangerine, Simplii Financial, and PC Financial. When choosing a bank, consider factors such as location, accessibility, and reputation. You should also make sure the bank offers features that meet your needs i.e. online banking or mobile app access.
2. Understand the Requirements
Most banks require you to meet certain criteria to open a no-fee account. For example, you may need to maintain a minimum balance, deposit monthly, or use the account for transactions. Make sure to read the terms and conditions before opening an account. Some banks may also charge fees for services such as ATM withdrawals or e-Transfers.
3. Provide the Required Documentation
You’ll need to provide some documentation before you can open a bank account in Canada. Whether you’re opening a no-fee bank account or another type of account, financial institutions will require a government ID proof of address, and a social insurance number. Make sure to have these documents ready when visiting the bank or applying online. Some banks may also require additional documentation, such as a recent pay stub or a credit report.
4. Plan for the Future
Although zero-fee banking can save you money, it's essential to plan for the future. Consider factors such as overdraft protection, loans, and credit when opening an account. Make sure to build a strong credit history and establish a budget to avoid falling into debt. Additionally, consider investing or saving for long term goals, such as retirement or a down payment for a house.
5. Consider Online Banking
Many Canadians are turning to online banking as a convenient and cost-effective way to manage their money. Online banks generally offer no-fee accounts and provide 24/7 access to services such as bill payments, e-Transfers, and budgeting tools. Consider switching to an online bank if you don't need a physical branch or prefer to handle your finances from the comfort of your home.
Consider iCash for a Quick Way to Access Funds
One of the most popular reasons why people look for new banking options is the availability of no-fee accounts. Saving money on account fees can be an attractive option, but it may not always be the best option, especially if you are in need of quick cash. With iCash, you can get access to fast cash loans to help with whatever expense comes your way. You can apply today and get funded via e-Transfer in minutes.
