Bank account fees over 10 years, and the $4 account most people never ask about
A $17.95 monthly fee is $2,154 over ten years. Canada's big banks have committed to offering an account for $4 a month or less.
A monthly account fee is small enough to stop noticing. Over ten years it isn't small. Here's the math on one popular account, how fee waivers work, and the low-cost option the big banks have agreed to offer.
One fee, ten years
TD's published fee for the TD Unlimited Chequing Account is $17.95 a month (checked November 2, 2026). We use it as an example because it's a widely held account with a clearly published fee.
| Monthly fee | 1 year | 10 years |
|---|---|---|
| $17.95 (TD Unlimited Chequing) | $215.40 | $2,154.00 |
| $4.00 (maximum for a low-cost account) | $48.00 | $480.00 |
| $0 (no-cost account, eligible groups) | $0 | $0 |
Math: $17.95 × 12 = $215.40 a year; × 10 = $2,154. $4 × 120 months = $480. The difference is at least $1,674 over ten years. That's before other fees such as paper statements, ATM or overdraft charges, and it assumes the fee doesn't change.
How fee waivers work
Many accounts drop the monthly fee if you keep a minimum balance. For TD Unlimited Chequing, the fee is $0 if you keep $4,000 or more at the end of every day of the month. If the balance dips below that on any day, the full fee applies. Seniors (60 or older) pay $11.95 a month on that account. Whether a waiver makes sense depends on whether you would keep that balance in chequing anyway.
The low-cost account: $4 a month or less
Under the federal Commitment on Low-Cost and No-Cost Accounts, in force since December 1, 2025, fourteen federally regulated financial institutions, including Canada's six largest banks, agreed that:
- Every Canadian can get a low-cost chequing account for no more than $4.00 a month.
- It includes at least 18 debit transactions a month, free digital statements and cheque writing, and no minimum balance.
- There's no extra charge for deposits, a debit card or pre-authorized payment forms.
The no-cost account: $0
The same account has no monthly fee for these groups (with proof of eligibility):
- youth (18 and under)
- students
- seniors receiving the Guaranteed Income Supplement (GIS)
- Registered Disability Savings Plan (RDSP) beneficiaries
- newcomers to Canada, in their first year
Each bank must also offer it to at least one of three more groups: Indigenous peoples, recipients of select provincial or territorial social assistance, or Disability Tax Credit recipients. Ask your bank which ones it recognizes.
Is the low-cost account enough?
It depends on how you bank. Eighteen transactions a month covers many people, but the types of transactions included vary by bank, and anything beyond the limit costs extra. The FCAC suggests looking at your total banking costs over a year, not just the monthly fee. Its Account Comparison Tool, linked from the FCAC page in the sources, lists the options.
- Find the monthly fee on your last statement and multiply by 120.
- Count your debit transactions in a typical month.
- Ask your bank about its low-cost and no-cost accounts.
- Compare your total yearly banking cost, not just the fee.
Noted.
Sources
Figures in this note were checked against these sources on the date shown above.
This note is general education, not personal financial, tax or legal advice. Rules and figures change; confirm with the source and, where needed, a qualified professional. Terms are defined in the glossary.
