Bank Fees in Canada Explained: ATM, Overdraft, NSF

Key takeaways

Big-bank chequing plans cost about $4 to $31 a month; a minimum balance can waive the fee
Since March 12, 2026, an NSF (bounced payment) fee is capped at $10 by federal rules
Overdraft can cost a $5 fee plus interest; TD charges 21% a year on the overdrawn amount
Using another bank’s ATM can cost a fee from your bank ($2 at TD on most plans) plus the ATM owner’s fee (RBC charges non-clients $3.50)
Your bank must give you at least 30 days’ written notice before a new or higher fee

What fees do Canadian banks charge?

Most fees fall into five groups:

Monthly plan fee. The price of the chequing account itself.
Transaction fees. Charged when you go over the number of transactions in your plan.
ATM fees. Charged when you use another bank’s machine, in Canada or abroad.
Overdraft and NSF fees. Charged when you spend more than you have.
Service fees. For things like paper statements, stop payments, or closing an account.

Every bank publishes a full fee list. The bank must give you a list of all charges for the account when you open it, says the Financial Consumer Agency of Canada (FCAC).

How much is a monthly account fee?

Here is TD as an example of how one big bank prices its chequing plans, as of October 10, 2026:

TD plan	Monthly fee	Transactions included	Balance that waives the fee
All-Inclusive Banking Plan	$30.95	Unlimited	$6,000
Unlimited Chequing	$17.95	Unlimited	$4,000
Every Day Chequing	$11.95	25, then $1.25 each	$3,000
Minimum Chequing	$3.95 ($0 for newcomers in their first year)	12, then $1.25 each	No balance waiver
Student Chequing	$0	Unlimited	Not needed

Source: TD fees page, checked October 10, 2026. The balance must stay above the minimum every day of the month.

Other big banks are similar. Newcomer packages usually waive the fee for 12 or 24 months. After that, the regular fee starts. Use the fee waiver calculator to find your end date.

The low-cost and no-cost account option

Under a federal commitment in place since December 1, 2025, participating banks must offer a low-cost account for no more than $4 a month. It includes at least 18 debit transactions a month, free digital statements and no minimum balance. Newcomers in their first year in Canada get it for $0. This includes permanent residents, refugees, students and workers.

ATM fees: in Canada and abroad

Using your own bank’s ATM is usually free. Using another bank’s ATM often costs twice: your bank charges a fee, and the ATM owner may add its own.

Fee	TD	RBC
Other bank’s ATM in Canada	$2 (free on Unlimited and All-Inclusive)	No RBC fee listed on its fee page; the ATM owner may charge. RBC itself charges non-clients $3.50 at RBC ATMs
ATM in the U.S. or Mexico	$3 (free on All-Inclusive)	Exchange markup applies
ATM elsewhere abroad	$5 (free on All-Inclusive)	Exchange markup applies
Currency conversion	3.5% on the converted amount	2.5% above the card network’s rate on cash from ATMs outside Canada

Sources: TD and RBC fee pages, checked October 10, 2026. Fees can differ by plan.

Tip: private “white label” ATMs in stores often charge their own fee. The screen shows it before you finish. You can cancel if it is too high.

Overdraft and NSF fees: what is the difference?

Overdraft means the bank lets your balance go below $0. You must sign up for overdraft protection. You then pay fees and interest. NSF (non-sufficient funds) means the bank refuses a payment because you do not have enough money. The payment “bounces”.

NSF fee rules since March 2026

The federal government capped NSF fees at $10 from March 12, 2026. Before, some banks charged up to $50. The rules also say:

You cannot be charged more than one NSF fee within two business days on the same account.
No NSF fee is allowed when the overdrawn amount is less than $10.

RBC’s fee page says it applied these rules from March 6, 2026. TD lists $10 for a Canadian-dollar account. The company you were paying (a landlord, a phone company) may still charge its own late or returned-payment fee.

Overdraft costs

TD: $5 a month for overdraft protection on most plans, or $5 per use (maximum $5 a day) with “Pay As You Go”. Interest is 21% a year on the overdrawn amount.
RBC: $5 a month for overdraft protection, plus overdraft interest. Overdrawing without enough protection costs $5 per item, plus interest.

Quebec accounts have some different rules at both banks.

Worked example: what one month can really cost

Priya has TD Every Day Chequing ($11.95 a month, 25 transactions). Her free newcomer period has ended. She keeps about $1,500 in the account. In one month she:

makes 30 transactions (5 over the limit),
uses another bank’s ATM twice,
overdraws by $200 for 10 days using Pay As You Go.

Item	Cost
Monthly fee	$11.95
5 extra transactions × $1.25	$6.25
2 non-TD ATM withdrawals × $2	$4.00 (plus any ATM owner fee)
Overdraft fee	$5.00
Overdraft interest: $200 × 21% × 10/365	about $1.15
Total	about $28.35

Her fees alone were more than TD Unlimited ($17.95), which has unlimited transactions and free non-TD ATM use in Canada. Count your real transactions for two months before you pick a plan. The cost of banking calculator adds this up over several years.

Your rights when fees change

Federal rules from the FCAC apply to banks and federal credit unions:

30 days’ notice. If you get account statements, your bank must give you written notice of a new or higher fee at least 30 days before it starts. If you do not get statements, it must post a notice at its ATMs at least 60 days before.
Fee list at opening. You must get a list of all charges when you open a personal account.
Cheque holds. Your bank must tell you its maximum cheque hold periods. Bill C-15, which became law on March 26, 2026, raises the amount you can use right away from a deposited cheque from $100 to $250. Ask your bank if this change is in effect yet.
Complaints. Complain to your bank first. If that does not solve it, you can go to the bank’s external complaints body, such as the Ombudsman for Banking Services and Investments (OBSI).

Provincial credit unions follow provincial rules, which can differ.

How to keep bank fees low

Match the plan to your use. Few transactions? A low-cost account may be enough.
Ask for the $0 newcomer account if you are in your first year and do not need a big package.
Use your own bank’s ATMs, or get cash back at a store checkout.
Turn on low-balance alerts in your app, so you never bounce a payment.
Switch to e-statements to avoid paper statement fees ($2 a month on some TD plans).
Compare no-fee banks. See best bank accounts for newcomers and Big 5 newcomer offers.

Common questions

What is the NSF fee in Canada in 2026?

Federal rules cap the NSF fee at $10 since March 12, 2026. You cannot be charged more than one NSF fee within two business days on the same account, and none when the overdrawn amount is under $10.

Can my bank raise fees without telling me?

No. A federally regulated bank must give you written notice at least 30 days before a new or higher fee, if you get statements. Otherwise it must post a notice at its ATMs at least 60 days before.

How much does it cost to use another bank’s ATM?

At TD it is $2 in Canada on most plans. The ATM owner can add its own fee on top; for example, RBC charges people who are not its clients $3.50 per withdrawal at its ATMs.

Is there a free bank account for newcomers?

Yes. Under the federal low-cost account commitment, newcomers in their first year in Canada can get a no-cost account. It includes at least 18 debit transactions a month.

Is overdraft protection worth it?

It can stop a payment from bouncing, but it costs a monthly or per-use fee plus high interest (21% a year at TD). Low-balance alerts are a free way to avoid both overdraft and NSF fees.

Sources

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.

Bank fees explained: monthly, ATM, overdraft and NSF fees in Canada