Key takeaways
- Over 3 years, an unlimited big-bank plan costs about $200 to $430 in monthly fees after the waiver
- A cash bonus can cover all of that, if you meet the conditions
- A $4,000 daily balance keeps TD, Scotiabank, BMO and CIBC plans free
- Card annual fees (such as $150 for the Scotiabank Passport) can cost more than the account
What this calculator includes
- Monthly account fee for each month after the newcomer waiver, unless your lowest daily balance meets the plan’s minimum ($4,000 at TD, Scotiabank, BMO and CIBC; RBC Advantage Banking has no balance waiver).
- ATM fees for withdrawals at other banks’ machines. RBC and TD unlimited plans charge no bank fee for other ATMs in Canada, and Scotiabank Preferred includes one free non-Scotiabank withdrawal a month. The ATM owner can still charge its own fee.
- Credit card annual fee, with an option for a first-year waiver or rebate.
- Other fees you pay every month, such as paper statements.
- Cash bonus, subtracted once.
Worked example: Scotiabank over 3 years
Ravi opens a Scotiabank Preferred Package, keeps about $1,500 in it, gets the Passport Visa Infinite card ($150 a year, rebated in year one) and earns the $700 chequing bonus.
- Account fees: year one is free, then 24 months × $16.95 = $406.80
- Card fees: $0 in year one, then $150 × 2 = $300
- Total fees: $706.80, minus the $700 bonus = $6.80 net over 3 years
If Ravi kept $4,000 in the account every day, the account fees would drop to $0 and he would be $400 ahead, even after the card fee. If he chose the no-fee Momentum card instead, his net cost would be about −$293, meaning he comes out ahead.
3-year account fees by plan (no balance waiver)
| Plan | Months you pay | Fees | Bonus (up to) |
|---|---|---|---|
| RBC Advantage Banking | 24 | $310.80 | None |
| TD Unlimited Chequing | 24 | $430.80 | $500 + $150 |
| Scotiabank Preferred Package | 24 | $406.80 | $1,000 |
| BMO Performance Chequing | 12 | $215.40 | $900 |
| CIBC Smart Account | 12 | $203.40 | $600 |
Fees as of October 5, 2026. Bonus conditions are in the Big 5 side-by-side.
Mistakes that raise your costs
- Missing the bonus conditions. Most bonuses need a recurring direct deposit within 60 days. If your first pay goes to another account, you may lose it.
- Closing too early. Bonuses are paid months later. Closing first can cancel the bonus.
- Dropping below the minimum balance for one day. The $4,000 waiver usually needs the balance every day of the month, not on average.
- Bounced payments. Since March 12, 2026, an NSF fee is capped at $10, but it still adds up, and a merchant may charge its own fee.
How to lower your banking costs
- Switch to a plan that matches your use when the waiver ends. Find the date with the fee waiver calculator.
- Use your own bank’s ATMs, or pay by debit and avoid cash.
- Keep a no-fee credit card unless the rewards clearly beat the annual fee.
- Pay bills by pre-authorized debit or online, never by paper cheque if your bank charges for cheques.
- Keep savings at a no-fee online bank. See the savings rates tracker.
To plan your whole first-months budget, try the first 90 days budget.
Common questions
How much does a bank account cost in Canada?
Basic accounts cost $4 a month or less, and newcomers in their first year can get one for $0 at 14 banks. Unlimited plans at the big banks cost $12.95 to $17.95 a month, as of October 5, 2026, unless you keep a minimum balance.
Is a newcomer cash bonus worth it?
Often yes. A $500 to $1,000 bonus can cover two or more years of fees. But you only get it if you meet the conditions, usually a recurring direct deposit and some transactions within 60 days.
Should I include the credit card fee?
Yes, if you plan to keep the card. A $150 card fee over three years can cost more than the bank account itself.
What is the cheapest way to bank in Canada?
A no-fee online bank such as Simplii, Tangerine or EQ Bank, or the free basic account newcomers can get in their first year. Big-bank plans are worth it mainly for branches, bonuses and starter credit cards.
Sources
- RBC: Advantage Banking account
- TD: Chequing accounts
- Scotiabank: Chequing accounts
- BMO: Chequing accounts
- CIBC: Smart Account
- Scotiabank: StartRight newcomer offer
- Scotiabank: Compare credit cards
- TD: New to Canada banking package
- BMO: NewStart newcomer bank account offers
- CIBC: Banking offers for newcomers
- FCAC: Free and low-cost bank accounts now available (Nov 2025)