In today’s financial landscape, every dollar saved counts. If you’re tired of watching your hard-earned money disappear due to banking fees, you’re not alone. Luckily, there are options available in Canada that won’t charge you a cent for basic banking services. Whether you’re new to the country or a long-time resident, finding a bank that offers fee-free services can make a significant difference in your financial well-being.
Join us as we explore the world of fee-free banking in Canada, where we’ll highlight the banks that prioritize keeping your money in your pocket. From urban centers to rural communities, these institutions offer a range of services without the burden of fees. So let’s embark on this journey together and discover the freedom of fee-free banking in the Great White North.
What You Need to Know About No-Fee Chequing Accounts
Let’s dive into the world of chequing accounts and those pesky fees that can eat away at your hard-earned cash. Did you know that the 5 big banks in Canada often slap you with monthly fees for their regular chequing accounts? It’s true! Even if they offer a sweet promo to waive the fee for the first year or give you an iPad when you sign up, you’ll find yourself stuck with yet another monthly bill once that promo period ends.
There are a few banks out there that have your back with no-fee chequing accounts. They’re usually digital banks or subsidiaries of the big players. Take Simplii Financial, for instance – it’s like the cool cousin of CIBC, and it’s all about keeping your money where it belongs – in your pocket.
Now, here’s the real kicker: these no-fee digital banks aren’t just about chequing accounts. They’ve got a whole buffet of financial services for you to enjoy. We’re talking credit cards, money transfers, GICs, TFSA – you name it, they’ve got it covered. And while they might not have fancy branches on every corner, they’ve got your back with 24/7 hotlines and speedy mail delivery for anything you need.
How to Choose a No-Fee Bank as a Newcomer in Canada
- Take Advantage of Introductory Offers: Keep an eye out for special deals or promotions when applying for a bank account as a newcomer. Some banks offer perks like cash bonuses or higher interest rates to sweeten the deal for new customers.
- Explore Salary Direct Deposit Promotions: Certain digital banks offer incentives for setting up direct deposit of your salary, such as higher interest rates or additional perks. Consider leveraging these promotions to maximize the benefits of your new account.
- Assess Customer Support Wait Times: Before committing to a bank, test their customer support hotline to gauge wait times. Shorter wait times indicate quicker access to assistance when you need it, ensuring a smoother banking experience. This is an important feature because the phone and email are your only options when you need help. You have no local branch to go to.
- Evaluate App or Website User Interface: Opt for a bank with a user-friendly app or website interface for easy navigation and management of your finances. A well-designed interface can streamline your banking tasks and enhance your overall experience.
- Check ATM Availability: Ensure that your chosen bank has a network of ATMs conveniently located in your area. Access to nearby ATMs makes cash withdrawals and deposits more accessible and convenient for everyday transactions. For digital banks, you should be able to withdraw from their parent banks. If you choose to create an account with Simplii Financial for instance, you may be able to withdraw from CIMB, their parent bank, free of charge.
- Confirm Interac E-transfer Availability: Verify that the bank offers Interac e-transfer services, allowing you to easily send and receive money electronically. Interac e-transfers are a convenient and secure way to manage peer-to-peer payments and split expenses with friends and family.
Top 3 No-Fee Chequing Accounts in Canada for Newcomers
Among the many distractions in the Canadian banking world, these three are the best. All of them offer the financial tools you need to start your financial life in Canada. They are all stable and have been in the market for more than 5 years. I have an account in all three of these banks. I love Simplii Financial the most because their call centre has a significantly better wait time than the other two. But I switch my money between the three, depending on the interest rate offered for their GICs.
We also recommend these three because they offer credit cards that report to the credit bureaus. Having your credit card on the same bank as your direct deposit makes payment easier.
1. Simplii Financial
Simplii Financial is a Canadian direct banking brand and a subsidiary of the Canadian Imperial Bank of Commerce (CIBC). It was launched in 2017, following CIBC’s acquisition of PC Financial’s banking business from Loblaw Companies Limited. Simplii Financial offers a range of financial products and services, including no-fee chequing and savings accounts, mortgages, personal loans, and investment products.
One of Simplii Financial’s key features is its focus on simplicity and convenience, offering online and mobile banking services without the need for physical branches. Customers can manage their accounts, transfer funds, pay bills, and access customer support through digital channels. Simplii Financial aims to provide a straightforward and hassle-free banking experience for Canadians, with no monthly fees on chequing accounts and competitive interest rates on savings products.
2. EQ Bank
EQ Bank is a Canadian digital bank launched by Equitable Bank, one of Canada’s largest independent banks, in 2016. EQ Bank operates entirely online, offering a range of financial products and services aimed at providing customers with high-interest savings solutions and hassle-free banking experiences.
One of the key features of EQ Bank is its high-interest savings account, which offers competitive interest rates with no monthly fees or minimum balance requirements. Customers can easily manage their accounts, deposit funds, and transfer money through EQ Bank’s online and mobile banking platforms.
In addition to its savings account, EQ Bank also offers other financial products such as guaranteed investment certificates (GICs) and international money transfers. EQ Bank’s mission is to provide Canadians with simple, transparent, and rewarding banking solutions that help them grow their savings and achieve their financial goals.
Earn at least $20 when you sign up for EQ bank using this link.
3. Tangerine
Tangerine.ca is one of the first Canadian direct banks. It is a subsidiary of Scotiabank, one of Canada’s largest banks. Originally founded as ING Direct Canada in 1997, it rebranded as Tangerine in 2012 after Scotiabank acquired it in 2012. Tangerine Bank operates as an online-only bank, offering a range of financial products and services primarily through digital channels, including online banking and mobile apps.
Tangerine is known for its no-fee chequing and savings accounts, competitive interest rates on savings products, and innovative features such as automatic savings programs and cash-back rewards on debit card purchases.
My only issue with Tangerine is that, because they are the oldest of the three, they have a significantly larger client base. This puts a strain on their customer support hotline resulting in longer wait times.
Honorable Mentions
- WealthSimple Cash – Technically, WealthSimple is more of an investment platform than a digital bank, but they offer Wealthsimple Cash which allows you to keep, and transfer money. They also offer high interest in this product.
- Neo Financial – Neo Financial is a digital bank and they would have made the list above if not for one major hiccup. People have been complaining that they don’t report their credit card transactions to the consumer credit bureaus. This means that you cannot build your credit score with them. This should be a deal-breaker if you are just starting to build your credit history. However, I used to use my Neo Credit Card when I was approaching the threshold of the credit utilization rate of my other cards.
Sign up for a Neo Financial account with this link and deposit $50 to earn $10.
