5 Best No-fee Chequing Accounts in Canada 2020

Did you know that you can choose whatever bank you want to use?

For the longest time I’ve been with Scotiabank simply because that’s where my parents signed me up when I was young. I remember thinking the bank you were with was like a personal health number or something that was just given to you at birth. I thought it was just assigned to me and that’s the way things had to be.

Nope! You actually get to choose!

I had always been a student so I always had access to the no-fee chequing account. But one day I logged into my banking app and saw that my free student account had been changed to an account costing $15.95 per month unless I had a minimum daily closing balance of $4,000…

Did they notify me of this change? Of course not.

I know that $4,000 can be put to better use in a savings account where I can make 2.45% interest. I normally only have half of that $4,000 minimum in my account on pay days and then I quickly send my money elsewhere for investments, savings, bills etc. I usually only have a few hundred dollars of spending money in my chequing account at any given time.

While researching other options, I thought that this information might be helpful for others who may be interested in switching providers as well.

I’ve compiled a list of online banks that have no monthly fees and are Canada Deposit Insurance Corporation (CDIC) insured. You can check if you’re bank is a CDIC member by visiting their site here or finding their purple logo on your bank’s website or app. This means that eligible deposits up to $100,000 per account are insured. If anything were to happen to the bank, you would not lose a cent.

You most likely won’t be able to visit an in-person branch for a lot of these banks so you need to be comfortable with online and phone customer service. It’s 2020 people! Let’s get with the times.

The reason the big banks aren’t able to provide competitive interest rates or accounts with no monthly fees has a lot to do with the fact that they have huge overhead costs of running the in-person branches. Many of these online banks are owned by the big banks so they have many of the same features, simply at a lower cost to you. Tangerine is a subsidiary of Scotiabank, Simplii Financial is the direct banking brand of CIBC, etc.

Did you know that you can have credit cards with one bank and a chequing account with another and a savings account with another? I certainly didn’t! So, all of my credit cards are through Scotiabank and, until recently, my chequing and savings accounts were as well. Last year I switched banks for my savings account and I just recently switched providers for my chequing account as well.

While there is a lot of convenience to having all of your finances in one place, that one bank might not have all of the account features that are right for you. This was definitely the case for me.

Here is a list of the different accounts and banks that I was personally comparing when looking to switch providers.

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 Simplii Financial No Fee Chequing Account

• No monthly fees

• No minimum balance

• Unlimited transactions

• Unlimited free interac® e-transfers

• 0.05-0.5% interest depending on balance

• Access to CIBC ATMs

  • $1.50 for withdrawals using any other Canadian ATM

• Can set up automatic bill payments so you never miss a bill

• Can send money internationally to over 75 countries with no transfer fees

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 Tangerine Chequing Account

• No monthly fees

• No minimum balance

• Unlimited transactions

• Unlimited free interac® e-transfers* NEW*

• 0.15-0.65% interest depending on balance

• Access to Tangerine or Scotiabank ATMs

  • $1 for withdrawals using any other Canadian ATM

• Can set up automatic bill payments so you never miss a bill

• Ability to track and categorize spending

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 Alterna Bank No Fee eChequing Account

• No monthly fees

• No minimum balance

• Unlimited transactions

• Unlimited free interac® e-transfers

• 0.05% interest

• Access to THE EXCHANGE Network* ATMs (Vancity, HSBC, Blueshore Financial etc.)

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 motusbank No Fee Chequing Acocunt

• No monthly fees

• No minimum balance

• Unlimited transactions

• Unlimited interac® e-transfers

• 0.50% interest

• Access to THE EXCHANGE Network* ATMs

• Price drop feature, upload or email your receipts and they will search for lower prices so you can claim your money back

• Caution: Will charge you to close the account within 90 days of opening

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 Motive Financial Cha-Ching Chequing Account

• No monthly fees

• No minimum balance

• Unlimited free transactions

• Free interac® e-transfers

• 0.25% interest rate

• Access to THE EXCHANGE Network* ATMs

  • 2 free ATM withdrawals from other ATMs then $1.50 for each thereafter

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What Bank Did I Choose?

Ultimately, I decided to go with Tangerine. While the interest rates are higher for other banks, I don’t normally have more than a few hundred dollars in my chequing account so it’s not a high priority for me.

The most important features for me are having no monthly fees and no minimum balance. I have had under $3 to my name in a chequing account in university at one point, there is no way I could have met that $4,000 minimum or pay that $16 fee for that matter. Even now, I would rather put that money to better use and switch to another bank that offers me a service that works for me.

Tangerine has a great app that I’m really excited to start using. I can set up some of my goals and there’s a tab that shows me how much I have left to spend to help me stay on track!

I also like that Tangerine allows me to use Scotiabank ATMs, something that I am already used to. This was pretty much the only reason I chose Tangerine over Simplii Financial. Personal preference!

Unlimited transactions is another extremely important perk for me because I normally pay off my credit cards every few days to keep all my card balances at $0.00. Having three credit cards, this habit seriously racks up the amount of transactions I need each month.

Lastly, I like to have the ability to send unlimited interac® e-transfers because I do use that service each and every month. I also send money back and forth from my savings account by e-transfer so that’s super handy to have available. Stay tuned for my list of best high interest savings accounts!

If you’ve been thinking about switching to Tangerine lately, you can use my Orange Key 58585368S1 to get $50 once you register and deposit at least $250! This code will only work for the first three people who use it.

Final Things To Consider

How many e-transfers do you need to send each month?

How many monthly transactions do you need?

Do you need to be able to access money in other countries outside of Canada?

Does access to specific ATMs matter to you?

These accounts I’ve listed might not be right for you and you may be required to bite the bullet and head to one of the big banks to pay for the services you need. Some perks of paying the fees (or keeping a large sum of money in your account each month) might include in-person customer service, annual fees being waived for some credit cards or even the inclusion of a safety deposit box where you could keep important documents stored safely. Right now, these benefits do not suit my needs but it could be a really great option for your circumstances.

If you just go to your current bank and ask what the best option is, they will only tell you how great their services are and will not tell you what other institutions are offering. They are a business after all and will push you on their products and their products only. Take some time to look at all of your options and compare institutions. You might find a much better option out there for you.

I hope you feel inspired to check your banking information if you are not already aware of the fees you are paying for your current chequing account.

Need a change? Take some time to do a simple online search to compare institutions keeping in mind what is important to you. It is your money after all! Try using this this comparison tool to see what bank might work best for you.

“Wise spending is part of wise investing. And it’s never too late to start.”

*THE EXCHANGE Network: Participating financial institutions have agreed to come together and give each other’s customers free access to many ATMs across Canada. You can find all participating financial institutions here and search for them in your area.

Disclaimer: I am not a certified financial planner or investment advisor. The ideas posted on this website are my own opinions on how I manage my personal finances. The content is specifically for educational and informational purposes and is not considered professional financial advice. Everyone’s finances work differently and you will have to do your own due diligence before making any financial decisions.

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