Canadians to benefit from enhanced free and low-cost bank accounts later this year

Press Release

From: Financial Consumer Agency of Canada

June 5, 2025

Thirteen federally regulated financial institutions, including Canada’s 6 largest banks, have signed on to a modernized Commitment on Low-Cost and No-Cost Accounts.

By December 1, 2025, Canadians will benefit from modernized no-cost and low-cost accounts costing no more than $4 per month.

Going forward, under these accounts, Canadians will have access to 50% more debit transactions per month, including widely used transaction types such as electronic fund transfers (e.g. Interac e-Transfers®). More groups will also be eligible for an account costing $0 per month, including newcomers to Canada in their first year, plus at least one of the following groups, to be selected by each signatory:

Indigenous peoples

Canadians receiving social assistance payments from select provincial or territorial programs

individuals with a valid Disability Tax Credit Certificate and/or their supporting family member

Financial institutions that have signed on to the Commitment will prominently display information about the availability of low-cost and no-cost accounts in-branch and online, and will train staff about these account options.

Canadians can currently get low-cost and no-cost accounts from nine signatories under the original 2014 Low-cost and No-cost Accounts Commitment.

The Financial Consumer Agency of Canda (FCAC) will monitor the implementation of the modernized Commitment by signatories and will supervise their compliance with all its obligations.

In Budget 2024, the government announced its intention to secure a new commitment from financial institutions for enhanced free and affordable bank accounts, recognizing that Canadians’ banking needs have changed with the increase in online banking.

Quotes

“Every Canadian deserves access to affordable, modern banking. That’s why we worked with the FCAC to strengthen the commitment by financial institutions on free and low-cost bank accounts – more transactions, fewer fees and better access. This is a clear step toward fairer, lower-cost banking for all.”

The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

“The Financial Consumer Agency of Canada puts the rights and interests of Canadians first. I am pleased that more Canadians will benefit from modern and affordable bank account options that include more transactions, offered by more financial institutions, to more groups. Having 13 signatories commit to offering modernized low-cost and no-cost accounts is good news for financial consumers. I encourage other financial institutions to join the Commitment and extend these benefits to even more Canadians.”

Shereen Benzvy Miller, Commissioner, Financial Consumer Agency of Canada

Quick facts

The Financial Consumer Agency of Canada’s (FCAC) mandate is to supervise the compliance of federally regulated financial entities, including banks, with their legislative obligations, codes of conduct and public commitments and to strengthen the financial literacy of Canadians.
The following federally regulated financial institutions have signed on to the modernized Commitment so far:
1. Alterna Bank
2. BMO
3. CIBC
4. Hana Bank Canada
5. ICICI Bank
6. Industrial Commercial Bank of China
7. Innovation Federal Credit Union
8. Laurentian Bank
9. National Bank
10. Royal Bank of Canada
11. Scotiabank
12. Tangerine Bank
13. TD Bank
FCAC supported the development of the modernized Commitment based on research and consultations with Canadians, stakeholders and industry. This work underlined the need to update the Commitment to reflect consumers’ evolving banking needs and to support financially vulnerable Canadians, while recognizing the importance of innovation and competition in the financial marketplace.
FCAC encourages Canadians to shop around for banking products and services that meet their needs. FCAC provides useful and unbiased resources to help consumers make informed financial decisions, including a Bank Account Comparison Tool and information about:
- low-cost and no-cost accounts
- choosing financial products and services
- transferring products or services to another financial institution
- choosing a financial institution