Canada Caps Low-Cost Bank Accounts at $4/Month
Summary
The Financial Consumer Agency of Canada (FCAC) has brought into force its modernized Commitment on Low-Cost and No-Cost Accounts as of December 1, 2025, capping monthly fees for basic bank accounts at $4 and expanding eligibility for $0 accounts to include newcomers to Canada in their first year, Indigenous peoples, social assistance recipients, and Disability Tax Credit recipients. Fourteen federally regulated financial institutions, including Canada's six largest banks (RBC, TD, Scotiabank, BMO, CIBC, and National Bank), have signed on and implemented the Commitment, with FCAC expecting signatories to meet all requirements and monitoring their compliance. Any federally regulated financial institution not yet a signatory should review the Commitment's requirements, as FCAC has encouraged additional institutions to join so more Canadians can benefit.
“As of today, Canadians can access bank accounts costing no more than $4 per month.”
Federally regulated financial institutions not yet signatories to the Commitment should review the updated pricing cap ($4/month maximum), expanded eligibility for $0 accounts, and increased debit transaction allowances, as FCAC has encouraged additional institutions to join and may apply pressure through its supervisory function. Banks offering low-cost account products should audit their current terms against the modernized Commitment to ensure compliance with the in-branch and online disclosure requirements.
About this source
GovPing monitors Canada FCAC for new government & legislation regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
The modernized Commitment on Low-Cost and No-Cost Accounts updates the previous 2014 commitment by introducing a $4 per month maximum fee for low-cost accounts (up from prior limits), increasing the number of debit transactions covered by up to 50%, and expanding groups eligible for $0 accounts to include newcomers to Canada in their first year, Indigenous peoples, social assistance recipients, and Disability Tax Credit recipients. Financial institutions that have signed on must prominently display availability of these accounts in-branch and online and have trained staff about the options. FCAC will monitor signatories for compliance with the Commitment. The broader implication is that federally regulated financial institutions not yet signatories may face pressure to join, and all banks should ensure any low-cost account offerings align with the updated Commitment's pricing and eligibility standards, as FCAC's supervisory mandate covers compliance with public commitments.
For affected parties, the practical impact is that Canadian consumers—particularly vulnerable populations—now have enforceable access to affordable basic banking, and banks must ensure their front-line staff and marketing materials reflect these account options. Banks already offering free or discounted accounts should verify their terms meet the new Commitment thresholds.
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
OTTAWA, ON, Dec. 1, 2025 /CNW/ - As of today, Canadians can access bank accounts costing no more than $4 per month. Fourteen federally regulated financial institutions, including Canada's 6 largest banks, have signed on to and implemented the modernized Commitment on Low-Cost and No-Cost Accounts (Commitment) announced by the Financial Consumer Agency of Canada (FCAC) in June of this year. The previous commitment was introduced in 2014.
Financial institutions that have signed on to the Commitment must prominently display information about the availability of low-cost and no-cost accounts in-branch and online, and have trained staff about these account options.
Under the modernized Commitment, Canadians can access low-cost accounts offering up to 50% more debit transactions per month. These include widely-used transaction types such as electronic fund transfers (e.g. Interac e-Transfers®). More groups are eligible for accounts 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
- recipients of the Disability Tax Credit (DTC) and/or their supporting family member FCAC expects signatories to meet all the requirements and will monitor their compliance with the Commitment.
Quotes
Our government is making strides to reduce costs for Canadians. The coming into force of the low-cost no-cost commitment will make banking more affordable and support people that need it most. This complements the pro-consumer actions in Budget 2025 to deliver lower prices, better service, and more choice that are needed to build a stronger economy.
The Honourable François-Philippe Champagne, Minister of Finance and National Revenue
The Financial Consumer Agency of Canada is committed to protecting the rights and interests of Canadians, especially those most vulnerable. Access to modern, affordable banking is essential, and for many, having these accounts at no cost is critical. I'm pleased that 14 financial institutions have stepped up to offer these accounts nationwide, and I encourage others to join this effort so even more Canadians can benefit.
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 are offering accounts under the modernized Commitment:
| 1. Alterna Bank
2. Bank of China (Canada)
3. BMO
4. CIBC
5. Hana Bank Canada
6. ICICI Bank
7. Industrial Commercial Bank of China | 8. Innovation Federal Credit Union
9. Laurentian Bank
10. National Bank
11. Royal Bank of Canada
12. Scotiabank
13. Tangerine Bank
14. TD Bank |
- Canadians can access FCAC's unbiased and factual information and tools to make informed financial decisions, including planning your finances at different life stages, choosing a financial advisor, making a budget and managing your money in challenging times.
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:
The modernized Commitment on Low-Cost and No-Cost Accounts
Contacts
Media Relations
Financial Consumer Agency of Canada
343-999-1450
[email protected]
Search for related information by keyword: Finance | Personal finance | Financial Consumer Agency of Canada | Canada | Money and finances | general public | news releases
SOURCE Financial Consumer Agency of Canada
Contacts: Media Relations, Financial Consumer Agency of Canada, 343-999-1450, [email protected]
Organization Profile
Financial Consumer Agency of Canada
- Also from this source
- New NSF fee regulations bring down cost of banking for Canadians
- FCAC launches ad campaign to help Canadians make the most of their money
- Survey findings offer glimpse into how Canadians seek financial advice
Related Organization(s)
Government of Canada
- Also from this source
- Government of Canada announces funding to improve the quality of life for seniors across the country
- MEDIA ADVISORY - Governments of Canada and Prince Edward Island to partner to support tariff-impacted workers
- Prime Minister Carney delivers on commitment to accelerate homebuilding in Ottawa
Parties
Related changes
Get daily alerts for Canada FCAC
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from FCAC.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when Canada FCAC publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.