Credit Card Cash Advance Cost in Canada: What $500 Really Costs
A credit card cash advance looks like a cheap way to get money fast because the fee is only a few dollars. The real cost is the interest that starts the same day, at a higher rate than purchases.
- Fees checked November 8, 2026
- By Krish Paul
- 7 min read
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This guide works out what a cash advance costs at two big banks, which everyday transactions count as one, and when it is still the least bad option.
The short answer
A $500 credit card cash advance repaid after 30 days costs about $14.50 at TD or Scotiabank: a $5 fee plus about $9.50 of interest at 22.99%. Unlike a purchase, there is no grace period, so interest starts on the day you take the cash and keeps running until your payment arrives.
A $500 purchase paid in full by the due date would cost nothing in interest. That gap is the whole story. The Financial Consumer Agency of Canada (FCAC) sample credit card disclosure shows the same pattern: a grace period of at least 21 days on purchases, and no interest-free period on cash advances and balance transfers.
Cash advance fees and rates at TD and Scotiabank
Both banks charge 22.99% on cash advances on their popular no-fee cards, one point above the 21.99% purchase rate. The fees are set differently.
- TD Cash Back Visa: 1% of the amount, with a minimum of $3.50 and a maximum of $10.00. TD does not charge the fee if your account is in a credit balance. These fee terms took effect April 30, 2025, and TD says the change does not apply to Quebec residents. Source: TD Cash Back Visa change FAQ and TD Cash Back Visa page.
- Scotiabank Scene+ Visa: the greater of $5.00 or 1% of the amount, with no maximum listed. Scotiabank charges interest on the fee too. Withdrawals at an ABM outside Canada cost $7.50. Source: Scotiabank credit card fees and Scotiabank Scene+ Visa page.
| Cash advance | TD fee | TD total, 30 days | Scotiabank fee | Scotiabank total, 30 days |
|---|---|---|---|---|
| $100 | $3.50 | $5.39 | $5.00 | $6.98 |
| $500 | $5.00 | $14.45 | $5.00 | $14.54 |
| $1,000 | $10.00 | $28.90 | $10.00 | $29.08 |
| $2,000 | $10.00 | $47.79 | $20.00 | $58.17 |
Hypothetical examples. Interest is simple daily interest at 22.99% for 30 days, with no other balance on the card. Scotiabank interest is charged on the advance plus the fee.
Two things stand out. First, the fees are close for typical amounts. TD caps its fee at $10, so on a $2,000 advance it costs $10 less than Scotiabank. Second, interest is the bigger cost for any amount over a few hundred dollars, and it grows every day.
Why paying back fast matters more than the fee
At 22.99%, each $500 of cash advance costs about 32 cents a day in interest. The fee is fixed, so on a short advance it dominates, and on a long one the interest takes over. The table below shows the same $500 Scotiabank advance repaid after different numbers of days.
| Repaid after | Interest | Total with $5 fee | Cost as a yearly rate |
|---|---|---|---|
| 1 day | $0.32 | $5.32 | 388.2% |
| 7 days | $2.23 | $7.23 | 75.4% |
| 14 days | $4.45 | $9.45 | 49.3% |
| 30 days | $9.54 | $14.54 | 35.4% |
Hypothetical. “Cost as a yearly rate” is the fee plus interest, divided by $500 and scaled to 365 days. It shows how expensive the fee is on a very short advance.
A one-day advance costs $5.32, which sounds small, but as a yearly rate it is more than 388%. If you need $500 for a week, you pay $7.23. If you leave it for a month, you pay $14.54. If you only pay the minimum and let the balance roll for months, interest keeps building every month the balance stays unpaid.
Pay before the statement, not after
With a purchase, waiting for the statement and paying by the due date costs you nothing. With a cash advance, waiting is exactly what costs you. Scotiabank says interest is charged from the transaction date until it receives your payment in full. TD says cash advances accrue interest from the date the advance is made. So pay the advance off as soon as the money is available.
If the difference is new to you, see how the credit card grace period works for purchases.
Cash-like transactions: cash advances you might not notice
A cash advance is not only an ATM withdrawal. Banks treat some card purchases as cash because the item is close to cash. Scotiabank calls these cash-like transactions and lists, among others:
- Wire transfers and money orders
- Foreign currency and travellers cheques
- Remote stored value
- Gaming transactions, including off-track betting, racetrack wagers, gaming chips and some lottery tickets, depending on the card
Scotiabank says the list is not complete. Balance transfers and credit card cheques are also cash advances at both banks, though each has its own fee rules. If you buy foreign currency before a trip with your credit card, you can pay the fee and same-day interest without realising it. Paying abroad with your card in the local currency is a purchase instead, with a conversion fee. Our guide to foreign transaction fees compares those costs.
You usually lose the rewards too
TD says cash advances, including balance transfers and cash-like transactions, do not earn Cash Back Dollars on its Cash Back Visa. On a rewards card, a cash-like transaction can cost you the fee, the interest and the points you expected.
When a cash advance can make sense
It is expensive credit, but it is not always the worst choice. It can be reasonable when all of these are true.
- It is a real emergencySomething that cannot be paid by card, such as a cash-only repair or a deposit.
- You can repay it within daysA week of interest on $500 is about $2.23. The fee is the main cost.
- The alternative costs moreA bounced payment, a payday loan or a late fee on a bill can cost more than a short advance.
If you have time, compare first. Many chequing accounts offer overdraft protection, which our guide to overdraft protection fees breaks down. A personal line of credit, if you already have one, is worth pricing too. Before you consider a payday loan, read what a payday loan really costs.
How to take a cash advance and keep the cost down
- Check your card’s rate and fee. Look for the cash advance line in your cardholder agreement or on the bank’s fee page. Rates and fees vary by card and change over time.
- Take one advance, not several. A minimum fee applies to each transaction, so three $100 withdrawals at Scotiabank cost $15 in fees, while one $300 withdrawal costs $5.
- Use an ATM in Canada if you can. At Scotiabank, an ABM withdrawal outside Canada costs $7.50.
- Pay it back right away. Make a payment as soon as you have the money. Every day of waiting adds interest.
- Keep paying at least the minimum on time. Missing a payment can add more costs on top of the interest. Read what happens if you miss a credit card payment.
Frequently asked questions
Is there a grace period on credit card cash advances in Canada?
No. Purchases usually get an interest-free grace period of at least 21 days if you pay the full balance by the due date, but cash advances do not. At TD and Scotiabank, interest starts on the day the cash advance is made and runs until you pay it back.
How much does a $500 cash advance cost?
At a 22.99% cash advance rate, a $500 cash advance repaid after 30 days costs about $14.45 at TD and $14.54 at Scotiabank, fee included. Interest on $500 adds roughly 32 cents for each day you wait.
What counts as a cash advance on a credit card?
ATM and branch withdrawals, and also cash-like transactions. Scotiabank lists wire transfers, foreign currency, travellers cheques, money orders, gaming chips and some lottery tickets. Balance transfers and credit card cheques are also treated as cash advances, though the fees can differ.
Do cash advances earn credit card rewards?
Not on every card. TD says cash advances, including balance transfers and cash-like transactions, do not earn Cash Back Dollars on the TD Cash Back Visa. Check your own card’s terms.
How can I cut the cost of a cash advance?
Pay it back as soon as you can rather than waiting for the statement, since interest is charged daily until your payment arrives. Take one larger advance instead of several small ones to avoid paying the minimum fee each time, and compare it with overdraft protection or a line of credit first.
- Sources, checked November 8, 2026: Scotiabank: Credit card fees at a glance (cash advance fee, no grace period on cash advances, cash-like transactions, ABM fee outside Canada); Scotiabank Scene+ Visa card (21.99% purchases, 22.99% cash advances); TD Cash Back Visa card (21.99% purchases, 22.99% cash advances, rates current as of September 1, 2026; cash advance interest from the date made; no Cash Back Dollars on cash advances); TD Cash Back Visa: changes starting April 30, 2025 (1% cash advance fee, $3.50 minimum, $10.00 maximum); FCAC: Sample information box for a credit card agreement (modified 2025-10-07).
- Method: Costs were calculated in Python as the fee plus simple daily interest (annual rate divided by 365, times days), then re-checked by adding the interest one day at a time. Scotiabank interest includes the fee, as its fee page states. All examples are hypothetical and assume no other balance on the card.
Important: This guide is general information, not financial or legal advice. Rates and fees vary by card and province and can change, so check your own cardholder agreement. Gizly is not paid by any bank mentioned here. See our affiliate disclosure.
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How this page was made: Gizly uses AI tools to help research and draft its guides. Krish Paul, the editor, is responsible for what Gizly publishes. Spot an error? Tell us and we will fix it.
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