Can You Get a Free Bank Account in Canada? Who Qualifies for $0
Most Canadians can open a bank account that costs no more than $4 a month, and many can get one for $0. The catch is that banks rarely advertise these accounts, so you usually have to ask.
- Rules checked October 26, 2026
- By Krish Paul
- 7 min read
On this page
This guide explains who qualifies under the federal commitment that took effect on December 1, 2025, what the accounts must include, and when a $4 account beats a full plan.
The short answer
Yes. Since December 1, 2025, 14 participating financial institutions must offer a low-cost account for $4 a month or less to anyone, and waive that fee entirely for people 18 or younger, students, seniors receiving the Guaranteed Income Supplement, RDSP beneficiaries and newcomers in their first year in Canada.
The rules come from the Commitment on Low-Cost and No-Cost Accounts, which the Financial Consumer Agency of Canada (FCAC) monitors. Each bank must also waive the fee for at least one more group of its choice.
Who qualifies for a $0 account
The commitment splits eligible people into groups every participating bank must cover and groups where each bank picks at least one.
Every participating bank must waive the fee for
- Youth aged 18 and under
- Students
- Seniors receiving the Guaranteed Income Supplement (GIS)
- Registered Disability Savings Plan (RDSP) beneficiaries
- Newcomers, for their first year in Canada
Each bank must also cover at least one of
- Indigenous peoples
- Recipients of select provincial or territorial social assistance
- Disability Tax Credit (DTC) recipients, or their supporting family member
Because the second list is optional, two banks can treat the same person differently. TD, for example, lists Indigenous Peoples from Canada among the groups that pay no monthly fee on its Minimum Chequing Account. Check the bank’s own page, or ask in a branch, before you assume you qualify.
Banks can ask you to prove eligibility. The commitment says the waiver is subject to validation, so bring documents such as a GIS statement, proof of enrolment or RDSP paperwork.
What a low-cost account must include
The low-cost account is open to every Canadian, whether or not you are in an eligible group. Under the commitment it must include:
- At least 18 debit transactions a month
- A debit card, cheque writing and free digital monthly statements
- No minimum balance
- No extra charge for deposits, pre-authorized payment forms or printed statements
- Joint accounts where warranted
The 18 transactions break down in a specific way. At least 12 must come from core types: debit purchases, bill payments, pre-authorized debits, cheques, cash withdrawals, electronic transfers and in-branch transactions. The other 6 can come from those types or from others, such as transit fares, online debit purchases or transfers between your own accounts.
That is why many bank pages still say “12 transactions.” Banks can meet the rest with transaction types they do not count against your limit. The old 2014 guidelines required only 12 debits in total, so the current rules give you 50% more.
How the big banks’ $4 accounts compare
| Bank and account | Monthly fee | Counted debits | Extra debit | Not counted |
|---|---|---|---|---|
| CIBC Everyday Chequing | $4.00 | 18 | $1.25 | Not stated |
| RBC Day to Day Banking | $4.00 | 12 | $1.25 | e-Transfers, self-serve transfers |
| TD Minimum Chequing | $3.95 | 12 | $1.25 | Public transit |
| BMO Practical Chequing | $4.00 | 12 | Not stated | Deposits, transit fares |
| Scotiabank Basic Banking | $3.95 | 12 | Not stated | Not stated |
Sources: each bank’s product or commitment page, checked October 26, 2026. “Counted debits” is the number each bank publishes. Ask your bank which transaction types make up the full 18.
The fee waivers listed on these pages also differ. RBC lists $0 for clients 65 or older, Indigenous Peoples and RDSP beneficiaries. TD lists GIS recipients, Indigenous Peoples, RDSP beneficiaries and newcomers in their first year. Scotiabank says its Basic Banking Account fee is waived for seniors and RDSP beneficiaries, with separate no-fee student and youth accounts.
Worked example: $4 account or unlimited plan?
If you pay for an unlimited plan, check whether you need it. Using RBC’s posted fees on its chequing comparison page, here is what each option costs before any rebates.
| Account | Monthly fee | Per year | Over 5 years |
|---|---|---|---|
| No-cost (eligible groups) | $0 | $0 | $0 |
| Day to Day Banking | $4.00 | $48.00 | $240.00 |
| Advantage Banking | $12.95 | $155.40 | $777.00 |
| Signature No Limit Banking | $16.95 | $203.40 | $1,017.00 |
Assumes fees stay the same for five years and no rebates or minimum-balance waivers apply. Calculated in Python and checked by summing 60 monthly fees.
Moving from the $16.95 plan to the $4 account saves $155.40 a year, or $777 over five years. The question is whether your debits fit.
The $4 account includes 12 counted debits, then charges $1.25 for each extra one. At 19 counted debits a month you would pay $12.75, still under the $12.95 Advantage plan. At 20 you would pay $14.00, so the unlimited plan becomes cheaper. At RBC, e-Transfers and self-serve transfers do not count, so you may have fewer counted debits than you expect.
Check your own break-even in two minutes
- Count last month’s debitsGo through your statement and count purchases, bill payments, withdrawals and pre-authorized debits.
- Remove the free onesTake out any types your bank says do not count, such as e-Transfers or transit.
- Do the mathsAdd the extra-debit fee for each debit over the included number to the $4 fee, then compare with your current plan.
Things that are not included
A low-cost account covers everyday banking, not everything. Other services can carry a “reasonable fee” under the commitment. Watch for:
- ATM fees at other banks. BMO lists $2 each for non-BMO ATMs in Canada and $5 outside Canada on its Practical account.
- Overdraft protection. BMO lists standard overdraft protection at $5 a month on the same account.
- Extra debits. $1.25 each at CIBC, RBC and TD once you pass the included number.
How to get a low-cost or no-cost account
- Check whether your bank participates. The 14 signatories are Alterna Bank, Bank of China (Canada), BMO, CIBC, Hana Bank Canada, ICICI Bank, Industrial and Commercial Bank of China, Innovation Federal Credit Union, Laurentian Bank, National Bank, RBC, Scotiabank, Tangerine and TD.
- Ask for it by name. Say you want the low-cost account under the Commitment on Low-Cost and No-Cost Accounts, or the no-cost version if you qualify.
- Bring ID and proof of eligibility. The FCAC page on opening a bank account explains the ID options. Add your GIS statement, student card or RDSP papers.
- Switch, do not close. The commitment bars account-switching fees when you move to the low-cost account at the same bank. Update your pre-authorized payments if the account number changes.
- Complain if refused. Use the bank’s complaint process first. If it does not resolve the issue, contact the FCAC.
If you are a senior, our GIS guide covers amounts and income limits. If your account sometimes runs short, see the $10 NSF fee cap.
Frequently asked questions
Can you get a free bank account in Canada?
Yes, if you are in an eligible group. Under the FCAC-monitored commitment in force since December 1, 2025, people 18 or younger, students, seniors receiving the Guaranteed Income Supplement, RDSP beneficiaries and newcomers in their first year can get a low-cost account with no monthly fee. Each bank must also waive the fee for at least one more group: Indigenous peoples, Disability Tax Credit recipients, or people on select provincial or territorial social assistance.
What is the cheapest bank account in Canada if I do not qualify for a free one?
Every Canadian can get a low-cost account from a participating bank for $4 a month or less. It must include at least 18 debit transactions a month, free digital statements, cheque writing and a debit card, with no minimum balance.
Which banks offer low-cost and no-cost accounts?
The FCAC lists 14 participating institutions, including BMO, CIBC, Laurentian Bank, National Bank, RBC, Scotiabank, Tangerine and TD, plus Innovation Federal Credit Union and several smaller banks.
Do e-Transfers count toward the 18 transactions?
It depends on the bank. The commitment counts electronic transfers among the core debits, but each bank decides which types it counts. RBC, for example, says unlimited e-Transfers and self-serve transfers do not count toward the 12 debits on its Day to Day Banking account.
Is a $4 account cheaper than an unlimited plan?
Usually, unless you make many debits. In our example using RBC’s posted fees, the $4 account with 12 included debits and $1.25 per extra debit stays cheaper than the $12.95 unlimited plan up to 19 counted debits a month. At 20 or more, the unlimited plan costs less, before any rebates.
What proof do I need for a no-cost account?
The commitment says the fee waiver is subject to validation, so expect to show a document proving you belong to an eligible group, such as a GIS statement or RDSP paperwork. Ask your bank which documents it accepts before you go to the branch.
- Sources, checked October 26, 2026: FCAC: Commitment on Low-Cost and No-Cost Accounts (effective December 1, 2025); FCAC: Low-cost and no-cost accounts (modified December 8, 2025); FCAC news release, December 1, 2025; Department of Finance: 2014 Low-Cost Account Guidelines; FCAC: Opening a bank account; CIBC Everyday Chequing fees; RBC Day to Day Banking; RBC chequing comparison; TD Minimum Chequing; BMO Practical Chequing; Scotiabank low-fee retail deposit account.
- Method: Yearly and five-year fees were calculated in Python and re-checked by summing 60 monthly payments. The break-even point is ($12.95 minus $4.00) divided by $1.25, which is 7.16, so 8 extra debits (20 in total) is the first level where the unlimited plan is cheaper.
Important: This guide is general information, not financial or legal advice. Account features, fees and eligibility can change, so confirm them with your bank before switching. Gizly is not paid by any bank mentioned here. See our affiliate disclosure.
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