Minimum Balance to Avoid Bank Fees in Canada: Is It Worth It?
Most big-bank chequing plans charge $11.95 to $30.95 a month unless you keep a set balance in the account every single day. Whether that is a good deal depends on what the same money would earn somewhere else.
- Fees checked November 11, 2026
- By Krish Paul
- 9 min read
On this page
- The short answer
- What the big banks charge, and the balance that waives it
- The catch: one short day costs the whole month
- What the money could earn instead
- Tax makes the waiver look even better
- Three checks before you park the minimum
- Other ways to get the fee waived
- How to decide in five minutes
- Frequently asked questions
This guide works out the break-even rate for nine common accounts, before and after tax, and shows how one short day can cost you a full month of fees.
The short answer
For most people, keeping the minimum balance is cheaper than paying the fee. A $17.95 monthly fee waived at $4,000 costs $215.40 a year, so your savings account would need to pay about 5.4% before moving that $4,000 out and paying the fee comes out ahead. Because savings interest is taxed, the real hurdle is higher: about 7.7% at a 30% tax rate.
The waiver only works if you never slip. The Financial Consumer Agency of Canada (FCAC) says that if the balance falls below the threshold, even by $1, the waiver is lost and the fee is charged for that month.
Keep the minimum or pay the fee?
Pick your account, then enter what your savings account pays, your tax rate on interest and how many months a year you fall below the minimum. The result updates as you type.
Cost of paying is the monthly fee times 12. Cost of keeping is the balance times the savings rate, less tax, plus the fee in any month you fall short. Use 0% tax for savings held in a TFSA. Calculator by Gizly.
What the big banks charge, and the balance that waives it
The FCAC reviewed account maintenance fees at the six largest banks in a report published October 23, 2026. It found standard plans cost $11.95 to $17.95 a month and premium plans $28.95 to $30.95, with waiver balances ranging from $500 to $6,000 depending on the bank and tier.
Here is what each bank lists today, and the savings rate where paying the fee and moving the money would break even.
| Account | Monthly fee | Balance to waive | Break-even rate | With 30% tax |
|---|---|---|---|---|
| Scotiabank Basic Plus | $11.95 | $3,000 | 4.8% | 6.8% |
| TD Every Day Chequing | $11.95 | $3,000 | 4.8% | 6.8% |
| BMO Plus | $12.95 | $3,000 | 5.2% | 7.4% |
| Scotiabank Preferred Package | $16.95 | $4,000 | 5.1% | 7.3% |
| CIBC Smart Account | $16.95 | $4,000 | 5.1% | 7.3% |
| BMO Performance | $17.95 | $4,000 | 5.4% | 7.7% |
| TD Unlimited Chequing | $17.95 | $4,000 | 5.4% | 7.7% |
| BMO Premium | $30.95 | $6,000 | 6.2% | 8.8% |
| Scotiabank Ultimate Package | $30.95 | $6,000 | 6.2% | 8.8% |
Break-even rate is the yearly fee divided by the waiver balance, and the last column assumes a hypothetical 30% tax on the interest. Fees and balances from each bank’s own page or fee guide, checked November 11, 2026. CIBC lists its Smart Account fee rising to $17.95 on January 1, 2027.
RBC works differently. Its Signature No Limit Banking page lists a $16.95 monthly fee with no balance waiver. Instead, the RBC Value Program cuts the fee based on how many other RBC product categories you hold, such as a credit card, a mortgage or investments. Two categories save up to $6 a month and three or more save up to $12.95, which brings the fee down to $4. The program also asks for regular account activity, such as a direct deposit or pre-authorized payment.
Every break-even rate in the table sits between 4.8% and 6.2%. For context, the Bank of Canada set its policy rate at 2.50% on October 28, 2026. A savings rate has to clear the break-even on an ongoing basis, not just during a short promotion, before paying the fee makes sense.
The catch: one short day costs the whole month
Banks do not look at your average balance for this waiver. They check the closing balance every day. The wording differs, but the test is the same:
- BMO says you need to keep the minimum balance every day of the month, based on your daily closing balance.
- Scotiabank waives the fee when you hold the amount in the account every day for the entire month.
- TD bases the waiver on your daily closing balance, which its fee guide defines as your balance at the end of a business day.
- CIBC requires an end-of-day balance of $4,000 each day for the month in one Smart Account.
The chart shows how that plays out. The balance stays above $4,000 all month, through a payday on day 15, until a bill pushes it to $3,950 at the close of day 27. It is back above the line the next day, but the waiver is already gone and the $17.95 fee applies.
How many slips it takes to erase the benefit
Take the worked example: $4,000 held in chequing, a $17.95 fee and a savings account paying a hypothetical 3%. Before tax, keeping the balance saves $95.40 a year. Each month you fall short adds $17.95 back, so six short months ($107.70) wipe out the benefit. With a 30% tax rate on the interest, the saving is $131.40 and it takes eight short months ($143.60). Enter your own count in the calculator above.
What the money could earn instead
The real cost of the waiver is the interest that $4,000 does not earn while it sits in a chequing account. The chart puts that next to the yearly fee at a range of savings rates.
At 4%, 2% and 1%, the interest given up is $160.00, $80.00 and $40.00. Even at 5%, it is $200.00, still less than the $215.40 fee. That is why the waiver tends to win for anyone who can hold the balance without strain.
Tax makes the waiver look even better
The fee you avoid is a straight saving. The interest you give up is not, because the Canada Revenue Agency (CRA) says interest must be reported on your tax return, even if you get no slip for it. So the fair comparison is the fee against the interest you would keep after tax.
Take a hypothetical 30% combined federal and provincial rate on the interest. For context, the federal rate is 20.5% on 2026 taxable income between $58,523.01 and $117,045, before provincial tax. At 30%, the $120.00 that $4,000 earns at 3% shrinks to $84.00. The savings rate needed to beat a $17.95 fee rises from 5.4% to about 7.7%, and the last column of the table shows the same shift for every account.
The exception is a TFSA. The CRA says income earned in a TFSA is generally tax-free, so if your savings sit there, use the before-tax break-even. For interest outside a TFSA, see how savings interest is taxed.
When paying the fee can make sense
- You cannot hold the balance reliably. If you dip below the minimum in half the months or more, you pay most of the fee anyway and still tie up the money.
- The money has a better job. Paying down high-interest credit card debt beats any fee waiver.
- You do not need the plan. If you make few transactions, a low-cost account at $4 a month or less, or a no-fee account, may cost less than either option.
Three checks before you park the minimum
A waiver balance is only free money if it is money you would keep anyway.
- Is it part of your emergency fund?Parking part of your cushion in chequing is reasonable, but you should be able to reach the rest without dropping below the line.
- Do big bills land on the same days?Rent, mortgage and card payments can push you under for a day or two. Leave a buffer above the minimum.
- Would the cash be spent otherwise?A bigger visible balance can make overspending easier. If so, the fee may be the cheaper habit.
Other ways to get the fee waived
A daily minimum is not the only route. Check whether one of these already applies to you:
- Seniors pricing. Scotiabank lists the Preferred Package at $12.95 a month for seniors, and BMO offers seniors a no monthly fee chequing plan.
- Students, youth and newcomers. BMO, CIBC and RBC all list $0 or reduced fees for these groups, usually for a set period.
- Total balances across products. CIBC drops the Smart Account fee to $0 when your average monthly balance across eligible CIBC deposits and investments is $40,000 or more. Scotiabank waives the Ultimate Package fee with a Total Relationship Balance of $100,000 every day for the month.
- A mortgage with the same bank. Scotiabank waives Preferred and Ultimate fees for up to a year when your account is used for recurring payments on a new or renewed eligible Scotiabank mortgage.
- A low-cost account. The FCAC says every Canadian can open an account with a monthly fee of $4 or less, with at least 18 debit transactions included.
Our guide to who qualifies for a $0 bank account covers the free account rules in detail.
How to decide in five minutes
- Find your fee and waiver balance. Look up your plan on your bank’s website or app. Note whether the test is a daily balance or a combined relationship balance.
- Check your low points. Scroll back through six months of statements and find the lowest daily balance in each month.
- Run the numbers. Use the calculator above with the rate your savings account pays today, your tax rate and the number of months you fell short.
- Add a buffer. If you keep the balance, aim for a few hundred dollars above the minimum so a mistimed bill does not cost the fee.
- Review once a year. Fees change. CIBC has announced a Smart Account fee increase for January 1, 2027, and BMO says it is changing banking plans and fees in February 2027.
If you do slip and also go overdrawn, the costs stack. See how overdraft protection fees work before you rely on it as a backstop.
Frequently asked questions
Is it worth keeping a minimum balance to avoid bank fees in Canada?
Usually, yes. A $17.95 monthly fee waived at $4,000 costs $215.40 a year, so your savings account would need to pay about 5.4% before paying the fee and moving the money comes out ahead. Across nine common big-bank plans, the break-even rate ranges from 4.8% to 6.2% before tax, and from 6.8% to 8.8% at a 30% tax rate.
What happens if my balance drops below the minimum for one day?
You are charged the full monthly fee for that month. The FCAC says the waiver is lost if the balance falls below the threshold, even by $1. BMO, Scotiabank and CIBC test the balance at the end of every day of the month, and TD uses the closing balance on each business day.
Do banks use my average balance or my lowest balance?
For the standard waiver, it is the balance at the end of each day, so your lowest day decides it. Some banks also offer a separate route based on combined balances, such as CIBC at an average monthly balance of $40,000 or more across eligible CIBC deposits and investments.
How much do I need to keep to avoid fees at the big banks?
Based on bank pages checked November 11, 2026: $3,000 for TD Every Day Chequing, BMO Plus and Scotiabank Basic Plus, $4,000 for BMO Performance, Scotiabank Preferred, CIBC Smart Account and TD Unlimited Chequing, and $6,000 for BMO Premium and Scotiabank Ultimate. RBC Signature No Limit Banking has no balance waiver and uses the RBC Value Program, which can cut its $16.95 fee to $4.
Is the money I keep in chequing protected?
Yes, if the bank is a CDIC member. CDIC insures eligible deposits, including deposits in Canadian or foreign currency, up to $100,000 per category, including principal and interest. Money kept in chequing to meet a fee waiver is a deposit like any other.
For more on deposit insurance, see how the CDIC $100,000 limit works.
- Sources, checked November 11, 2026: FCAC: Review of banking fees, account maintenance fees (published and modified 2026-10-23); FCAC: Chequing accounts (modified 2026-10-29); BMO: Chequing accounts (plan fees and daily balance waivers); Scotiabank: Basic Plus; Scotiabank: Preferred Package; Scotiabank: Ultimate Package; CIBC: Smart Account (including the January 1, 2027 fee change); TD: About Our Accounts and Related Services (fee guide effective March 5, 2026); RBC: Signature No Limit Banking; RBC: Value Program; CRA: Line 12100, interest and other investment income (modified 2026-01-20); CRA: Tax rates for the current year (modified 2026-06-25); CRA: What is a TFSA (modified 2026-09-17); Bank of Canada: Policy interest rate (2.50% from the October 28, 2026 decision); CDIC: What’s covered.
- Method: Yearly fee is the monthly fee times 12. Break-even rate is the yearly fee divided by the waiver balance. Interest given up is simple annual interest at hypothetical rates, and after-tax figures multiply it by (1 minus the tax rate). The calculator adds the fee for each month you fall short. Figures were calculated in Python and rechecked by a second method (summing monthly fees and computing interest separately). The worked examples and the daily balance chart are hypothetical.
Important: This guide is general information, not financial advice. Bank fees and waiver rules change, so confirm the current terms with your bank before you decide. 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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