With the implementation of the modernized Commitment on Low-Cost and No-Cost Accounts, the Financial Consumer Agency of Canada (FCAC) has announced that Canadians can access free and low-cost bank accounts, specifically those costing $4 monthly at most, as of Dec. 1.
“Our government is making strides to reduce costs for Canadians,” said François-Philippe Champagne, federal finance and national revenue minister, in a news release.
The modernized commitment enables Canadians to access low-cost accounts providing up to 50 percent more debit transactions, including Interac e-Transfers® and other electronic fund transfers, on a monthly basis.
Recent Articles
The modernized commitment also expands the groups eligible for accounts costing $0 monthly. These eligible groups should include newcomers to Canada in their first year. Signatories to the modernized commitment should also include at least one of the following groups:
- Indigenous peoples
- Canadians receiving social assistance payments from specified provincial or territorial programs
- recipients of the disability tax credit and/or their supporting family member
“The Financial Consumer Agency of Canada is committed to protecting the rights and interests of Canadians, especially those most vulnerable,” said Shereen Benzvy Miller, FCAC commissioner, in the news release. “Access to modern, affordable banking is essential, and for many, having these accounts at no cost is critical.”
“The coming into force of the low-cost no-cost commitment will make banking more affordable and support people that need it most,” Champagne added. “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.”
More on commitment
In 2014, a previous version of the commitment was introduced. Last June, the FCAC announced that 14 federally regulated financial institutions, including Canada’s six largest banks, signed the modernized commitment. These signing institutions were:
- Alterna Bank
- Bank of China (Canada)
- BMO
- CIBC
- Hana Bank Canada
- ICICI Bank
- Industrial Commercial Bank of China
- Innovation Federal Credit Union
- Laurentian Bank
- National Bank
- Royal Bank of Canada
- Scotiabank
- Tangerine Bank
- TD Bank
“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,” Benzvy Miller said in FCAC’s news release.
FCAC stated that it will monitor compliance with the modernized commitment. FCAC added that it expects signatories to meet the relevant requirements.
Specifically, the signatories should prominently display information regarding available low-cost and no-cost accounts in their branches and on their online platforms. The signatories have now implemented the modernized commitment and trained staff about these account options.