Your bank fees after year one: what newcomer accounts cost once the free period ends

Most big Canadian banks give newcomers a year or more of free chequing. Then the free period ends quietly, and a monthly fee starts coming out of your account. This guide shows what each of the five big banks charges once the newcomer offer ends, how to keep paying $0, and when it makes sense to switch to a cheaper account.

At a glance: what you pay after the free period

We checked these against each bank's own website on November 8, 2026. Banks change fees and offers often, so confirm with your bank before you decide.

Who gets the free period

Each bank sets its own time limit for who counts as a newcomer. You have to open the account within that window:

• RBC: permanent residents who arrived in the last 12 months, or temporary workers who arrived in the last 48 months.
• TD: permanent residents or temporary residents who have been in Canada for 5 years or less.
• Scotiabank: permanent residents in Canada for up to 5 years, international students and foreign workers.
• BMO: permanent residents or foreign workers who arrived in the last 5 years.
• CIBC: people who became permanent residents in the last 5 years, or temporary workers with a work permit of at least 12 months.

Read the fine print on the $4,000 balance

At TD, Scotiabank and CIBC, the $4,000 has to be there every day, not just on average. If your balance drops to $3,999 for a single day, say on rent day, you pay the full fee for that month. BMO's page lists a $4,000 minimum balance too, so ask a BMO advisor how it is counted.

Also think about what that money could earn. $4,000 sitting in chequing earns little or no interest. If you'd rather keep that money in savings, paying $16.95 a month (about $203 a year) or moving to a cheaper account may be the better deal.

Four ways to keep your fees low after the free period

1. Keep the minimum balance

If you already keep about $4,000 in chequing, this is the simplest option at TD, Scotiabank, BMO and CIBC. Turn on low-balance alerts in your banking app so you notice before the balance dips.

2. Move to a cheaper account at the same bank

You don't have to leave your bank. Ask to switch to a basic account. For example, on November 8, 2026:

• TD Every Day Chequing costs $11.95 a month, or $0 with a minimum daily balance of $3,000.
• TD Minimum Chequing costs $3.95 a month, and it's free for newcomers in their first year in Canada.
• RBC Day to Day Banking costs $4 a month.

Basic accounts usually come with fewer free transactions, so check how many you get before you switch.

3. Ask for a low-cost or no-cost account

Under a commitment supervised by the Financial Consumer Agency of Canada (FCAC), RBC, TD, Scotiabank, BMO, CIBC and several other banks offer a low-cost account for no more than $4 a month, with no minimum balance. It includes a set number of debit transactions, and Interac e-Transfers count as one of the included transaction types. Newcomers in their first year in Canada can get a $0 account, as can students and some other groups. You may need to ask for it by name.

4. Use a bundle waiver, or switch banks

RBC has no balance option for Advantage Banking, but its Value Program can bring the fee to $0 if you hold other eligible RBC products and make a monthly direct deposit, pre-authorized payment or eligible bill payment. Ask RBC exactly which products count.

You can also move to another bank or credit union. FCAC's free Account Comparison Tool lets you compare accounts by fee and features. If you switch, move your direct deposits and automatic payments first, then close the old account.

Other things that can change after year one

• Money transfers abroad. Free international transfers are a big part of newcomer packages. At TD, transfer fees are credited back for up to 12 months. RBC, Scotiabank, BMO and CIBC also advertise free transfers. Ask whether that perk stays after your free period, and remember the exchange rate still has a cost.
• Overdrafts and NSF fees. Since March 12, 2026, a bank can charge no more than $10 for an NSF fee (for a payment that bounces because there isn't enough money in your account). It can't charge one if you're overdrawn by less than $10, and it can't charge more than one in 2 business days. Banks must also send you a low-balance alert, at $100 by default.
• Credit cards in the package. If your newcomer package included a credit card with its annual fee waived, check when that waiver ends too.

Quick questions

Updated November 8, 2026. This guide is general information, not personal financial advice. Fees and offers change often, so confirm the details with your bank before you decide.