The $4 low-cost bank account: what you get, and who gets it for $0
Short answer: since December 1, 2025, banks that signed the federal Commitment on Low-Cost and No-Cost Accounts must offer every Canadian a chequing account costing no more than $4 a month, with at least 18 debit transactions. Students, youth 18 and under, seniors on the Guaranteed Income Supplement, RDSP beneficiaries and newcomers in their first year can get the same account for $0. Moving from a $17 a month plan to the $4 account saves $156 a year.
Would the $4 account work for you?
Your plan vs the $4 low-cost account vs $0
| Account | Per month | Per year | Over your years | You keep |
|---|
The $4 cap and 18-transaction minimum come from the FCAC Commitment. Each bank decides which transaction types count and what extra transactions cost, so check its fee schedule. Estimates, not advice.
What the $4 low-cost account must include
The Commitment, overseen by the Financial Consumer Agency of Canada (FCAC), sets a minimum. Banks can offer more, never less. Here is what it says a low-cost or no-cost chequing account must give you.
| Feature | Minimum under the Commitment |
|---|---|
| Monthly fee | No more than $4.00 for anyone; $0 for eligible groups |
| Debit transactions | At least 18 a month: 12 of the bank's chosen types (debit purchases, bill payments, pre-authorized debits, cheques, cash withdrawals, Interac e-Transfers or in-branch transactions), plus 6 more |
| Minimum balance | None |
| Statements | Free digital monthly statements; no extra charge for monthly printed statements where offered to other customers |
| No extra charge for | Deposits, a debit card, pre-authorized payment forms, cheque images |
| Cheques and joint accounts | Cheque writing and joint accounts where the bank offers them to other retail customers |
| Switching within the bank | No account switching fee to move into it at the same bank |
| Everything else | Available for a "reasonable fee" |
The FCAC says the modernized accounts give about 50% more debit transactions than the 2014 version, which had 12. The six extra can be more of the same types or different ones, such as online debit purchases, transit taps or account transfers. Which ones count is up to each bank, so read its description before you switch.
Banks that signed must display the low-cost and no-cost options in branch and online, list them with their other accounts, and train staff on them. When the FCAC announced the update in June 2025, 13 institutions had signed: Alterna Bank, 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 and TD Bank. Check the FCAC page for the current list.
Who gets it for $0
Every signing bank must waive the $4 fee for these groups, with documents to show eligibility when you open the account and sometimes again later:
- Seniors receiving the Guaranteed Income Supplement (GIS)
- Registered Disability Savings Plan (RDSP) beneficiaries
- Youth, Canadians aged 18 and under
- Students
- Newcomers to Canada in their first year, which the Commitment defines to include permanent residents, protected persons and temporary residents such as study and work permit holders
Each bank must also cover at least one of three optional groups, and it picks which: Indigenous peoples; people receiving social assistance from listed provincial or territorial programs (Ontario Works, BC Income Assistance and Alberta Supports are among them); or Disability Tax Credit recipients. Ask which one your bank chose.
Worked example: the $156 a year you can get back
Sam pays $17 a month for a chequing plan and makes about 15 debit transactions a month: rent by e-Transfer, phone and hydro by pre-authorized debit, the rest debit card purchases.
- Today: $17 × 12 = $204 a year.
- Low-cost account: $4 × 12 = $48 a year.
- Difference: $204 minus $48 = $156 a year, or $780 over five years.
- Sam's 15 transactions fit under the 18 minimum, provided the bank counts e-Transfers and pre-authorized debits among the included types.
If Sam were a student, the account would be $0 and the saving would be the full $204 a year. The catch to watch: if you regularly go over the included transactions, extra ones cost whatever the bank's reasonable fee is, and a few of those can eat the saving. Count a typical month on your statement before you switch.
Three checks before you switch
1. Which transactions count. The Commitment guarantees 18 debit transactions, but each bank picks the types. If most of your month is Interac e-Transfers and pre-authorized debits, make sure those are on the included list, not charged as extras.
2. What you lose from your current plan. A higher-tier plan might bundle things the $4 account does not, such as unlimited transactions or a fee rebate on a credit card. Write down the two or three features you actually used last month. If none of them are worth more than the monthly difference, the plan is costing you.
3. Linked savings. The Commitment asks banks to tell low-cost and no-cost customers about any no-cost interest-bearing savings account they offer that can be linked to the chequing account. Ask for it. Keeping your cushion in a savings account instead of chequing means it can earn interest, and it keeps your chequing balance from tempting you. Our HISA explainer covers how savings accounts pay interest.
How to ask for the low-cost account
- Count last month's debits on your statement: purchases, bill payments, pre-authorized debits, e-Transfers, ATM withdrawals.
- Search your bank's site for "low-cost account" or use the FCAC Account Comparison Tool. Banks under the Commitment must reference it in the account description.
- Ask by name. In branch, by phone or in the app: "I would like to move to your low-cost account under the FCAC Commitment," or "your no-cost account" if you are in an eligible group.
- Bring proof if you qualify for $0, such as a student card or enrolment letter, a GIS statement, or immigration documents.
- Confirm the fee and the included transaction types in writing and check your first statement. There is no switching fee to move into it at the same bank.
Options people compare
| Option | Monthly cost | Good fit when | Watch for |
|---|---|---|---|
| Low-cost account | $4 or less | You want to stay at your bank and make 18 or fewer debits a month | Which transaction types count, and the cost of extras |
| No-cost account | $0 | You are a student, 18 or under, on GIS, an RDSP beneficiary, a first-year newcomer, or in your bank's optional group | Re-validation of eligibility over time |
| Online no-fee account | $0 | You bank mostly in an app. See our no-fee bank accounts guide | Branch access, cash deposits, a new institution to set up |
| Full plan with fee waived by a minimum balance | $0 if you keep the balance | You keep a large cushion in chequing anyway | One dip below the minimum charges the full fee; that money could be earning interest elsewhere. See chequing vs savings |
Monthly fees are only one leak. Our hidden bank fees guide covers the rest, and every Looni calculator is on the tools page.
Questions people ask
What is the $4 low-cost bank account in Canada?
Since December 1, 2025, banks that signed the Commitment on Low-Cost and No-Cost Accounts must offer every Canadian a chequing account for no more than $4 a month, with at least 18 debit transactions, no minimum balance and free digital statements.
Who qualifies for a no-cost $0 bank account in Canada?
Seniors receiving the Guaranteed Income Supplement, RDSP beneficiaries, youth 18 and under, students, and newcomers in their first year in Canada. Each signing bank also covers at least one of: Indigenous peoples, recipients of listed provincial or territorial social assistance, or Disability Tax Credit recipients.
How many transactions do you get with a low-cost account?
At least 18 debit transactions a month: 12 of the types the bank chooses, such as debit purchases, bill payments, pre-authorized debits or Interac e-Transfers, plus 6 more. Each bank decides which types count, so check its account description.
Which banks offer the $4 low-cost account?
In June 2025 the FCAC listed 13 signatories: Alterna Bank, 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 and TD Bank. Check the FCAC page for the current list.
Is there a fee to switch to the low-cost account at my own bank?
No. The Commitment says there are no account switching fees to move into the low-cost or no-cost account at the same institution.
How much can switching to a low-cost account save?
It depends on your current fee. Going from $17 a month to $4 a month saves $156 a year, or $780 over five years. If you qualify for the no-cost account, you save the full monthly fee.
The scan reads your statements, totals every monthly plan fee and per-transaction charge, and shows what the same month would cost on a $4 or $0 account, with the line items as proof.
Sources
Financial Consumer Agency of Canada, Commitment on Low-Cost and No-Cost Accounts (effective December 1, 2025: $4 cap, eligible groups, 18-transaction minimum, included features) and the news release Canadians to benefit from enhanced free and low-cost bank accounts this year (June 5, 2025: signatories, 50% more debit transactions). FCAC Account Comparison Tool.