Banking Service Fees

Fast facts

• There are more than 110 different account packages on the market to choose from
• Over 40 per cent of Canadians spend $10 or less per month on service fees
• Basic accounts are available at major banks for $4 or less
• 28 per cent of customers pay no service fees at all

The bottom line

In our competitive marketplace, consumers have a great deal of control over the service fees they pay.

Service fees:  How much do consumers actually pay?

• 60 per cent of Canadians say they pay $15 or less for monthly service fees, and 28 per cent report paying nothing at all.¹  
  
• Bank service fees are a comparatively small household expense. Statistics Canada has found that households spend an average of about $16.17 per month² on bank service fees, compared to $20.92 spent on lotteries, $54.42 on cable and satellite TV, $39.92 on prescription drugs, and $216.83 on household utilities.  
• Personal service charges account for about 5 per cent³ of total bank revenues.

Are consumers getting good value?

• Consumers can shop around to find the best deal, just like you would for any other product or service. The Financial Consumer Agency of Canada (FCAC) offers an online tool to help make it easy. The FCAC’s Cost of Banking Guide compares over 100 different account packages at 22 financial institutions.⁴  
  
• 28 per cent of consumers report paying $0 fees, because they take advantage of no-fee service packages for seniors or youth, maintain a minimum monthly account balance, or choose a no-fee electronic banking package.
• Consumers with basic banking needs can choose low-fee accounts offered by eight major banks for $4 or less per month.   
• Bank service fees in Canada compare favourably with service fees in other countries,⁵ and Canada has among the lowest interest rate spreads.⁶

Why do I have to pay service fees to access my own money?

• Service fees help pay for the convenient and reliable banking services that Canadians use, including:
• A national network of 6,000 branches
• 17,255 bank-owned ABMs
• More than 40,000 non-bank ABMs
• More than 630,000 Interac Direct Payment terminals
• Telephone and internet banking
• From 1996 to 2009, the six largest banks have invested $55.8 billion in technology to ensure a convenient and secure banking system.

General inquiries
1-800-263-0231 or inform@cba.ca

Media inquiries
Andrew Addison, Manager, Media Relations
(416) 362-6093 ext.220 aaddison@cba.ca

1   Strategic Counsel, Assessment of Canada’s Banks, 2010
2   Statistics Canada, Selected household expenditure items 2008, average monthly expenditure
3   OSFI, 2009
4   Financial Consumer Agency of Canada, Cost of Banking Guide, June 2010
5   Capgemini, World Retail Banking Report, 2005. Average annual price of core banking services in Canada lower than Switzerland, Australia, Italy, Norway, Germany, US, Poland, France, Spain, Austria.
6   World Economic Forum, Global Competitiveness Report, 2008-2009