Banking for All: Canada's New Rules Offer Relief to Millions

OTTAWA, ON – December 01, 2025

As of today, millions of Canadians, particularly those most financially vulnerable, are gaining access to more affordable and practical banking services. A modernized national commitment, championed by the Financial Consumer Agency of Canada (FCAC), has officially taken effect, requiring 14 of the country's federally regulated financial institutions—including its six largest banks—to offer enhanced low-cost and no-cost bank accounts. This initiative represents a significant step forward in the ongoing effort to ensure every Canadian has access to the essential financial tools needed to navigate modern life.

This updated framework, known as the Commitment on Low-Cost and No-Cost Accounts, replaces a previous version from 2014. It aims to directly address the rising cost of living and the evolving nature of personal finance by making basic banking more affordable and expanding access for groups who have historically faced barriers.

“Our government is making strides to reduce costs for Canadians,” said The Honourable François-Philippe Champagne, Minister of Finance and National Revenue, in a statement. “The coming into force of the low-cost no-cost commitment will make banking more affordable and support people that need it most.”

A Modernized Commitment for Modern Needs

The most immediate change for many consumers will be seen in the low-cost account option, which is capped at a maximum fee of $4 per month. Recognizing that the way people bank has changed dramatically over the past decade, the modernized commitment increases the number of included monthly debit transactions by 50%, from 12 to 18.

Crucially, these transactions now explicitly include Interac e-Transfers®, a ubiquitous tool for everything from paying rent to splitting a dinner bill. The previous commitment did not always cover these digital transfers, often forcing customers to pay extra fees for a service that has become a daily necessity. The new package also includes debit card purchases, bill payments, pre-authorized debits, and withdrawals, making the $4 account a far more viable option for individuals managing tight budgets.

This enhancement is not just a minor tweak; it’s a fundamental acknowledgment that basic banking in 2025 is increasingly digital. By including e-Transfers without additional charges, the new rules ensure that low-income Canadians are not penalized for using the same convenient financial tools as everyone else.

Expanding the Circle of Financial Inclusion

Perhaps the most impactful aspect of the new commitment is its significant expansion of eligibility for no-cost, $0-per-month bank accounts. This is where the initiative truly focuses on “Progress for People,” targeting specific groups that can benefit most from the removal of financial gatekeeping.

Under the new rules, all signatory banks must offer no-cost accounts to newcomers to Canada within their first year. This measure provides critical support during a period of immense transition, allowing new immigrants to establish their financial footing without the burden of monthly bank fees. For someone navigating a new country, securing employment, and finding housing, having a free and reliable bank account is an essential first step toward stability and integration.

Beyond this, the commitment mandates that each financial institution must extend the no-cost option to at least one of the following vulnerable groups:

• Indigenous peoples
• Canadians receiving payments from select provincial or territorial social assistance programs
• Recipients of the federal Disability Tax Credit (DTC) and/or their supporting family members

This expansion is a landmark change. While the previous commitment offered no-cost accounts to youth, students, and seniors receiving the Guaranteed Income Supplement, this modernization directly addresses financial barriers faced by other communities. By giving banks a choice, the framework encourages a tailored approach while ensuring broader coverage across the country. This change is expected to benefit hundreds of thousands of individuals who rely on social assistance or disability benefits, for whom every dollar saved on bank fees is a dollar that can be redirected toward essentials like food, medication, or housing.

From Policy to Practice: Implementation and Accountability

An agreement on paper is only as good as its execution. To that end, the FCAC has built accountability directly into the commitment. The 14 signatory institutions—a list that includes BMO, CIBC, RBC, Scotiabank, TD Bank, and National Bank—are not only required to offer these accounts but also to make them visible and accessible.

Under the new rules, banks must prominently display information about the low-cost and no-cost options in their physical branches and on their websites. Furthermore, they are obligated to train their frontline staff to be knowledgeable about these accounts, a critical step to overcoming a major past hurdle. Research conducted by the FCAC in 2024 revealed that a staggering 84% of Canadians were unaware the previous commitment even existed, often because information was hard to find or staff were not well-versed in the options.

Shereen Benzvy Miller, Commissioner of the FCAC, emphasized the importance of access. “Access to modern, affordable banking is essential, and for many, having these accounts at no cost is critical,” she stated. “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.”

The FCAC will actively monitor compliance to ensure banks are upholding their end of the bargain. To further empower consumers, the agency provides a free and unbiased Bank Account Comparison Tool on its website, allowing Canadians to filter and compare accounts based on fees, transaction limits, and other features.

This initiative is part of a wider federal push for a more consumer-friendly financial landscape. It complements other planned measures, such as a cap on non-sufficient funds (NSF) fees and the upcoming launch of an open banking framework, all designed to increase competition, lower costs, and give Canadians more control over their financial lives. While the new commitment is a major victory for financial inclusion, its ultimate success will depend on continued vigilance from regulators and a concerted effort by financial institutions to ensure these vital programs reach the people they were designed to help.