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Canada Banking Guide

the banking in Canada. The Big Five banks in Canada are the RBC (the Royal Bank of Canada), the TD (the Toronto-Dominion Bank), the Scotiabank (the Bank of Nova Scotia), the BMO (the Bank of Montreal), and the CIBC (the Canadian Imperial Bank of Commerce). The chequing account is the everyday bank account — the account for the deposits, the withdrawals, the bill payments, and the debit card purchases. The savings account is the interest-bearing account — the account for the savings and the emergency fund. The CDIC deposit insurance protects the deposits up to $100,000 per the insured category per the CDIC member institution (the "CDIC coverage" — the "deposit insurance" — the "banks, the federal credit unions, the loan and trust companies"). The NSF fee (the "non-sufficient funds fee") is capped at $10 (as of 2025) at the federally regulated banks. The Interac e-transfer is the most popular payment method in Canada (the "Interac" — the "email money transfer" — the "EMT").

Types of Bank Accounts

• Chequing account: The transaction account — the unlimited monthly transactions or the "pay-per-transaction" (the "per-use fee" — $1 to $2 per the transaction). The monthly fee is typically $4 to $30 (depending on the account package). The "no-fee chequing" is available from the digital banks (the Tangerine, the Simplii, the EQ Bank) and the credit unions.
• Savings account: The interest-bearing account — the "high-interest savings account" (the "HISA" — the "savings account with the variable interest rate"). The interest rate is 0.5% to 4% (depending on the promotional rate). The savings account has the limited monthly transactions (the "savings account transaction limit" — the "1 free transaction per month, then $5 per the additional transaction").
• TFSA savings account: The savings account inside the TFSA — the interest earned is tax-free (the "TFSA savings account" — the "tax-free interest" — the "TFSA contribution room"). The TFSA savings account is available from the most Canadian banks (the "TFSA HISA").
• US dollar account: The USD-denominated account — the "US dollar chequing account" — the "US dollar savings account" — the "US dollar account for the cross-border banking" (the "RBC US account" — the "TD US account" — the "BMO US account").

Bank Account Fees

• Monthly fee: The "monthly account fee" — the "account package fee" — the "chequing account fee". The fee is $4 to $30 per month (waived if the minimum balance is maintained — $1,000 to $6,000 depending on the account).
• Transaction fee: The "per-transaction fee" — the "debit transaction fee" — the "bill payment fee" — the "Interac e-transfer fee" (the "Interac fee" — $1 to $1.50 per the e-transfer).
• NSF fee: The "non-sufficient funds fee" — the "bounced cheque fee" — the "insufficient funds fee". The NSF fee is capped at $10 (as of 2025) at the federally regulated banks. The NSF fee is charged when the transaction is declined due to the insufficient balance.
• Overdraft fee: The "overdraft protection fee" — the "overdraft interest" — the "overdraft coverage" (the "bank pays the transaction that exceeds the balance"). The overdraft interest rate is 19% to 21% (the "annual interest rate" — the "overdraft interest" — the "overdraft fee").

CDIC Deposit Insurance

• Coverage: The CDIC (the "Canada Deposit Insurance Corporation") insures the deposits up to $100,000 per the insured category per the member institution. The categories: the "savings account" (the "deposits in the name of the account holder"), the "joint account" (the "deposits in the name of the joint account holders"), the "TFSA account" (the "deposits inside the TFSA"), the "RRSP account" (the "deposits inside the RRSP"), and the "trust account".
• Member institutions: The banks, the federal credit unions, the loan and trust companies, and the federal financial cooperatives that are the CDIC members. The CDIC does NOT cover the credit unions (the "provincial credit unions" are covered by the "provincial deposit insurance" — the "DICO" in the Ontario, the "CUDIC" in the Alberta).
• Not covered: The stocks, the bonds, the ETFs, the mutual funds, the GICs over $100,000, the foreign currency (the "US dollar account" is covered at the CDIC but the coverage is the "CAD equivalent" — the exchange rate at the time of the failure).

Digital & Online Banking

• Digital banks: The Tangerine (the Scotiabank subsidiary), the Simplii (the CIBC subsidiary), the EQ Bank, and the Motusbank. The digital banks offer the "no-fee banking" (the "free chequing account" — the "free e-transfers" — the "free bill payments").
• Interac e-transfer: The "email money transfer" — the "EMT" — the "Interac e-transfer". The transfer limit is $3,000 to $10,000 per day (depending on the bank). The Interac e-transfer fee is $0 to $1.50 (the "free e-transfers" at the digital banks and the "premium accounts").
• Mobile banking: The "bank app" — the "mobile deposit" (the "cheque deposit through the phone") — the "mobile bill payment" — the "mobile Interac e-transfer".

For the credit cards and the credit card fees, see our Credit Cards Guide →. For the credit reports and the credit scores, see our Credit Report & Score Guide →.