Many people are familiar with the bank fees that come with having a bank account in Canada. Monthly account fees and transaction fees are generally expected, depending on the type of bank account a person has.
Not everyone knows the additional bank fees they may come across, but it’s important to know about their existence and how much they cost.
Additional service fees at banks aren’t always included in either the monthly account fee or the transaction fees. They also aren’t necessarily charged on every account, so be sure to look at what is included in your account.
Here are some additional bank fees you might face and what they cover.
Account transfer to another financial institution: If you close your account and transfer your money to another bank, you may be charged a fee for each account. Transferring certain account types, such as RRSPs, may incur a higher fee.
ATM fees: These fees cover withdrawals made at bank machines outside your network and are typically charged per transaction. Fees vary depending on whether the ATM used is in Canada, in the US, or outside Canada and the US.
Cheques, money orders, and wires: If you send money via a cheque, bank draft, money order, or wire, the bank may charge you. You may also be charged for cheques written in a currency other than the currency of the account, tracing the payment and accepting certain types of payments.
Debit card use: Outside of transaction fees, you will likely be charged a fee for debit purchases or returns initiated outside Canada in another currency.
Dormant account: Banks consider an account inactive if the owner has initiated no transactions within a set period (for example, two years). There might be a fee for maintaining a dormant account.
Interac e-Transfer: Typically, receiving money through an e-Transfer is free because the person sending the money is charged, usually on a per-transaction basis, but some accounts may waive this fee or offer a certain number of transactions for free.
NSF (non-sufficient funds) fee: If a cheque is cashed or a pre-authorized payment that exceeds your balance is withdrawn, you will be charged a fee. This bank fee applies to every transaction that exceeds your balance.
Safety deposit box: If you rent a box, you are charged rent based on the size. You may also be charged for replacing keys and drilling the box if you cannot locate your keys. Statement fees: These are bank fees for receiving either an interim statement or a copy of your statement. Some banks charge these for all paper statements, while others may charge for an emailed statement.
Stop payments: A stop payment occurs when you’ve written a cheque from your account or sent an Interac e-Transfer and then asked the bank to stop it from being fulfilled. Fees may depend on whether the payment was made by e-transfer, cheque, or pre-authorized payment and whether you can provide the bank with full payment details.
These are just some of the additional bank fees you may encounter. Be sure to check with your financial institution to find out what fees they charge and how much they cost. And remember to read the fine print.
By knowing this information, you can better manage your finances and avoid costly surprises in the future.