Which of the Big 5 is the cheapest to bank with in Canada?

There’s a cost for having money in Canada, as consumers are about to discover. By June, all of the country’s five biggest banks will have pumped up their monthly fees.

CIBC and Scotiabank were the first of the bunch to adjust their terms, followed by TD Bank on April 1, BMO at the start of May and RBC in June.

While the banks are ecstatic about adding millions to their bottom lines, the slew of changes, mostly targeted at value-geared basic accounts, are less than thrilling for consumers.

Even the NDP joined the scrum, with Andrew Cash, an NDP MP and critic for consumer protection, calling on the Feds to move from a voluntary code of conduct to something set in stone.

“Offering the banks a voluntary code of conduct is like telling a cat to regulate its consumption of catnip,” said Cash. “You shouldn’t have to pay money to pay your bill; you shouldn’t have to pay money to pay your mortgage; you shouldn’t have to pay money to pay your student loan.”

But fees have been a lingering issue even before the latest grouping of addendums.

Last June, the Financial Consumer Agency of Canada surveyed consumers on banking services, locations and hours – fees turned out to be the most irksome part of banking. After digging a bit deeper, FCAC found that while the average monthly fee on chequing accounts rose 13.6 per cent between 2005 and 2013, variable fees – transactions that exceed or aren’t covered by monthly banking plans – spiked by 46 per cent.

With over 100 different account packages up for grab in the Canadian market offered by more than 40 firms, there are lots of options for savvy consumers. According to the Canadian Bankers Association, 27 per cent of Canadians pay no service fees, while 48 per cent pay shell out between $1 and $15 per month.

So what are you paying – or perhaps more importantly, what could you be paying? Yahoo Canada Finance took a look at the cost of basic banking at the country’s largest financial institutions.

Royal Bank of Canada

The bottom rung here is RBC’s Day to Day Banking account. Armed with a $4 monthly fee (rebated if you have an investment and credit card with the bank), the Day to Day account gives you 12 free transactions a month, plus one free automated payroll credit. Over 65 or have a Registered Disability Savings plan? You can get the initial fee waived.

Debits exceeding your 12 freebies, cross-border debit use and Interac e-transfers will cost you a dollar each. Tacking on overdraft protection will cost you $4. There’s a $1.50 charge for using an ABM with Interac, $3.00 for using one with a PLUS system in Canada or the U.S. and $5 for using an ABM elsewhere. Online banking is free.

Scotiabank

At $3.95 a month (free for seniors or those with an RDSP), Scotiabank’s basic banking account is marginally cheaper than RBC’s (that’s $0.60 worth of cool dimes back in your pocket at the end of the year). The basic account comes with a comparable 12 debit transactions per month, self-service like Interac debit purchases, cash withdrawals or bill payments, or up to four teller-assisted transactions.

Additional debits will cost you a dollar. There’s a $1.50 charge for using an ABM with Interac, $3.00 for using one with a PLUS system in Canada or the U.S. and $5 for using an ABM elsewhere. Cross-border debits and e-transfers are a dollar each. Overdraft protection is $5. One perk with Scotia’s basic account is it still has the Cineplex SCENE hook-up, meaning you can collect reward points when you use the card. Though it may be a long process with just 12 uses a month.

Bank of Montreal

BMO’s bare-bones primary chequing account with practical plan starts with a $4 monthly fee, which can be waived if you’re 65 plus, a beneficiary of a RDSP or if you keep a monthly balance of $1,500 or more. As per the standards set by the other banks comprising the big five, you get 12 free transactions. Where BMO seems to differ is the $1.25 fee for every transaction over the limit. You can have up to two accounts under the plan.

There’s a $1.50 charge for using an ABM with Interac, $3.00 for using one with a PLUS system in Canada or the U.S. and $5 for using an ABM elsewhere. E-transfers are $1.50 and overdraft protection is $4 a month.

Toronto Dominion

TD’s minimum chequing account carries a $3.95 a month fee, which is waived for stdents enrolled full-time in a post-secondary program, youth under the age of majority in the province of residence, seniors receiving the Guaranteed Income Supplement or for anyone who keeps a $2,000 minimum monthly balance. Off the bat, the account comes with the standard 12 free debit transactions including up to 2 full serve transactions on a monthly basis. Go over and you pay $1.25 per transaction.

E-transfers and additional non-TD ATM withdrawals are $1.50, inside U.S. and Mexico they’re $3 and outside Canada, U.S. and Mexico are $5. Where TD’s discount-barrel account shines is the banks proliferation into the U.S. meaning frequent cross-border travellers can take out money for free (provided they’re within their 12 transactions). Deposits are also free.

CIBC

With CIBC’s Everyday chequing account, you can skip over the monthly fee of $3.90 a month (the lowest of all the major banks) by maintaining $1,000 in the account. You get 12 transactions – withdrawals (including ABMs), bill payments, transfers and the likes. After that, each transaction will set you back $1. Non-CIBC bank machine withdrawals and sending e-transfers will cost $1.50.

Akin to the other major Canadian banks, there’s a $1.50 charge for using an ABM with Interac, $3.00 for using one with a PLUS system in Canada or the U.S. and $5 for using an ABM elsewhere. What sets the CIBC apart is receiving e-transfers is free, so if you’re usually the one to pick up the tab and have your friends send you the money, this might serve a practical purpose.

And the winner is…

The basic banking packages offered up at Canada’s leading financial institutions are proof of that tired adage – you get what you pay for. To say one is better than the other is to deny the fact that everyone’s needs are different. For students or those who take cross-border jaunts, we’d suggest sticking to TD. If you want to earn a bit back, Scotiabank and its SCENE hook up probably takes the cake. And if a $4 fee really irks you, we’d suggest going with CIBC for its low $1,000 threshold to waive the fee. Or you could always look beyond the big five.