Canada’s eight largest banks have reached an agreement with the federal government to enhance low-cost bank accounts and offer no-cost accounts with the same features as low-cost accounts to more consumers.
“Our government believes Canadians deserve to keep more of their hard-earned money,” says Finance Minister Joe Oliver. “That is why we are taking action to improve low-cost accounts and expand access to no-cost banking services for more than seven million people—to protect consumers and save even more money for Canadians.”
No-cost accounts will be available to youth, students, seniors qualifying for the Guaranteed Income Supplement and registered disability savings plan beneficiaries.
The accounts will offer a minimum of 12 debit transactions per month and at least two in-branch transactions per month; cheque-writing privileges; no extra charge for deposits, debit cards, pre-authorized payment forms and monthly printed statements; and cheque image return or online cheque image viewing.
The low-cost accounts will have the same features and a $4 monthly service charge.
Banks have committed to bringing the voluntary guidelines into force by Jan. 15, 2015.