Low-cost account

Low-cost account

Low-cost accounts are accounts with monthly fees of no more than C$4.00, offered in Canada. Low-cost accounts came about as a result of an agreement between the Canadian federal government and the banking sector. There are currently eight banks offering low-cost accounts to their customers.

Features

Low-cost accounts have the following features:

*deposits free of charge;
*debit card usage;
*cheque-writing;
*account statement or passbook updated at no charge;
*8-15 debit transactions per month, with two or more in-branch; and
*monthly fee no higher than C$4.00.

The Financial Consumer Agency of Canada publishes a booklet called Low-Cost Accounts [http://www.fcac-acfc.gc.ca/eng/publications/LowCostAccounts/LowCostAccounts_TOC_e.asp] which explains the fees and features associated with these accounts.


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