Canadians will soon have access to basic chequing accounts for just $4 a month under a new federal plan aimed at cutting consumer banking costs. Blacklock's Reporter says the Financial Consumer Agency of Canada confirmed that all major banks have agreed to launch the low-cost accounts by December 1.The offer comes as public scrutiny grows over billions in service fees collected annually by Canada’s largest banks. Under the new program, the $4 accounts will be available to all Canadians, with the fee waived entirely for low-income users such as students, welfare recipients and seniors earning under $22,000 annually and receiving the Guaranteed Income Supplement..The accounts are intended for customers making no more than 12 transactions per month. According to the agency, banks will be required to train staff and clearly promote the availability of these low-cost or no-cost options both in branches and online.Finance Minister François-Philippe Champagne said the move is part of a broader effort to reduce everyday costs for Canadians. “Every Canadian deserves access to affordable modern banking,” he said. “This is a clear step toward fairer, lower cost banking.”.The announcement follows a March 26 cabinet decision to cap non-sufficient funds (NSF) charges at $10, down from as much as $48 at some institutions. Despite a federal probe, banks did not disclose how much they earn from NSF fees, but Finance Canada estimated the cap would save depositors more than $573 million annually.Federal data show Canada’s six biggest banks collected $6.8 billion in service charges last year — 97% of all such charges — accounting for more than 10% of their $65.9 billion in pre-tax profits.Government analysts noted these fees fall hardest on low-income Canadians without overdraft protection, often trapping them in cycles of debt. By contrast, the federal government charges just $15 for a dishonoured payment.
