From humble beginnings to a coalition giant

SCENE launched in 2007 as Cineplex’s loyalty program, offering solid value from day one with free movie redemptions, upgrades to premium screenings like 3D, and discounts on concessions.

When Scotiabank bought into the program, and SCENE merged with Scotia Rewards to form Scene+, the pairing initially felt odd. But things became much clearer once Empire Company Limited – owner of Sobeys, FreshCo, IGA, Foodland, and Safeway – joined as a co‑owner, signalling that Scene+ was evolving into a much larger loyalty coalition.

Since then, Scene+ has steadily expanded its partner network, adding places to earn and redeem points, including Home Hardware, The Rec Room, Harvey’s, Swiss Chalet, and more. While some of these brands don’t have a national presence, having more partners is never a bad thing.

Scene+ members can also earn points when booking hotels and car rentals through Scene+ Travel powered by Expedia, adding even more ways to rack up rewards. 

Scene+’s newest partner, Shell, joined the program in Alberta earlier this year, with a national rollout set for May 26. It’s a major win for Scene+, giving the program a true coast‑to‑coast gas partner. For drivers, it opens the door to stacking rewards and unlocking some of the best savings available at the pump.

Linking an eligible Tangerine or Scotiabank credit card to your Shell Go+ account gets you an instant 3 cents off per litre when paying with your card at Shell gas stations. If you’re filling up with Shell V-Power, you get an additional 4 cents off per litre. Plus, you’ll earn 3 cents per litre in Scene+ points on Shell V-Power purchases. That’s up to 10 cents per litre in value.

It’s also worth noting that if you have a CAA membership, you get an additional 3 cents off per litre, which means you could potentially get 13 cents in value when filling up at Shell, which is crazy.

Levelling up their credit card game

What’s interesting for many points collectors is that Scotiabank arguably offers some of the most underrated credit cards in Canada.

The Scotiabank Passport Visa Infinite Card remains the only major‑bank credit card in Canada that doesn’t charge foreign transaction fees – a 2.5% surcharge typically added to any purchase made in a non‑Canadian currency.

When this card launched, I expected other major banks to follow with their own no‑FX products, but that never materialized. While points enthusiasts often overlook the Scotiabank Passport Visa Infinite because of its modest earn rate, it frequently comes with a first‑year annual fee waiver and a low minimum spend to unlock the welcome bonus.

The Scotiabank Gold American Express is another strong contender, offering 6 Scene+ points per dollar at Empire grocery stores, 5 points at other grocery stores, dining, and entertainment, 3 points on gas, transit, and streaming, and 1 point on everything else.

Some churners dismiss it as a weaker version of the Amex Cobalt, but it also has a much lower minimum spend to unlock the welcome bonus, and unlike Amex, there’s no once‑per‑lifetime rule holding you back. 

Room for improvement

Even though Scene+ has made strides in the loyalty space, it still has some room for improvement.

American Express Membership Rewards and RBC Avion consistently rank ahead of Scene+ because they offer a broad range of transfer partners. Depending on the program, you can move your points to Aeroplan, Flying Blue, Marriott Bonvoy, Hilton Honors, WestJet Rewards, or British Airways Avios, giving you far more flexibility and potential value. 

It’s unlikely that Scene+ will ever get dedicated airline or hotel transfer partners, but cardholders can redeem their points against any travel purchase charged to their credit card. That’s meaningful because booking direct still lets travellers earn loyalty points and keep any hotel or airline status perks, which are usually voided if using a third-party site such as Expedia.

Another challenge for Scene+ is that its points don’t offer standout value. Most redemptions land at about 1 cent per point. The old sweet spot – redeeming for premium movie screenings – has been replaced with a flat dollar value. It may seem minor, but loyalty programs need those pockets of extra value that make members feel like they’re getting ahead.

This is especially true given PC Optimum, arguably their top competitor, regularly offers up to 50% additional value during bonus redemption events at Shoppers Drug Mart.

Final Thoughts

Despite its limitations, Scene+ still delivers strong everyday value for many Canadians. It may not offer the “wow” redemptions you see in some travel or bank programs, but it could be argued that it has caught up to, and in some ways surpassed, PC Optimum in the retail loyalty space.

With competition being tough, many consumers would chase the highest interest rates, but that often required you to constantly switch banks. To combat this issue, horizons introduced CASH.to, a High Interest Savings exchange-traded fund (ETF). When looking at the yields, it’s obvious that CASH.to is a great choice for those looking to invest in fixed income. But what is CASH.to, is it safe, and how do you buy CASH.to? I’ve got all the answers in this CASH.to guide.

Understanding CASH.to?

CASH.to represents the ticker symbol for the Horizons High Interest Savings ETF listed on the Toronto Stock Exchange. The “.to” extension indicates that it trades on Canada’s main stock exchange.

This exchange-traded fund focuses on generating monthly income for investors by allocating assets into high-interest deposit accounts held with Canadian chartered banks. The fund’s primary goal centres on maximizing your monthly distributions while maintaining capital preservation and liquidity.

When you invest in CASH.to, you gain exposure to Canadian dollar-denominated cash-equivalent investments without needing to manage multiple bank accounts yourself. The ETF operates as a convenient vehicle for parking cash while earning competitive interest rates that often exceed traditional savings accounts.

How Does CASH.to Work?

When you invest in CASH.to, your funds are pooled with other investors’ money and placed into high-interest savings accounts at major Canadian financial institutions. The fund manager actively seeks out accounts offering the strongest returns and can shift money between institutions to maximize yields.

This pooling strategy provides a significant advantage. Because CASH.to manages billions of dollars in assets, it can negotiate better rates than individual investors typically access on their own.

Key operational features:

• Monthly distributions are paid directly to your brokerage account
• You must hold shares by the ex-dividend date to receive that month’s payment
• The fund continuously reallocates capital to maintain optimal yields
• Returns reflect the aggregated performance of multiple high-interest accounts

The mechanics mirror those of a standard savings account, where you deposit money and receive interest payments. The main difference is that CASH.to leverages institutional scale to secure enhanced rates for investors.

How do CASH.to Yields Work?

CASH.TO generates returns based on interest earned from deposits held at Canadian financial institutions. The fund’s performance fluctuates with prevailing interest rates. During 2021’s historically low rate environment, yields hovered around 0.6%. Current interest rates have pushed yields into the 3.5% to 4.5% range.

These rates typically exceed what you can access by opening accounts directly with banks. The quoted yields represent annual figures. You receive distributions monthly, calculated as roughly one-twelfth of the annual rate.

The fund charges a management expense ratio of 0.11%. This fee is deducted before your yield is calculated and posted, meaning the rate you see already accounts for costs. You don’t need to subtract anything additional to determine your actual return.

Your distributions arrive as monthly deposits into your brokerage account if you hold shares by the ex-dividend date. This structure mirrors traditional savings accounts but operates through the exchange-traded fund framework.

How Does the Share Price of CASH.to Function?

The share price of CASH.to operates on a predictable cycle tied to its monthly distributions. The ETF maintains a floor net asset value of $50, which means the trading price stays at or above this baseline.

Throughout each month, the share price gradually increases as the fund accrues interest income. This daily appreciation continues until the distribution payment date arrives. On the ex-dividend date, the share price typically reaches its monthly peak before resetting to the $50 minimum after the distribution is paid out.

Key pricing mechanics:

• The price climbs each trading day incrementally
• The increase reflects the accumulating distribution value
• The share price drops back to $50 after the payout

This structure means that the timing of your purchase makes little difference to your returns. When you buy at a higher price mid-month, you’re paying for the upcoming distribution that’s already embedded in the cost. The distribution you receive offsets the elevated purchase price, resulting in a neutral timing effect for investors.

How Are You Taxed on CASH.to?

When you hold CASH.to in a non-registered account, you’ll pay tax on the monthly distributions as interest income. This interest gets added directly to your total income for the year and taxed at your marginal tax rate.

If you sell your CASH.to shares for more than you paid, you’ll trigger a capital gain. The tax treatment works like this: only 50% of your capital gain is added to your taxable income. For example, if you sell shares and realize a $100 profit, you’ll include $50 in your taxable income, which is then taxed according to your marginal rate.

Registered accounts work differently:

• RRSP
• TFSA
• LIRA
• RESP

When you hold CASH.to in any of these registered accounts, you don’t need to track interest or capital gains. You won’t owe any tax on distributions or price appreciation within these accounts.

How to buy CASH.to?

You can buy CASH.to via your broker or your online discount brokerage account. CASH.to can be held in all registered and non-registered investment accounts.

CASH.to is eligible for placement in registered accounts such as TFSAs and RRSPs, as well as non-registered investment accounts. Your brokerage may charge a commission for executing the trade, though many platforms now offer commission-free ETF purchases.

Important limitation: Certain financial institutions restrict access to this ETF. TD Direct Investing currently blocks clients from purchasing CASH.to, which appears to be a business decision rather than a regulatory restriction.

Before placing your order, verify that your brokerage permits CASH.to transactions. If your current platform doesn’t support it, you may need to transfer funds to a different brokerage that allows High Interest Savings ETF purchases.

CASH.to vs. GICs

CASH.to and GICs represent two distinct approaches to cash management in Canada. GICs are fixed-term products offered by banks and trust companies that lock in a specific rate of return for a predetermined period.

The yield structure differs significantly between these options. A GIC provides a fixed interest rate that remains constant throughout its term, whether that’s one year or longer. CASH.to distributes monthly dividends that fluctuate based on prevailing market conditions and short-term interest rates.

Liquidity is another key distinction. GICs typically require you to commit your funds for the entire term, restricting access until maturity. You can trade CASH.to shares during Toronto Stock Exchange hours, providing the ability to access your capital when needed.

Protection and costs also vary. Eligible GICs qualify for CDIC coverage up to $100,000, safeguarding your principal. CASH.to does not carry this insurance protection. Additionally, CASH.to charges management fees that reduce your net returns, while GICs have no associated fees.

Overall, CASH.to gives you more flexibility than GICs since you can withdraw your funds at any time. However, you need to pay fees for CASH.to and there’s no CDIC insurance.

Comparing CASH.to with Other Options

Besides GICs, there are a few other alternatives to CASH.to that are worth considering:

High Interest Saving Accounts

ou can bypass CASH.to entirely by placing funds directly into a high-yield savings account. The returns from CASH.to typically exceed what most banks offer on standard deposit accounts.

Higher rates may be available through promotional offers for new deposits, but this requires effort on your part to transfer money between institutions and open multiple accounts. A key benefit of direct deposits is CDIC protection, which covers your money if you open an eligible account with a member institution of the Canadian Deposit Insurance Corporation.

CASH.to does not provide CDIC coverage, making direct savings accounts more secure for those prioritizing capital protection.

Money market funds

Money market funds are funds that invest in short-term bonds. They typically invest in bonds that have a maturity of less than 30 or 60 days so their yield can follow the interest rate movements. This can be a decent alternative to CASH.to, but investors should look at the quality of all bonds within the funds to make sure they match their risk profile.

What Happens to CASH.to if Interest Rates Drop?

When interest rates decline, your CASH.to distributions will decrease accordingly. The fund generates returns by depositing cash into Canadian bank accounts, and these earnings fluctuate with prevailing interest rates.

Your monthly payouts will shrink as the fund earns less on its holdings. During periods of historically low rates, distributions can fall significantly—potentially to levels similar to 2021 when yields hovered around 0.6%.

Key impacts on your investment:

• Lower monthly distributions
• Reduced annual yield percentage
• Decreased passive income generation

The fund’s performance remains directly tied to what Canadian banks pay for deposits. You won’t receive fixed returns, as the yield adjusts continuously based on market conditions.

Is CASH.to Safe?

CASH.to does not carry CDIC insurance, which distinguishes it from GICs or traditional high-interest savings accounts. This lack of insurance coverage applies to all ETFs, stocks, preferred shares, and bonds, not just CASH.to specifically.

The ETF deposits funds into accounts at major Canadian financial institutions, including National Bank, Scotiabank, and CIBC. Canadian banks rank among the most secure financial institutions globally, which provides a degree of safety for your investment.

While you cannot consider CASH.to 100% safe due to the absence of CDIC protection, the risk remains relatively low. If one of Canada’s major banks were to collapse, the resulting economic crisis would likely overshadow concerns about individual deposit losses.

Key Safety Considerations:

• No CDIC insurance coverage
• Funds held at multiple established Canadian banks
• Canadian banking system has strong stability record
• Risk comparable to other ETF investments

Your money faces minimal risk under normal economic conditions, though you should understand the differences between ETF holdings and insured deposit accounts.

Final Thoughts

CASH.TO stands out as a practical choice for parking funds you want to keep accessible. You won’t be locked into your capital for months or years, as you would with fixed-term products. The ability to trade during market hours gives you flexibility that traditional savings products can’t match.

You can hold this ETF in your TFSA, RRSP, or any other account type you already have. This means you won’t need to open additional accounts or juggle multiple institutions. The competitive interest distribution makes it worth considering, though you should weigh the absence of CDIC coverage against your own risk tolerance and financial goals.

The popularity of this fund reflects its usefulness for investors seeking liquidity combined with reasonable returns on cash holdings.

A practical solution exists that allows you to bypass this issue without complications. You can extract the numbers from your postal code and add two zeros at the end to create a five-digit code that many U.S. payment systems will accept for Canadian credit cards.

What is a Canadian Postal Code?

A Canadian postal code is a six-character code that forms a critical component of your mailing address. It follows a specific pattern that alternates between letters and numbers: Letter, Number, Letter, Number, Letter, Number. An example would be K1A 0B1.

The postal code is divided into two distinct parts that serve different purposes. The first three characters are known as the Forward Sortation Area (FSA), which identifies your broader geographic region. This could represent a city like Ottawa or Calgary, or a specific area within a larger metropolitan region.

The second three characters form the Local Delivery Unit (LDU). This portion pinpoints a precise location within the Forward Sortation Area, such as a specific neighbourhood, street block, or even a single building in some cases.

Your postal code serves multiple functions beyond mail delivery. It’s frequently requested during online transactions as a verification method. Many retailers use it to confirm your identity and billing address.

When making purchases, the postal code you provide must match the address associated with your credit card. For most Canadians, this is their residential address, though business credit card holders may use their commercial address instead.

What is a Canadian ZIP Code?

Canada does not use ZIP codes. The country operates with a postal code system instead, which consists of six characters alternating between letters and numbers.

When you use your Canadian credit card at American merchants, you might encounter requests for a ZIP code. This happens because U.S. payment systems are designed to verify the ZIP code associated with American cards. Since your Canadian card has a postal code rather than a ZIP code, you’ll need to adapt your information.

A widely accepted method involves extracting the three digits from your postal code and appending two zeros. For instance, if your postal code is A1B 2C3, you would enter 12300 when the system asks for a ZIP code.

Major card networks like Visa, Mastercard, and American Express recognize this workaround. However, it doesn’t always work at every payment terminal. If this approach fails, you’ll need to complete your transaction with a cashier or reach out to customer service for assistance.

Zip Code for Canadian Credit Cards

When using a Canadian credit card in the United States, providing e a ZIP code is sometimes required, particularly at gas stations and online purchases. As mentioned above, you can create a ZIP code using your Canadian postal code. 

Entering a Canadian Postal Code at American Gas Stations

American fuel stations typically require you to input your credit card billing address details when paying at the pump. The system prompts you to enter a ZIP code as part of the address verification process.

When you use a Canadian credit card, you need to convert your postal code into a five-digit format. Extract the three numbers from your postal code and append two zeros to create the required ZIP code for credit card verification.

Example conversion:

• Your postal code: K2P 5G3
• Your ZIP code: 25300

This approach works at most automated fuel dispensers and allows your credit card transactions to process successfully.

Digital Commerce and Web-Based Transactions

Online retailers implement an address verification system to validate credit card transactions and reduce fraudulent activity. This security measure compares the information you provide at checkout with the credit card billing address on file with your financial institution.

Some American merchants don’t include Canada in their country selection menus. You’ll encounter forms that only accept five-digit postal code entries.

Apply the same conversion method for these situations:

1. Identify the three numerical digits in your postal code
2. Add two zeros after these digits
3. Enter this five-digit code in the ZIP code field

The address verification process authenticates your credit card information even when the merchant’s system is designed primarily for American addresses. This ensures your online purchases proceed without unnecessary complications or declined transactions.

Final thoughts

When you travel south of the border, you’ll encounter different payment systems at gas stations. Most U.S. pumps require you to insert your card and enter a postal code, rather than accepting contactless payments.

If the workaround doesn’t function or you can’t recall it, simply head inside to complete your transaction. The attendant can process your payment using tap or chip-and-PIN methods that work with your Canadian card.

This difference in payment technology is primarily a concern at fuel stations, where automated systems remain common in the United States.

Frequently Asked Questions

Do Canadian postal codes differ from the American ZIP code system?

No, Canada does not use 5-digit postal codes. The Canadian system is entirely different from the American ZIP code format. Canadian postal codes follow their own unique structure developed by Canada Post.

What format do Canadian postal codes follow for credit card billing?

A Canadian postal code consists of six characters that alternate between letters and numbers. The format follows the pattern A1A 1A1, where “A” represents a letter and “1” represents a digit. A space separates the third and fourth characters, though some systems accept the code without the space.

The first character identifies a specific province or territory. The second character narrows down the location to an urban or rural area. The third character further refines the geographic zone within that region.

Where do you locate the postal code linked to your credit card?

You can find your billing postal code on your credit card statement. Look for the address listed in the billing information section. This is the address your card issuer has on file for your account.

Your postal code is part of the address you provided when you opened your credit card account. If you have moved since opening the account, verify that you updated your address with your card issuer. You can also check your postal code through your online banking portal or mobile app.

How do you change the billing postal code on your credit card?

Contact your credit card issuer directly to update your billing postal code. You can typically do this through several methods:

• Call the customer service number on the back of your card
• Update your address through your online banking account
• Visit a branch location if your card is from a bank or credit union
• Use your financial institution’s mobile application

After submitting the change, allow up to five business days for the update to be processed. Keep using your old postal code for transactions until you receive confirmation that the change is complete.

What steps should you take when receiving postal code errors during payment?

First, verify that you are entering the exact postal code your card issuer has on file. Check your most recent statement to confirm the billing address. Ensure you format the code correctly, with or without the space, as required by the payment system.

If the error persists, try entering the postal code without the space. Some online forms do not accept spaces in postal code fields. Alternatively, try including the space if you omitted it previously.

Contact your card issuer if you continue to receive errors. They can confirm the postal code on file and verify whether there are any holds or security blocks on your card.

Can you use any Canadian postal code with your credit card?

No, you must use the specific postal code registered to your billing address. Your card issuer links your credit card to the exact postal code you provided when opening your account or when you last updated your address.

Using a different postal code, even if it is valid and Canadian, will cause transaction failures. The postal code serves as a verification tool that must match the issuer’s records.

What role does the postal code play in credit card security?

The postal code functions as part of the Address Verification System (AVS). This security measure compares the postal code you enter with the billing address your card issuer has on file. Merchants use this verification to reduce fraudulent transactions.

When you make an online or phone purchase, the payment processor checks your postal code against the issuer’s records. A mismatch may result in a declined transaction or additional verification requirements. This process helps protect your account from unauthorized use.

The postal code verification adds a layer of security beyond the card number and CVV. Someone who obtains your card number still needs your correct billing postal code to complete many transactions. added security against credit card fraud.

What Are Credit Card Interest Rates?

Credit card interest rates are the costs you pay to borrow money on your credit card when you carry a balance month to month. Most Canadian credit cards charge interest rates between 1% and 29.99%, but some cards may have rates outside this range.

Annual Percentage Rate (APR) Explained

The annual percentage rate shows how much credit card companies charge for borrowing over a year. Your APR indicates the extra cost you’ll incur when you don’t pay off your credit card balance in full each month.

Credit card companies convert the annual rate into a daily or monthly rate to calculate the interest charges on your statement. For example, if your card has a 19.90% APR, your issuer divides this by 365 to get a daily rate of approximately 0.0545%, which they apply to your outstanding balance each day.

You only pay interest when you carry a balance past your payment due date. If you pay your full statement balance by the deadline, no interest charges apply. However, if you don’t pay the full balance, interest accrues from the date of purchase.

Types of Credit Card Interest Rates

Credit cards apply different interest rates depending on the type of transaction you make. Purchase rates apply to regular shopping transactions and typically range from 19% to 29.99% in Canada. 

Cash advance interest rates are typically higher than purchase rates and begin accruing interest immediately, with no grace period. There may also be a fee for making a cash advance, which could be either a fixed amount or a percentage of the withdrawal.

Balance transfer rates may be offered at promotional rates initially, then revert to the standard rate after the promotional period ends. For example, 0% interest for 10 months, then 12.99% thereafter. A balance transfer fee may also apply.

Some cards focus on offering low-interest rates as their main feature, which can be helpful if you expect to carry a balance. Your particular rate depends on the card you select.

How Credit Card Interest Is Calculated in Canada

Credit card companies in Canada calculate interest daily and add it to any balance you carry past your payment due date. The annual percentage rate is converted to a daily rate, which then compounds over time on both your original balance and accumulated interest charges.

Daily Interest Compounding

Your credit card’s annual interest rate gets divided by 365 to determine your daily interest rate. If your card has a 19.90% APR, your daily rate equals approximately 0.0545%.

This daily rate applies to your outstanding balance each day. The interest charged today gets added to your balance, and tomorrow’s interest calculation includes that new total. This compounding effect means you pay interest on interest, which speeds up how quickly your debt grows.

The calculation happens automatically every day you carry a balance. Your credit card issuer tracks these daily interest charges and lists the total amount on your monthly statement. This daily compounding system explains why credit card debt can increase rapidly if you make only minimum payments or miss due dates.

Interest on Outstanding Balances

Interest charges only apply if you carry a balance beyond your payment due date. Paying your full statement balance by the due date means you won’t pay interest during the grace period.

Once you miss that deadline, interest begins to accrue on your entire credit card balance. The charges keep adding up daily until you settle what you owe. 

Your monthly statement shows the interest charged during that billing cycle. Different transaction types on your card may have different interest rates. Cash advances typically carry higher rates than regular purchases and start accruing interest immediately without any grace period.

Credit Card Interest Calculator Overview

A credit card interest calculator helps you estimate how much you’ll pay in interest charges based on your balance, interest rate, and payment amount. You input your current balance, APR, and planned monthly payment to see the total cost.

These calculators show you how long it takes to pay off debt and how much interest accumulates over time. Many Canadian banks and financial websites offer free calculators that demonstrate the impact of making only minimum payments versus larger amounts.

The calculator reveals the true cost of carrying a balance. For example, a $5,000 balance at 19.90% APR with minimum payments could take years to pay off and cost thousands in interest charges alone.

Grace Periods and How They Work

Most Canadian credit cards provide an interest-free period after your billing cycle ends, usually lasting 21 to 30 days. This grace period only applies if you pay your balance in full each month and does not cover cash advances.

Interest-Free Grace Period

The grace period begins on the last day of your billing cycle and continues until your payment is due. During this time, you won’t pay interest on new purchases if you’ve paid your previous balance in full.

Credit card issuers in Canada usually offer a grace period of 21 to 30 days. Some business credit cards may have a longer grace period. The exact duration depends on your card issuer and the terms of your agreement.

Note that if you miss two payments in a row, your interest rate may immediately go up, and your credit score could take a hit. 

How the Grace Period Affects Purchases

When you make a credit card purchase during an active grace period, that transaction won’t accumulate interest until after your payment due date passes. This means you’re essentially borrowing money for free.

To keep your grace period active:

• Pay your full statement balance each month
• Avoid cash advances, which typically have no grace period
• Make payments before the due date on your credit card statement

If you make only the minimum payment or carry a balance, your credit card purchases accrue interest from the date of purchase. You’ll need to pay two consecutive statement balances in full to restore your grace period benefits.

Different Types of Credit Card Interest

Credit cards in Canada charge different interest rates depending on how you use them. Purchase interest applies to regular transactions; cash advance rates apply when you withdraw money; and balance transfer interest affects the amounts transferred from other cards.

Purchase Interest

Purchase interest is the most common type of credit card interest you’ll encounter. This rate applies to everyday transactions like groceries, gas, and online shopping.

In Canada, purchase interest rates typically range from 19% to 29.99% annually. The interest rate is set before and is clearly visible when you apply. However, if you miss multiple payments, your interest rate could rise.

You can avoid purchase interest entirely by paying your full statement balance by the due date each month. Most cards offer a grace period of 21 days between your statement date and payment due date, where no interest accrues on new purchases.

Once you carry a balance past the due date, interest accrues daily on your outstanding amount. The interest compounds, meaning you pay interest on both your original balance and previously charged interest.

Cash Advance Rates

Cash advances involve withdrawing money from your credit card at an ATM or bank. This is one of the most costly ways to access credit, so it should only be used in emergency situations.

Cash advance rates are typically higher than purchase rates, often ranging from 22% to 30% annually. There’s no grace period for cash advances. Interest starts accumulating immediately from the day you take the withdrawal.

Your credit card issuer also charges a cash advance fee, typically 3% to 5% of the amount withdrawn or a minimum flat fee. Any payments you make are applied to lower-interest balances first, so your cash advance balance remains outstanding longer and incurs higher interest.

Balance Transfer Interest

Balance transfers let you move debt from one credit card to another, often to take advantage of lower rates. Some credit card issuers offer promotional rates between 0% and 8.99% for balance transfers, lasting anywhere from 6 to 12 months.

After the promotional period ends, the rate reverts to your card’s standard interest rate. New purchases made on a balance transfer card are charged at the regular purchase rate, not the promotional rate.

Payments you make are applied to the transferred balance first, not to new purchases. This means new transactions accumulate interest at the higher standard rate while you pay down the transferred amount. Most issuers charge a balance transfer fee of 1% to 3% of the amount transferred.

The Impact of Payments and Fees

How you manage credit card payments directly affects the interest you pay and whether you incur additional charges. Your monthly statement shows not only your balance but also the minimum payment required and any fees incurred.

Minimum Payments and Their Effect

The minimum payment is the smallest amount you can pay each month without defaulting on your credit card account. This amount usually ranges from 2% to 5% of your outstanding balance or a fixed minimum dollar amount, whichever is higher.

Paying only the minimum keeps your account in good standing and avoids late fees, but it significantly increases the total interest you pay over time. When you make minimum payments on a balance, most of your payment goes toward interest charges rather than reducing your principal balance.

Your credit card statement shows how long it will take to pay off your balance if you make only the minimum monthly payment.

Late Fees and Penalties

Missing a payment deadline could result in late fees that typically range from $25 to $50. These fees appear on your next monthly statement and add to your outstanding balance, which then accrues interest charges at your card’s rate. If you accidentally forgot to pay, you could call your bank and ask them to waive the fee as a goodwill gesture.

Late payments can also trigger penalty interest rates, which are substantially higher than your regular purchase rate. Your payment history affects your credit rating, and missed payments remain on your credit report for up to six years. Setting up automatic payments for at least the minimum amount helps you avoid these unnecessary costs.

Strategies to Manage and Reduce Credit Card Interest

Reducing interest payments requires disciplined payment habits, strategic use of financial tools, and awareness of high-cost features. The most effective approach is to pay your full balance each month, transfer existing debt to lower-rate options when beneficial, and avoid costly cash advances that accrue interest immediately.

Paying Off Balances in Full

Paying your entire balance before the due date eliminates interest charges on credit card purchases completely. 

Setting up automatic payments from your bank account ensures you never miss a due date. You can schedule these payments for the minimum amount, statement balance, or full balance, depending on your personal financial situation.

If paying the full amount isn’t possible, always pay more than the minimum required payment. 

Using Balance Transfers Effectively

A balance transfer moves high-interest debt from one or more credit cards to another card with a lower promotional rate. Some Canadian credit cards offer introductory rates between 0% and 8.99% for 6 to 12 months on transferred balances.

You’ll typically pay a one-time transfer fee of 1-3% of the amount moved. Calculate whether the interest savings outweigh this fee before proceeding. For example, transferring $5,000 at a 3% fee costs $150 upfront but could save you hundreds in interest charges.

Create a repayment plan that pays off the transferred balance before the promotional period ends. Once the introductory rate expires, the regular interest rate applies to any remaining balance. Avoid making new purchases on the balance transfer card, as these transactions usually carry the standard interest rate, and payments are generally applied to lower-rate balances first.

Avoiding Cash Advances

Cash advances are withdrawals made using your credit card at ATMs or bank branches. These transactions cost significantly more than regular credit card purchases due to immediate interest accumulation and additional fees.

Because the cost of cash advances is so high, it’s best to avoid them entirely. Aim to build an emergency fund covering three to six months of expenses to ensure you have a safety net to rely on.

Final Thoughts

No matter how you look at it, carrying a balance on your credit card is expensive due to the interest rate. While avoiding credit completely is likely not possible, you should always strive to make full payments each month.

The safety of your money is always important, but so is the customer service experience. EQ Bank is focused on providing a better banking solution that will help Canadians reach their savings goals faster. Here’s my EQ bank review of their Personal Account.

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• Free electronic fund transfers
• CDIC Member

One of the biggest complaints from Canadians is the lack of a reasonable interest rate with savings accounts. Since EQ Bank’s rate of 2.5%* is available to everyone and not just a limited time rate, it makes the account very attractive. The high-interest rate is obviously an attention grabber, but the other benefits of the account are quite good too.

No monthly fees, unlimited day-to-day transactions, and no minimum balances are common in the online world, but for whatever reason, have been slow to adapt by the big six banks. To be fair, bricks and mortar banks have much higher operational costs since they have retail locations and staff to pay. EQ Bank is branchless and completely digital so the savings are passed on directly to their clients.

The EQ Bank Personal Account combines features found in chequing accounts with savings accounts. You can deposit cheques (including mobile cheque deposits) and set up a direct deposit from your payroll. You can also link an external bank account to EQ Bank, so moving around your money will be easy.

Accessing your money is pretty straightforward since you would link your EQ Bank account to your regular bank account, but it does take up to two business days to transfer any funds. If you want to speed up the process you can get access to your money within 30 to 60 minutes by using your unlimited free Interac e-Transfers®.

All these features should have both savers and investors excited. You can simply park your money and get a guaranteed return (minus taxes of course) with zero risks. With EQ Bank, your interest is paid monthly, and there’s no holding period.

Although EQ Bank has been around for a few years, some potential clients tend to be suspicious of the high rates being offered. The good thing is, EQ Bank is owned by Equitable Bank, a member of the Canadian Deposit Insurance Corporation so your accounts are protected up to a maximum balance of $100,000.

One thing to note is that when you open up a new account, EQ Bank will perform a soft credit check to confirm your identity. This does not affect your credit score, so it shouldn’t be a big deal.

Despite all of these great features, EQ Bank is available in all provinces and territories except Quebec.

EQ Bank card

• No monthly fee
• Free withdrawals from any ATM in Canada
• Cash back on every purchase
• Earn interest on your savings
• No FX fees

One of the biggest complaints about EQ Bank in the past was that you couldn’t withdraw cash from ATMs. Well, that’s no longer an issue as the EQ Bank card has been announced. This no fee reloadable Mastercard requires you to transfer funds to the card first, but then you’ll be able to withdraw funds from any ATM for free. Technically speaking, the ATMs will charge you a fee to withdraw the funds, but EQ Bank will reimburse you for those funds after.

What makes this prepaid card highly appealing is that there are no foreign exchange fees when making purchases with the card. Mastercard does add a slight markup that’s built right into the exchange, but you won’t pay the standard 2.5% fee that most credit cards charge.

In addition, any money loaded onto the card earns interest at the same rate as the EQ Bank savings account rate.

Other accounts available from EQ Bank

• EQ Bank Retirement Savings Plan 
• EQ Bank Tax-Free Savings Account
• EQ Bank US Dollar Account

EQ Bank has finally introduced RRSP and TFSA accounts. These are separate products from the HISA account. Note that you do need to open an EQ Bank Personal Account if you want to set up an RSP and TFSA account.

Both the RSP and TFSA will be limited to a savings account and GICs. What that means is you won’t be able to invest in stocks, mutual funds, ETFs, etc., within these accounts. The standard rules apply to both these accounts e.g. contribution and withdrawal limits.

The USD account has become quite popular since it also pays interest on your deposits

Why use EQ Bank?

Many people are hesitant to switch banks (we all know they don’t make it easy), but EQ Bank shouldn’t be viewed as a replacement. It’s meant to complement your daily banking needs.

It doesn’t matter if you’re saving for a vacation, school, or a new pair of boots, the EQ Bank Personal Account allows you to open an unlimited amount of sub-accounts to meet your needs. The added option of setting savings goals for each individual account is a bonus since you can clearly monitor the progress of your savings. Best of all, your money is never locked in with the EQ Bank Personal Account. You can withdraw your money whenever you need to.

Saving is obviously the theme of the account, but you can also do day-to-day transactions directly from the mobile app including transferring funds and making bill payments. EQ Bank does not allow your account to go into overdraft so you won’t need to worry about being charged extra bank fees; it’s the lack of available money that I’d be concerned about.

There’s no catch. Even though EQ Bank gives you an above-average interest rate, they make their money by lending out your deposits to other people at a higher interest rate. This is standard practice for any bank, but since EQ Bank is a digital bank, they have less overhead compared to traditional banks.

EQ Bank does allow is pre-authorized payments. This means you can do all your daily spending with one of the best travel credit cards in Canada or one of the best cash back credit cards in Canada and then set your card to be automatically paid from your EQ Bank account. By doing this, your money is only withdrawn once a month from your EQ Bank account so you’re basically earning the maximum interest and getting credit card rewards at the same time.

Despite the fact that EQ Bank has no physical locations, you can contact customer service through live chat, phone (from 8am – midnight), or email.

EQ Bank joint accounts

It may have taken a few years, but EQ Bank finally has joint accounts, which are obviously handy for people who want to set up an account with someone else. Best of all, EQ Bank joint accounts allow up to 3 people which is perfect for a variety of reasons such as elderly parents who want their adult children to have easy access to their funds.

The same interest rate applies to joint accounts. It’s also worth mentioning that CDIC considers joint accounts separate from your main account, so you get another $100,000 insured by them.

Is EQ Bank safe?

I already covered this above, but I want to go over it again. EQ Bank is safe and it’s unlikely to go out of business. The reason you can trust EQ Bank is that they’re owned by Equitable Bank. In case you didn’t know, Equitable Bank has been in operation since 1970 and is a member of the Canada Deposit Insurance Corporation (CDIC).

Any person who has their money deposited at a CDIC member will have their accounts protected up to $100,000 under CDIC protection. If you need more deposit insurance, you could have your spouse open a joint savings account which would give you another $100,000 in protection.

To be clear, it’s still possible for a bank to fail, but this applies to all banks. Just because EQ Bank is giving its customers a higher interest rate, that doesn’t mean they’re riskier. I personally use EQ Bank to park the majority of my cash savings.

EQ Bank refer a friend

Just recently, EQ Bank introduced a referral program where the person signing up gets $20. If you make the referral, you also get $20, but that amount increases depending on how many people you bring aboard.

• $20 – For your first 3 referrals
• $30 – For your next 4 referrals
• $40 – For any additional referral

The referral bonus is capped at $500, so you’ll reach the maximum after 15 referrals. Remember, you only get the referral if the person who is signing up for an EQ Bank Personal Account deposits at least $100 into their account within 30 calendar days of account activation.

EQ Bank GIC

EQ Bank’s other major product available is guaranteed investment certificates (GICs). GICs are a type of investment that guarantees you a return. The “catch” is that you need to lock in your money for the time you specify. The longer you lock in your money, the higher the interest rate you get. Investing in a GIC can be beneficial if you know you won’t need that money for a set period of time. As EQ Bank’s GIC rates are always changing, I won’t list what’s available now, but the terms are as follows:

• 3 Months
• 6 Months
• 9 Months
• 1 Year
• 15 Months
• 2 Years
• 27 Months
• 3 Years
• 4 Years
• 5 Years

For you to purchase an EQ Bank GIC, you must have an EQ Bank Personal Account.

How does EQ Bank compare to others?

To be realistic, all digital banks are similar, but I do like to separate them into tiers.

Motive Financial is their closest competition when it comes to interest rates, but they’re pretty similar. LBC Digital is another bank that came in with aggressive rates when they launched, but their rates are a bit lower now.

Then there are banks such as Tangerine and Simplii which are owned by bigger banks (Scotiabank and CIBC respectively) who give you access to an ATM network, but their interest rates are much lower.

One feature that EQ Bank excels at compared to similar online banks is international money transfers. EQ Bank is partnered with Wise (formerly Transferwise) to offer some of the best exchange rates. 

I personally use EQ Bank for all my personal banking, but I also use Tangerine because my wife and I have old accounts there. I’ve linked my EQ Bank account to my Tangerine account so I can easily transfer money between the two. You don’t need to use one online bank, just pick the ones that make the most sense for you.

Final thoughts

Overall my EQ Bank review is positive. The interest rate is higher than average daily rates and you can access your funds with a physical card. It’s clear that EQ Bank respects its clients’ money and values their business.

What is Paysimply.ca?

Paysimply.ca is an online service that takes credit card payments – for a fee – and converts them into electronic bank transfers that the suppliers accept. This allows you to pay bills that typically only accept payments directly from your bank account. Some of the most common recipients that allow bank transfers but not credit cards include the Canada Revenue Agency, most cities, and many utility companies.

Some of these bills can be pretty high, which is why some people prefer to pay with credit. That’s because they can earn points, which may be more valuable than any fees paid.

How to Pay Taxes and Bills With a Credit Card

Paying your taxes and utility bills is easy. You just need to follow these steps:

• 1. Head to paysimply.ca and search for the supplier you need to pay. For example, “City of Toronto”

• 2. Click on the relevant search result

• 3. Enter the details, including your name, account number, and the amount to be paid.

• 4. Choose the method of payment

• 5. Enter your payment details and confirm the payment

You will then receive an email with the transaction confirmation and the payment will be made using the details you provided.

How Much Does Paysimply.ca Cost?

Playsimply.ca charges 2.5% for all credit card transactions. For example, if you were charging $5,000, a fee of $125.

They accept Visa, MasterCard and American Express cards, but each issuer’s fee is the same.

Is Paysimply.ca Worth it?

Since you can pay your taxes and bills without any additional fees via your bank account, most people wouldn’t even consider Paysimply. However, using Paysimply can make a lot of sense in the right situation.

Meeting a Credit Card Minimum Spend Requirement

Paying taxes or bills with a credit card lets you quickly reach the minimum spending requirement on new credit cards. This is relevant because some of the best credit cards in Canada have significant minimum spending requirements to trigger welcome bonuses.

For example, the American Express Platinum Card is one of the best travel cards in Canada, and it typically has a welcome bonus of 70,000 – 120,000 points. The problem is the minimum spend requirement to get the welcome offer is typically $7,500 – $10,000 in the first three months of card membership. Having the option to pay taxes and bills might help reach that $10,000 spending requirement.

The Value You Get is Higher Than The Cost

If you know the points gained from paying a bill outweigh the 2.5% fee, then you should consider Paysimply. For example, some loyalty programs will run promotions where you can earn bonus points or status when reaching a minimum spend requirement during a set period. This is very similar to getting a welcome bonus, but instead, you’re getting a different type of reward.

You Need to Manage Cash flow

Tax and bill payments typically have penalties if you miss the payment deadlines. This can be problematic for anyone who doesn’t immediately have the cash available to pay. Since Paysimply allows you to pay with credit, this gives you at least 21 interest free days before you need to pay your bill. This is a reasonable solution for someone who doesn’t have the money now but expects to have the funds shortly.

While the 2.5% fee may seem high, if you have a cash back credit card, you could potentially be earning 2% back. That means your net fee would only be 0.5%. Of course, using a credit card to manage cash flow is only worth it if you pay your entire statement on time. Otherwise, you’ll have to pay the hefty interest rates credit card charges.   

Do I need to create an account with paysimply.ca?

You don’t need to create an account to pay a bill with paysimply.ca. There’s not even an option to create an account with them, so that means you have one less login and password to remember. It also means that you must start from scratch each time you want to pay since you can’t store your credit card information. On a positive note, since your information is never stored, there’s no risk to It being compromised.

Another downside is that you can’t search for your payment history, so keep your confirmation emails and detailed records.

Final thoughts

My Paysimply review is positive. While I wouldn’t pay my taxes and bills regularly with the site due to the 2.5% processing fee, it’s an excellent option for anyone looking to meet the minimum spending requirement on their credit cards. Welcome offers can sometimes be worth more than $500, so you’d still come out ahead even when factoring in the fee. If your property taxes are a few thousand dollars each year, then it’s a great reason to sign up for one of the best travel credit cards before you make your payment to take advantage of any welcome bonus available.

**

Many Canadians are aware that you can open a U.S. dollar bank account at most Canadian financial
institutions. But did you know that you can also open a U.S. dollar investment account through many
different investment companies? The following are reasons why you may wish to consider opening a
U.S. dollar investment account.

Reduce the cost of U.S. dollar conversion

Every time that you convert Canadian dollars to U.S. dollars (or vice versa), you will pay a fee to the
financial institution that makes the conversion for you. That fee is known as the currency spread, and
can usually be noticed by looking at the difference between the “bid” and the “ask” prices displayed by
the financial institution. For example, if the current spot exchange rate is quoted as $1.35 Canadian for
each U.S. dollar, the bid (or price that you will receive for selling U.S. dollars) might be $1.32 and the ask
(or price that you must pay to purchase U.S. dollars) might be $1.38. So, every time you buy or sell U.S.
currency you lose 3 cents per dollar. If you are regularly converting currency, that becomes very
expensive!

Buying or selling U.S.-listed securities in a Canadian dollar investment account is a common example of
Canadians paying unnecessary currency conversion costs, allowing the broker to pocket the currency
spread on buys and sells, dividends or interest paid. The more that you buy and sell, the more that you
lose. These costs can be eliminated by simply owning your U.S.-listed securities in a U.S. dollar
investment account, since there is no need to convert currency on every transaction.

Hedge the impact of currency exchange rates

Have you ever felt like you had to limit your spending on travel to the U.S. because the value of the
Canadian dollar was depressingly low? Or how about not ordering that item located in New York on
eBay because it was priced in U.S. dollars, which made it too expensive? The value of the Canadian dollar
relative to the U.S. dollar has fluctuated greatly over time. In the past few decades alone, the exchange
rate has ranged from more than $1.60 Canadian per U.S. dollar to less than $1.00 – yes, the Canadian
dollar has, on occasion, been worth more than the U.S. dollar!

But why leave it to chance? If you have a portion of your investments denominated in U.S. dollars, you
can always draw from it when you need it. You won’t pay conversion costs, and the current exchange
rate should not matter because you don’t have to convert anything. For folks who require the frequent
use of U.S. dollars for business, travel, or shopping, a U.S. dollar investment account can make a lot of
sense.

For a simple illustration, consider a shrewd Canadian investor who vacations in Orlando, Florida for one
week in February every year. The typical expense for this trip each year is about $5,000 U.S. dollars. If this
investor opened a U.S. dollar investment account and invested $100,000 U.S. dollars in an income-
oriented investment portfolio that consistently earns 5% per year. This investor should never have to
worry about exchange rates or conversion costs since $5,000 U.S. dollars can easily be withdrawn every
year!

Eliminate PFIC reporting (for U.S. citizens living in Canada)

Unfortunately for U.S. citizens living in Canada, Uncle Sam requires you to continue filing U.S. income tax
returns. Also, unfortunately, the I.R.S. requires additional reporting requirements for Passive Foreign
Investment Corporations (PFICs), which may result in additional taxes owing. If you own any mutual fund
or exchange traded fund issued by a Canadian company, it is considered a PFIC. Regulations require that
all mutual funds purchased in Canada, must be issued by a Canadian company. Unless you enjoy the
extra reporting requirements, this can be problematic for some investors.

Fortunately, however, this is a reasonably easy solution to the problem: invest in U.S.-traded exchange
traded funds in a U.S. dollar investment account. While you cannot buy U.S. mutual funds in Canada,
you can buy U.S. exchange traded funds and they are not considered PFICs. Problem solved!

Not all investment firms will offer U.S. dollar investment accounts, or have expertise in managing U.S.
dollar-based investments. Justwealth is able to offer U.S. dollar accounts for just about every account
type: RRSP, RRIF, LIRA, TFSA, and non-registered. Furthermore, Justwealth offers more U.S. dollar
portfolio options than most firms have available in Canadian dollars!

Still confused? Don’t worry, here’s everything you need to know about high interest savings accounts.

What is a high interest savings account? 

As the name implies, a high interest savings account (HISA) is a savings account that pays high interest. The term high interest is a bit relative as it’s based on the overnight rate provided by the Bank of Canada (Boc), In recent years, Canada has had record low interest rates, so even though there are HISAs, the interest paid can be quite low.

Generally speaking, the best high interest savings accounts in Canada are found with online banks. They offer better rates than brick-and-mortar banks since they have no physical locations. The amount they save in costs is passed onto clients in the form of higher interest. In addition, online only bank accounts typically come with no monthly fees and unlimited transactions.

Traditional financial institutions also offer HISAs, but they’re not nearly as attractive. For example, quite often you only get a limited number of transactions before you’re charged a fee. The interest you’ll earn is also quite low and often requires you to maintain a minimum balance.

Since online HISAs are free and they can be linked to your regular bank, you might as well open an account. You’ll be able to easily access your money while earning interest at the same time. 

What are the different types of high interest savings accounts

Since most Canadians associate high interest savings accounts with online banks, they actually all operate in a similar fashion. You’ll usually get unlimited transactions, a high interest rate, and there will be no monthly or annual fees. This is quite different from a regular savings or chequing account that offers different tiers of service.

In theory, you could get by with just a HISA for your day-to-day banking needs, but most people use it to complement their regular bank accounts. Basically, you could use your HISA for short-term savings while your chequing account is used for daily transactions.

It’s also worth noting that you can usually open up a HISA within your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA).

Some of the best high interest savings accounts are available through EQ Bank, Tangerine, and Simplii Financial. 

What can you do with a high interest savings account?

Now that you know what is a high interest savings account, you’re likely wondering what you can actually do with it. As you can imagine, a HISA has very similar features to regular bank accounts such as:

• Direct deposit from your employer and the government
• Mobile cheque deposits
• Electronic funds transfers between EQ Bank accounts and linked accounts
• One-time payments for goods, services, or bills
• Recurring pre-authorized payments
• INTERAC e-Transfer
• Debit card and ATM withdrawals (some accounts)

Although most HISAs offer the same features, some may have perks that others don’t. For example, EQ Bank has a partnership with Wise that allows you to send international money transfers. There’s also Tangerine and Simplii that offer debit cards since they’re owned by Scotiabank and CIBC respectively.

Do high interest savings accounts charge fees?

Generally speaking, HISAs don’t charge any monthly, annual, or transaction fees. However, since every HISA is different, you need to read your terms and conditions. 

For example, some HISAs allow you to order physical cheques, which you’d have to pay for. Some also charge non-sufficient funds fees, while others don’t. As you imagine, if your HISA offers you a debit card, transactions are only free when using a partner ATM. If you’re using an ATM that’s not associated with their network, you’d pay a user fee. You’d also have to pay a foreign currency conversion fee if you’re using an ATM outside of Canada.

In my personal experience, EQ Bank is the best HISA since they don’t charge any fees at all and they typically have some of the best interest rates. That said, they don’t offer a debit card, so you need to transfer money to your regular bank first if you need access to it. 

Are high interest savings accounts safe?

As long as your HISA is with a Canada Deposit Insurance Corporation (CDIC) member, your money is protected. That’s because CDIC offers insurance of up to $100,000 for eligible deposits. Admittedly, that may seem like a lot if you’re using your HISA for a major goal such as a home down payment, but you can actually have more of your money protected.

CDIC insures up to $100,000 for each eligible account. Individual accounts and joint accounts are considered two separate accounts. That means you could easily have up to $300,000 insured at the same financial institution if you have a joint account with someone. Plus, the $100,000 is per CDIC member. If you need more CDIC insurance, you could just open up another account and a different bank.

Do high interest savings accounts have debit cards?

A few HISAs do offer debit cards. The most popular ones are Tangerine and Simplii Financial. Since Tangerine is owned by Scotiabank, you can use its ATMs without having to pay any fees. Tangerine also has ATMs at their cafes where you can withdraw cash. Simplii Financial is owned by CIBC, so you get access to their network of ATMs at no charge. That said, the debit card with Simplii is only available for their No Fee Chequing Account.

Are high interest savings accounts worth it?

Now that you know what is a high interest savings account, there’s no doubt about it, HISAs are worth it. They have no fees, unlimited transactions, and pay you a high interest rate. There’s absolutely no reason why you shouldn’t have one. More specifically, you should get a HISA with an online bank since they pay much higher interest than regular banks. 

Whether you are looking for online only bank options, options with credit unions, accounts with the biggest and most well-known banks in Canada, or some alternative choices that allow you to earn rewards, here’s a list of my top 12 picks for the best no-fee bank accounts in Canada. 

Tangerine Savings

• $0 monthly fees
• No minimum balance 
• Earn 1% interest

Tangerine is an online bank that is actually owned by Scotiabank. Being an online bank, Tangerine accounts are known for their lack of fees thanks to a lack of overhead costs. The Tangerine Savings account is a great example of this. Not only are there $0 monthly fees but there are no unfair fees or service charges. Tangerine believes that you shouldn’t need to pay in order to save. 

Another great perk about this no-fee bank account is that there is no minimum deposit requirement. As for interest earned, 1% is not a huge amount but it’s pretty decent considering this is a free bank account.

The Tangerine savings account is a solid choice when it comes to free bank accounts in Canada and is best for individuals who are happy to do all of their banking online. If you are someone who likes to visit a branch in person and speak to a representative, then this online bank isn’t the best option for you. 

EQ Bank

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• 2.5%* Interest rate
• No everyday banking fees
• Unlimited day-to-day transactions
• No minimum balance required
• Unlimited free Interac e-transfers®
• Free electronic fund transfers
• CDIC Member

EQ Bank is another popular online bank in Canada and their Savings Plus Account is a regular feature on many best no-fee bank account lists. This is because not only is it a free account with unlimited transactions, but EQ Bank also offers one of the best interest rates in the country. EQ Bank doesn’t use promotional rates. Instead, they focus on the high-interest rates offered in their savings accounts. It may not be the highest rate, but it’s consistent.

While the EQ Bank Savings Plus Account is a great option with a very competitive interest rate, it’s worth noting that banking with this online bank can be slow. It can take several days to transfer money to/from your EQ bank account to another account or financial institution which is not ideal if you find yourself in a position in which you need to withdraw the money quickly. 

Simplii Financial

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• 5.25% Promotional interest rate
• $50 weclome bonus
• No everyday banking fees
• Unlimited day-to-day transactions
• No minimum balance required
• CDIC Member

Simplii Financial used to be part PC Financial but separated and rebranded in 2017. This online bank is backed by CIBC and is another great contender when it comes to no-fee bank accounts in Canada. The Simplii Financial no fee chequing account is free with unlimited transactions and no minimum balance. One of the features that we love the most about this bank account is that it also allows you to earn interest, even though it’s a chequing account. Granted, the interest is very minimal. However, since most chequing accounts don’t offer any interest earning potential, it’s a handy perk.

Right now, Simplii Financial typically has a welcome offer worth a few hundred dollars when you become a new client and open a no-fee chequing account. All you have to do is open the account and add an eligible direct deposit of at least $100 per month for three consecutive months. What’s also appealing is their Global Money Transfer option.

Alterna Bank No-Fee eChequing Account

• No monthly fees
• No minimum balance requirement
• Earn high interest

Alterna Bank is a popular Canadian online bank that offers several different financial products including a No-Fee eChequing account. This account has no monthly fees, no minimum balance requirement, free day-to-day transactions, and free unlimited interac e-transfers. Added perks include access to over 3,300 ATMs in the EXCHANGE Network within Canada and access to 40,000 surcharge-dree ATMS through the Allpoint Network in the USA making it a decent account to use if you like to travel across the border.

The top feature of this account, however, is its ability to earn interest. Again, this isn’t very common to see in a chequing account. The interest rate is low, but that’s extra savings that you wouldn’t get elsewhere!

Motive Financial Cha-Ching Chequing Account 

• No monthly fee
• Free personalized cheques
• Unlimited transactions & free Interac e-transfers 
• Earn high interest

Another great option for no-fee chequing accounts in Canada is the Cha-Ching Chequing Account from Motive Financial. This account is truly free and offers unlimited transactions and free Interac e-transfers. The account also includes 50 personalized cheques, which is a nice perk, as well as access to the second largest ATM network in Canada which makes it easy to grab cash when you need it. We also love that this account allows you to earn interest. That said, the interest paid is lower compared to others on this list.

Motus Bank No-Fee Chequing Account

• Zero monthly fees
• Unlimited transactions and etransfers
• Earn high interest 

Motus Bank also comes through with a strong pick for for a no fee daily chequing account in Canada with their No-Fee Chequing Account. There is no minimum account balance requirement for this account and clients will benefit from unlimited transactions including unlimited e-transfers. Perks with the account include a free order of 25 cheques and no-fee access to more than 43,000 ATMs in North America via THE EXCHANGE network in Canada and the Allpoint Network in the United States. Like some of the other accounts on this list, Motus Bank’s No-Fee Chequing account does earn interest! Account balances will earn 0.15% interest on every dollar. 

KOHO

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• No annual fee
• $20 for free when signing up with a referral link
• Earn up to 5% cash-back
• 1% cash back on groceries and transportation
• 0.5% interest on your spending and savings accounts with direct deposit set up

Koho is a unique pick for this list of the best no-fee bank accounts in Canada because it’s a hybrid. Koho describes itself as a free spending and savings account and offers some pretty impressive perks and features. Many listicles describe KOHO as a pre-paid credit card, which is an accurate description. However, thanks to the unique way in which KOHO works, you can also look at it as a debit card for a free bank account.

KOHO clients will earn interest on any money in their spending or savings account. KOHO also offers cash back on essential ‘must-haves’ which include grocery shopping, internet bills, and delivery services. Plus, if you shop with KOHO partners, you can earn up to 5% cash back on eligible purchases. 

Again, this isn’t a traditional free bank account but it might be worth considering. 

PC Money Account

• No fees
• Earn points when you shop
• Unlimited debit transactions and etransfers
• Welcome offer of up to 200,000 bonus PC Optimum points

The PC Money account is another hybrid-type no fee bank account in Canada. Like KOHO, it can be described as a prepaid credit card but also still qualify as a chequing account.

The account is free with no minimum balance requirement and unlimited transactions. This includes making debit purchases, paying bills, setting up pre-authorized withdrawals, and transferring money between accounts. Account holders will also have free Interac e-transfers and free ATM withdrawals. 

The big draw to this specific account is the ability to earn PC Optimum Points which can be a pretty big perk to those who shop at the associated grocery and drug stores. Cardholders will earn up 10 PC Optimum points for every $1 spent either online or in store at grocery stores, up to 25 points per $1 spent at Shoppers Drugmart, and 5 points per $1 spent everywhere else. Plus, right now there is a limited time offer where new accounts can earn up to 20,000 points in welcome offers. 

The PC Money account is not a traditional bank account but most traditional bank accounts don’t allow you to earn points. So, if you are a regular shopper at Loblaws, Shopper Drug Mart, or other businesses affiliated with PC, then it could be a lucrative option.

TD Bank Unlimited Chequing Account 

• Unlimited transactions
• Free monthly rebate if you have a balance of $4000+ at the end of each day in the month. 
• Special offers available

TD is one of the most well-known banks in Canada and has a wide range of products including several different types of chequing and savings accounts. As one of the big brick-and-mortar banks of the country, TD products typically come with fees. However, there are loopholes around paying those fees which is the case with the TD Unlimited Chequing account.

The TD Unlimited Chequing Account comes with a monthly fee of $16.95 but those fees are waived as long as you have an account balance of $4,000 or more on the final day of each month. It’s not as good  a deal as the zero-fee accounts offered by the online banks listed above. However, TD has many physical branches across the country which you can visit and access in person which many Canadians still prefer over online banking.

The TD Unlimited Chequing Account offers unlimited transactions per month, free interac e-transfers, and offers a first-year annual rebate on select TD credit cards (up to $139). Plus, this account often comes with a welcome bonus as long as you meet the conditions.

TD Bank All-Inclusive Account

• Unlimited transactions
• Free premium perks
• Monthly rebate if you have a balance of at least at the end of each day of the month
• Special promotions available

Another TD account that might be worth considering is the TD All-Inclusive which works very similarly to the TD Unlimited Chequing Account but has a bunch more features. 

The TD All-Inclusive account comes with a monthly rate of $29.95, which is pretty hefty for a chequing account. However, those monthly fees will be waived as long as you have a balance of at least $5,000 in the account on the final day of each month. 

The account included unlimited transactions per month including free etransfers. An annual credit card fee rebate on select TD Credit cards. No fees for non-TD ATMs of Foreign ATMS (a big perk for travellers!) and free premium perks including a small safety deposit box, certifies cheques, money orders, and personalized cheques at no additional cost. 

The account perks are very handy, assuming you need them. Otherwise, another no-fee bank account might be a better option as that $5,000 needed to waive fees could be earning interest elsewhere. 

Scotiabank Preferred Package

• Unlimited debit transactions and etransfers
• Access to the Scene+ program
• Earn an additional interest on your Momentum Plus Savings Account
• Monthly fee waived with a minimum daily closing balance of $4,000 for the entire month.  

Another option for a big bank is the Scotiabank Preferred Package which is ideal if you already use Scotiabank products. The monthly account fees for the Scotiabank Preferred package are $16.95 but those fees can be waived if you have a daily closing balance of at least $4,000 for the entire month.

This chequing account includes quite a few features as well as perks and benefits including unlimited debit and interac e-transfer transactions, first year annual fee waiver for up to $150 on select credit cards and access to the Scene+ program. Accountholders can also benefit from preferred rates on GICs, no monthly account fee on a Scotia US Dollar Daily Interest Account, a limited-time savings rate with the Momentum Plus Savings Account, and 20 free trades (stock or ETF) on Scotia iTrade on your first year plus 10 free trades every year after. 

The Scotiabank Preferred Package can absolutely be a great deal if you are a pre-existing Scotiabank client or looking to open multiple financial products with them. However, if you are just looking for the one account then there are better no-fee bank account options out there. 

CIBC Smart Plus Account

• Unlimited transactions
• No fee at CIBC ATM withdrawals worldwide
• Monthly fee waived if you keep your daily balance at a minimum of $6,000 or have at least $100,000 in savings and investments. 
• Free perks
• Special promotions available

Like the other big banks on this list so far, CIBC has a no-fee banking account assuming you keep your daily balance at a minimum of $6,000 or have at least $100,000 in savings and investments. Otherwise, the CIBC Smart Plus account is regularly a pricey $29.95 per month. 

Perks included with the CIBC Smart Plus account include unlimited transactions including retransfers, one eligible CIBC card with an annual fee rebated for the primary cardholder and up to 3 authorized users, and no CIBC fee for ATM withdrawals worldwide- a great perk for the travel lovers out there! This account also comes with a number of free perks including free personalized cheques, money orders, bank drafts, pre-authorized payments, and stop payments on cheques. It’s a pretty good package if you plan to use all the extras. Plus, right now the CIBC Smart Plus Account has a $400 welcome bonus for new clients. However, if you won’t utilize all the add-ons, you easily find another no-fee chequing account without a minimum deposit requirement. 

BMO Performance Chequing Account

• Unlimited monthly transactions 
• Canadian and US dollar savings account at no cost 
• Up to $40 rebate on the annual fee for eligible BMOcredit cards
• Monthly fee waived with a minimum balance of $4,000. 
• Special offers available

The final big bank account on this list is BMO with the BMO Performance Chequing Account. Typically, this account has a monthly fee of $16.95, however, you will be rebated this fee if you keep your balance at a minimum of $4,000. This account includes free Interac e-transfers, unlimited monthly transactions, 1 free withdrawal at a non-BMO ATM within Canada, and additional Canadian and US dollar savings account at no cost. Account holders can also take advantage of a $40 rebate on the annual fee of eligible BMO credit cards, free OnGuard Identify Theft Protection, as well as special offers on GICs, a family bundle bonus, and a bonus rate on the Savings Amplifier account.

As with the other big bank bundles, while the welcome offer is worth a few hundred dollars, this is only a decent deal if you can make use of all the add-ons. Otherwise, you might be better off with another truly free account where you don’t need to keep a large sum of money just sitting in the account to waive the monthly fees. 

Meridian Chequing Account

• Unlimited monthly transactions and 4 free e-transfers
• No-fee account for Canadians aged 18-29
• No minimum balance requirement

So far, all the no fee bank accounts on this list are for banks that are available (mostly) Canada-wide. But you can also consider an account with a credit union as well. Meridian is one of the most popular credit unions and offers a great free account for Canadians between the ages of 18-29. What’s great about this account is that it doesn’t require a minimum balance, offers unlimited free transactions, and is accessible via 43,000 EXCHANGE network ATMs in Canada and Allpoint Network ATMs in the United States. Account holders do need to be careful when it comes to e-tranfers though as you are only allotted 4 free interac e-transfers per month. 

FAQ

Can I get a free bank account in Canada?

Yes, as you can see from the list above there are a number of no-fee bank accounts in Canada. Keep in mind that even if there are no monthly fees, there still may be fees associated with the account. 

What bank account can I get for free in Canada?

When it comes to no-fee bank accounts in Canada you will find options for free chequing accounts and free savings accounts. With the big banks, they often bundle their products and waive the fees as long as you keep a minimum balance in your account. 

How do I avoid banking fees in Canada?

To start with, choose a no-fee banking account like those listed above. Then you will want to ensure that you keep within the rules of the account and be mindful of any other fees you can incur. For example, don’t use ATMs that are not associated with the bank. Stick with the allotted number of monthly transactions if you have a limit, avoid going into overdraft or having non-sufficient funds, and keep your account active to avoid any inactivity fees. You’ll also want to decline any add-ons the bank may want to sell you such as overdraft protection.

Which banks offer free chequing accounts in Canada?

There are a number of options, as you can see above. Typically, the online banks have the true ‘free’ bank accounts while Canada’s big banks no-fee accounts are really only no-fee if you meet the conditions needed to waive the monthly fee. Oftentimes this means having a required minimum balance in the account at all times.  

Can you open a bank account with $0?

Absolutely. Many of the no-fee bank accounts listed above, especially with online banks, have no minimum balance requirement. However, the bigger banks will often require you to have a minimum balance in order to waive the monthly fee.

Enter the metaverse

Although I didn’t try out the VR tools available (I’m too old for this stuff). TD showed off the metaverse they’ve created to help their interns get a feel for TD culture in a virtual reality setting. The program is in its pilot stage, but the idea is to create a virtual space where interns can network with fellow interns and employees at the bank. There are also live leadership and panel discussions, innovation challenges, and lunch & learns.

From an outsider looking in, this may seem like a gimmick, but the design of the TD metaverse was well thought out. The reality is that younger people have shorter attention spans and are looking for innovation. The TD metaverse was built to show interns what TD is capable of and to give them a reason to learn more about the company. That sure beats sitting through endless meetings during a traditional onboarding process.

Accessible digital products

The term accessible is often thrown around, but it usually applies to the real world. You’ll see more signage, wheelchair ramps, and elevators in public spaces, but what about people with low vision? During the pandemic, when many bank branches were closed, visually impaired people had to rely on online and telephone banking. Unfortunately, many financial institutions weren’t quite set up to handle this underrepresented demographic.

TD hired Brian Moore as a Senior Digital Accessibility Specialist to help bring inclusivity to TD. Moore, who’s blind, made sure that TD was developing the right product by ensuring accessibility was part of the project from the very beginning. 

Interestingly enough, TD has also developed accessible digital products for its staff. One such feature helps people with Attention-Deficit Hyperactivity Disorder (ADHD) focus. This tool is special because it’s tied to the employee profile when they log in. There’s no need to tell a manager that they need special assistance. The tools are already available to them.

From closed captioning to voice commands, accessible tools are all around us. TD has just taken things further to ensure the banking experience is as good as it can be for its customers and employees.

Launching the careers of Black tech professionals

Even though many tech companies have recently laid off thousands of employees, there’s still a huge demand for diverse tech talent. Recognizing that recruiting the best people can be challenging, TD designed and launched the Obsidi Academy, a full-stack engineering program for Black-identified individuals. This three-month boot camp is meant to provide Black-identified individuals with training, mentorship, and a way to get into the tech and banking industries.

From TD’s standpoint, the program serves as an apprenticeship. Since they aim to hire many new tech workers over the next three years, the Obsidi Academy provides them with a constant stream of graduates who have already been exposed to TD’s culture. It’s also worth mentioning that TD was a launch sponsor and founding employer of the Black Professionals in Tech Network (BPTN).

Evolving ideas

So where does TD get all these ideas from? I spoke to Imran Khan, Head of Global Innovation & Digital Experience, who told me that many ideas come from within TD. They have a system set up where TD employees can ask for specific features or tools to help with their workflow. This is essential since the tech team doesn’t have the same day-to-day interactions as many of their colleagues do.

Interestingly, Khan told me that a requested feature is sometimes a small job and takes less than two weeks to complete. Of course, there are also significant projects that can also take years to finish. In the end, TD is looking to use technology better not only for its customers but also for its staff.