The Government of Canada is focused on bringing down everyday expenses, including consumer pain points and unnecessary costs that can add up at the end of the month, such as banking fees.
Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced that the government's new $10 cap on non-sufficient funds (NSF) fees, down from as high as $50, will come into force on March 12, 2026. With over one out of three Canadians incurring an NSF fee annually, this measure addresses a significant financial burden that disproportionately affects those living paycheque to paycheque.
The new rules will also introduce additional consumer protections. Consumers will not be charged an NSF fee more than once within a period of two business days for the same deposit account, and no NSF fee may be charged when the overdraft amount on that account is less than $10. These rules provide meaningful relief to Canadians without overdraft protection, ensuring a single missed payment doesn't lead to a spiral of debt.
By slashing these fees, the new cap is expected to save Canadians more than $600 million annually and provide meaningful relief to those affected by high penalty fees.
The Minister also took the opportunity to highlight other recent banking affordability measures.
- Enhanced low-cost and no-cost bank accounts are now fully in place as of December 1, 2025. Through a modernized Commitment agreed to by 14 federally regulated financial institutions, including Canada's largest banks, all Canadians can now access accounts costing no more than $4 per month, with up to 50 per cent more debit transactions. Additionally, $0 per month accounts, offering the same features, are available to youth, students, seniors receiving the Guaranteed Income Supplement, and Registered Disability Savings Plan beneficiaries.
- Modernized cheque hold rules aim to increase the amount of immediately available deposited funds from $100 to $250. Contained in Bill C-15, the new rules eliminate timing distinctions between deposit methods, giving Canadians faster access to funds when they deposit a cheque. The government is also developing regulations to reduce cheque hold periods so that Canadians don't have to wait as long to access their money.
Together, these measures reinforce the government's commitment to lowering banking costs and improving transparency and convenience for Canadians, and complement ongoing efforts to improve affordability for Canadians. Over the coming months, the government will continue to work and engage with experts and stakeholders to inform further actions to support Canadian financial consumers.
