Canada's Financial Services Sector

Financial Institutions Renew their Commitment to Provide
Low-Cost Accounts

July 21, 2003

Note: For more information on low-cost accounts, see the news release Government Reintroduces Legislation to Create New Policy Framework for Financial Services Sector ( February 7, 2001).

Eight Canadian financial institutions (see list below) have recently renewed their public commitment to offer low-cost accounts for their customers. These financial institutions have committed to offer accounts that meet guidelines set out by the Government in February 2001 to ensure that all Canadians have access to affordable banking services. These guidelines include:

• no charge for deposits;
• the use of a debit card;
• eight to fifteen debit transactions per month, at least two of which can be done in-branch;
• a maximum monthly fee of $4, which must be commensurate with the number of in-branch and overall debit transactions;
• reasonable charges for extra debit transactions;
• cheque writing privileges; and
• free periodic statement or passbook record keeping.

The banks have committed to provide the accounts until at least March 31, 2005, and must give six months written notice to the Government before making changes. For its part, the Government plans to periodically review the guidelines to ensure they meet the needs of consumers and reflect changes in the marketplace.

The Financial Consumer Agency of Canada (FCAC) monitors the compliance of financial institutions with their public commitments. The FCAC's Web site can be found at http://www.fcac-acfc.gc.ca. For further details on the main features of the low cost accounts offered by these financial institutions, please visit http://www.fcac-acfc.gc.ca/eng/consumers/codes/accounts.asp.

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For further information:

Gerry Salembier
Financial Sector Policy Branch
(613) 992-1631