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💵 New NSF Fee Regulations Bring Down Cost of Banking For Canadians

Tuesday, 17 March 2026 08:00.AM

New regulations come into force today capping at $10 the non-sufficient fund (NSF) fees federally regulated banks charge Canadians. This new measure will help all consumers, especially those who are financially vulnerable.

FCAC will oversee industry compliance with the new NSF fee requirements, which include the following consumer protections:

• consumers cannot be charged more than $10 in NSF fees when they do not have enough money in their personal deposit account to cover a payment
• consumers will not be charged an NSF fee more than once in a period of 2 business days for the same personal deposit account
• consumers will not be charged NSF fees on a personal deposit account when the amount of their overdraft on that account is less than $10

FCAC has information for consumers on Canada.ca explaining their rights regarding NSF fees.

"Even if someone is just $5 short when paying a bill or covering a cheque, they can be hit with a non-sufficient funds fee as high as $50. That's money that could otherwise go toward groceries, medicine, or other everyday essentials. And this isn't uncommon--more than one in three Canadians are affected by these fees. By capping NSF fees at $10 and strengthening consumer protections, we're helping Canadians keep more of their hard-earned money while making everyday banking fairer and more affordable."
- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

Quick Facts

• FCAC protects Canadians by supervising the compliance of federally regulated financial entities, such as banks and federal credit unions, with their legislative obligations, codes of conduct and public commitments, and by strengthening Canadians' financial literacy.
• Financial institutions are required to send consumers electronic alerts (e-alerts) when consumers' account balances or available credit falls below a certain threshold. $100 is the default, but consumers can customize the amount or opt out of receiving e-alerts.
• The Regulations Amending the Financial Consumer Protection Framework Regulations (the Regulations) cap NSF fees at $10 and prohibit the imposition of an NSF fee to an account that was charged an NSF fee within the last 2 business days, and on overdrawn amounts of under $10.
• Before the NSF regulations came into force, NSF fees typically ranged from $45 to $48. These fees were often applied regardless of the size of the account shortfall and could be charged in rapid succession because of multiple declined payments.
• FCAC has updated its information for consumers to explain their rights regarding NSF fees: Chequing accounts.
• Fourteen federally regulated financial institutions, including Canada's 6 largest banks, have signed on to a modernized Commitment on Low-Cost and No-Cost Accounts. Since December 1, 2025, Canadians benefit from modernized no-cost and low-cost accounts costing no more than $4 per month.
• The government has asked FCAC to prepare a report on the structure, level, and transparency of fees charged by Canadian banks, which FCAC will publish later in 2026.
• Consumers should review their account agreements to make sure they understand all the fees and charges, and ask their bank questions about anything they do not understand.

SOURCE: Financial Consumer Agency of Canada

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