Overall Tables:
Individual Profiles:
This is the third annual report on financial service charges. The purpose of the report is to track changes in the service fees charged by Canada’s major banks, trust companies, credit unions and caisses populaires. It provides a review of changes in the cost of banking for specific types of consumers and records which institutions are increasing, or decreasing, fees and for what services.
Highlights:
- Averaged across institutions, service charges remained stable in 2000.
- But these averages masked significant changes at some institutions:
- some fees have been reduced and one institution has made across the board fee reductions;
- others have increased fees for services or types of accounts; and
- costs have remained stable for minimal transaction consumers (many low income consumers fall into this category) and have fallen for connected consumers.
- In an increasingly common trend among the 5 major banks, one institution raised the threshold of their minimum monthly balance required to benefit from reduced fees.
- The impact of the new account structure on fees resulting from the Toronto Dominion - Canada Trust merger is complex - some customers will be better off, some will not be.
- The new virtual banks offer targeted services that can yield significant savings - if they suit your banking habits.
- The bottom line: there is a lot of choice and you can save by shopping around - but getting an inappropriate account can incur significant costs.
- Canadians seem to be getting the message about shopping around - in recent years the proportion of consumers citing service fees as the reason for switching financial institutions has grown.
Where the Numbers Come From:
The figures in this report are based on the same five typical consumer profiles used in previous years. In addition this year, we have drawn on opinion polling figures from the Goldfarb Report 2000 and from figures on banking habits from the Canadian Bankers Association.
The figures presented are for the lowest cost service packages available from each listed financial institution for each of the consumer profiles1.
Results are obtained using the Office of Consumer Affairs' Financial Service Charges Calculator. The Calculator is designed to enable individual consumers to identify the lowest cost service charge package for their needs from over 100 different accounts offered at 15 Canadian financial institutions. Figures for the Calculator are supplied by the financial institutions themselves.
1. Special accounts, such as senior and student packages, are not considered for lowest cost accounts. The Calculator excludes accounts that are no longer offered to new customers.
