In a move that has ignited consumer frustration across Canada, TD Bank announced a steep 75% increase to its TD Minimum Chequing Account fee, raising it from $4.95 to $8.65 monthly. The hike, which takes effect March 1, represents one of the most dramatic banking fee increases in recent years and signals a troubling trend in the financial services industry.
Inside TD’s Markham headquarters, executives likely anticipated the blowback. Yet the decision reflects a calculated gamble: that the increased revenue will outweigh customer attrition. Industry analysts estimate the move could generate millions in additional annual revenue for TD, which reported a staggering $15.8 billion in profits last year despite economic headwinds affecting many Canadians.
“This isn’t just about one fee at one bank,” explains financial consumer advocate Rabia Toor. “It’s indicative of a broader strategy across the industry to increase service charges while reducing physical branch presence. Banks are counting on customer inertia—the tendency to stay put despite rising costs.”
The minimum balance required to waive this fee remains unchanged at $2,000, a threshold many Canadians struggle to maintain, particularly as inflation erodes purchasing power. For seniors and low-income individuals, these increases represent a genuine financial burden that compounds existing economic pressures.
TD isn’t alone in this approach. A comprehensive analysis of Canada’s five major banks reveals that all have implemented fee increases on basic accounts over the past 24 months, though none as dramatic as TD’s latest move. RBC raised its comparable account fee by 16% last year, while BMO implemented a 20% increase on several service charges.
The banking industry defends these increases by pointing to rising operational costs and investments in digital infrastructure. “Canadian banks are making significant investments in cybersecurity and digital services,” states Canadian Bankers Association spokesperson Michael Turner. “These improvements require substantial capital investment and ongoing maintenance.”
However, consumer protection groups argue these justifications ring hollow given record profits. “When banks report billions in quarterly profits while simultaneously raising fees on their most vulnerable customers, it raises serious questions about their priorities,” says financial literacy educator Priya Singh. “Digital banking actually reduces overhead costs compared to physical branches, yet consumers aren’t seeing those savings.”
The timing is particularly notable as the CO24 Business analysis of Statistics Canada data shows 41% of Canadians are within $200 of insolvency each month. For these individuals, an additional $44.40 annually in banking fees represents a meaningful expense.
The fee increase has sparked renewed calls for greater banking regulation. NDP finance critic Daniel Blaikie has demanded parliamentary hearings, stating, “Canadians deserve affordable access to basic financial services, especially when these institutions benefit from significant government protections.”
Financial experts recommend consumers respond proactively. “This is an opportunity to reassess your banking relationship,” advises personal finance columnist Rita Silvan. “Credit unions, online banks, and even other major banks offer no-fee options with comparable services. Canadians should vote with their wallets.”
Some consumers have already taken to social media to express their intentions of switching institutions, with #TDfeehike trending briefly last week. Whether this translates to meaningful customer exodus remains to be seen.
As CO24 Breaking News reported last month, digital alternatives like EQ Bank and Simplii Financial have seen record new account openings, suggesting a growing willingness among Canadians to consider banking alternatives.
The true test will come after March 1, when customers see the increased charge on their statements. Will Canadians accept this as the cost of banking convenience, or will this prove to be the tipping point that forces meaningful competition in a sector long criticized for its oligopolistic behavior?
For an industry built on customer trust, the gamble may prove costlier than the additional revenue it generates.
