Apr 9, 2026
For years, missing a payment could cost you an extra $50 in fees. Known as a non-sufficient-fund (NSF), these fees could be charged if a cheque bounced, your account was short a few dollars, or a pre-authorized debit was declined. In most cases, your bank would charge this NSF fee regardless of how small the shortfall, but that changed on March 12, 2026.
New federal rules capping NSF fees at $10 for personal deposit accounts — down from as high as $50 — came into force under an announcement from Federal Finance Minister François-Philippe Champagne. The measure is aimed specifically at those living paycheque to paycheque. And is considered welcome news for the more than 1 in 3 Canadians who end up paying at least one NSF fee annually (1).
What the new $10 NSF cap actually covers — and what it doesn't
The cap applies to personal deposit accounts at federally regulated financial institutions, including Canada's major banks and federal credit unions.
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Business and corporate accounts are excluded.
The Financial Consumer Agency of Canada (FCAC), an independent federal regulator, will oversee compliance.
Under the new rules, consumers cannot be charged more than $10 for a missed payment, cannot be charged an NSF fee more than once within two business days on the same account, and cannot be charged an NSF fee at all when their account shortfall is under $10.
That last protection is significant. Before this cap, NSF fees could be applied regardless of how small the shortfall was and could pile up quickly when multiple payments were declined in rapid succession.
Don't get caught in the two-day trap
While the new NSF restrictions are meant to minimize fees paid by Canadians there are limits. For instance, the two-business-day restriction applies per account, not per individual. If a consumer holds two accounts — whether at the same bank or different banks — an NSF fee may still be charged on the second account within that window.
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How much this could save Canadians
The government estimates the new cap will save Canadians more than $600 million annually (2). For households regularly hit by NSF fees, the relief is direct. KOHO CEO Daniel Eberhard said lower-income Canadians could be paying anywhere from $500 to $1,000 a year in NSF fees — money disproportionately extracted from those who can least afford it (3).
The federal government estimates approximately 1.9 million NSF transactions will be eliminated in the first year alone (4).
What to do if your bank hasn't complied
Hit with NSF fees in the past? It's time to pay attention. Be sure to check your bank statement regularly. Any NSF fee above $10 charged on or after March 12, 2026, on a personal deposit account at a federally regulated bank may be a violation of the new rules.
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The FCAC has published information for consumers on Canada.ca explaining their rights regarding NSF fees. If you believe your bank has not complied, you can contact the FCAC directly at 1-866-461-3222 or through its website.
The government also noted that 14 federally regulated financial institutions — including Canada's largest banks — have committed to offering no-cost or low-cost accounts as of December 1, 2025, with $0 per month options available for youth, students, seniors receiving the Guaranteed Income Supplement (GIS) and Registered Disability Savings Plan (RDSP) beneficiaries. Asking your bank about these options is a practical next step for any account holder paying monthly fees (5).
Smarter moves to avoid NSF fees entirely
The best protection against NSF fees is avoiding them altogether. Most banks offer low-balance alerts by email or text — enabling these notifications before your balance drops is one of the most effective, zero-cost tools available.
If you regularly run close to zero between pay periods, consider whether your current account structure still makes sense. A no-fee account with automatic low-balance alerts removes two common sources of unnecessary cost at once.
The $10 cap is a meaningful improvement for millions of Canadians — but the rule only helps if you know it exists.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Department of Finance Canada (1)(2)(5) ; Daily Hive (3) ; Torys LLP (4)
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Romana King, Senior Editor at Money.ca, also writes for various North American publications and the RKHomeowner blog. Her book, House Poor No More, is an Amazon bestseller and five-time award winner, including the 2022 New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award.
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