Ottawa caps non-sufficient fund fees and places other limits starting March 2026

By Canadian Press on March 19, 2025.

OTTAWA — Ottawa is limiting the fees that banks can charge customers who don’t have enough in their accounts to cover a cheque or other pre-authorized charge.

The changes included in an order-in-council last week will take effect starting March 12, 2026.

The new rules cap non-sufficient funds fees at $10 for personal deposit accounts and prohibit charging more than one NSF fee in a period of two business days.

The changes also prohibit charging an NSF fee when an account shortfall is under $10.

The government announced in the budget last year that it would cap NSF fees at $10 and place other limits on them.

It said at the time that the fees charged by banks could reach almost $50 and that they disproportionately affect low-income Canadians and people with poor credit history.

This report by The Canadian Press was first published March 19, 2025.

The Canadian Press