(February 7 – 17:45 ET) – Eight banks have signed memoranda of understanding with the federal government in which they have agreed to offer low-cost accounts to their customers.

Each bank’s offering differs slightly, but they are generally designed to reflect the views of consumer groups on the desired attributes of low-cost accounts. Monthly fees range from a low of $2.95 at Laurentian Bank to a high of $4 at CIBC, Royal Bank and HSBC Bank Canada; with an assortment of services offered for those fees.

The Department of Finance says the differences in the accounts allow consumers to select the account best suited to their needs. All of the accounts also include debit cards; no charge for deposits; free monthly statement or passbook; and, regular service fees apply for transactions above monthly limit. Some of these accounts are already available and all will be in place by the end of March 2001.

Secretary of State Jim Peterson said the signing demonstrated cooperation between industry and government. “We intend to continue working with the industry, consumer groups, stakeholders and other government agencies as the bill is reviewed over the coming months,” he said.
-IE Staff