(April 3 – 11:00 ET) – CIBC is moving to simplify its basic banking business, unveiling a new simple account plan with low standard fees and higher interest rates.

Effective this month, CIBC is launching the Waive Account, the only chequing account now offered by major banks where people can bank for free by holding a $1,000 balance. CIBC is also introducing a Premium Growth savings account that features better rates than many competitive products.

Fees on these accounts will also be straightforward. Customers using the new Waive Account will pay $4 a month for the first 12 transactions. After that, it’s a flat fee of 50¢ whether they do a transaction over the counter or electronically. If clients hold more than $1,000 in their account these fees are waived. The Premium Growth account will offer the same simple 50¢ a transaction fee.

“Our customers told us they want simplicity and value, with no fine print,” said John Hunkin, CIBC chairman and chief executive officer. “Instead of offering dozens of complicated account packages, our customers told us that all they want are a few good account options that are smart, simple and fair. This is our response: one chequing account and one savings account, period.”

CIBC is eliminating a number of other charges, including the 95¢ monthly service fee on these new accounts. Transfers between accounts, which used to cost 45¢, are now free. CIBC is also removing the $1.50 branch bill payment fee and the 45¢ telephone banking fee that used to be charged if customers did more than 20 inquiries per month.

“Our new fee structure makes it easy for customers to calculate what they will pay,” said Kenn Lalonde, CIBC’s executive vice-president for direct to consumer banking. “It also means more clients will be able to bank for free.” Lalonde added that only those who do an extremely large number of electronic transactions each month and do not maintain a $1,000 balance will not benefit under the new structure.