Calgarians celebrate $10 federal limit on non-sufficient funds fees, coming next year

Calgarians are celebrating a new federal regulation that will lower the fee charged when people don't have enough money in their bank accounts or overdraft protection.

Starting March 12, 2026, there will be a $10 cap on non-sufficient funds (NSF) fees. Currently, most banks charge $45 or higher per transaction if a person's account falls short.

Banks will also be prohibited from charging NSF fees more than once within a period of two business days and in cases where the overdraft is less than $10.

For more than a decade, Calgary organization Momentum — which works with low-income Calgarians — has been advocating for this change.

"We hear that NSF fees are crushing and that it feels like you're getting kicked when you're down, and $45, $50 is significant when you're living on a low income and living paycheck to paycheck," said Courtney Mo, Momentum's director of community impact.

"We've shared these messages with the government for more than 10 years… It feels like we've been heard."

The federal government has long promised to cap bank NSF fees, but Momentum was uncertain whether the legislation would be changed after former prime minister Justin Trudeau announced his resignation and prorogued parliament in January.

Ultimately, the change was one of Trudeau's last acts in office. 

NSF fees hit an estimated 34 per cent of Canadians in 2023, according to the federal finance department.

Calgarian Amanda Edwards was among those affected by NSF fees. She said she remembers crying on the floor of the van that she lived in, looking at three back-to-back fees from bills she didn't know were coming.

"For somebody to think that I could pay an extra $50 for anything while I'm going to the food bank and having to get a ride there because I couldn't afford fuel — I thought was pretty silly," she said.

"I think this is going to be a lot easier on the people that do struggle, people in my community, people that are really struggling to make ends meet," said Edwards, an autism advocate who now lives off AISH after leaving a career in the oilpatch due to chronic illness.

She says a $10 fee is much more reasonable to recover from for people like her and her father, who lives on a pension.

"I can certainly help him out with $10. I can't help him out with $50."

While Mo is happy about the change, she said Momentum will continue lobbying the federal government to get rid of the NSF fee altogether.

"It feels like a relic from a long time ago when people wrote a check and we need to reconcile whether or not somebody had money in their account. With today's technology, we know that instantly," she said.

The new regulations won't apply to corporate or business accounts.