Free iPhone 17 just for opening a bank account? Sounds like a no-brainer, right?
Canadian banks and fintechs continually roll out flashy promotions to lure in new customers — offering everything from Apple gear to cold hard cash. While these perks are tempting, the fine print can turn signing up for that that “free” iPhone into a surprisingly expensive decision.
To figure out of if the freebie is really worth it, you need to break down the numbers and examine the fine print. In the end, you need a way to decide whether to snap up a valueable gift or skip a potentially overpriced perk.
What kinds of promotions are banks offering?
Banks and fintechs in Canada are stepping up their game with promotions that go far beyond a free toaster. In the last few months of 2025, most big banks and a number of popular fintechs were offering generous promotions to entice new account openings. For instance:
- BMO: Up to $700 cash and a $50 Walmart egift card just for opening a chequing account and a Savings Amplifier Account
- TD: Up to $700 cash for opening a new eligible chequing account and a new eligible savings account (and make a deposit)
- RBC: Get a new iPad when you open a new eligible chequing account
- Wealthsimple: Sign up and set up direct deposit for three years, and you can get a free iPhone 17
- Scotiabank: Get $500 cash bonus and a limited-time promotional interest rate for new accounts
And the list goes on.
(For a list of current bank promotions, check out Money.ca’s current bank account promos page.)
While there are terms and conditions that must be met with each of these promotions, the overall intent is the same: Attract new customers that open new accounts. But before you rush in for a free phone, make sure you’re not trading short-term bling for long-term bleed.
Is your money in the best bank account? Take a look to see what you’re missing.
The true cost of a “free” iPhone 17 (or iPad)
To appreciate what that promo actually costs, let’s consider the iPad freebie that is, quite often, used to entice new customers to open up a chequing account. Here’s how it works:
- You sign up for a new account at the specified bank
- You set up recurring direct deposits into that new bank account
- You keep that account and direct deposit open for a minimum period of time — anywhere from 12 to 36 months
Sounds simple, right? But here’s the math:
- Retail value of a 2025 iPad starts at $499
- Monthly account fees on the bank account you opened to get a free iPad start at $16.95 per month (and go up to $30 per month)
- After one year, you’ll pay between $203.40 and $360 in bank account fees
- After two years, account fees will cost you between $406 and $720
- After three years, you’ll have spent $610 to $1,080 in bank fees
Now, let’s look at the math on a "free" iPhone 17:
- Retail value of iPhone 17 is approximately $1,100
- For the current Wealthsimple promotion. there are no monthly account fees, but you must set up a direct deposit recurring paycheque contribution of at least $4,000 per month
- For the next three years, you keep depositing your paycheque into that no-fee account
Again, sounds simple, right? But the key factor in this transaction is lost flexibility. You’re now tied to that account for three years — and you’re obligated to direct deposit a minimum of $4,000 per month into that account. If the direct deposit drops below $4,000 — or you stop the direct deposit — the remaining cost of the iPhone is deducted from your account balance. So what happens if you lose your job, or go on parental leave or take sabbatical? A lot can happen in three years.
Planned obsolescence: The hidden cost of chasing tech
There’s also a broader issue with chasing “free” tech — especially smartphones.
New phones depreciate fast. According to Macrumors.com the iPhone 15 lost almost 30% of its value just one month after launch (1). For the new iPhone 17 that means a depreciation of $330, after the first month.
Tech upgrade cycles are relentless, and manufacturers design products to become outdated quickly (aka: planned obsolescence).
According to the U.S.-based PIRG (a network of independent, state-based, citizen-funded Public Interest Research Groups), households spent more than US$1,400 (CDN$1,950) per year on technology — and not always because of need (2). Planned obsolescence and marketing play a big role and promotions like this play into that psychology.
So ask yourself: are you getting a valuable perk, or are you being nudged into a long-term lock-in just to chase a short-lived gadget high?
When a promo might be worth it
To be fair, some people can absolutely win with these deals — especially if the promo lines up with your actual financial needs.
A promo might be worth it if:
- You were already considering a new bank account
- You actually pick an account that fits your needs (e.g. unlimited transactions, access to branches) — and budget
- You can actually use the promo or you’re disciplined enough to resell the device and pocket the cash
In these cases, a promo can be a solid bonus.
When to avoid these promos
On the flip side, watch out for these red flags:
Fees that cancel out the benefit: If you’re paying $15 to $30/month in fees, that shiny reward might cost you more than it’s worth over time
You don’t need the item: If you already have a great phone or prefer Android, a free iPhone 17 might just sit in a drawer or end up being resold for much less
Lock-in clauses: A 36-month direct deposit commitment is serious. If your job or finances change, or if a better offer comes along, you’re stuck — or penalized for leaving early
5 questions to help you evaluate that new promo offer
Before you sign up, run through this quick checklist:
- What’s the retail value of the reward?
- How much will you pay in account fees over the required time?
- Is there a lock-in period or required activity (like direct deposit)?
- Will you be taxed on the promo item’s value?
- Could you do better with a no-fee account and just buy the item outright?
Remember: Treat these promos like a puzzle — not a prize.
Bottom line
“Free” isn’t always free.
Bank and fintech promotions in Canada can be great, but only if they align with your financial goals. For many people, a no-fee account paired with a second-hand iPhone is the smarter money move. For others, a good promotion is all about timing: If you’re in the market for a new bank account then that new gadget or extra cash is an added perk. Just don’t be dazzled by the tech. Instead, be dazzled by your own ability to make smart, strategic choices.
Bank promotions FAQs
Which Canadian banks are offering iPhone or iPad promos? Currently, RBC is offering an iPad when you open specific chequing accounts and meet eligibility requirements. Wealthsimple is offering an iPhone 17 promo, as long as you meet eligibility requirements.
Are bank sign-up promotions taxable in Canada? Sometimes. Cash bonuses may be considered income and taxable. Gifts like phones are usually not taxed — but check the terms and consult the Canada Revenue Agency (CRA) if unsure.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
MacRumor.com: Apple Again Leads in Smartphone Resale Value With iPhone 15 (1); U.S. PIRG: Repair Saves Families Big (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.