The best bank accounts for newcomers to Canada
November 1, 2024
An important step in making Canada your home is getting a bank account. With the right bank account, you can have earnings directly deposited, pay bills, and send money within Canada as well as back home. Learn the benefits of getting a Canadian bank account, and find the best bank account for new immigrants to Canada.
Canada's best bank accounts for newcomers at a glance
Featured
National Bank Chequing Account for Newcomers
Offer for newcomers includes free chequing for up to three years, an immigration assistance program with telephone advice available 24 hours a day, and access to a credit card so you can establish a credit history in Canada.
get this accountFeatured
Simplii Financial No Fee Chequing Account
Earn $500 when you become a new client and open a No-fee Chequing Account by February 28th, 2025.
get this account
Frequently asked questions
Which bank is the best for newcomers in Canada?
The best bank for newcomers in Canada is National Bank. This bank offers a competitive welcome package including unlimited free banking for three full years, legal support at no cost for one year, and access to a broad network of branches and ATMs.
As an alternative, consider CIBC, which offers new clients a $400 Costco shop card and no account fees for up to two years.
How to open a bank account as a newcomer in Canada?
You may be able to open a bank account online before you arrive in Canada, or online or in-person once you’re here.
To open an account, you’ll need to provide some documentation. This includes official identification, such as an immigrant visa, work permit, study permit, or a Canadian permanent residence card. You may also need a Canadian phone number and proof of address.
What are the different types of bank accounts in Canada?
Canadian bank accounts are divided primarily into chequing and savings accounts.
Chequing accounts are for daily use and usually include a number of transactions for a monthly fee (or no fee). These accounts don’t bear any interest but make it easy to pay your bills and make purchases.
Savings accounts are for saving money for longer periods of time, and usually pay at least some interest to help your money grow. These accounts usually have very high transaction fees and shouldn’t be used to frequently pay bills or make purchases.
How does banking work in Canada?
In Canada, banks offer different products to suit a variety of needs. You don’t need to use one bank for all of your financial products – in fact, it’s best to shop around to get the best deals.
Canadian banks offer products like:
- Chequing accounts. These accounts are for daily banking, bill payments, and point-of-sale purchases.
- Savings accounts. These accounts bear interest and are used to save money over time, usually for emergency savings or a financial goal like a trip or large purchase.
- Credit cards. These cards allow you to make purchases and pay for them later. Many credit cards offer rewards and other perks, but also charge high interest rates making them unsuitable for long-term borrowing.
- Personal loans. Whether you need money to buy a car or something else, banks may let you borrow money and pay it back over time.
- Personal lines of credit. Most banks offer personal lines of credit that allow you to borrow money when you need it and make only minimum monthly payments.
- Mortgages. When you’re ready to buy a home in Canada, many banks offer mortgages to help you finance the purchase. Mortgage rates and terms vary widely by lender, so be sure to compare mortgage rates online to get the best deal.
- Investments. Many banks offer investment products to help you grow your money faster. These include GICs, mutual funds, and other securities.
Best newcomer bank accounts in Canada
featured
National Bank The Connected Chequing
Account
National Bank's newcomer banking offer provides a lucrative banking and support package for newcomers to Canada.
• No monthly fees for three years
• Free legal assistance for one year
• Unlimited debit transactions, bill payments, Interac e-transfer, ATM transactions, and global money transfers
featured
BMO - Performance Chequing Account
BMO’s NewStart program includes a number of incentives that make it easier to do the banking you need as a newcomer to Canada.
• No monthly fees for one year
• Cash bonus and gift card offered to new customers
• Unlimited debit transactions, bill payments, Interac e-transfer, ATM transactions, and global money transfers
featured
CIBC - Smart Account
CIBC's newcomer program offers valuable discounts and a generous welcome bonus.
• No monthly fees for two years
• Gift card offered to new customers
• Get access to a credit card and global money transfers
featured
TD New to Canada Banking Package
TD offers new Canadians the TD Unlimited Chequing Account with no monthly fees for one year and a generous welcome bonus.
• No monthly fees for one year
• Cash bonus offered to new customers
• Unlimited debit transactions, bill payments, Interac e-transfer, ATM transactions, and global money transfers
featured
Scotiabank StartRight Program
The Scotiabank StartRight program makes it easy to get set up for all your banking needs in Canada.
• No monthly fees for one year
• Savings of up to $150 per year on eligible credit cards.
• Earn Scene+ points with connected accounts and products
featured
KOHO plans
KOHO is a digital bank that makes it simple to manage your spending and saving by combining a chequing and savings account in one.
For an additional $10 per month, you can access its credit building product that helps you establish a credit history in Canada.
• Plans range from $0 to $19 per month
• 0.5% interest on your entire balance, and 1% cash back on grocery and transportation purchases
• Unlimited debit transactions, bill payments, Interac e-transfer, ATM transactions, and global money transfers
Our guide to newcomer bank accounts in Canada
Who are the Big 5 (or 6) Banks?
In Canada, the “Big 5 Banks” are large national banks that offer a full suite of financial products across all 13 provinces and territories. They include:
- RBC Royal Bank. RBC is headquartered in Toronto and is not only Canada’s largest bank, but one of the biggest in the world. RBC has over 1,200 branches and a network of 4,200 automated teller machines (ATMs).
- TD Bank. Officially called TD Canada Trust, this bank has over 1,000 branches and 2,500 ATMs.
- BMO (Bank of Montreal). BMO operates approximately 900 branches and 2,200 ATMs.
- Scotiabank. The Bank of Nova Scotia, nicknamed Scotiabank, has roughly 900 branches and 3,600 ATMs.
- CIBC (Canadian Imperial Bank of Commerce). Despite its name, CIBC offers a full line of personal banking products. It has over 1,000 branches and close to 3,000 ATMs.
- National Bank is the sixth of Canada’s major banks. National Bank has 350 branches and 2,800 ATMs across Canada.
What other banks are there in Canada?
In addition to the Big Five Banks, there are many others to choose from. Many of the alternatives offer advantages like better customer service or lower fees.
Different types of banks you will find in Canada include:
- Digital banks. Digital banks don’t have locations for in-person customer service, but allow you to do all your banking by telephone or online. Some of Canada’s largest digital banks include Tangerine, Simplii and EQ bank.
- Regional banks. Some banks focus on certain regions rather than having a broad presence across the country. Examples include ATB Financial in Alberta and Laurentian Bank in Quebec.
- Credit unions and caisses populaires. Credit unions, also known in French as caisses populaires, are co-operative financial services organizations that usually serve a certain community. Some of Canada’s largest credit unions include Desjardins, VanCity, Meridian and Coast Capital Savings.
What to look for in a newcomer bank account
When selecting a bank account for your life in Canada, there are a few things you will want to keep in mind such as monthly fees, transaction fees, and other features that you may or may not need.
Types of bank account/banking needs
Most Canadians have two different types of accounts: A chequing account for daily banking, and a savings account for saving.
Usually, chequing accounts pay little or no interest, but include free transactions like cash withdrawals and bill payments. Conversely, savings accounts usually do pay at least some interest, but may charge very expensive transaction fees that make them unsuitable for daily spending.
Monthly fees
Bank accounts in Canada often have a monthly fee ranging up to $30 per month. Higher fees are usually associated with more included transactions, more services, and more perks, but that’s not always the case. Several banks offer no-fee chequing accounts that include unlimited free transactions with no monthly fee.
Transaction fees
Most chequing accounts include a certain number of free transactions such as bill payments, ATM withdrawals, transfers to other accounts, and Interac e-Transfers. Over that limit, fees range from $1 to $5 per transaction depending on the bank and account. Some other transactions, such as international money transfers and bank drafts, are usually not included free regardless of the account.
Access (ATM/Digital)
It’s important to be able to bank the way you want to, and not all banks in Canada offer the same access to services. When choosing a bank account, consider whether it comes with access to:
- Branches for in-person customer service. Many banks offer a network of branches you can go to for in-person customer service. Be aware that there may be a fee for teller assisted transactions, even if you have an account with the bank.
- ATMs for cash withdrawals. Most banks offer free access to a network of ATMs you can use to take out money and perform certain other transactions. Some banks charge an additional fee for using an out-of-network ATM that’s on top of any fee charged by the ATM itself.
- Telephone banking. Most banks offer free telephone banking that allows you to make transactions over the telephone. Some banks allow make it easier to speak to a human than others.
- Online banking. In Canada, most banks offer an online banking portal that makes it easy to conduct most of your daily banking.
- Mobile banking. Many Canadian banks offer mobile apps that let you bank using your smartphone, and most even let you deposit a cheque by taking a picture.
Interest Rates
Most chequing accounts don’t pay any interest, but most banks do offer interest-bearing savings accounts and other investment products like guaranteed investment certificates (GICs). Be aware that having a chequing account with a bank doesn’t usually entitle you to preferential rates for borrowing, and it’s best to shop around for the best rate when looking for a mortgage, car loan or credit card.
Credit cards
As a newcomer to Canada, you may be eligible to get a credit card without having any Canadian credit history. This is an important way to establish credit which will unlock the ability to get more and better credit cards, as well as loans for larger purchases like a car or home. There are hundreds of credit cards that offer different rewards and perks, so be sure to compare credit cards online to find the right one for you.