Opening Your First Canadian Bank Account: Comparing TD,

Why Opening a Canadian Bank Account Matters

Opening a bank account is one of the first and most important financial tasks you'll complete as a newcomer to Canada. A Canadian bank account allows you to receive your paycheck, pay bills, rent an apartment, build credit history, and manage your money safely. Without a bank account, you'll face significant challenges in daily life and may resort to expensive cheque-cashing services that charge high fees.

Canada has a well-developed banking system dominated by five major banks known as the "Big Five": Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC). In addition, there are several smaller banks and credit unions that may offer competitive services.

This comprehensive guide will walk you through everything you need to know about opening your first Canadian bank account, with a detailed comparison of the newcomer banking packages offered by TD, RBC, Scotiabank, and BMO—four of Canada's largest and most accessible banks for new immigrants.

What Documents Do You Need?

To open a bank account in Canada, you'll generally need two pieces of identification. Canadian banks must verify your identity to comply with federal anti-money laundering regulations. Here's what is typically accepted:

Primary Identification (Government-Issued Photo ID)

One of the following:

• Canadian permanent resident card
• Valid passport from your country of origin
• Canadian driver's license (if you've already obtained one)
• Canadian provincial photo ID card

Secondary Identification

One or more of the following:

• Confirmation of Permanent Residence (COPR) document
• Work permit or study permit
• Canadian utility bill in your name (if you have one)
• Rental agreement or lease
• Letter from your employer confirming employment
• Immigration documents showing your status in Canada

Important for very recent arrivals: If you just arrived in Canada and don't have a Canadian address yet, most banks will accept a reference letter from your settlement agency, a hotel confirmation, or a letter from a family member or friend stating that you are staying with them. Some banks have special procedures for newcomers who cannot provide proof of Canadian address.

Social Insurance Number (SIN)

While having a Social Insurance Number is helpful and strongly recommended, you can open a basic bank account without a SIN. However, without a SIN, the bank will withhold taxes on any interest you earn. Once you obtain your SIN (which should be one of your first priorities after arriving), provide it to your bank to update your account information.

Learn how to apply for your Social Insurance Number in our detailed guide: How to Apply for a SIN in Canada.

Understanding Canadian Bank Accounts

Before comparing specific banks, it's important to understand the types of accounts available in Canada:

Chequing Accounts (Everyday Banking)

A chequing account is your primary day-to-day account. You'll use it to:

• Receive direct deposit of your salary
• Pay bills through online banking or pre-authorized payments
• Make purchases using a debit card
• Write cheques (less common now, but still used for some transactions like rent)
• Send e-Transfers to other people
• Withdraw cash from ATMs

Chequing accounts typically charge a monthly fee unless you maintain a minimum balance. Fees range from $4 to $30 per month depending on the account features and the number of transactions included.

Savings Accounts

A savings account is designed for money you don't need immediate access to. Savings accounts typically:

• Pay interest on your balance (though rates are usually very low, often less than 1%)
• Have fewer or no included transactions
• Charge a fee for each transaction beyond a low monthly limit
• May have no monthly fee if you maintain a minimum balance

As a newcomer, you'll primarily need a chequing account. A savings account can be useful once you start building emergency savings or saving for specific goals.

High-Interest Savings Accounts (HISA)

Many banks offer high-interest savings accounts that pay significantly higher interest rates than regular savings accounts (sometimes 2-4% or more). These accounts are good for emergency funds or money you're saving for a near-term goal (like a down payment on a car or first month's rent deposit).

Comparing Canada's Big Five Banks for Newcomers

Each of Canada's major banks offers special newcomer banking packages designed specifically for new immigrants. These packages typically include fee waivers, no minimum balance requirements, and additional perks. Let's compare what each bank offers:

TD Canada Trust - TD Newcomer Package

Overview: TD is Canada's second-largest bank and is known for extended branch hours ("America's Most Convenient Bank" is their slogan, though they operate primarily in Canada). TD has excellent online and mobile banking platforms and a large network of branches and ATMs across the country.

TD Newcomer Offer Details

• Eligible customers: Must have been in Canada for 5 years or less
• Account included: TD Unlimited Chequing Account (normally $16.95/month)
• Monthly fee waiver: No monthly fees for 12 months
• Minimum balance: No minimum balance required during the 12-month promotional period
• Transactions included: Unlimited debit transactions, bill payments, and e-Transfers
• Free e-Transfers: Send and receive unlimited e-Transfers at no cost
• Free credit card: TD Cash Back Visa Card (no annual fee) or other TD credit card
• Additional savings account: TD Every Day Savings Account included with no monthly fee for 12 months
• Overdraft protection: Available (optional, subject to approval)
• Safety deposit box: Discounted rate (if available at your branch)

After 12 Months

After the promotional period ends, monthly fees apply unless you maintain a minimum monthly balance of $4,000 in your chequing account OR have a monthly direct deposit of $2,000 or more into the account.

How to Apply

You can book an appointment online at td.com, call 1-866-233-2323, or visit any TD branch. Bring your identification documents and mention you're interested in the TD Newcomer Package.

Contact TD: 1-866-233-2323 | td.com/newcomers

Royal Bank of Canada (RBC) - RBC Newcomer Advantage

Overview: RBC is Canada's largest bank by market capitalization. They have the most extensive network of branches and ABMs (ATMs) in Canada, and strong international presence. RBC is known for excellent customer service and comprehensive financial products.

RBC Newcomer Advantage Details

• Eligible customers: Must have arrived in Canada within the past 3 years
• Account included: RBC VIP Banking package (normally $30/month - one of their premium packages)
• Monthly fee waiver: No monthly fees for 12 months
• Minimum balance: No minimum balance required during the promotional period
• Transactions included: Unlimited debit transactions, Interac e-Transfers, bill payments, and cheques
• Free credit card: RBC Cash Back Mastercard (no annual fee) or RBC Rewards Visa (first year annual fee waived)
• Free U.S. dollar account: RBC U.S. Dollar VIP Banking Account included (useful if you need to receive or send money in USD)
• Additional savings account: RBC High Interest eSavings account included
• Commission-free money transfers: Send money to over 120 countries with no RBC service fee (receiving institution may charge fees) through RBC Global Money Transfer
• Mortgage discount: Special mortgage rate discount when you're ready to buy a home
• Personalized guidance: Access to a dedicated newcomer specialist who can help you navigate Canadian banking

After 12 Months

After 12 months, the monthly fee for the VIP Banking package applies unless you maintain a minimum monthly balance of $6,000 across your RBC accounts OR have eligible products (like an RBC mortgage or investment account) that qualify for fee waivers.

How to Apply

Book an appointment at rbcroyalbank.com/newcomers, call 1-800-769-2511, or visit any RBC branch with your identification documents.

Contact RBC: 1-800-769-2511 | rbc.com/newcomers

Scotiabank - StartRight Program

Overview: Scotiabank is Canada's third-largest bank and has the most international presence of any Canadian bank, with operations throughout Latin America, the Caribbean, and Asia. This makes them particularly strong for newcomers who may need to manage money across borders.

Scotiabank StartRight Program Details

• Eligible customers: Must have been in Canada for 5 years or less
• Account included: Scotiabank Preferred Package (normally $30.95/month - their premium banking package)
• Monthly fee waiver: No monthly fees for 12 months
• Minimum balance: No minimum balance required during the promotional period
• Transactions included: Unlimited debit transactions, Interac e-Transfers, bill payments, and other transactions
• Free credit card: Scotia Momentum No-Fee Visa Card or other eligible Scotiabank credit card
• Additional account: Scotiabank Money Master Savings Account included
• International money transfers: Free Scotia International Money Transfer service (send money to other Scotiabank accounts internationally)
• Foreign exchange services: Preferred foreign exchange rates when converting currency
• Scene+ rewards: Access to Scene+ rewards program (earn points on everyday purchases and banking)
• Free safety deposit box: Small size (where available, while supplies last)
• Overdraft protection: Available (subject to approval)

After 12 Months

After the promotional period, monthly fees apply unless you maintain a minimum monthly balance of $5,000 in your accounts OR you're a full-time post-secondary student with proof of enrollment.

How to Apply

Visit scotiabank.com/startright to book an appointment, call 1-800-472-6842, or visit any Scotiabank branch with your identification documents.

Contact Scotiabank: 1-800-472-6842 | scotiabank.com/startright

Bank of Montreal (BMO) - NewStart Banking Plan

Overview: BMO is Canada's fourth-largest bank and the oldest (founded in 1817). They have a strong presence in both Canada and the United States. BMO is known for competitive mortgage rates and solid customer service.

BMO NewStart Banking Details

• Eligible customers: Must have lived in Canada for less than 5 years
• Account included: BMO Premium Plan (normally $30/month)
• Monthly fee waiver: No monthly fees for 12 months
• Minimum balance: No minimum balance required during the promotional period
• Transactions included: Unlimited debit transactions, Interac e-Transfers, bill payments, cheques, and other everyday banking transactions
• Free credit card: BMO CashBack Mastercard (no annual fee) or BMO Rewards Mastercard (first year annual fee waived)
• Free U.S. dollar account: BMO U.S. Dollar Premium Account included (helpful for USD transactions)
• Additional savings account: BMO Savings Builder Account or BMO Premium Rate Savings Account included
• Free safety deposit box: One year free (small size, where available)
• Foreign exchange benefits: Preferred rates on currency exchange
• Global Money Transfer: Send money to over 50 countries with discounted fees
• Dedicated support: Access to BMO's NewStart Banking specialists for personalized guidance

After 12 Months

After the first year, the monthly fee for the Premium Plan applies unless you maintain a minimum balance of $6,000 OR have a qualifying BMO mortgage or investment account.

How to Apply

Book an appointment at bmo.com/newstart, call 1-888-762-2265, or visit any BMO branch with your identification documents.

Contact BMO: 1-888-762-2265 | bmo.com/newstart

Comparison Summary: Which Bank Is Best for You?

Here's a side-by-side comparison to help you decide:

Best Overall Value for Most Newcomers: RBC or Scotiabank

Both RBC Newcomer Advantage and Scotiabank StartRight offer comprehensive premium packages with extensive features, unlimited transactions, and valuable perks like free safety deposit boxes and international money transfer benefits. These are excellent choices if you want a full-service banking experience.

Best for Extended Branch Hours: TD

TD branches typically have the longest hours, including early morning, evening, and weekend hours. If you work a standard 9-5 job and need to visit a branch in person, TD's extended hours are very convenient.

Best for International Connections: Scotiabank

If you need to regularly send money to Latin America, the Caribbean, or Asia, Scotiabank's extensive international network and Scotia International Money Transfer service make them a strong choice.

Best for Simplicity: BMO

BMO's NewStart package is straightforward and includes a U.S. dollar account, which is useful if you travel to the U.S. or receive payments in USD. Their customer service is highly rated.

Best Branch and ATM Network: RBC

With the most branches and ABMs (ATMs) nationwide, RBC offers unmatched convenience for in-person banking and cash withdrawals across Canada.

Other Banking Options for Newcomers

CIBC - Welcome to Canada Banking

Canadian Imperial Bank of Commerce (CIBC), the fifth member of the Big Five, also offers a newcomer package called "Welcome to Canada Banking." Similar to the other banks, it includes:

• No monthly fees for 12 months
• Unlimited transactions
• Free credit card
• Additional savings account

Contact CIBC: 1-800-465-2422 | cibc.com/en/newcomers.html

Credit Unions

Credit unions are member-owned financial cooperatives that often offer lower fees and more personalized service than big banks. Examples include Vancity (British Columbia), Coast Capital Savings (BC), Meridian (Ontario), and Desjardins (Quebec - technically a caisse populaire, similar to a credit union).

Advantages:

• Lower or no monthly fees
• Better interest rates on savings
• More flexible lending criteria
• Community-focused service

Disadvantages:

• Smaller branch and ATM networks
• May have less sophisticated online/mobile banking
• Fewer newcomer-specific programs

Online-Only Banks

Banks like Tangerine (owned by Scotiabank), Simplii Financial (owned by CIBC), and EQ Bank operate primarily or entirely online with no physical branches.

Advantages:

• No monthly fees on most accounts
• Higher interest rates on savings
• Simple, streamlined banking
• Modern mobile apps

Disadvantages:

• No in-person service
• Cannot deposit cash (though you can deposit cheques via mobile app)
• May be challenging for newcomers unfamiliar with online banking
• Usually no newcomer-specific programs or credit-building support

As a newcomer, it's generally recommended to start with one of the Big Five banks that has a newcomer program, then consider adding an online bank account later for better savings rates once you're established.

Opening Your Account: The Process

Once you've chosen a bank, here's what to expect:

Step 1: Book an Appointment or Walk In

Most banks allow you to book an appointment online or by phone. You can also walk into a branch, though you may have to wait if appointments are scheduled. Appointments typically take 30-60 minutes.

Step 2: Bring Required Documents

Bring your identification documents, proof of address (if available), and any other documents requested by the bank.

Step 3: Meet with a Banking Specialist

A bank representative will:

• Verify your identity using your documents
• Explain the newcomer package and account features
• Ask about your banking needs
• Complete account opening forms (often electronically)
• Set up your online and mobile banking access
• Order your debit card (you may receive a temporary card immediately or wait 5-10 business days for your permanent card to arrive by mail)
• Explain how to use ATMs, online banking, and other services

Step 4: Make Your Initial Deposit

Most banks require an initial deposit to open an account, typically $50-$100 minimum, though this varies. You can make this deposit with:

• Cash
• A cheque (including traveler's cheques)
• A wire transfer from your home country bank (arrange this in advance)

Note that large cash deposits (over $10,000 CAD) must be reported by the bank to FINTRAC (Canada's anti-money laundering agency). This is normal and not a cause for concern—it's simply a regulatory requirement.

Step 5: Set Up Direct Deposit and Pre-Authorized Payments

Once your account is active, provide your account information to your employer for direct deposit (if employed), and set up automatic bill payments for rent, utilities, phone, etc.

Understanding Banking Fees in Canada

After your 12-month newcomer promotion ends, you'll need to manage fees carefully to avoid high monthly charges:

Common Fees to Watch For

• Monthly account fee: $4-$30/month depending on account type
• Transaction fees: $0.50-$1.50 per transaction if you exceed your monthly included transactions
• NSF (Non-Sufficient Funds) fee: $45-$48 if you try to spend more than your balance (avoid this!)
• E-Transfer fees: $1-$1.50 per transfer sent (receiving is usually free)
• ATM fees: $2-$3 for using another bank's ATM
• Overdraft interest: 19-21% annually if you use overdraft protection
• Wire transfer fees: $15-$50 for outgoing international wires

How to Minimize Fees

• Maintain the minimum balance to waive monthly fees
• Set up direct deposit ($2,000+/month usually waives fees at many banks)
• Use your bank's own ATMs
• Use online banking and e-Transfers instead of cheques and in-branch transactions
• Set up overdraft protection or link your chequing to savings to avoid NSF fees
• Consider switching to a lower-fee account or online bank if your needs are simple

Building Credit with Your Bank Account

Opening a bank account is your first step toward building credit in Canada, but the account itself doesn't build credit. To establish credit history, you'll need:

Secured Credit Card

If you have no credit history, ask your bank about a secured credit card. You deposit $500-$1,000 as security, and the bank issues you a credit card with that limit. Use it for small purchases and pay it off in full every month. After 6-12 months of responsible use, you can often convert it to a regular credit card and get your deposit back.

Credit Builder Loan

Some banks and credit unions offer small loans designed specifically to help newcomers build credit. You make monthly payments, and the bank reports your positive payment history to credit bureaus.

Add a Cell Phone or Utility Bill

Some cell phone and utility providers report payment history to credit bureaus. Paying these bills on time helps build your credit.

For a detailed guide, see: Understanding Canadian Credit Scores: A Newcomer's Guide

Key Takeaways

Opening your first Canadian bank account is a crucial step in your settlement journey. Here are the key points to remember:

• Choose a Big Five bank newcomer package for the first year—the fee waivers and perks are valuable
• Bring proper identification and don't worry if you don't have a Canadian address yet
• Apply for your SIN as soon as possible and provide it to your bank
• Set up direct deposit to help waive fees after the promotional period
• Start building credit immediately with a secured credit card
• Learn to use online banking to avoid in-branch transaction fees
• Compare banks based on your specific needs (international transfers, branch hours, network size, etc.)

For newcomers to Canada, having a Canadian bank account is essential not just for managing money, but for participating fully in Canadian financial life—from paying rent to building the credit history you'll need for major purchases down the road.

WelcomeAide is here to help you navigate financial and settlement questions as a newcomer to Canada. Our AI Newcomer Navigator can answer banking questions and connect you to resources in your language, 24/7. Explore our blog for more helpful newcomer guides.

Related Resources

WelcomeAide Resources

• Newcomer Checklist — track key settlement tasks and documents
• Rights Guide — understand legal rights and protections in Canada
• Ask WelcomeAide AI — get personalized answers for your next steps in Canada
• Settlement Programs — find local support and integration services
• WelcomeAide Blog — browse practical newcomer guides and updates

Authoritative External Sources

• FCAC Banking in Canada
• CRA Individual Tax Return Guide
• Canada Child Benefit
• Bank of Canada
• Canada Deposit Insurance Corporation