How to Open a Bank Account as a Newcomer to Canada

Why Opening a Bank Account Should Be One of Your First Steps

Opening a Canadian bank account is one of the most important things you should do when you arrive in Canada. You will need a bank account to receive your pay from work, pay rent, set up utilities, and access government benefits. Canada is a highly digital economy, and most transactions, from paying for groceries to receiving tax refunds, happen through bank accounts and electronic transfers. Without a bank account, daily life in Canada becomes very difficult.

The good news is that Canadian banks actively welcome newcomers. All of the Big 5 banks have special programs designed for people who have just arrived in Canada, whether you are a permanent resident, a temporary worker, or an international student. These programs typically waive monthly fees and offer additional perks to help you get started.

What You Need to Open an Account

To open a bank account in Canada, you typically need two pieces of identification. For newcomers, the most commonly accepted documents are:

• Your valid passport
• Your Confirmation of Permanent Residence (COPR) or immigration document such as a work permit or study permit
• Your Social Insurance Number (SIN), if you have already received it

If you have not yet received your SIN, most banks will still open your account and add the SIN later. Some banks allow you to start the account opening process online from your home country before you even arrive in Canada. This can save you valuable time during your first days in the country.

Can You Open an Account Before Arriving?

Yes, several Canadian banks allow you to open an account from abroad. RBC, CIBC, and Scotiabank all offer pre-arrival banking programs where you can apply online and have your account ready when you land. This is especially useful if you need to transfer funds to Canada before you arrive or if you need a Canadian account to receive a GIC.

The Big 5 Newcomer Banking Programs

Here is an overview of the newcomer programs offered by Canada's five largest banks. These programs change from time to time, so always check the bank's website for the latest details.

RBC Royal Bank

RBC offers a newcomer program that waives the monthly fee on select chequing accounts for the first year. The program is available to permanent residents, temporary residents, and international students who have been in Canada for less than 3 years. RBC also provides a no-fee credit card to help you start building credit. Visit the RBC newcomer page for details.

TD Canada Trust

TD offers a New to Canada banking package that includes a waived monthly fee on an All-Inclusive Banking Plan for up to one year. The package also includes a no-annual-fee credit card and access to financial advisors who can help with your settlement needs. TD has some of the longest branch hours of any Canadian bank, which can be convenient if you work during regular business hours.

BMO (Bank of Montreal)

BMO's NewStart program waives monthly account fees for the first year and offers a no-annual-fee Mastercard. BMO also provides newcomers with complimentary access to international money transfer services and a dedicated newcomer banking team. The program is available to people who have been in Canada for up to 5 years.

Scotiabank

Scotiabank's StartRight program offers waived monthly fees on the Preferred Package chequing account for up to 3 years for permanent residents (1 year for temporary residents and students). The program includes a no-annual-fee credit card with a modest credit limit. Scotiabank has a strong international presence, which can be helpful if you need to send money to family abroad.

CIBC

CIBC's newcomer banking offer includes waived monthly fees on a Smart Account for the first year, a no-annual-fee credit card, and access to a dedicated newcomer banking team. CIBC also offers a pre-arrival program where you can open your account online from outside Canada before you travel.

Understanding Bank Fees in Canada

Canadian bank accounts typically come with monthly fees, which can range from $4 to $30 or more depending on the type of account and the features included. Most accounts include a set number of transactions per month, and you may be charged extra for exceeding that limit. Some ways to reduce or avoid fees include:

• Using a newcomer program that waives fees for the first year or more
• Maintaining a minimum balance (many banks waive the fee if you keep a certain amount in the account)
• Choosing a basic or no-fee account with limited transactions
• Considering online-only banks such as Simplii Financial (owned by CIBC) or Tangerine (owned by Scotiabank), which offer no-fee chequing accounts

Building Your Credit History in Canada

When you arrive in Canada, you have no Canadian credit history, even if you had excellent credit in your home country. Your credit history and credit score in Canada affect your ability to rent an apartment, get a cell phone plan, finance a car, and eventually get a mortgage. Building credit should be a priority from your first month in Canada.

How to Start Building Credit

The easiest way to start building credit is to get a credit card and use it responsibly. Most newcomer banking programs include a no-annual-fee credit card with a low credit limit (typically $500 to $1,000). Use the card for small purchases and pay the full balance every month before the due date. This demonstrates to the credit bureaus (Equifax and TransUnion in Canada) that you are a reliable borrower.

If you cannot get an unsecured credit card, ask your bank about a secured credit card. With a secured card, you provide a deposit (for example, $500) and receive a credit card with a limit equal to your deposit. It works the same way as a regular credit card for building your credit history.

What Is a GIC and Do You Need One?

A Guaranteed Investment Certificate (GIC) is a safe investment offered by Canadian banks where you deposit money for a set period (usually 1 year) and earn a guaranteed interest rate. International students applying through the Student Direct Stream (SDS) are required to purchase a GIC of $20,635 (amount may change) as proof of financial support. The money is released to you in installments over 12 months after you arrive in Canada.

Even if you are not a student, GICs can be a good way to save money safely. Current GIC rates in Canada range from about 3% to 5% depending on the term and the bank. Talk to your bank about GIC options if you have savings you do not need to access immediately.

Sending Money to and from Canada

Many newcomers need to send money to family in their home country or transfer funds from abroad into their Canadian account. Banks offer international wire transfers, but the fees can be high ($20 to $50 per transfer, plus exchange rate markups). Consider using services like Wise (formerly TransferWise) or Remitly, which often offer better exchange rates and lower fees for international transfers.

Interac e-Transfer

Within Canada, the most common way to send money between people is Interac e-Transfer. This service is available through all major bank apps and allows you to send money using just the recipient's email address or phone number. Most banks include free or low-cost e-Transfers with their accounts.

Helpful Resources

• Financial Consumer Agency of Canada: Opening a Bank Account
• Understanding Credit Cards in Canada
• Guide to Your First Weeks in Canada
• Applying for the GST/HST Credit
• Applying for EI Benefits in Canada
• PR Card Renewal Guide

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