As a newcomer, choosing the right bank can help you manage your finances effectively, avoid unnecessary fees, and even build your credit history. There are two main types of banks to consider: traditional banks with physical branches and online banks that operate digitally.

Many banks also offer special welcome packages for newcomers, including free banking periods, credit card offers, and other incentives. While setting up your finances, it’s also essential to explore other key aspects of settling in Canada, such as downloading essential apps for newcomers to make your transition smoother. For a broader perspective on managing your money, check out my guide on financial tips for Newcomers.

My Experience Opening a Bank Account in Canada

When I first arrived in Canada,  I walked into an RBC branch because I had heard they had good services for newcomers. The process was straightforward—I provided my passport, study permit, and proof of address. Within an hour, I had my first chequing account, a CAD & USD savings account. I was initially skeptical about having a credit card due to lots of misinformation, but when I was ready a few months later, RBC offered me a credit card. Over time, I explored other banks and online banking options to maximize my financial benefits. If you’re unsure about what steps to take in your first few days, check out what to do in your first week in Canada to get a solid start.

Requirements to Open a Bank Account in Canada

To open a bank account, most banks require the following:

• Passport or government-issued ID
• Proof of Canadian address (utility bill, lease agreement, etc.)
• Study or work permit (if applicable)
• Social Insurance Number (SIN) for tax purposes (optional but recommended)

What to Consider When Choosing a Bank Account

Here are some key factors to consider when selecting a bank account:

• Banking fees: Monthly maintenance fees and transaction charges can add up.
• ATM access: Some banks have more ATM locations, making it easier to withdraw cash.
• Credit card benefits: Look for credit cards with rewards, cashback, or no foreign transaction fees.
• Line of credit: Some banks offer newcomers the chance to build credit through a line of credit.
• Rewards programs: Many banks offer rewards such as cashback, travel points, or grocery discounts.

As you familiarize yourself with banking options, it’s also helpful to learn about settling in Canada to ensure a smooth transition beyond just finances.

Traditional Banks

Traditional banks offer in-person services, making it easy to visit a branch for assistance. They are a great choice if you prefer face-to-face customer support.

1. Royal Bank of Canada – (RBC): Best in Reliability

Pros:

• International presence in Canada, the U.S., and the Caribbean
• Easy international money transfers
• Great customer service with multiple branch locations
• Offers foreign currency exchange in-branch
• Great fraud detection

Cons:

• Monthly banking fees unless you meet specific criteria

2. Scotiabank: Best in no foreign transaction fee for newcomers

Pros:

• Earn Scene+ points for entertainment and travel rewards
• Special welcome bonus offers for newcomers

Cons:

• Some accounts have high transaction fees if you exceed monthly limits

3.Canadian Imperial Bank of Commerce  (CIBC) – Best in credit score accessibility

Pros:

• Ability to open a USD account at no additional cost
• Instantly view credit scores on banking app
• Good newcomer banking package with credit-building opportunities

Cons:

• Limited free transactions depending on the account type

4. TD Bank – Best in bundled package

Pros:

• Access to TD Insurance at discounted rates
• Convenient branch locations and extended banking hours

Cons:

• High banking fees unless waived by meeting specific requirements

Online Banks

Online banks operate digitally, which means no physical branches. They often offer higher interest rates on savings and lower fees compared to traditional banks.

1. EQ Bank – Best in high-interest rate savings

Pros:

• High-interest savings account
• No monthly fees
• Free e-transfers
• No charge for non-sufficient fund (NSF) fees.

Cons:

• USD accounts are difficult to manage; deposits and withdrawals must be made via mailed cheques

2. Simplii Financial (Subsidiary of CIBC) – Best in no-fee chequing account

Pros:

• Lots of offers and referral cash bonuses
• No monthly fees
• Easy to get a credit card with competitive benefits

Cons:

• The mobile app is not very user-friendly

3. Tangerine (Subsidiary of Scotiabank) – Best in cashback

Pros:

• No monthly fees
• High-interest savings accounts
• Great fraud detection
• Cashback rewards on spending
• More likely to be approved for a line of credit

Cons:

• No physical branches for in-person support

4. PC Financial – Best in instant credit card

Pros:

• Earn PC Optimum points on purchases, which can be used for groceries and shopping. Sign up using my referral code TO91804653 to get an exclusive bonus!”
• Easy-to-reach customer service
• No monthly fees
• Easy to obtain a credit card

Cons:

• The app sometimes has bugs, making it difficult to navigate

Conclusion

Choosing the right bank as a newcomer in Canada can make a big difference in how you manage your money. If you prefer in-person banking and need access to international services, a traditional bank like RBC or CIBC may be ideal. However, if you want to save on fees and earn rewards, online banks like Tangerine or EQ Bank could be a better fit.

From my experience, starting with a traditional bank for easy access and then exploring online banks for additional benefits is a smart strategy. Whatever you choose, ensure the bank meets your financial needs and helps you build a strong foundation in Canada.