The Best Bank Accounts for Newcomers to Canada

Good News: The Big Banks Want You!

Like the packages offered to students, the Big Banks offer some of their best bank accounts to newcomers to Canada!

Let’s start off with the basics:

Who Qualifies as a Newcomer to Canada?

The eligibility criteria vary from bank to bank; however, generally, the accounts described here are available to permanent residents who arrived in Canada in the last three to five years.  Many, but not all, of the bank packages are also available to temporary workers and international students.

When Do The Deals End?

The fee waivers generally end a year (six months in the case of TD) after account opening. At that point the regular fees applicable to your bank package will apply.

What Documentation is Required to Open a Bank Account?

You will generally need two pieces of identification, including at least one government-issued ID, as further explained in this helpful overview by the Canadian Bankers Association.  It is important to note that you do not need a job to open a bank account.

In addition, if you want to qualify for one of the bank’s special packages, you will need to produce proof that you meet the eligibility requirements.

Can I Open an Account and Transfer Money Before I Arrive in Canada?

Depending on where you are arriving from, Scotiabank and HSBC will let you open an account online and transfer money before you arrive — which may be a very important consideration for many newcomers.  The downside of HSBC is that it does not have a nationwide brick and mortar presence in Canada – so it could be convenient to open pre-arrival, but inconvenient to use once you arrive.

What Should a Newcomer to Canada Look for in a Bank Account?

General Criteria

• No Minimum Balance
• No Monthly Fee
• Free Unlimited Transactions, Including Interac eTransfers
• Large ATM Network with Convenient Locations
• Access to Credit Designed for People with No Credit History

Brick and Mortar Location

We think it is important for newcomers to open an account at a bank with a brick and mortar location where you can make in-person visits and establish a relationship.

Online banks have compelling offerings for all Canadians and we would encourage newcomers to take advantage of online bank offerings as well – post arrival in Canada. In particular, as noted in our guide to high interest savings accounts, you are likely to get a much higher everyday interest rate in a savings account offered by an online bank.

Bank Accounts from the Big 5 Banks

* Certain pay per use fees, such as using another bank’s ABM, apply – see terms and conditions for all details

Assessing Your Big Bank Options

Convenience is Key

Think of the Big Bank options as a convenient landing spot — a way for newcomers to get quickly integrated into the Canadian banking system with little or no cost — and not necessarily a permanent destination.

Reassess Once You Get Your Bearings

As noted, the fee waivers are time-limited. Hopefully, by the time the waivers expire newcomers will be sufficiently integrated into the banking system to consider all options, including online banks.

Similar Offerings

The packages offered by the Big Banks are all pretty similar in nature with the notable exception of TD, which only waives the monthly fee for a period of six months.  We’ve noted the basic features in the chart. Other features generally include free safety deposit boxes, mortgages for people with limited or no credit history and special interest rates on deposits.

Other Bigger Bank Options

We restricted our Big Bank review to the Big 5 because of their national presence.

National Bank and HSBC have competitive newcomer to Canada bank account plans and, if you live in an area where they have a significant presence, they are worth considering.

Online Banking Options

While we do believe a significant brick and mortar presence is an important consideration in a newcomer’s first Canadian bank account, no-fee online bank account options do exist.  Having a no-fee online account, even as a secondary option, can provide additional convenience (not to mention a ready option when the Big Bank deals expire).

The major limitation for many online banks (other than Manulife, Tangerine and Simplii) is a lack of credit card offerings. Even where there are credit card offerings they aren’t necessarily geared towards people with no or limited credit history.

No-Fee Chequing Accounts from Online Banks: A Comparison Chart