Looking for the best bank for newcomers in Canada? We analyzed every bank account and banking package for newcomers to Canada to create a list of bank accounts that include preferred perks, such as no monthly fees, unlimited free transactions or free e-transfers.
To discover the benefits of each bank and to find the best bank in Canada for newcomers, it’s best to compare the pros and cons of bank accounts for newcomers vs. regular chequing and savings accounts. By examining the features of each banking offer, you can choose the best newcomer bank account in Canada, based on your needs.
To determine this best list, Finder Canada analyzed 14 chequing and savings accounts suitable for newcomers to Canada across 12 financial institutions. We compared accounts from traditional banks, digital banks, fintechs and credit unions. We narrowed down the list of accounts to the top 9 by only listing accounts that are available in all Canadian provinces.
We ranked accounts based on 18 data points within five major categories. Here’s how we ranked and weighted each product:
Fees: 40% (Monthly fee, ability to waive monthly fee (if necessary), transaction fees, wire transfer fees, NSF fees, overdraft fees)
Perks: 20% (Newcomers specific perks and assistance, signup bonuses, other tailored rewards)
No single newcomers account will be the best choice for everyone, so thoroughly compare your options before picking your new account.
Best overall newcomers offer: National Bank
With the National Bank Newcomer Bank Account offer, you can avoid paying any monthly fees on your chequing account for up to 3 years.
You can save over $500 over 3 years, and can make unlimited electronic transactions from your account. National Bank also supports international transfers and you’re also able to access a National Bank Mastercard credit card without any credit history.
Finally, to help you make the transition to life in Canada, you get access to 1 year’s worth of free legal assistance by phone and advice on immigrating, housing, personal finance and more.
Eligibility: Must open an account up to 90 days before you arrive in Canada or within five years of your arrival in Canada. Must be 18 years of age or older and the only user of the account. Perks: Exclusive phone support for newcomers, international transfers with Mastercard and Interac international transfers Credit card (yes/no): Yes
Exclusive phone assistance for newcomers
Monthly fee waived for up to three years
Get a Canadian credit card without credit history
Need to sign up for additional products or services to have monthly fee waived
Best chequing account for newcomers in Canada: BMO Performance Chequing Account
If you’re simply looking for an everyday chequing account without a load of other financial products bundled in, check out the Bank of Montreal (BMO) Performance Chequing Account. This standalone newcomer bank account from BMO offers unlimited debit and Interac e-Transfers and free access to all BMO ATMs across Canada.
The monthly account fee will be waived if you maintain a minimum monthly balance of at least $4,000. You can also get an up to $40 rebate on the annual fee for eligible BMO credit cards. Check out the BMO Performance Chequing Account welcome offer: Get a $600 cash bonus when you sign up.
If you’re interested in the Performance Account, but are looking for more banking options like credit cards or a mortgage, explore the BMO NewStart Program below.
Eligibility: Must be 18 or older (or the age of majority), have a SIN and a Canadian address. To qualify for the NewStart Program, you must be a permanent resident or foreign worker who arrived in Canada within the last five years. Bonus offer:Earn a $600 welcome bonus Credit card (yes/no): No
Unlimited transactions
Monthly fee waived if you The monthly account fee will be waived if you maintain a minimum monthly balance of at least $4,000.
Option to sign up through the BMO NewStart Program for additional perks
$16.95 monthly fee (unless fee-waive conditions are met)
Best hybrid chequing and savings account offer for newcomers in Canada: EQ Bank Personal Account
EQ Bank offers one of the best savings rates in Canada and is a good online banking choice for new Canadians. It is owned by Equitable Bank, a federally regulated Schedule I bank with more than $74.1 billion in assets under management.
And while EQ Bank might not replace your primary bank (since it offers a limited selection of products), you can use EQ Bank to hold your savings, spend money and send international money transfers.
The EQ Bank Personal Account combines the convenience of a chequing account with the interest-earning power of a savings account. It offers zero monthly account fees and lets you earn a high rate of interest on every dollar. Unlimited debits and Interac e-transfers are also available. If you link it to an EQ Bank Card, you can make free withdrawals at any ATM in Canada.
Eligibility: Available to anyone living in Canada who is 18 or older (or the age of majority). Bonus offer: Earn a bonus interest rate of 4% for 12 months, and 2.5% thereafter. Credit card (yes/no): No
Get an interest rate of 4%
No monthly fee or minimum balance requirements
Unlimited transactions
Earn interest on every dollar in your account
100% online bank with no bank branches
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
Best hybrid rewards chequing and savings account offer: Neo Money Account
When choosing between newcomer bank account offers in Canada, it can be easy to miss out on great accounts that are not marketed as newcomer bank accounts. While the Neo Financial Money Account is not specifically for newcomers to Canada, it is an excellent option if you’re looking for a bank account that works as a hybrid chequing and savings account.
Not only does the Neo Financial Money Account let you earn money on the savings in your account, you’ll also be able to spend, pay bills and earn cashback — all from the same account. What’s more, Neo Financial now accepts international passports as a verification method, which makes signing up much easier for those who are new to Canada.
Eligibility: Be a Canadian citizen or resident, and at least 18 years of age, or the age of the majority in your province or territory. Bonus offer: Earn up to 5% interest on your balance + get up to 15% cashback on first-time purchases with your Neo Money card. Credit card (yes/no): Yes
Comes with free Neo Money Card for transactions
$0 account fee
$0 transactions
$0 minimum balance
No physical branches for in-person service
Min. Age
18
Account Fee
$0
Transaction Fee
$0
Interac e-Transfer Fee
$0
NSF Fee
$0
International ATM Fee
$0
Best BMO newcomer bank account offer in Canada: BMO NewStart Program
BMO’s NewStart Program offers a wide range of perks with various financial products to help newcomers to Canada get their finances in order. This comprehensive financial program can help newcomers get access to a chequing account, credit card, mortgage and investment opportunities with offers valued at more than $2,100.
If you sign up for a BMO Performance Chequing Account through the NewStart Program, you won’t be charged a monthly fee for the first 12 months – and that’s in addition to all of the other perks that already come with this account.
You can also send unlimited fee-free BMO Global Money Transfers, get access to a no annual fee BMO credit card with no credit history, get financial advice tailored to your needs at your nearest branch and get access to the online financial wellness tool, BMO SmartProgress.
Eligibility: Must be 18 or older (or the age of majority), have a SIN and a Canadian address. To qualify for the NewStart Program, you must be a permanent resident or foreign worker who arrived in Canada within the last five years. Perks: Fee-free international transfers for the first year, annual fee rebates on eligible credit cards, opening cash bonus, additional cash bonus when you rent a safety deposit box. Credit card (yes/no): Yes
No monthly fee (conditions apply)
Unlimited fee-free BMO Global Money Transfers for 1 year
Rebates and cash bonuses available
Must have a minimum balance of $4,000 to avoid a monthly fee of $16.95 after first year
Min. Age
N/A
Account Fee
$16.95
Overdraft Fee
$5
U.S. ATM Fee
$5
International ATM Fee
$5
Best Scotiabank newcomer bank account offer in Canada: Scotiabank StartRight Program
Scotiabank newcomers should check out the Preferred Package chequing account, which is part of the Scotiabank StartRight Program. Through this Scotiabank newcomer promotion you get no monthly fees on the Preferred Package for the first year. The monthly account fee will be waived if you have at least $4,000 in your account at all times.
Plus with the Scotiabank StartRight program you get unlimited, no-fee international money transfers. You can access credit cards and other products designed specifically for newcomers.
Eligibility: You can apply for the Preferred Package chequing account through the StartRight program if you're a Canadian residents that has been in Canada for 0-5 years as an International Student or Foreign Worker. Perks: Unlimited no-fee international transfers, access to credit cards with no credit history and 10 free equity trades when you invest a minimum of $1,000 in a new Scotia iTRADE account. Credit card (yes/no): Yes
Unlimited transactions
No monthly fee (conditions apply)
Fee-free international transfers through the Scotiabank StartRight Program
Earn a welcome bonus of up to $400. Earn $350 when you complete two banking steps, earn $50 when you open a new RRSP or TFSA and set up and maintain a recurring pre-authorized contribution of at least $50 for a minimum of 3 months. Valid until July 31, 2024.
Maintain a $4,000 minimum balance requirement to avoid monthly fee after the first year
Best TD newcomer bank account offer in Canada: TD New to Canada Banking Package
The TD New to Canada Banking Package gives you all the features you need in a bank account for newcomers to Canada. By opening a TD Unlimited Chequing Account through this program, you get unlimited transactions and no account fee for the first year. Plus, you could get a cash bonus when you open a TD Unlimited Chequing Account and complete certain tasks from your account.
The TD newcomer account also gives you the freedom to send unlimited international transfers for up to 12 months with transfer fees rebated and the TD newcomer offer gives you access to a higher interest rate for 90 days on a TD savings account, plus get no annual fee for the first year on an eligible credit card.
Eligibility: Permanent resident, international student or temporary resident (in Canada for five years or less). Perks: Bonus interest on your savings account, $350 cash reward when you set up certain transactions, no annual fee on a TD Aeroplan Visa Platinum Credit Card for the first year, unlimited international transfers for up to 12 months. Credit card (yes/no): Yes
Earn $350
Waived annual fee on credit card
Unlimited international transfers for 12 months
Monthly fee applies after first year unless you maintain a balance of $4,000 or more
Best CIBC newcomer bank account offer in Canada: CIBC Welcome Package
The CIBC newcomer account is the CIBC Smart Account. This CIBC newcomer account provides a range of features and perks to help you get settled financially in Canada. Included in the CIBC newcomer offers are no monthly fees for the first two years plus unlimited transactions and free e-transfers.
As a CIBC newcomer client, you can also send money money overseas with zero transfer fees. Better still, the CIBC newcomer account no-fee perk can be extended beyond the first two years, as long as you meet the minimum balance requirements for the newcomer bank account.
As an added perk, check out the range of CIBC credit cards for newcomers that come with their own special welcome offers. CIBC also offers mortgages for newcomers to Canada even with no credit history.
Eligibility: Must have received landed immigrant or permanent resident status in the last five years or be a temporary resident worker who has a Canadian work permit issued for at least a 12-month term. Bonus offer: Pay no monthly fees for 2 years, and get a $400 Costco Shop Card after you open a CIBC Smart Account for Newcomers as your first CIBC chequing account. Credit card (yes/no): Yes
No chequing account monthly fee for two years and fee is subsequently waived if you meet balance requirements
$400 Costco Shop Card offer
Unlimited transactions
Minimum balance of $4,000 to avoid account fee indefinitely
Best RBC newcomer bank account offer in Canada: RBC Newcomer Advantage
If you’re searching for the best bank in Canada for newcomers, RBC is also well worth a look. RBC offers a newcomer account through the RBC Newcomer Advantage program, with perks and access to essential financial products. For instance, when you sign up for RBC’s Advantage Banking Account through this program, you’ll get unlimited debit transactions in Canada and free Interac e-transfers. Best of all, there’s no monthly fee for the first year.
Once you are set up with an RBC newcomer account, it’s time to check out credit cards. When you apply for an RBC credit card with the RBC newcomer account, you may be able to get approved without a credit history, as long as you’re an RBC customer. To sweeten the RBC new immigrants deal, you also get a fee-free international money transfers and access to competitive exchange rates.
There are a range of other perks and discounts available, such as an RBC safe deposit box. Plus, RBC offers phone services in up to 200 languages if you need any help with your account.
Eligibility: Newcomers to Canada and international students who arrived within the last five years for non-credit card accounts (12 months for credit cards). Perks: Get no-fee international money transfers and competitive exchange rates, credit card cashback bonuses, free safe deposit box for 2 years and no RBC fee on out-of-network ATMs in Canada. Credit card (yes/no): Yes
Unlimited transactions with an associated chequing account
Up to $15,000 credit limit on a credit card
Service available in up to 200 languages
Monthly banking fee applies after the first year
Limits on the amount of free international transfers you can send per month
There are a few differences between a bank account for newcomers to Canada and a regular bank account.
The biggest difference are the offers. Newcomers to Canada can expect really great offers from banks and financial institutions. This is partly because banks are always looking for ways to entice new customers to open an account. They know that once you set up an account, chances are you’ll open more financial products — and that’s good for the banking business.
As a result, newcomers to Canada can expect a wide range of discounts and special offers to encourage them to open bank accounts. These often include:
Waived monthly account fees for the first year (and up to three years with some accounts)
Waived fees on international transfers for the first 12 months
Cash rewards if you open an account and perform certain transactions within the first six months, such as setting up direct debits and having your income deposited into your account
Discounted or waived annual fees on credit cards, plus the ability to apply for a credit card with limited or no credit history
Bonus interest rates on savings accounts for an introductory period
Discounts on other financial products the bank offers such as car loans, business loans and safety deposit boxes
It’s important to compare a range of offers to find the best bank in Canada for newcomers. It’s also worth mentioning that in many cases, once the one- to three-year introductory period has passed, your newcomer account will revert to the standard fees, terms and conditions of a normal chequing account.
The other big difference is that to open a newcomer bank account, you need to meet a few eligibility requirements. These vary between banks, but accounts are available to permanent residents, foreign workers or international students.
How to compare the best bank accounts in Canada for newcomers in 2024
To choose the best bank for newcomers in Canada, think about your money needs. Are you looking for an everyday chequing account, a savings account to build a bigger bank balance or a credit card to help you pay for larger purchases? What types of transactions will you need to make? Will you be writing cheques, sending international transfers or need access to a large ATM network?
Once you know what you need in an account, start comparing newcomer bank account offers in Canada. Consider any fee discounts available as well as what fees will apply once the introductory promotional period ends. Also look for rewards and special offers, such as discounts on other products like credit cards for newcomers in Canada, plus the interest rate that applies to your balance.
We’ve put together a list of Canada newcomer bank accounts, with detailed reviews of each account to help you decide whether these banking offers are right for you.
What should newcomers to Canada look for when choosing a bank?
Choosing a bank is a big decision. Getting it right can save you a lot of time, stress and money, so it’s worth taking the time to compare your options. Here’s what you need to consider when searching for the best bank for newcomers in Canada:
Products that suit your needs. First, look for a bank that offers products that suit your needs. This could mean an everyday chequing account with unlimited transactions, a savings account with a high interest rate, a credit card with no annual fee and a good rewards program, or all of the above.
No monthly fee. Most newcomer offers include a waived monthly account fee for at least the first 12 months. Check whether there are reduced fees on only other transactions such as international transfers to help you save money.
Credit card access. Another common feature of newcomer banking offers is access to a credit card. In many cases, you can take advantage of a waived annual fee for the first year or a fee rebate to reduce the total cost.
Package deals. Newcomer packages bundle a range of products and discounts into one deal. For example, you might find savings on other loans, higher interest rates on savings accounts, discounts on safety deposit boxes and even perks like an Amazon Prime membership.
Branch and ATM network. Check how big the bank’s national network of branches is and whether it has locations near you. The same goes for its ATM network. Remember to check what fees will apply if you use other banks’ ATMs.
Mobile and online banking. Read some independent customer reviews of the bank’s online banking platform and mobile banking app to make sure they’re easy to use.
Specialized advice for newcomers. Does the bank provide educational resources and personalized advice for new arrivals to Canada? Can you access advice for free or does it cost extra?
Multilingual support. If you’d prefer support in a language other than English, check whether you can access phone and in-branch support in your first or preferred language. For example, RBC offers customer support over the phone in over 200 languages.
Newcomer banking tip of the month
Don’t forget to file your tax return, which in most cases will need to be submitted to the CRA (Canada Revenue Agency) by April 30, 2024. If, as a newcomer to Canada, you’re unsure which banking products you’ll need to pay taxes on, keep in mind that you typically have to pay tax on any interest income earned from things like savings accounts and investments. You can read our guide to tax on interest income in Canada here to learn more.
If you’re unsure of what exactly you need to file, or how to go about filing your taxes, don’t hesitate to reach out to a tax expert.
How to open a bank account as a newcomer in Canada
If you’re one of the over 370,000 newcomers to Canada in 2023 (according to StatsCan),(1) you’re ready to open a bank account, here’s what you need to do:
Compare your options. Many banks and credit unions boast newcomer bank offers, so shop around to find the best bank in Canada for newcomers.
Apply online or visit a bank branch. If you’ve already lived in Canada for a little while, and you have Canadian ID, you may be able to apply online. If you’re new to the country, you may need to visit the bank in person to open an account. Call or visit any bank you’re interested in to see what the requirements are.
Submit any required documents. You’ll be asked to provide proof of ID such as a Canadian driver’s licence or valid passport. You’ll also need to prove your residency status, for example with a permanent resident card or work permit, and may be asked to provide proof of entry into Canada.
Open your account. Once your account has been set up, you can deposit funds and arrange for your income to be paid directly into the account.
Who qualifies as new to Canada?
The exact criteria you’ll need to satisfy to open a newcomer account vary between banks. However, as a general rule, you will need to meet the following requirements:
Must be preparing to move to Canada or have been in Canada for five years or less
Must be a permanent resident, foreign worker or international student
Must be 18 years of age or older (or the age of majority in your province)
What documents do I need to open a bank account for newcomers in Canada?
To open a bank account in Canada, the bank will need to verify your identify, which means you’ll have to submit two pieces of legitimate documentation to prove your identity.
One of those documents must include your name and address, while the other must show your name and date of birth. The documents can only come from this list of options:
Foreign passports
Government of Canada ID or provincial government ID
Recent Government of Canada (or provincial or municipal governments) notice of tax assessments
Recent statements of benefits from the Government of Canada or provincial government
Recent Canadian public utility bills
Recent bank account or credit card statements
As a permanent resident, you’ll need to show your Permanent Resident Card. If you’re an international student, you’ll need to submit proof of enrollment from your school and a copy of your study visa. Similarly, if you’re a foreign worker, you’ll need to provide a copy of your work visa.
Depending on when you arrived in Canada, you may be asked to provide proof of entry into Canada, like a passport stamped by a Canadian customs border services officer. Permanent residents can submit a record of landing (IMM 1000) or confirmation of permanent residence as proof of entry.
Can a non-resident or foreigner open a bank account in Canada?
Non-residents can open a bank account in Canada if they plan to visit the country to live, work or study. Tourists with an address in Canada may be able to open a bank account using their foreign passport as ID. Non-residents who aren’t planning to visit Canada cannot open a bank account.
How does banking work in Canada?
Everyone in Canada has a legal right to open a bank account regardless of whether they’re a newcomer or have lived in Canada all their lives. But before you start comparing your options, it’s essential to understand the types of bank accounts available in the country.
Types of bank accounts in Canada
Most Canadian financial institutions and all of the big banks offer bank accounts and packages tailored to newcomers. Despite all the choices, bank accounts for newcomers typically fall into two general categories:
Chequing accounts. These day-to-day bank accounts allow the account holder to deposit and withdraw money, pay bills, transfer funds to other people and make purchases using a debit card. Many chequing accounts support unlimited transactions but be aware that a monthly fee may apply if you don’t meet minimum balance requirements.
Savings accounts. When you open a savings account, you earn interest on your account balance. Your balance grows without you having to lift a finger, allowing you to save for a big purchase or just set money aside for a rainy day. High-interest savings accounts allow you to maximize your savings, but you may need to satisfy certain conditions (such as depositing a minimum amount each month) to earn the highest possible rate. Some digital bank accounts act hybrid accounts with both chequing and savings functions.
Interac is a funds transfer network and debit system. It supports funds transfers between banks and other financial institutions, allows you to pay for purchases in-store and online and operates a network of ATMs.
It allows you to send fast and secure money transfers to anyone in Canada. You can send money via online banking or a mobile app to your recipient’s email address or phone number and they’ll receive the funds almost instantly. Most banks and credit unions in Canada support Interac e-transfers.
A routing number in Canada is an eight- or nine-digit code used to identify bank branches. The number consists of an institution number that identifies the bank and a transit number that identifies the bank branch. Financial institutions use routing numbers to process cheques, money transfers and bill payments. For more, read our how to read and write a cheque guide.
An account number is used to identify your bank account. In Canada, account numbers feature 7 to 12 digits.
It’s a payment method that allows the electronic transfer of money between bank accounts. It’s commonly used by employers to pay your salary and by government departments like the Canada Revenue Agency to pay income tax refunds.
A bank draft is a method of payment guaranteed by the financial institution that issues it. This financial instrument allows you to make a big payment without withdrawing a large amount of cash from your account.
A cheque is a document that authorizes a bank or financial institution to pay a specific sum from a person’s bank account to another person’s.
A void cheque is a cheque with the word “VOID” written on its front, which makes it invalid to use for payment. You can use a void cheque to provide your bank account details to someone else, such as your employer, so they can set up a direct deposit to your account.
A debit card is a payment card linked to your chequing account. It deducts money from your chequing account whenever you use it to make a purchase in-store or online.
Transactions are events that result in funds being moved into or out of your bank account. They include cheque deposits, electronic transfers, ATM withdrawals, debit card payments, bill payments and more.
How to compare bank accounts for newcomers in Canada
There are plenty of options available if you want to compare bank accounts for newcomers to Canada, so it’s important to consider your personal banking needs. Think about the type of transactions you expect to make, how much money you’ll have in your account and any must-have features.
To help you find the best bank account for newcomers in Canada, compare the following features:
Chequing vs savings. Are you looking for a chequing account you can use for everyday transactions like grocery shopping and bill payments? Do you want a savings account that allows you to earn interest on your money? Or do you need both like those offered by some digital banks in Canada?
Monthly fees. Most newcomer bank offers waive monthly account fees for the first 12 months or more. However, don’t forget to check the monthly fee once this intro period ends.
Unlimited transactions. Check whether there are any limits on the number of transactions you can perform each month without incurring any fees. If you prefer to bank in-branch, check whether branch transactions attract different fees to online transactions.
International transfers. If you need to send money overseas from Canada to family members back home, many newcomer accounts offer free international transfers for an introductory period. Remember to check the fee once the intro period ends as well as the exchange rate you can expect.
Linked debit card and ATM access. How large is the bank’s Canadian ATM network? If you use an ATM from another bank’s network, will you be charged a fee?
Branch network. Check how large the bank’s branch network is and whether it has locations close by.
Interest rate. If your account allows you to earn interest on your balance, check the interest rate. How does it compare to the rates offered by other banks? Is there a bonus rate available for newcomers?
Credit card. Does the bank’s newcomer program provide access to a credit card even if you don’t have any Canadian credit history? If so, what’s the maximum credit limit you can access and will the bank waive the card’s annual fee for the first year or two?
Cash rewards. Some banks offer cash bonuses to newcomers who open a chequing account. To access the offer, check the terms and conditions as you’ll usually have to perform a specific number of transactions before a cut-off date. Money management apps are also available to newcomers and offer rewards and other perks. For example, if you open a KOHO account you can earn a high-rate of cash back on purchases, earn savings interest on your account balance and get access to a prepaid Mastercard.
Discounts on other products. Finally, check whether opening an account as a newcomer entitles you to discounts on other products and services, such as a car loan or financial advice.
Benefits of opening a bank account in Canada as a newcomer
Immediate access to your money. Transfer money to your Canadian bank account before you leave, and you can withdraw from the account as soon as you arrive in the country. You’ll be asked to present ID when picking up your new bank card.
Low fees for domestic services. Transferring money to Canada from a non-Canadian account can come with high fees, especially for large amounts. Having access to funds in Canada makes it much less expensive to make purchases and pay bills.
Direct deposit for your Canadian income. When you open a bank account in Canada, you can provide Canadian employers with your bank account details to have your income conveniently deposited into your account without any delays.
What to watch out for with newcomer bank accounts
Time restrictions. You’ll likely need to be in Canada for less than 3 to 5 years in order to be eligible for a newcomers package.
Carefully read the terms and conditions. Any fees, stipulations and restrictions will be laid out in the terms and conditions. Carefully read these to understand how much you’ll pay monthly or annually, as well as the conditions you’ll need to meet to receive any signup bonuses.
Is a deposit required? You may be required to put a down payment on a car loan, mortgage or credit card. Before applying for a package, make sure you’re comfortable with the terms and conditions.
What do you need to do to receive any bonuses? You’ll likely need to meet a few conditions before you’ll be awarded a bonus such as setting up recurring bill payments or making an online bill payment.
Watch out for fees. Once your fee-free month or year is up, you’ll face monthly or annual charges. These could apply to credit cards, chequing accounts, savings accounts, investments and more.
Are all the products suitable for your needs? Not all banks in Canada offer the same products. Make sure the products offered meet your needs and allow you to save the most money possible within the first year.
Big banks vs online banks: A comparison for newcomers to Canada
When considering a new bank account, most people gravitate towards a well-known big bank brand such as RBC, BMO or National Bank.
One reason the big five or big six banks are so popular is that customers can find in-person branches and local ATMs easily. This makes a bank account at a big bank a great option. However, big banks aren’t known for extra perks such as higher interest rates earned on deposits or cash back on debit spending.
If you’re comfortable with not visiting a bricks-and-mortar branch, a digital bank or a money-spending account may be a better day-to-day banking option – or as a secondary spending account.
Money apps and online accounts offered by digital banks typically offer extra perks such as cash back on debit charges and unlimited debit transactions.
Turns out Canadians are getting more comfortable with online banking and online and mobile banking apps. According to survey data from the Finder: Consumer Sentiment Survey Q2 2023, 7.18% of respondents planned on opening a digital bank account between April and June 2023 — up from 3.59% of respondents who planned to open a digital bank account between January and March 2023.
Ultimately, it’s important to shop around to find a financial institution that offers the products, services and advice you need for a smooth transition to life in Canada.
Will you need a credit card as a newcomer to Canada?
A credit card is an important piece of the financial puzzle for many newcomers to Canada — but not just for newcomers to Canada. In a recent Finder survey, 14% of Canadians planned to open a new credit card account between April and June 2023.(3) This demand for a new credit card remained consistent, with 14% or respondents in the Finder: Consumer Sentiment Survey Q1 planning to open a new credit card account between January and March 2023.(4)
As a newcomer to Canada, you may not necessarily need a credit card but having some plastic in your pocket can help you get settled in your new home. Here’s why:
Build credit. On-time payments towards your credit card balance will be reported to the credit bureaus, allowing you to build your Canadian credit history. Developing a good credit score will help you qualify for loans and other products in the future.
Pay for larger purchases. There are often big purchases to make when you move to a new country. A credit card can help you buy those big-ticket items you need, such as furniture and electronics that you might otherwise not be able to pay for upfront. You can then take advantage of interest-free days to pay off your purchases.
Rewards and perks. Some cards allow you to earn reward points you can redeem at a range of retailers, or include perks such as complimentary travel insurance. Many banks provide newcomer credit card offers with features such as cashback rebates or waived fees for the first 12 months.
However, remember the risks when using a credit card. If you can’t pay off your balance during the interest-free period, interest will start accruing. Your credit score will be impacted if you miss a payment and it’s worth mentioning that, as a newcomer, you won’t be able to qualify for a high credit limit.
Finally, remember that newcomer offers only last for a limited period, so make sure you’re aware of the fees and interest rates that apply once the intro period ends. To find the right credit card for your specific financial needs, read our best credit card guide.
How to find the best credit card for newcomers
Most banks in Canada include access to a credit card as part of their newcomer banking packages. To sweeten the deal, they’ll often offer a rebate on the annual fee or even waive the fee altogether for the first year. There may also be bonus reward points on offer for newcomers, so it’s worth shopping around to find the best deal. Check out our guide to credit cards for newcomers to Canada for more information.
Prepaid cards for newcomers: An alternative to credit cards
If you don’t like the idea of running up debt on a credit card, you might want to consider applying for a prepaid card. This allows you to load your own money onto a card and then use it for in-store and online purchases.
A prepaid card ensures that you don’t have to worry about interest charges, but you can still take advantage of features such as cash back and reward points. Check out our prepaid cards guide to find out more.
How much credit do newcomers to Canada need?
Another factor you’ll need to consider when applying for a credit card is that your Canadian credit history is likely limited. As a result, this could have an impact on the maximum credit limit you’re able to qualify for.
However, the good news is you don’t need a credit history in Canada to qualify for a credit card. Banks will instead assess your income and employment situation when setting your credit limit. As a general guide, you may be able to qualify for a credit limit of up to $10,000 or $15,000 depending on the bank you choose.
Bottom line
Moving to a new country can be daunting and stressful, but managing your finances doesn’t have to be. Compare the best bank accounts for newcomers in Canada and shop newcomer banking packages to find the financial products and services that you need.
Newcomer bank accounts FAQs
Newcomer bank offers typically only last for one to three years. Once this introductory period ends, your bank account will revert to your bank's standard chequing account terms and conditions. Most importantly, this means that a monthly fee will apply if you don't keep your balance above a minimum level.
Yes, some banks will allow you to open a Canadian bank account before you arrive in Canada. You can sign up online and deposit funds into your account, then visit a branch once you arrive in Canada to finish opening your account.
Many banks offer student bank accounts specifically designed for international students. These accounts often have no monthly fees, but transaction limits may apply.
Finder's editorial team chose National Bank as the best bank in Canada for newcomers. As a newcomer, you can take advantage of waived monthly chequing account fees for up to three years, make unlimited electronic transactions, get a National Bank Mastercard credit card and access specialized advice for newcomers.
The best credit card for newcomers depends on what you're looking for in a card. For example, if you want a card with a low interest rate or no annual fee, the best card may be different for you than for someone looking for the best cashback offer.
Check out our guide to credit cards for new immigrants to see our top picks of newcomer credit cards across seven categories.
No, you'll need to build your Canadian credit history and score from scratch. Your credit history from your home country will not play any part in your financial journey in Canada.
No. These packages are designed to help permanent residents, landed immigrants, temporary workers and international students get on their feet – but they are by no means necessary. When you go to a bank to open an account or apply for credit products, the bank will likely steer you in the direction of a newcomer package since they're designed to help newcomers. But if you're only looking for one or two products, you may not be interested in an entire banking package.
Most major Canadian banks have staff who can speak a range of languages, making it a lot easier to open a bank account and avoid miscommunications. Some of these banks include TD Canada Trust, CIBC and RBC.
Like all major banks in Canada, CIBC has a range of newcomer bank offers to entice new customers. These include bonus offers on the CIBC Smart Account for Newcomers and credit cards for newcomers. Pay no monthly fees for 2 years, and get a $400 Costco Shop Card after you open a CIBC Smart Account for Newcomers as your first CIBC chequing account. Compare CIBC newcomer offers with deals from other banks before deciding which provider is right for you.
This offer allows newcomers in Canada to get a cash bonus by opening a TD Unlimited Chequing Account. Get $350 cash when you open a new TD Unlimited Chequing Account by June 3, 2024 and complete any 2 of the following before July 31, 2024: Recurring Direct Deposit, setup a Recurring Pre-Authorized Debit Payment of at least $50, or pay a Canadian bill of at least $50.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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