Best bank in Canada for newcomers in 2023

Looking for the best bank in Canada for newcomers? We analyzed every bank account and banking package for new Canadians to find the best accounts for newcomers to Canada.

If you’re one of the nearly one million newcomers to Canada in 2022 (according to StatsCan),⁽¹⁾ you have a more choices today. In fact, newcomer bank offers in Canada are better now than they’ve ever been before. Each newcomer bank account on this list provides a preferred perk, such as no monthly fees, unlimited free transactions or free e-transfers. Some accounts below are also part of a newcomer banking package that helps make finding the best credit card for newcomers or investing platforms more accessible or cost-effective. Scroll down to discover the benefits of each bank account and compare the pros and cons of bank accounts for newcomers vs. regular chequing and savings accounts.

Best bank in Canada for newcomers, by category

• Overall best bank in Canada for newcomers: National Bank
• Best chequing account for newcomers in Canada: BMO Performance Chequing Account
• Best savings account for newcomers in Canada: EQ Bank Savings Plus Account
• Best multi-currency bank for newcomers in Canada: HSBC Bank Canada Newcomers Program
• Best BMO newcomer offer: BMO NewStart Program
• Best Scotiabank newcomer offer: ScotiaBank StartRight Program
• Best CIBC newcomer offer: CIBC Welcome Package
• Best RBC newcomers offer: RBC Newcomer Advantage
• Best TD newcomers offer: TD New to Canada Banking Package
• Best hybrid chequing and savings account offer: Neo Money Account

• Methodology: How we picked the best banks in Canada for newcomers

  We recommend the best products through an independent review process, and advertisers do not influence our picks. We’ve chosen the best banks in Canada for newcomers on this page based both on the providers available through Finder and online in the Canadian marketplace, though these bank accounts are not necessarily representative of the entire market. When choosing the best bank accounts for newcomers, we considered key factors including welcome offer for new Canadians, overall package perks and length of promotions. No single bank or bank account will be the best choice for every newcomer, so compare your options before applying. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.

Overall best bank in Canada for newcomers: National Bank

National Bank is our pick as the best bank for newcomers to Canada for a long list of reasons. With its National Bank Newcomer Bank Account offer, you can avoid paying any monthly fees on your chequing account for up to three years. You can save over $700, 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 one year’s worth of free phone assistance and advice on immigrating, housing, personal finance and more.

Go to site Read review

National Bank Newcomer Bank Account

unlimited
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

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.
Free transactions: Unlimited electronic transactions, free branch transactions for the first year and then $1.50 per branch transaction in subsequent years.
E-transfer fee: $0.
Monthly account fee: $0 for up to three years, $15.95 from year four onwards.
Bonus offer or 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
• $15.95 monthly fee once discount period ends
• No interest on your bank balance

Min. Age	N/A
Account Fee	$0
Overdraft Fee	$0

Best savings account for newcomers in Canada: EQ Bank Savings Plus 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 $42 billion in assets under management (as of March, 2023). 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 and send international money transfers.

The EQ Bank Savings Plus 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.

Go to site Read review

EQ Bank Savings Plus Account

2.5%
Interest Rate

$0
Account Fee

$0
Transaction Fee

• Info
• Pros + Cons
• More Details

Eligibility: Available to anyone living in Canada who is 18 or older (or the age of majority) and has a Social Insurance Number (SIN).
Free transactions: Unlimited.
E-transfer fee: $0.
Monthly account fee: $0.
Bonus offer or perks: Earn 2.50% interest, no minimum balance requirements, free withdrawals from any Canadian ATM, cash back on purchases with the EQ Bank Card.
Credit card (yes/no): No.

• No monthly fee or minimum balance requirements
• Unlimited transactions
• Earn interest on every dollar in your account

• EQ Bank Card not available in Quebec
• 100% online bank with no bank branches
• No bonus interest

Min. Age	18
Account Fee	$0
Transaction Fee	$0
Interac e-Transfer Fee	$0
NSF Fee	$0

Best chequing account for newcomers in Canada: BMO Performance Chequing Account

If you’re searching for a convenient chequing account for everyday use, the BMO New to Canada Performance Chequing Account is our pick as the best option for newcomers.

As part of the BMO NewStart Program, it has no monthly account fee for the first year and the fee will continue to be waived after the first 12 months if you maintain an account balance of at least $4,000. There’s also a $350 cash bonus when you sign up while unlimited debit and Interac e-transfer transactions mean this account is ideal for regular use. You can access 3,400 free CIBC ATMs across Canada.

Go to site Read review

BMO Performance Chequing Account

unlimited
Free Transactions

$0
e-Transfer Fee

$16.95
Monthly Account Fee

• Info
• Pros + Cons
• More Details

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.
Free transactions: unlimited
E-transfer fee: $0.
Monthly account fee: $0 for the first year and $0 for subsequent years if you maintain a $4,000 or higher balance. Standard monthly fee is $16.95.
Bonus offer or perks: Earn a $350 bonus
Get $50 when you add a second member
Unlimited free transactions
$0 Interac e-Transfers
Monthly fee waived on $4,000+ balances
Credit card (yes/no): Yes.

• Unlimited transactions
• Monthly fee waived (conditions apply)
• BMO NewStart Program offers a range of perks for newcomers

• $16.95 monthly fee if your balance is less than $4,000
• International transfer fees
• Fee for overdraft protection

Min. Age	18
Min. Age Teen Account	12
Account Fee	$16.95
Youth Account Fee	$0
# of Accounts Included	20
Overdraft Fee	$5
ATM Out-of-Network Fee	$2
U.S. ATM Fee	$5
International ATM Fee	$5

Best multi-currency bank for newcomers in Canada: HSBC Canada Newcomers Program

HSBC is one of the biggest banks in the world and the largest international bank in Canada, so it’s no surprise to see it feature in our list of the best bank accounts for newcomers.

Newcomers who open a chequing account can access a welcome bonus of up to $500, with monthly fees waived for 12 months. You can also take advantage of a fee rebate and bonus reward points on an HSBC World Elite Mastercard as well as cash back when you send international wire transfers. Another advantage of banking with HSBC is that you can open foreign currency savings accounts in GBP, EUR, USD, HKD and RMB, with a range of foreign exchange services to help make it easier to manage your finances.

HSBC Canada Newcomers Program

Unlimited
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

Eligibility: People who have obtained permanent resident status in Canada within the past five years or who hold a valid Canadian work permit issued for a term of 12 months or greater within the past five years. Student offers are also available for people who hold a valid Canadian study permit issued for a term of 12 months or greater within the past three years.
Free transactions: Unlimited
E-transfer fee: $0.
Monthly account fee: waived for 12 months
Bonus offer or perks: Welcome bonus of up to $500, waived annual fee on HSBC World Elite Mastercard and bonus reward points. Get $50 when you send two international foreign exchange wire transfers and $50 when you open a safety deposit box at a branch.
Credit card (yes/no): Yes.

• Open savings accounts in five foreign currencies
• welcome bonus of up to $500
• Credit card bonus rewards and discounts

• High monthly fee after 12-month intro period
• Must meet a range of conditions to qualify for welcome bonus

Min. Age	N/A
Account Fee	$0
Overdraft Fee	$0

Best BMO newcomer offer: BMO NewStart Program

BMO’s NewStart Program offers a wide range of perks to help newcomers to Canada get their finances in order. Open BMO Performance Chequing Account and you can enjoy unlimited transactions with no monthly fee for the first year. After that, the $16.95 monthly fee will be waived if you maintain a balance of $4,000 or more. You can also send unlimited fee-free BMO Global Money Transfers for the first year, access a rebate on BMO credit card annual fees and get financial advice tailored to your needs at your nearest branch.

Go to site Read review

BMO New to Canada Performance Chequing Account

unlimited
Free Transactions

$0
e-Transfer Fee

$16.95
Monthly Account Fee

• Info
• Pros + Cons
• More Details

Eligibility:
Free transactions: unlimited
E-transfer fee: $0
Monthly account fee: $0
Bonus offer or 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)
• Fee-free global transfers for the first year
• Rebates and cash bonuses available

• Minimum balance requirement to avoid monthly fee after first year
• $3,000 daily maximum e-transfer limit

Min. Age	N/A
Account Fee	$16.95
Overdraft Fee	$5
U.S. ATM Fee	$5
International ATM Fee	$5

Best Scotiabank newcomer offer: Scotiabank StartRight Program

If you open a Preferred Package chequing account as part of the Scotiabank StartRight Program, you can enjoy no monthly fees for the first year and continue to avoid the fee if you maintain a balance of $4,000 or more. Unlimited transfers are available, including fee-free international transfers. You can access credit cards and other products designed specifically for newcomers.

Best CIBC newcomer offer: CIBC Welcome Package

The CIBC Smart Account for Newcomers provides a range of features and perks to help you get settled financially in your new home. There’s no monthly fee for the first two years and you can make unlimited transactions and send free e-transfers. The monthly fee will continue to be waived if you meet minimum balance requirements while you can send money overseas with zero transfer fees.

Finally, CIBC offers a range of credit cards for newcomers, including special welcome offers to help sweeten the deal.

CIBC Welcome to Canada Banking Package

Unlimited
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

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.
Free transactions: Unlimited
E-transfer fee: $0
Monthly account fee: No monthly fees for two years. After that, maintain a daily balance of $4,000 or more to pay no monthly fee.
Bonus offer or perks: Get up to $400 when you open an account and perform specified transactions.
Credit card (yes/no): Yes.

• No monthly fee for two years and fee is subsequently waived if you meet balance requirements
• $400 cash reward bonus offer
• Unlimited transactions

• Minimum balance of $4,000 to avoid account fee
• Cash reward offer only available to people aged 25 and over

Min. Age	N/A
Account Fee	$0
Overdraft Fee	$0

Best RBC newcomers offer: RBC Newcomer Advantage

RBC’s Newcomer Advantage is another competitive offering worth considering for newcomers to Canada. The first step is to open an RBC Advantage Banking Account that entitles you to unlimited debit transactions in Canada, free Interac e-transfers and one free book of 50 cheques. Best of all, there’s no monthly fee for the first year.

The second step is to add a credit card – there’s no credit history required if you’re an RBC customer – and take advantage of limited fee-free international transfers for the first year. There are a range of other perks and discounts available, plus RBC offers phone services in up to 200 languages if you need any help with your account.

RBC Newcomer Advantage

Unlimited
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

Eligibility: Newcomers to Canada and international students who arrived within the last five years for non-credit card accounts (12 months for credit cards).
Free transactions: Unlimited
E-transfer fee: $0
Monthly account fee: No monthly fees for one year (on some accounts). Monthly fee of $11.95 after the first year on Advantage Banking Account.
Bonus offer or perks: two free international transfers per month for a year, credit card cashback bonuses, free safe deposit box for two years and $50 credit when you open an eligible business bank account.
Credit card (yes/no): Yes.

• Unlimited transactions
• Up to $15,000 credit limit on a credit card
• Service available in up to 200 languages

• Monthly fee applies after the first year
• Limits on the amount of free international transfers you can send per month

Min. Age	N/A
Account Fee	$0
Overdraft Fee	$0

Best TD newcomers offer: TD New to Canada Banking Package

TD’s New to Canada Banking Package has all the key features you need to start your new life in Canada. It starts with a TD Unlimited Chequing Account, which supports unlimited transactions and no account fee for the first year.

You can access a $300 special cash offer when you set up specified transactions from your account while the freedom to send unlimited international transfers for up to 12 months is a big plus. Newcomers can also access a higher interest rate for six months on a TD savings account, plus get no annual fee for the first year on an eligible credit card.

TD New to Canada Banking Package

Unlimited
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

Eligibility: Permanent resident, international student or temporary resident (in Canada for five years or less).

Free transactions: Unlimited
E-transfer fee: $0
Monthly account fee: No monthly fees for one year.
Bonus offer or perks: One-year Amazon Prime membership, bonus interest on your savings account, $300 cash reward when you perform certain transactions, no annual fee on a TD Aeroplan Visa Platinum credit card, unlimited international transfers for up to 12 months.
Credit card (yes/no): Yes.

• $300 cash offer
• 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
• Conditions required to access $300 cash offer
• No interest on your account balance

Min. Age	N/A
Account Fee	$0
Overdraft Fee	$0

Best hybrid chequing and savings account offer: Neo Money Account

Although not tailored for newcomers, this hybrid chequing and savings account does the job. Not only will you earn money on the savings you have, you’ll also be able to spend and earn cashback – all from the same account.

Go to site Read review

Neo Money Account

N/A
Free Transactions

$0
e-Transfer Fee

$0
Monthly Account Fee

• Info
• Pros + Cons
• More Details

Eligibility:
Free transactions: $0
E-transfer fee: $0
Monthly account fee: $0
Bonus offer or perks: $5 bonus
Credit card (yes/no): Yes.

• Comes with free Neo Money Card for transactions
• $0 account fee
• $0 transactions
• No minimum balance

• No physical branches for in-person service

Min. Age	18
Account Fee	$0
Overdraft Fee

What is a bank account for a newcomer to Canada?

There are a few differences between a bank account for newcomers to Canada and a regular bank account.

This is because banks are always looking for ways to entice new customers, so they provide a range of discounts and special offers to encourage newcomers to sign up. 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

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 2023

To choose the best bank account for newcomers to 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 needing access to a large ATM network?

Once you know what you need in an account, start comparing newcomer bank offers. 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 the best bank accounts for newcomers to Canada below. Read the detailed reviews of each account for help deciding whether any of these options is right for you.

What should newcomers look for when choosing a bank in Canada?

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.
• Specialised advice for newcomers. Does the bank provide educational resources and personalised 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.

How to open a bank account as a newcomer in Canada

If you’re a newcomer to Canada and are one of the nearly one million new Canadians to come here in 2022 and you’re ready to open a bank account, here’s what you need to do:

1. Compare your options. Many banks and credit unions boast newcomer bank offers, so shop around to find out what’s available.
2. Apply online. When you’ve found an account that suits your needs, submit an online application form. You’ll need to provide your name, address and contact details plus details of your residency status.
3. 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.
4. 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 a newcomer in 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)
• Must have a Social Insurance Number (SIN card)⁽²⁾

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:

1. 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.
2. 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 act hybrid accounts with both chequing and savings functions.

Best chequing accounts

TIP: Key banking terms for newcomers to Canada

• What is Interac?

  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.

• What is an Interac e-transfer?

  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.

• What is a routing number?

  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.

• What is an account number?

  An account number is used to identify your bank account. In Canada, account numbers feature 7 to 12 digits.

• What is direct deposit?

  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.

• What is a bank draft?

  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.

• What is a cheque?

  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.

• What is a void cheque?

  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.

• What is a debit card?

  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.

• What are transactions?

  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

There’s 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 a newcomer in Canada, compare the following features:

• Chequing vs saving. 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 of the offer as you’ll usually have to perform a specific number of transactions before a cut-off date, such as setting up a direct debit when paying a bill and having your paycheque deposited into your account.
• 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

• 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 3-5 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 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, chequings accounts, savings accounts, investments and more.
• Are all the products suitable for your needs? Not all banks 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 five 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.

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 Tracker 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 to Canada and shop newcomer banking packages to find the financial products and services that you need.

Newcomer bank accounts FAQs

• What happens to my bank account after I've lived in Canada for more than a few years?

  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.

• Can I open a Canadian bank account if I'm not yet living in Canada?

  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.

• What if I'm an international student who needs to open a bank account in Canada?

  Many banks offer student bank accounts specifically designed for international students. These accounts often have no monthly fees, but transaction limits may apply.

• What's the best bank in Canada for new immigrants?

  Finder's editorial team chose National Bank as the best bank for newcomers to Canada. 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.

• What's the best credit card for newcomers in Canada?

  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.

• Will my credit history from my home country apply in Canada?

  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.

• Do I have to get a newcomer package when I arrive 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.

• Do Canadian banks have foreign-language services?

  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, HSBC and RBC.