How to open an account in a Canadian bank
Opening a bank account in Canada is one of the first things you should plan to do right after moving to the country.
According to a World Economic Forum study, Canada is among the top three countries with the safest banks globally. Canada has only experienced two minor regional bank failures in nearly 100 years.
The Canadian banking system is well-developed and extensive. The country has almost 90 banks, about 6,000 bank branches, and over 18,600 bank-owned ATMs (the highest per capita in the world).
When moving to Canada, don't delay opening an account — you'll need it to get debit and credit cards, make daily purchases, and build your credit history.
What to Know Before Opening an Account
Before opening an account, consider the following:
- How you'll use the account — for savings or daily transactions (chequing account). Savings accounts are for accumulating funds with a small interest rate, while chequing accounts are for everyday purchases;
- Account maintenance fees. Major banks often waive fees for immigrants for the first 6-24 months. Students and seniors may be eligible for free accounts;
- Transaction limits. Unlimited debit cards have higher maintenance fees. Cards with limits have lower fees, but exceeding the transaction limit incurs a penalty (about 1 CAD per transaction);
- Interest rates for savings accounts. Usually around 1% for CAD accounts and less than 0.5% for USD accounts;
- Whether deposits are insured.
Requirements for Opening an Account
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You can open a bank account in Canada even without a job or if you've recently immigrated. Typically, you need to visit the bank in person and provide:
- Social Insurance Number (SIN);
- Two forms of ID from this list: Canadian driver's license, SIN, permanent resident card, or Confirmation of Permanent Residence. You can also provide one item from this list plus an employee ID card with your photo, a debit or credit card with your name and signature, or your passport from your home country.
The account is usually opened within minutes. You can immediately receive a temporary or permanent debit card and apply for a credit card (which will arrive by mail in a few days). You'll receive a copy of the account agreement within 7 business days of opening the account.
You can close the account for free within 14 days of opening by calling the bank. In this case, the bank will refund any account opening fees.
Choosing a Bank
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The largest banks in Canada by total assets (the "Big Six") are Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Bank of Montreal, Canadian Imperial Bank of Commerce, and National Bank of Canada.
They all offer new immigrants who arrived in Canada within the last 3-5 years free accounts for 12-24 months, credit cards and loans without credit history, and other special conditions.
Royal Bank of Canada (RBC):
- Free banking for one year;
- Account fees after the promotional period: 11.95-30 CAD;
- Two free international money transfers per month for the first year;
- Auto loan, credit card, and mortgage without credit history.
Toronto-Dominion Bank (TD):
- Free banking for 12 months;
- Account fees after the promotional period: 16.95-31.95 CAD;
- Unlimited transactions on chequing accounts;
- Free Interac e-Transfers;
- Credit card and mortgage without credit history.
Scotiabank:
- Scotia StartRight™ account with no monthly fee for a year;
- Account fees after the promotional period: 3.95-25.95 CAD;
- Unlimited electronic transfers and transactions;
- Up to 2,200 CAD in benefits, including cash bonuses;
- Credit card without credit history.
Bank of Montreal (BMO):
- 12 months of free banking;
- Account fees after the promotional period: 10.95-31.95 CAD;
- Unlimited Interac e-Transfers;
- Free safety deposit box for a year;
- Credit card and mortgage without credit history.
Canadian Imperial Bank of Commerce (CIBC):
- Free banking for the first two years;
- Account fees after the promotional period: 3.90-29.95 CAD;
- Credit card, mortgage, and auto loan without credit history;
- Unlimited Interac e-Transfers;
- Up to 55 CAD cash back on safety deposit box rental.
All these banks have branches in most Canadian cities. Canada also has branches of international banks like Citibank, J.P. Morgan Bank, Société Générale, UBS, and others.
Online Banking in Canada
In addition to traditional banks, Canada has online banks offering the same services: chequing accounts, savings, loans, and credit cards. Popular Canadian online banks include Tangerine (part of Scotiabank), Motive Financial, and Motusbank.
You can't open a Canadian online bank account before moving to the country. For example, to open a Tangerine account, you'll need a SIN and a cheque from another bank to scan and upload to your mobile app account. When creating an account, you'll also need to provide your job title, workplace, email, Canadian address, and Canadian phone number. Online bank staff verify this information, so the account becomes active only after a few days. The card will be mailed to your provided address. You can use it at any Scotiabank ATM.
