How to Choose Your First Canadian Bank Account

Understanding Canadian Banking

Canada has a robust banking system with several major banks and many smaller institutions. As a newcomer, you'll want to choose a bank that offers newcomer-friendly services.

Major Canadian Banks

Canada's "Big Five" banks are:

• Royal Bank of Canada (RBC) - Largest bank in Canada
• Toronto-Dominion Bank (TD) - Known for customer service
• Bank of Nova Scotia (Scotiabank) - Strong international presence
• Bank of Montreal (BMO) - Oldest bank in Canada
• Canadian Imperial Bank of Commerce (CIBC) - Good for newcomers

Newcomer Banking Packages

Most major banks offer special packages for newcomers that include:

• No monthly fees for the first year
• Free international money transfers
• Credit card with no credit history required
• Free safety deposit box
• Financial advice and planning services

What to Look For

When comparing banks, consider:

• Branch locations - Convenience for in-person banking
• ATM network - Avoid fees when withdrawing cash
• Online banking - Mobile app quality and features
• Customer service - Availability of multilingual support
• Fees - Monthly fees, transaction fees, etc.

Required Documents

To open a bank account, you'll typically need:

• Valid passport
• Permanent Resident Card or Confirmation of Permanent Residence (COPR)
• Social Insurance Number (SIN)
• Proof of address (utility bill, lease agreement, etc.)

If You Don't Have a SIN Yet

You can still open a bank account without a SIN, but you'll need to provide it within 30 days of receiving it.

Account Types

Chequing Account

This is your everyday account for:

• Depositing your salary
• Paying bills
• Making purchases with a debit card
• Writing cheques

Savings Account

For saving money and earning interest. Consider:

• High-interest savings accounts
• Tax-Free Savings Accounts (TFSA)
• Registered Retirement Savings Plans (RRSP)

Building Credit

Building a good credit history is essential in Canada. Here's how to get started:

Secured Credit Cards

Many banks offer secured credit cards for newcomers. You provide a deposit, and that becomes your credit limit.

Credit Building Tips

• Pay your bills on time
• Keep your credit utilization low
• Don't apply for too many credit products at once
• Monitor your credit report regularly

Online and Mobile Banking

Most Canadian banks offer excellent online and mobile banking services:

• Check account balances
• Transfer money between accounts
• Pay bills online
• Deposit cheques using your phone camera
• Send money to friends and family

Tips for Newcomers

• Visit multiple banks to compare offers
• Ask about newcomer-specific services
• Consider opening accounts at more than one bank
• Set up direct deposit for your salary
• Use online banking to save time and money

Remember, you can always change banks later if you're not satisfied with your choice.