As a newcomer to Canada, finding the right bank and opening your first bank account is an important step in getting acclimated to Canada. Many well-established financial institutions offer special packages for newcomers, providing essential banking products and services for your everyday needs. This guide will help you navigate these options and get the best loan deal available in 2024.
How to open a bank account in Canada as a beginner
Steps for opening a bank account as a beginner
Beginners can apply for a bank account over the phone, in person at a branch, or through online banking. However, an appointment may be required. For applicants from outside Canada, banks may ask you to fill out paperwork upon arrival.
Required Documents:
- Personal Information: Email, Canadian phone number, home address.
- Proof of Identification: Canadian Driver’s License or valid passport.
- Proof of Identification in Canada: Permanent Residence Card, Immigrant Visa, Confirmation of Landing (IMM Form No. 1000), Confirmation of Permanent Residence (IMM Form No. 5292/5688) or Temporary Work Permit (IMM Form No. .1442/1102).
Comparison of Best Banks for Newcomers in Canada
| Bank | Introductory Offer Value ($) | Product | How to Bank Offered |
|---|---|---|---|
| BMO | $2,100+ | Performance Plan Current account, Savings Amplifier account, BMO Cashback Mastercard | Online, ATM, Phone, Branch |
| CIBC | $400 Costco Shop Card | CIBC Smart Account Newcomers: CIBC Smart Account, Cashback, Travel Credit Card Options | Online, ATM, Phone, Branch |
| National Bank of Canada | Up to $670 | The Connected Current account, Mastercard Credit Card Options | Online, ATM, Phone, Branch |
| RBC | $140+ | RBC Advantage Banking, RBC High Interest eSavings Account, Mastercard and Visa Credit Card Options | Online, ATM, Phone, Branch |
| Scotiabank | Up to $1,800 | Preferred Package Checking Account, Ultimate Package Checking Account, MomentumPLUS Savings Account | Online, ATM, Phone, Branch |
| TD Bank | Up to $1,785 | TD Unlimited Checking Account, TD ePremium Savings Account, TD Every Day Savings Account, TD Visa | Online, ATM, Phone, Branch |
| Simplii Financial | Up to $1,300 | Simplii Financial Free Checking Account, Simplii Financial Cash Back Visa Card | Online, ATM, Phone |
Important Criteria to Consider
- Offer Price: Special offers for newcomers include discounts, gifts, bonus rewards, or cashback. Read the details to make sure the offer offers good value overall.
- Everyday Banking: Make sure your banking package includes the services you need, like a checking account, savings account, and a personal credit card.
- Fees and Limits: Be aware of fees and transaction limits after your introductory offer expires.
- Banking Options: Find branch and ATM networks, online banking platforms, and mobile apps.
- Deposit Insurance: Make sure the bank offers federal or state deposit insurance.
Understanding Canadian Financial Institutions
Types of Financial Institutions
- Big Six Banks: These include RBC, TD, Scotiabank, BMO, CIBC and NBC and are known for their extensive branch networks and comprehensive services. Product offerings include:
- Credit Unions: Owned by their customers, they offer competitive interest rates and personalized service.
- Online Banks: Low fees and high interest rates without physical branches, like Tangerine Bank and NEO Bank.
Types of Banking Products
- Current Account: For everyday transactions, paying bills, and depositing payroll.
- Savings Account: For investing funds with limited withdrawals and modest interest.
- High Yield Savings Account (HISA): Offers higher interest rates with no fees or balance requirements.
- Hybrid Account: Combines the features of a current account and a savings account, usually offered by online banks.
- Joint Accounts and Bundles: Shared accounts and packages combining multiple banking products for families.
Building Credit as a Newcomer
- Credit Cards: Essential for building credit history by paying bills and making purchases.
- Lines of Credit: Revolving debt for planned and unplanned expenses with fixed or variable interest rates.
- Personal Loans: Installment debt for purposes like home renovations or debt consolidation.
Best Banks for Newcomers in Canada
| Bank | Best Feature | Intro Offer Value ($) | Products Offered | Ways to Bank |
|---|---|---|---|---|
| BMO | Best cash-back offer | Over $2,100 | Performance Plan Chequing Account, Savings Amplifier Account, BMO CashBack Mastercard | Online, ATM, phone, and branch |
| CIBC | Best banking perks & credit cards | $400 Costco Shop Card | CIBC Smart Account for Newcomers: CIBC Smart Account, cash-back & travel credit card options | Online, ATM, phone, and branch |
| National Bank | Best chequing account rebates | Up to $670 | The Connected Chequing Account, Mastercard credit card options | Online, ATM, phone, and branch |
| RBC | Best banking perks | Over $140 | RBC Advantage Banking, RBC High Interest eSavings account, Mastercard & Visa credit card options | Online, ATM, phone, and branch |
| Scotiabank | Best overall newcomer bank | Up to $1,800 | Preferred Package chequing account, Ultimate Package chequing account, MomentumPLUS Savings Account | Online, ATM, phone, and branch |
| TD Bank | Best banking package | Up to $1,785 | TD Unlimited Chequing Account, TD ePremium Savings Account, TD Every Day Savings Account, TD Visa | Online, ATM, phone, and branch |
| Simplii Financial | Best online banking offer | Up to $1,300 | Simplii Financial No Fee Chequing Account, Simplii Financial Cash Back Visa Card | Online, ATM, and phone |
Key Takeaways
- Choose the Right Bank: Compare newcomer offers to find the best value and services for your needs.
- Understanding Bank Products: Understand the different account types and their benefits.
- Build Credit: Use credit cards, lines of credit, and loans to build a strong credit history.
Final Thoughts
Getting the best loan deal as a new immigrant to Canada requires careful planning and research. Choosing the right bank and banking products can help you manage your finances effectively and build a strong financial foundation in your new home.