Best Banks For Newcomers to Canada in 2024

When it comes to new bank offers, you have your choice between online banks and larger banks. The top 5 banks also have some great offers. Let’s take a look at some of the best bank accounts for newcomers, as well as some things you should know about finances in Canada. 

Top 5 Banks for New Immigrants

In Canada, there are 5 top banks. Each of these banks is considered to be one of the largest banks in Canada and one of the best banks for newcomers. While these banks do charge daily fees for their accounts, they also hold special offers for new customers as well as newcomers to Canada. 

RBC

If you’re a newcomer to Canada, there are quite a few different offers that you can take advantage of. With the RBC cashback MasterCard, you can get up to 12% cashback for the first 3 months with a limit of up to $15,000. You can also save with no banking fees for a whole year. You may also be eligible for other RBC credit cards. 

With RBC, international students can take advantage of the RBC student accounts to save on fees and interest. Permanent residents and foreign workers are able to take advantage of the RBC Newcomer Advantage as one of the Royal Bank of Canada banking packages, which includes the offer listed above, as well as a safety deposit box for one year and no charge on international money transfers. You can also sign up for the RBC VIP banking account which has unlimited transactions in Canada. 

TD

TD is another bank that offers some great options for newcomers to Canada. There are no monthly account fees, no ATM fees, rebates on global transfers for 12 months, and a credit card with a limit of up to $15,000. 

When you open a TD unlimited chequing account, you pay no monthly fees for a year, and you can get up to $400 cashback. With a TD ePremium savings account, you can earn $200 when you deposit $10,000 in the first 30 days. You can also earn $200 for doing the same thing with a TD everyday savings account. 

The credit cards for newcomers in Canada include:

• TD Cashback Visa Card
• TD Rewards Visa Card
• TD Aeroplan Visa Platinum Credit Card

Plus, when you open a chequing account savings account and apply for eligible credit cards, you can get a $100 Amazon gift card. If you fund a new, eligible TD Direct Investing account, you can get as much as $100 cash and 10 rebated trades. 

CIBC

With CIBC, the Canadian Imperial Bank of Commerce, you can open a new chequing account online in just a few minutes. As a newcomer to Canada, you can open the CIBC Smart Account for Newcomers. When you get the newcomer banking bundle, you pay no monthly fees for 24 months. You can also earn up to $600 when you open a chequing account as well as a savings account within 30 days of each other. 

With CIBC, you can also apply for credit cards as a permanent resident or as a foreign worker. As a bonus, once you open a CIBC Smart Account and set up a Disney Plus account with your Visa Debit, you’ll get your monthly fee rebated for 6 months. There are different banking offers for international students, which include no-fee student banking and a no-fee cashback credit card. 

Scotiabank

With Scotiabank, you can earn up to $2000 in the first year with the StartRight Program for newcomers. You can earn up to $600 for the preferred rate personal account and an eligible investment plan. You also don’t pay any monthly fees on the preferred package account for the first year. There are no fees for international money transfers; you can get 10 free trades with a Scotia iTRADE account, and you can earn up to $1,100 in value with the Scotia Passport Visa Infinite Credit Card. 

If you have a permanent resident card or are a foreign worker, this is a great way for you to open a Canadian account. Scotiabank can also help you get your first mortgage in Canada even with no Canadian credit rating. 

BMO

BMO offers a variety of services to those who are new to Canada. You can open a performance plan chequing account with the following:

• No monthly fees
• Unlimited transactions
• Free e-transfers
• Free global transfers
• No fee daily banking for family members

You can also get a no-annual-fee credit card where no credit history is required, as well as savings amplifier accounts. They even offer mortgages with a 130-day mortgage rate guarantee. If you’re looking to invest in GICs, then you can even get a bonus interest rate. 

Another great thing about BMO is that they offer business banking for newcomers. Plus, you can even do a pre-arrival new bank account application. You can open your account in minutes and even send up to $75,000 CAD before you even come to Canada. 

Other Bank Offers

If you don’t want to go with one of the top 5 banks, there are also a bunch of alternative banks that have offers for newcomers. Let’s take a look and compare bank accounts.

National Bank of Canada

When you open a bank account with the National Bank of Canada, you can have no fixed monthly fees for up to 3 years. You can open your account online, and the offer is valid up to 90 days before you arrive in Canada and within 5 years of arriving. 

Along with the bank account, you can also get a National Bank of Canada MasterCard with no credit history. International transfers cost $5.95 each, your first book of cheques is free, and there will be no fees on paper bank statements for the first year. 

Simplii Financial

With Simplii Financial, you can apply for a newcomer account with Simplii Financial within 12 months of your arrival. Once you fill out the application, you will hear from someone within 2 business days to confirm your account and transfer details. From there, you can transfer from $1,000 to $50,000 from an account that’s in your name. 

With Simplii, you have no monthly fees with your chequing accounts. You can also send money overseas with no transfer fees. You can also get a Simplii Financial Cash Back Visa with a credit limit of up to $10,000 and no credit card annual fees. You don’t even need a Canadian credit history to get approved. 

Meridian Credit Union

Meridian Credit Union is one of the credit unionz that offers a full range of banking services to help you get your Canadian finances started. The first perk of opening an account with Meridian is no bank fees for the first 3 years. You can also get a Meridian Visa Card with no fees for the first 36 months. 

Meridian Credit Union also offers great interest rates, free wire transfers and a $500 rebate on a new or transferred mortgage to Meridian. You can also get free cheques and a free safety deposit box for the first 36 months. 

Best Bank in Canada for International Students

While we have reviewed some of the best bank account offers for foreign workers and permanent residents, we haven’t discussed bank accounts for international students. Here’s a look at a few. 

RBC

Just like their other offers, RBC has offers specific to international students. Right now, if you open a no-monthly fee RBC banking account, you can get a $100 cash bonus. You can also get up to 12% cashback with the RBC Cash Back Mastercard.

In order to qualify for this offer, you must be a full-time student who’s at least 13, currently live in Canada and open an RBC student account. Included are no monthly fees, $0 international money transfers, unlimited debit transactions and free interac e-transfers. You can also get a credit card limit of up to $2,000, and you don’t need a Canadian credit history. 

TD

With TD, if you sign up for the International Student Banking Package before October 31, 2024, you could get up to $850 in value. This includes:

• $125 for opening a TD Student Chequing Account
• $60 in value for opening a TD Cash Back Visa Card
• No monthly fees on a TD Everday Savings Account
• $50 Amazon gift card for opening the 3 products above
• Up to $200 in value when opening a TD Direct Investing Account
• No fees on monthly overdraft protection
• Fees are rebated for up to 12 months of TD Global Transfers

Scotiabank

Scotiabank offers the StartRight account and the Student Banking Bundle to international students. This includes:

• No monthly account fees
• Scene rewards on everyday banking purchases
• Scotia Smart Money budgeting tool
• 4,000 + ABM and branch locations
• Personalized advice

This is just with the Scotia chequing account. You can also open a savings account and get the Scotiabank Scene+ Visa Card. Even without a Canadian credit history, you can get up to a $5,000 credit limit. Plus, when you get all 3, you can earn up to a $715 value.

BMO

With BMO, you can get a Student Chequing Account as well as a Student GIC. These accounts are sometimes needed in order to get a study permit, which many banks offer. With BMO, you can sign up and transfer funds to a Student GIC from your home country before you move to Canada. Same with the chequing account. 

If you’re already in Canada, then you can sign up for the performance chequing account. With this account, there are no monthly fees, and you can send free interac e-transfers. You could also qualify for a student credit card, which has 5% cash back and no annual fees. Your choice is between the Student BMO Cash Back Mastercard and the Student BMO Airmiles Card. If you’re a medical or dental student, then BMO has different student offers for you. 

CIBC

CIBC offers the best student life bundle. You can apply directly online for either the CIBC International Student GIC program if you’re applying for an SDS Permit, or if you’re applying for a non-SDS permit, you can open and fund an account before you arrive with CIBC Smart Arrival. 

Once you apply, you can open a CIBC Smart Start account. With this account, you can get $100 and $50 for each student you refer. This account includes:

• No monthly fees until you turn 25
• Unlimited free transactions
• Free interac e-transfers
• No minimum balance requirements

As an international student, you can also get the CIBC Visa Dividend Visa Card for Students. This card has:

• A limit up to $2,000
• No annual fees
• A purchase interest of 20.99%
• A cash interest rate of 22.99%
• 2% cash back on eligible groceries
• 1% cash back on gas, recurring payments, transportation and EV charging
• Up to 10% cash back for the first 4 statements on purchases up to $1,000

If you sign up for Disney + and you uses your CIBC Visa debit card to pay for it, then you can also get up to 6 months rebated. 

Simplii Financial

Simplii Financial offers a GIC program account to help students met their Study Direct Stream study permit requirements. You don’t even have to be in Canada to open it, you can do it all online. Once your GIC is open, you can then send up to $50,000.

When the funds have been sent over, you should then set up a deposit account as well. 70% of the funds will be invested into the GIC and the rest will be available in your day to day account. 

National Bank of Canada

The National Bank of Canada has different offers for students and international students based on the field of study they’re entering into. Without selecting your field of study, though, you can still get up to $300 when you choose to bank here. 

You start by opening a Connected Chequing Account. This account allows you to deposit funds and make daily transactions without any monthly fees. If you’re a newcomer to Canada, you get this account for 3 years with no fees. 

Besides bank accounts, the National Bank also offers credit cards and lines of credit. Once you’re the age of majority, you can apply for a National Bank Mastercard or a line of credit to help with unexpected expenses. Just like the other banks, they also offer GICs for international students. 

Alternative Bank Accounts

Instead of going with a traditional bank account that offers traditional bank offers, there are alternative options for international students. These options include many online banks with no-fee accounts that offer mobile and online banking. These banks often have just one account instead of chequing and savings accounts. They do, however, offer high-interest savings accounts. 

How A Newcomer Can Open A Bank Account in Canada

In order to open a bank account in Canada, you’re going to have to provide some documentation; you also have to be at least 18 years old. The bank will also need to confirm your identity with government-issued documents. You’ll need your passport, Canadian driver's licence, permanent residency card or work permit, and any other pertinent documents. Once those have been approved, then your account can be opened. 

Best Overall Bank Account for Newcomers

When it comes to choosing a bank account, the best overall bank account really just depends on what you’re looking for in the right bank account. Each account offers different financial perks. That said, those Canada newcomer bank accounts that offer promotions expire after 1 to 3 years, depending on the financial institution and the offer. 

When looking for an account that has no fees, your best bet may be to go with an alternative account that has no fees, high-reward credit cards, and GICs. Since many students are looking to transfer to Canada under the SDS permit, then a GIC account is required. They often have higher limits that are required and can offer all of this to be done online before you even enter the country. 

SDS Study Permits

Student Direct Study Permits is one of the ways to get a study permit in Canada. It’s important to keep in mind, though, that a study permit is not a visa. You may also need to apply for a visitor visa, which will be issued with your study permit if you’re approved. 

SDS permits are often processed faster than other study permits, usually in 20 days. In order to apply for an SDS permit, you need:

• To be a legal resident of an eligible country
• Have a provincial or territorial attestation letter
• An acceptance letter from a post-secondary institution
• Live outside of Canada when you apply
• Proof that the first year of tuition is paid
• Have a GIC for the required amount
• Have a medical certificate
• Have a police certificate
• Most recent school transcripts
• Minimum score met for one of the required language tests

Types of Bank Accounts in Canada

When it comes to account opening in Canada, there are many different types to choose from. Here’s how they work. 

Chequing Account

A chequing account is also considered an everyday account. It is used to make everyday transactions, set up pre-authorized transactions, and set up recurring direct deposits. Many people also use this account to make online bill payments and transfer money online.

When you use a chequing account, your funds are easily accessible with a debit card and book of cheques to make transactions and pay bills. That said, these types of accounts aren’t ideal for saving money since no interest is earned. This type of account is recommended for daily spending only. Depending on which bank you choose to bank with, you may have to pay a monthly fee. 

Savings Account

Savings accounts are not meant for daily spending. These are meant to store your money for a long period of time and you earn interest on these funds. Plus, you can access these funds without any penalties or tax implications. 

If your funds are in an account with a registered financial institution, then your funds are protected by the Canada Deposit Insurance Corporation. The CDIC provides insurance to depositors who put their funds in registered Canadian financial institutions. Deposits of up to $100,000 are protected against most fraud and loss. 

High-Interest Savings Account

High-Interest Savings Accounts are used similarly to traditional savings accounts; they’re used to store funds you don’t need to use immediately while earning interest. That said, high-interest savings accounts earn interest differently than traditional savings accounts. 

Depending on which high-interest savings account you choose will determine what your interest rate is. This rate will vary based on inflation and the Bank of Canada interest rates. Just like with traditional savings accounts, you can access these funds whenever you like, but making too many transactions out of these accounts can incur charges. 

Registered Accounts

Registered accounts are different from the non-registered accounts we’ve discussed. These accounts are tax-deferred or tax-sheltered by the government. Anything you earn in these accounts is tax-deferred until it’s withdrawn. Here are a few of the different registered accounts in Canada and how they work. 

First Home Savings Account

First Home Savings Accounts (FHSAs) are accounts that allow you to save or build your first home. That said, there are limits on how much you can save. You can put up to $8,000 per year in this account, tax-deferred with a lifetime limit of $40,000. As long as the funds are used to purchase a home in the allotted time period, then you won’t have to pay taxes when you withdraw either. 

Tax-Free Savings Account

Tax-Free Savings Accounts (TFSAs) are accounts that allow you to invest up to a certain amount per year while earning tax-free interest income. Most of the time, you aren’t even taxed when you withdraw the funds. Unlike other registered accounts, this account isn’t locked. 

There are annual limits to how much you can deposit into a TFSA without being penalized. If you don’t use this limit, it can be forwarded to the next year. The annual limit for 2024 is $7,000. If you turned 18 in 2009, then your lifetime limit is $95,000. 

Registered Retirement Savings Account

Registered Retirement Savings Accounts (RRSPs) are registered accounts that are used to save money for retirement. These accounts are tax-deferred, meaning that you don’t have to pay any tax on funds you deposit until you withdraw or retire. 

If you withdraw funds from an RRSP from your account before you retire, then you will have to pay withholding taxes. The idea behind this account is to use an RRSP as your taxable income when you retire. This is because your taxable income will be lower when you retire so your annual taxes will be lower. 

Just like with TFSAs, there are annual limits you can contribute before you’re subject to a penalty. Currently, the annual limit for 2024 is 18% of your annual income, up to an amount of $31,560.

Registered Retirement Income Account

Registered Retirement Income Accounts, known as RRIFs, are accounts that you transfer your RRSP to when you’re ready to retire. Once your funds are in an RRIF, you are then able to set up withdrawals. Keep in mind that you don’t have to have just one RRIF either, you can have more than one.

Registered Education Savings Plan

Registered Education Savings Plans, also referred to as RESPs, are registered accounts that people can contribute on behalf of another person. These accounts are meant to save money for post-secondary education. 

Since 2007, there haven’t been any annual limits on what you can contribute to RESPs. That said, there is a lifetime limit of $50,000 on RESPs. While these accounts can also be set up for anyone, they’re usually set up for family members. 

Fees and Other Things To Look For When Opening An Account

When you open an account, you need to look at different fees and requirements. Here are some of the things that you want to look for. 

Accounts Fees

Account fees are fees that the bank chooses to charge based on the type of account that you have. These fees include monthly fees, ATM charges, money transfer fees, transaction fees, overdraft protection fees and more. 

Interest Rates

Interest rates are the rates that you pay or earn based on which financial products you have. You’ll earn interest on funds in savings accounts and pay interest on financial products like credit cards, lines of credit and personal loans. 

Minimum Balance Requirements

Depending on which financial institution you choose to bank with and what financial product you have, there may be minimum account balance requirements. For investment accounts, there is a minimum investment requirement, and for bank accounts, many accounts have minimum balance requirements that will void your account fees. 

Multicurrency Accounts

Multicurrency accounts are accounts that allow you to hold and send more than one currency. These types of accounts are good for those from other countries who are looking to send funds back home. If this is what you’re looking for, it’s best to check with your financial institution. 

ATM Accessibility

Depending on where your bank will determine your accessibility to ATMs. Each financial institution has its own ATMs and ATM fees. Many banks won’t charge ATM fees for their own ATMS, just outside ATMs that you choose to use. You should keep in mind where the ATMs are and which ones will charge you extra fees. 

Final Thoughts

As a newcomer to Canada, I have plenty of different options when it comes to opening a bank account. Many financial institutions offer special offers to foreign workers, permanent residents, and international students. These offers also include different perks for bank accounts, credit cards and even investment accounts. 

As an alternative to traditional accounts that offer special perks, there are alternative accounts that are also referred to as online accounts. These accounts offer no fees to anyone and often have high savings interest rates and good credit card rewards programs. You can sign up for these accounts online while having access to mobile and online banking 24/7. However, you can still reach a representative if you want to speak to someone. 

With all that in mind, you can’t really go wrong with the account that you open. Each account offers its own perks and incentives and is available to anyone. They all provide account perks to those from other countries while helping you set up your financial future in Canada.