Starting a new life as an immigrant in Canada can be exciting and overwhelming.
Whether you’re a new immigrant, an international student, or a foreign worker in Canada, securing a bank account should be your top priority after arrival.
When I first arrived in Canada under the Express Entry immigration program, I was overwhelmed by the country’s different types of financial institutions- the Big Six banks, credit unions, cassie populaires, and online-only or digital, or “neo” banks.
From setting up direct deposit to paying bills and transferring money from my country to Canada, I wanted to have a banking partner with:
- Low or no account fees,
- Competitive foreign exchange rates,
- High-interest rates on savings,
- Opportunities to establish credit history (i.e., getting a credit card)
- Access to online and mobile banking and ATMs, and
- Excellent customer support
After talking to a few friends, visiting different banks and credit unions, and scouring the web for opinions from Canadians and other immigrants living here for a few years, I’ve compiled this detailed guide to banking in Canada.
In this guide, I’ll-
- Explain to you the basics of the Canadian banking system
- Provide suggestions for the best banks for new immigrants in Canada, and
- Walk you through the process of opening a new bank account
Let’s get started…
Understanding the Canadian Banking System
As a new immigrant, it’s essential to understand the fundamentals of the Canadian Banking System so you can make the most out of your financial situation.
At the heart of the Canadian banking system is its robust regulatory framework primarily overseen by the Office of the Superintendent of Financial Institutions (OSFI). The OSFI ensures financial institutions adhere to strict guidelines and maintain adequate capital reserves to promote stability and protect consumers.
Other regulatory bodies, like the Financial Consumer Agency of Canada (FCAC) and the Canada Deposit Insurance Corporation (CDIC), contribute to the system’s soundness by enforcing consumer protection measures and providing deposit insurance.
The Big Six banks dominate the Canadian banking industry. These banks include-
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Bank of Nova Scotia (Scotiabank)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC)
- National Bank of Canada
When you arrive in Canada for the first time, you’ll most likely open a bank account at one of these institutions.
These banks provide chequing accounts, savings accounts, mortgages, personal loans, lines of credit, and credit cards. They also offer financial planning services, such as retirement planning, investment advice, and tax planning, to help customers achieve their long-term financial goals.
Credit unions and caisses populaires are also popular among Canadians. They are member-owned and operated financial institutions emphasizing community development and personalized service.
They are smaller but provide various banking products and services similar to the Big Six banks. Due to their not-for-profit status, they often offer competitive interest rates and lower fees.
Like in the US, digital, online-only, or neo banks are also proliferating in Canada. They operate without physical branches, leveraging technology to provide cost-effective and convenient banking solutions. While most of these banks are still owned by the Big Six, they typically offer lower fees, higher interest rates on savings accounts, and user-friendly online and mobile banking platforms.
They appeal to tech-savvy customers who prefer managing their finances digitally and are extremely popular among newcomers.
Best Banks for New Immigrants in Canada
We considered several factors and conducted in-depth research, including conversations with other immigrants and financial experts, and examined reviews and testimonials to compile this list of the best banks in Canada for newcomers.
We scored the banks with these six criteria-
- Specialized programs or packages for new immigrants, like fee waivers, simplified credit card approvals, and personalized financial advice
- Low or no account fees, competitive foreign exchange rates, and lower transaction fees
- High-interest rates on savings accounts
- Easier access to credit cards and loans with little or no credit history in Canada
- User-friendly online and mobile banking platforms
- Customer service, including multilingual support
Based on our methodology and thorough research, here are the best banks for new immigrants in Canada:
1. Royal Bank of Canada (RBC)
As one of the big six banks in Canada, RBC has a strong presence throughout the country and even abroad, making it an excellent bank for new immigrants.
With an RBC Advantage Banking Account, new immigrants can enjoy no-monthly-fee banking for a year, unlimited debit transactions in Canada, no RBC fee when using another bank’s ATM in Canada, free Interac e-Transfer transactions, and one free book of 50 cheques.
The account also offers a Value Program at no additional cost, which allows users to shop online and in-store with their enrolled account to earn Avion Rewards points on debit transactions.
Newcomers can also receive a $100 bonus by opening an RBC bank account and completing at least two of the following actions: arrange for their payroll or pension as a direct deposit, establish two pre-authorized monthly payments, or make two bill payments to a service provider.
I was particularly impressed by their credit card offer for newcomers. RBC offers a limited-time promotion of up to 6% cash back on a new RBC Cash Back Mastercard for the first three months. The card has no annual fee, no credit history requirement for RBC bank account clients, and a credit limit of up to $15,000.
The offer includes 4% bonus cash back for the first three months (up to a maximum spend of $1,250), providing up to 6% cash back on grocery store purchases and up to 5% on all other purchases for the first three months.
The RBC Newcomer Advantage program also includes two free international money transfers per month for a year to over 120 countries.
Key features-
- No monthly fee for 1 year (savings of $11.95/month)
- Unlimited transactions in Canada
- Unlimited e-transfers
- Free ATM withdrawals from RBC ATMs ($2.00/non-RBC ATM)
- $100 cash credit*
- 2 free international money transfers per month*
- Up to 6,000 RBC Rewards points with RBC Rewards+ Visa Card*
- Free safety deposit box for 2 years (savings of $60/year)
2. Canadian Imperial Bank of Commerce (CIBC)
CIBC is another top choice for new immigrants, with its extensive network across Canada and a range of services designed to cater to the needs of newcomers.
The CIBC Smart™ Account for Newcomers provides a solid foundation for everyday banking, offering no monthly fees for two years and up to $400 when you open your first account.
With this account, newcomers can enjoy unlimited transactions, free unlimited Interac e-Transfer® transactions, and a daily balance requirement of $4,000 to maintain no monthly fees after the first two years.
You can also receive up to $400 in bonus if you set up an ongoing direct deposit and make two pre-authorized debit or bill payments of $50 or more.
Key Features:
- No monthly fee for 2 years
- Up to $400 cash bonus
- Unlimited transactions
- Free unlimited Interac e-Transfer® transactions
- Referral program for newcomer friends
2. Toronto-Dominion Bank (TD)
TD’s New to Canada Banking Package offers newcomers a no-monthly-fee chequing account for the first six months, a credit card with no credit history required, and a savings account with a bonus interest rate.
TD also assists with sending money internationally at competitive exchange rates and has an extensive branch and ATM network across Canada.
3. Bank of Nova Scotia (Scotiabank)
Scotiabank’s StartRight® Program caters to new immigrants and offers a range of banking solutions, including a no-monthly-fee chequing account for the first year, a credit card with no credit history required, and a high-interest savings account.
They also provide newcomers with free financial advice, planning resources, and discounted international money transfers through their partnership with Western Union.
5. Tangerine Bank
Tangerine Bank, a subsidiary of Scotiabank, is a popular choice among newcomers who prefer a digital banking experience.
Tangerine offers no-fee daily chequing accounts, high-interest savings accounts, and a user-friendly mobile app for easy online banking.
While they don’t have a specific program for newcomers, their fee-free banking, competitive interest rates, and accessibility make them an attractive option for those who prefer online banking.
6. National Bank of Canada
National Bank’s Newcomers to Canada Package is another excellent option for those starting a new life in the country.
The package offers a no-monthly-fee chequing account for the first three years, a credit card with no credit history requirements, and a high-interest savings account. They also provide free international money transfers for the first six months, personalized financial advice, and access to their network of branches and ATMs.
National Bank’s commitment to supporting newcomers makes them a strong contender in the Canadian banking landscape.