Best Banks for Newcomers in Canada for 2024

As a newcomer to Canada, finding the right bank and setting up your first bank account is an essential step to getting settled.

There are many established financial institutions that have special offers on newcomer bank accounts. The best banks also provide a vast branch and ATM network, options for mobile and online banking, and a choice of banking solutions with low or no fees.  

To help with your search, we have selected the best banks for newcomers to Canada. Use this list to find essential banking products and services to meet your day-to-day needs. 

Best banks for newcomers in Canada

What should newcomers know about banks in Canada?

Canada has numerous Schedule I and II banks that are governed under the Bank Act and regulated by the federal government.

Types of Financial Institutions

Canadian financial institutions serve a variety of customers with different needs and banking preferences. Each bank serves its account holders differently — whether it’s through online banking or in-branch services, or both. The three main types of financial institutions are:

Big Six banks

Over the years, these major banks have established themselves as the top six leading financial institutions in the country. The Big Six 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 (NBC).

These big banks have vast networks of branches and ATMs across most provinces. Their national presence, product offerings and online banking capabilities have made them a popular choice for individuals and businesses alike. 

Credit unions

Credit unions or caisses populaires in Canada often provide the same financial products and services as banks. However, unlike banks, credit unions are owned and managed by their customers, often called members. Credit unions may be governed at either the provincial or federal level. Some of the top credit unions include: 

• Access Credit Union.
• Affinity Credit Union.
• Conexus Credit Union.

While credit unions often have substantial surcharge-free ATM networks, their branch networks may be confined to the founding city or part of the province. Additionally, many of them provide mobile and online banking services. Credit unions also stand out when it comes to interest rate offerings on savings, offering some of the highest rates.

Online banks

Online banks are financial institutions that do not have branch offices. They may offer phone banking and ATM services, but mainly utilize a digital banking model to serve their customers. 

Virtual banks can be an online division of credit unions or traditional banks, such as Tangerine Bank, which is a subsidiary of Scotiabank. However, some of them are independent financial institutions, such as NEO bank.

Although online-only banks typically have a modest catalog of products and services, these often come with low fees and offer higher interest rates than traditional banks.

Types of banking products

As a newcomer, you may need a bank to fulfill your daily financial needs, save for the future, and build your credit history in the new country. Knowing how Canadian banking products work can help find the right solutions for your banking, financing and investment needs. 

Canadian bank accounts

Newcomers usually get fee rebates as part of the banks’ welcome offers for new customers. When the offer ends, standard transaction limits and fees kick in. Here’s what to expect from some of the common bank accounts:

Chequing accounts: You can use a chequing account to pay bills, send and receive e-transfers, make debit card purchases, or set up auto-deposit for your salary.

These everyday banking accounts may limit the number of transactions you can complete per month, or charge a fee to have unlimited transactions. Some financial institutions offer no-fee chequing accounts, but some need you to maintain a minimum account balance to waive monthly fees. 

Savings accounts: If you’re trying to set aside some money for an upcoming expense or planned investment, a savings account may be a great option for you. These accounts offer limited withdrawals and earn a modest interest rate. In most cases, you don’t have to worry about paying monthly fees or maintaining a minimum balance. 

High-interest savings accounts: As the name suggests, the high-interest savings account (HISA) yields a more substantial rate of interest than a standard savings account. Banks occasionally offer bonus interest rate promotions to new HISA customers. HISAs don’t typically have account fees, minimum balance requirements or withdrawal limitations. You can use a high-interest savings account to hold emergency funds or short-term savings for big purchases. 

Hybrid accounts: These accounts combine chequing and savings features in one low to no-fee online bank account. Hybrid accounts usually offer higher interest rates than traditional savings accounts. These accounts are generally offered by online-only banks. That’s why new customers need to have an active account with another bank to open and fund their new hybrid account.

Joint accounts, bundles and packages: A joint account is shared by two or more people to conduct chequing or savings activities depending on the type of account. 

Bundles are banking packages that combine chequing, savings and investment accounts into one offer. Banks may also have bundles that tie multiple bank accounts for family members into one family bundle. These plans or bundles usually include rebates and promotions, providing great value through saving on account fees.  

Ways to build credit

In addition to deposit accounts, newcomer bank bundles may include credit cards, lines of credit or loan options that can help you build a credit history in Canada. 

Credit cards: A credit card is a type of revolving credit. Credit cards can be used to pay bills and make purchases within the credit limit assigned to your card. Credit card debt must be paid off within a certain period of time, or it accrues interest.

Lines of credit: A line of credit is another type of revolving debt. There are various different lines of credit people use towards planned and unplanned personal expenses. Interest rates on lines of credit can be fixed or variable. 

Personal loans: Personal loans are a type of installment debt that allow you to borrow funds at a fixed or variable rate of interest. You may spend personal loan funds on anything you like, but home renovations and debt consolidation are common uses.

Nerdy Tip: Credit cards, lines of credit and loans are all types of debt, and debt can negatively impact your financial health if not managed responsibly. Whenever you’re borrowing money, make sure you have a plan to pay it off on time. This way you can ensure that the debt has a positive impact on your credit score — which may affect your ability to get approved for a lease, insurance or future loans.

Canadian investments

Newcomers can choose from several different investment options to help plan for the future. Make sure you have your Social Insurance Number (SIN) before you attempt to open an investment account. 

Guaranteed investment certificates: Guaranteed investment certificates (GICs), earn a set rate of interest that is paid at the end of your term, and you typically cannot lose your initial investment. You can choose from various types of GICs to invest in depending on the strategy and timeline of your goals. 

Other investment options: There are plenty of other investment options with earnings tied to the market performance. These include bonds, mutual funds, stocks and more. 

If you’re not a seasoned investor, these kinds of investments may seem difficult to understand. Your bank’s financial advisor or a registered investment professional can help you weigh your options and understand the various risks involved.

Registered plans: These government-registered plans use tax incentives to encourage Canadians to save for retirement and other milestones. These accounts can hold a variety of investment products, such as GICs and bonds. To apply, you will have to meet the age and deposit requirements. These accounts can be opened at most financial institutions and include:

• Registered retirement savings plans (RRSPs).
• Tax-free savings accounts (TFSAs).
• Registered education savings plans (RESPs).
• Registered retirement income funds (RRIFs).
• Registered disability savings plans (RDSPs).   

Newcomer bank offers vs standard bank packages

Banking packages for Newcomers include everyday bank accounts, credit card options and other banking features for a great value compared to regular bank plans. These packages may have lower overall costs and offer credit building benefits.

How to compare the best banks for newcomers in Canada

Our list of best banks for newcomers in Canada is a good starting point to weigh the best features offered by various banks. However, it’s important to compare which of these bank offers are ideal for your specific lifestyle needs. Some of the essential criteria to consider include:

Offer value: Special newcomer offers include rebates and gifts, bonus rewards or cashbacks. These offers are attractive, but often come with qualifying requirements. Make sure you review the fine print to see if the conditions make sense to you. Check if the offer provides enough overall value for you before you commit to the bank for the foreseeable future. Compare other aspects like transaction fees, banking network and other essential features.

Every banking needs: Make sure your banking package includes everything you’ll need to manage your finances. This could include chequing accounts for you and your family members, a high-interest savings account, a personal credit card and more. Also check if your package comes with any must-have features or types of transactions — such as money transfer services or e-transfers so you don’t have to pay for add-on services.

Fees and limits: Some newcomer bank offers are for mid- to premium-tier accounts. They include monthly fee rebates, higher transaction limits, and special perks like free money transfer services and safety deposit box rentals. When the offer ends, you will be faced with new monthly costs that increase your household budget. Make sure you’re aware of the bank’s standard cost or have a plan to switch bank accounts.

Ways to bank: If you prefer in-person banking services, compare the branch and ATM networks for your preferred financial institutions in your area. If you prefer to bank on the go, check if your bank has an online banking platform and mobile banking app with reliable customer support.

Deposit protection: Many major banks are Canada Deposit Insurance Corporation (CDIC) members. If a member bank were to fail, eligible customer deposits up to $100,000 are protected. Credit unions also extend provincial insurance on customer deposits. Make sure your bank has federal or provincial deposit coverage.

Other feature benefits: Newcomer plans include several other features that can benefit individuals and their families. Based on your needs or spending lifestyle, you could choose offers with complimentary banking services or those offering bonus rewards and perks on loyalty programs. 

For example, a banking package may come with a small safety deposit box at little to no fee for the duration of the offer. Other bank plans may have a rewards program which earns you points on daily debit transactions. These points can be redeemed towards bill payments, store purchases, trips and more.

How to open a newcomer bank account in Canada

Newcomers can often apply for a new bank account over the phone, in person at a branch or via online banking. But you may be required to book an appointment to get your account set up. For those applying from outside of Canada, banks may need you to complete your account opening formalities after you arrive in the country.

Typically the financial institutions will ask you to provide: 

• Your personal information: Email, Canadian phone number and home address.
• A proof of identity document: a Canadian driver’s licence or a valid passport.
• Proof of your status in Canada: Permanent resident card; Immigrant visa and record of landing (IMM Form #1000); Confirmation of permanent residence (IMM Form #5292/5688) or temporary work permit (IMM Form #1442/1102).

Alternatives to newcomer bank accounts

Many of the features common to newcomer bank accounts can be found in other kinds of bank accounts. These accounts include:

Tangerine No-Fee Daily Chequing Account

• Bonus Offer
  $250

  (1) Become a Client. (2) Open your Chequing Account. (3) Switch your payroll deposits to earn $250 by moving your paycheques to your Tangerine Chequing Account for 2 consecutive months.
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• Tangerine’s No-Fee Daily Chequing Account offers free access to 44,000 ABMs worldwide, overdraft protection, financial monitoring tools and a secure way to shop both online and in person.
• Tangerine is a subsidiary of Scotiabank and offers chequing and savings accounts, GICS, registered accounts, credit cards, mortgages, loans and investment products. Read our review of Tangerine for more information.

Product Details

• Switch your payroll deposits and you could get $250.
• No monthly fee.
• Interest rate: up to 0.1%.
• Free online daily banking, including debit purchases, bill payments, pre-authorized payments, Interac e-Transfers and ABM transactions that use Scotiabank’s ABM network.
• ABM withdrawals with other banks in Canada: $1.50.
• ABM withdrawals on other networks worldwide: $3.00.
• Free first cheque book (50 cheques). $50 for each additional cheque book.
• Tangerine Client Card with Visa Debit can be used anywhere Visa is accepted, and can be added to Apply Pay, Google Pay and Samsung Pay.
• Card is covered by Interac and Visa Debit Zero Liability protection, so you won’t have to pay for unauthorized purchases.
• Access to tools and alerts that help monitor spending activity.
• CDIC protection for all eligible deposits.

motusbank Chequing Account

• Bonus Offer
  N/A
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• motusbank isn’t the only financial institution offering a chequing account with no monthly fee and unlimited debit payments, but it ups the ante with a stylish vertical debit card, the ability to deposit cheques by taking a picture and a few other useful perks.
• motusbank is an online division of Meridian Credit Union and offers chequing and savings accounts, mortgages, registered plans, GICs, investing, and a home equity line of credit loan.

Product Details

• Earn interest at a 0.15% rate.
• $0 monthly fee.
• No minimum balance required.
• Free, unlimited Interac e-Transfers®.
• Unlimited debit purchases, bill payments and withdrawals, including transfers between accounts, Interac Direct Payment purchases, pre-authorized debit, ATM withdrawals and cheques.
• No-fee access to THE EXCHANGE Network of ATMs in Canada and the Allpoint Network in the U.S.
• Deposit Anywhere: deposit a cheque by taking a photo.
• First order of 25 cheques is free.
• Free, unlimited use of motusbank’s Price Drop feature, which hunts for cheaper prices when online shopping.
• Foreign debit transaction surcharge: $2.50.
• Paper statement fee per month: $2.
• ATM international transaction fee: $5.
• ATM US transaction fee (non-Allpoint Network): $3.
• Deposits protected by Canada Deposit Insurance Corporation, up to a maximum of $100,000.

EQ Bank Personal Account

• Bonus Offer
  N/A
• Monthly Fee
  $0
• Number of Transactions
  Dollar limits apply*

  Up to $20,000 outbound <i>Interac</i> e-Transfer® monthly maximum; Up to $250,000 EQ to EQ Transfers Daily Maximum; $25,000 per <i>Interac</i> e-Transfer® Inbound transaction.

Apply Now

Our Take

Why we like it

• EQ Bank’s Personal Account is the digital-first bank’s flexible hybrid chequing and savings account. It features a high interest rate, no monthly fees, and free and unlimited transfers.
• The bank also offers joint accounts, US dollar accounts, TFSAs, RRSPs, and GICs.

Product Details

• Customers who set up direct deposit on their EQ Bank account will also get a bonus interest on recurring pre-authorized debits.
• Here’s how to get the bonus interest: (a) Set up $500/month or more in either direct deposit for your pay or recurring pre-authorized debits. (b) Applies to your Personal Account, Joint Account and EQ Bank Card¹ balance. (c) Once set it up, they’ll be eligible for the increased rate of 3.75%* for 12 months! (d) Those who already set up the above automatically qualify for bonus interest!
• 3.75% interest rate*.
• No monthly fee.
• This hybrid account gives you the benefits of savings with the flexibility of chequing.
• Mobile Cheque Deposit is available through the EQ Bank mobile app.
• Zero monthly banking fees.
• No transaction or service fees. EQ Bank does not charge account fees, fees for sending or receiving Interac e-Transfers®, fees for bill payments, overdraft fees, or dormant account fees.
• No minimum balance, but a $200,000 maximum balance.
• Access your money immediately through the mobile app and online banking website, where you can deposit or transfer funds using Interac e-Transfers® or Electronic Funds Transfer (EFT) to linked accounts.
• Eligible for CDIC deposit insurance.
• As of December 2022, EQ Bank is available to Québec residents.
• *Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

The PC Money™ Account

• Bonus Offer
  150,000 bonus PC Optimum points.*

  Earn bonus PC Optimum points with a welcome offer when you open a new PC Money Account. Additionally, you must set up a payroll or pension direct deposit of at least $1,500 for three consecutive months. The first deposit must be made within 60 days of account opening. Offer ends Nov. 30, 2024.
• Monthly Fee
  $0
• Number of Transactions
  Unlimited

Our Take

• The PC Money Account with the optional savings feature makes it an attractive high-interest paying no-fee hybrid account. Aside from the chequing and savings account features, it has a unique rewards program.
• President’s Choice Financial is part of Loblaw Companies Limited with millions of account holders across Canada that save bank fees and earn rewards through the PC Optimum points system.

Product Details

• Only new PC Money™ Account cardholders can receive the bonus points.
• To qualify, you must deposit at least $1,500 per month via payroll or pension direct deposits for three consecutive months. Other deposits, such as Interac e-transfers, do not qualify.
• Standard points are awarded within 2-7 business days after each qualifying deposit, with bonus points awarded 4-6 weeks after requirements are met.
• Option to earn a high rate of interest with the savings feature.
• The savings feature is not available in Quebec. Residents can still open a PC Money Account and start earning points.
• No monthly fee.
• No minimum balance required.
• Free unlimited everyday transactions online and in-store, including electronic fund transfers, withdrawals at PC Financial bank machines, self-serve bill payments and purchases in Canadian dollars.
• Free Interac e-transfer services.
• The PC Money Account card, provided by Mastercard, is compatible with Apple Pay and Google Pay digital wallets and can be used anywhere Mastercard is accepted.
• PC Financial provides Mastercard Zero Liability Promise for unauthorized purchases.

Wealthsimple Card

• Annual Fee
  $0
• Interest Rates
  N/A
• Minimum Deposit
  $0

  No account minimum or minimum balance.
• Maximum Deposit
  Unlimited

  There is no balance limit but if you use a debit card to fund your spending account, you can only deposit a maximum of $3,500 per day and $35,000 per month.

Our Take

Why we like it

Beginner investors interested in learning more about building wealth will feel right at home with the Wealthsimple Card, a no-fee prepaid Mastercard that earns 1% cash back on purchases. Use the rewards to support your TFSA, invest in stocks, ETFs and crypto, or fund your linked spending (Cash) account, where you can send, spend and receive money instantly with the Wealthsimple Cash app.

Pros

• Use a Visa or Mastercard debit card to instantly deposit up to $3,500 per day (up to a maximum of $35,000 per month).
• Effortlessly build an investment portfolio by transforming cash back rewards into stocks, ETFs or cryptocurrency deposited directly into a trading account.

Cons

• There’s no brick-and-mortar location for Wealthsimple customers, so you need to be comfortable managing your money with an online-only company.
• $5,000 per day spending limit; ATM withdrawals are limited to $500 per transaction/$1,000 per day.
• Cash rewards invested into cryptocurrency are subject to Wealthsimple Crypto’s 1.5-2% fee.

Product Details

• General fees and features: Wealthsimple does not charge any fees to use the Wealthsimple Card.
• Currency conversion fee: Mastercard will determine the applicable exchange rate from the range of rates available in wholesale currency markets for the applicable processing date, which may vary from the rate Mastercard itself receives.
• ATM withdrawals: Wealthsimple does not charge any fees for withdrawing cash, but you may see a standard ATM withdrawal fee (usually about $3.00) when you make a withdrawal at an ATM. ATM Withdrawal limits are $500 per transaction and $1,000 per day.
• Reload methods: Add funds to your card by making a deposit via a linked bank account, a wire transfer, your Visa or Mastercard debit card, or an institutional transfer to move an account from another institution.
• Rewards: Earn 1% cash back on eligible purchases. Cash back rewards can go directly into your Spend account, be added to the cash balance of a stock trading or crypto trading account, or be used to auto-purchase the cryptocurrency of your choice in your crypto trading account. Use the card anywhere Mastercard is accepted — in-store, in apps, or online. Pay bills, use direct deposit, and e-Transfer.
• The Wealthsimple Card is available as part of the everyday spending account, which comes with both a digital and physical card that you can manage right from the Wealthsimple app.
• Use the app to manage your rewards and spending preferences, or lock your card if something happens to it. Your balances are all updated in real-time, too — even if you’re using the physical card.
• Add your Wealthsimple Card to Apple, Samsung or Google Pay digital wallet.
• Use the Wealthsimple Cash app to send and receive payments to anyone else who uses the Cash app without paying fees. You can also send money to people who don’t have the Cash app yet. They will receive a prompt to download the app and claim the money you sent them.
• Your money is protected for up to $100,000 through CDIC.
• To be eligible, you must be a Canadian resident with a Social Insurance Number of the age of majority in the province or territory where you live.

KOHO Spending and Savings Account

• Bonus Offer
  30-day free trial

  All KOHO subscription plans come with a free 30 day trial.
• Monthly Fee
  $0-$19

  Monthly fee waived if a direct deposit for paycheques or government benefits is set up or a monthly contribution of $1,000 or more.
• Number of Transactions
  Dollar limits apply*

  Daily limits include store payments of $9,000, ATM withdrawals of $1,010 and e-transfers of $3,000.

Apply Now

Our Take

Why we like it

• This hybrid chequing-savings account earns up to 5.00% interest on savings and up to 5.00% cash back on purchases depending on the subscription plan selected.
• KOHO is a virtual bank that also offers cash back prepaid Mastercards cards

Product Details

• Interest Rate varies by selected subscription plan. Essential Plan: 3.5%, Extra Plan: 4%, Everything Plan: 5%.
• Monthly Fee varies by selected subscription plan. Essential Plan: $4, Extra Plan: $9, Everything Plan: $19.
• The account comes with the KOHO prepaid Mastercard that earns up to 5% instant cash back on spending (depending on the selected subscription plan).
• The mobile app comes with spending pattern analysis, budgeting, automated savings and a RoundUp! feature that helps you save money on every purchase.
• No minimum balance.
• Immediate access to your money through free withdrawals, e-Transfers, and more.
• Eligible for up to $100k CDIC deposit insurance.
• Boost Your Credit Score by Simply Paying Rent! With KOHO’s Rent Reporting, your rent payments can now help build your credit history. Here’s how:
• a. Choose any KOHO paid plan OR subscribe to Credit Building.
• b. Pay rent using your KOHO account via e-Transfer, pre-authorized debit, or your KOHO card.

Neo Everyday Account

• Bonus Offer
  N/A
• Monthly Fee
  $0-$9.99

  The base plan is $0; Premium plan is $9.99/month.
• Number of Transactions
  Dollar limits apply*

  Interac e-transfer daily/weekly maximum is $10,000, and the monthly maximum is $20,000.00; Electronic fund transfer limits per transaction is $30,000 max outbound to an external bank and $100,000 max inbound from an external bank. The maximum bill payment limit is $25,000.

Apply Now

Our Take

Why we like it

• Neo offers a digital-first banking experience and a fee-free account with one of the highest interest rates available in Canada.
• Comes with a prepaid Neo Money™ Card that links to your account and earns instant, unlimited cashback at over 10,000 partners.

Product Details

• One account to spend, save and earn 0.1% interest
• No fees, up to 3% cashback on gas and grocery and 1% everywhere else.
• Earn up to $460 in cashback annually
• Get a free Neo Money card that links to your account and start earning instant, unlimited cashback at over 10,000 partners
• Make bill payments, send and receive Interac e-Transfers®, and make bank to bank transfers to and from existing bank account – all with no monthly fees or minimum balances and unlimited free transactions.
• Available Canada-wide.
• Manage everything from the phone app, whenever and wherever. Desktop/web banking is also available.
• Much like any bank account at a traditional bank, the Neo Everyday Account is eligible for CDIC deposit protection, and provided by People’s Bank, a CDIC member institution. Deposits held in Neo Everyday Accounts are combined with eligible deposits held at People’s Bank, for up to $100,000 of deposit protection, per category, per depositor.

About the Author

Siddhi Bagwe

Siddhi Bagwe is a content management specialist at NerdWallet Canada. Treating content marketing as an educational medium for readers, Siddhi believes in empowering them with the knowledge of personal finance…

Read more about Siddhi Bagwe and explore their articles

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