Best Banks for Newcomers in Canada for 2025

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:

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:

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.

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:

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:

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:

Account	Interest rate	Bonus offer	Monthly fee	Apply Now
EQ Bank Personal Account					APPLY NOW on EQ Bank's website
	3.50%* Promotional rate	N/A	$0
KOHO Spending and Savings Account					APPLY NOW on KOHO's website
	Up to 4.00% No minimum balance required	30-day free trial	$0-$19
Neo Everyday Account					APPLY NOW on Neo Financial's website
	0.10% No minimum balance required	N/A	$0-$9.99
Tangerine No-Fee Daily Chequing Account
	Up to 0.10%	$250	$0
motusbank Chequing Account
	0.15%	N/A	$0
The PC Money™ Account
	4.00%	100,000 bonus PC Optimum points.*	$0
Wealthsimple Cash Account
	Up to 5.00%	N/A	$0