Immigration on solid ground: Bank accounts for new arrivals to Canada

As a newcomer to Canada, one of the first things you’ll need to do is open a bank account. This may seem like a daunting task, especially if you’re not familiar with the Canadian banking system. But don’t worry, we’re here to help! In this blog post, we’ll walk you through everything you need to know about opening a bank account in Canada.

Why do I need a bank account in Canada?

Having a bank account in Canada is essential for managing your finances, paying bills, and receiving payments. It’s also a requirement for many employers, landlords, and service providers. Without a bank account, you may struggle to access basic services like electricity, internet, and phone connections.

Choosing the right bank

Canada has a number of major banks, each with its own strengths and weaknesses. Some of the most popular banks for newcomers include:

• TD Bank
• RBC Royal Bank
• Scotiabank
• CIBC
• HSBC Bank Canada
• BMO

When choosing a bank, consider the following factors:

• Fees: Look for banks with low or no fees for everyday transactions, such as debit card purchases and ATM withdrawals.
• Branch and ATM locations: Choose a bank with a large network of branches and ATMs across Canada.
• Online banking: Consider a bank with a user-friendly online banking platform and mobile app.
• Customer service: Look for banks with a reputation for excellent customer service.

Types of bank accounts

There are several types of bank accounts to choose from. The following list will give you a good overview what they are about:

• Chequing accounts: For everyday transactions, such as paying bills and making purchases. This is the first one you need!
• Savings accounts: For saving money and earning interest.
• Credit card accounts: For making purchases and earning rewards.
• Student accounts: For students with a valid student ID.
• Newcomer accounts: Some banks offer special accounts for newcomers, with features like no-fee banking and credit card options.

Opening a bank account

To open a bank account, you’ll need to provide identification and proof of address. The bank needs to verify your data. Therefore you’ll need to show two two documents from a reliable source as proof of your identity.

• Passport
• Permanent resident card
• Proof of address in any official document, such as recent tax assessment notices, current benefit statements from the government, utility bills, and proof of a recent bank or credit card statements.

You can open a bank account online, but it is likely that you will need to visit a local branch in person. They may ask a lot of questions if you come with cash. Don’t take it personally. They just need to make sure you are not laundering money.

Tips and tricks for new arrivals to Canada

• Consider opening a joint account with a partner or spouse to share financial responsibilities.
• Take advantage of newcomer promotions and discounts offered by some banks.
• Be mindful of foreign transaction fees if you plan to travel or make international purchases.
• Set up automatic bill payments and transfers to make managing your finances easier.

By following these tips and choosing the right bank and account for your needs, you’ll be well on your way to financial stability in Canada. Happy banking!