Best Bank for Newcomers to Canada: How to Open Your First Account Step-by-Step (2026 Guide)

Here’s What You Need to Know

Opening a Canadian bank account sounds scary, but it’s actually pretty straightforward once you know what you’re doing.

The basics:

• Canadian banks want your business — TD, RBC, Scotiabank, BMO, and CIBC offer 1-2 years of free banking plus welcome bonuses up to $1,100

• Bring the right documents — You need original government-issued ID (passport/driver’s license), proof of address, and your Social Insurance Number

• You can start early — CIBC and Scotiabank let you open accounts up to 12 months before you even arrive from eligible countries

• Build credit right away — Banks offer credit cards with limits up to $20,000 even without Canadian credit history

• Pick accounts that fit — Open both a chequing account (daily stuff) and savings account (growing your money), with online banking usually costing less than branch visits

The trick is comparing what each bank offers and picking the one that actually matches how you plan to bank.

Choosing a bank as a newcomer feels overwhelming. Which one can you trust? What paperwork do you actually need? How do you dodge those sneaky fees?

Relax — this isn’t as complicated as it seems.

Most major Canadian banks actually want newcomers and offer solid programs with fee waivers and welcome bonuses. The hard part is just figuring out which one works best for your situation.

We’ll walk you through the top options, show you exactly what documents to bring, and give you a simple step-by-step process to get your first account open without stress.

Welcome to Canada. Let’s get this sorted.

Your Main Banking Options in Canada

Canada gives you three main choices: the big banks everyone knows, smaller credit unions, and online-only banks. Each works differently depending on what you need.

Big Banks vs Credit Unions vs Online Banks

The Big Six banks basically run Canadian banking. RBC operates over 1,200 branches and 4,200 ATMs across Canada. TD has over 1,000 branches and 2,500 ATMs. Scotiabank maintains roughly 900 branches and 3,600 ATMs.

Pretty much everywhere you go, you’ll find one of these.

Credit unions work differently — they’re member-owned cooperatives with lower fees and better savings rates. Canada has over 400 credit unions serving millions of members. You’ll get more personal service, but fewer branches than the big banks.

Online banks like Simplii, Tangerine, and EQ Bank offer no-fee accounts with higher interest rates. No physical branches, but their mobile apps handle everything you need.

What TD, RBC, and Scotiabank Offer Newcomers

TD’s New to Canada Banking Package waives monthly fees for one year (value up to CAD 300). You could earn up to CAD 700 in cash bonuses depending on conditions. Their credit cards may offer limits up to CAD 20,000 without Canadian credit history.

RBC Newcomer Advantage includes one year of no monthly banking fees and credit card limits up to CAD 20,000. Promotional cashback offers may apply.

Scotiabank’s StartRight Program waives monthly fees for one year. Bonuses can reach up to CAD 975 depending on eligibility. Credit card limits may go up to CAD 20,000.

BMO and CIBC Programs

BMO NewStart provides no monthly fees for two years. You can earn up to CAD 1,100 in bonuses depending on qualifying activities.

CIBC Smart Account for Newcomers rebates monthly fees for two years and may offer bonuses around CAD 700 plus additional incentives tied to credit card approval.

What Actually Matters for Newcomers

Look for fee waivers lasting 12-24 months, welcome bonuses between CAD 700 and CAD 1,100, and credit cards that don’t require Canadian credit history. You’ll also want decent branch networks and multilingual support.

Quick Comparison: Top 5 Banks for Newcomers (2026)

Picking the Right Account for Your Life

You need different accounts for different jobs. Most newcomers open both a chequing account (for daily transactions) and a savings account (for money set aside). Understanding how each works helps you choose better.

Chequing Accounts: Your Daily Banking Workhorse

Chequing accounts are designed for everyday use. You’ll use them to pay bills, send e-transfers, make debit card purchases, and receive your paycheck.

Some accounts limit monthly transactions. Others charge fees unless you maintain a minimum balance. Many newcomer programs waive these fees for the first year.

Before choosing, compare:

• Monthly fee after promotion ends
• Minimum balance requirements
• Number of included transactions
• ATM network coverage

Savings Accounts: Where Your Money Grows

Savings accounts are meant for money you don’t need immediately. These accounts earn interest and usually have no monthly fees.

High-interest savings accounts (HISA) typically offer better rates than standard savings accounts. Promotional interest rates may apply for the first few months.

Online banks often provide higher interest because they operate without physical branches.

Fee Waivers: What Happens After Year One?

Most newcomer programs offer 12–24 months of free banking. After that period, standard fees apply.

Typical monthly fees for premium chequing accounts can range between CAD 15 and CAD 30 unless you maintain minimum balances between CAD 4,000 and CAD 8,000.

Mark your calendar before the promotional period ends so you can downgrade your account if needed.

Branches vs Online Banking

If you prefer face-to-face service, choose a bank with strong branch presence near your residence.

If you are comfortable with digital banking, online banks may offer lower fees and better savings rates.

Opening Your First Bank Account

Documents You Need

• Passport or government-issued ID
• Permanent Resident Card, Study Permit, or Work Permit
• Social Insurance Number (SIN)
• Proof of Canadian address (if available)

Original documents are required. Photocopies are not accepted.

Can You Open Before Arriving?

Yes. Some banks allow eligible newcomers to open and fund accounts up to 12 months before arrival in Canada.

This option helps with proof of funds and secure money transfers.

Opening After Arrival

You can apply online, through a mobile app, or at a branch. Approval usually happens quickly once identity verification is complete.

Physical debit cards typically arrive within 7–10 business days.

Setting Up Online Banking

To activate online banking, you will need:

• Your debit card number
• Postal code
• Date of birth
• Email and phone number

Create a strong password combining uppercase letters, lowercase letters, numbers, and symbols.

Building Credit and Managing Money as a Newcomer

Once your account is open, your next priority should be building credit.

Understanding Canadian Credit Scores

Credit scores in Canada range from 300 to 900.

Scores above 760 are considered excellent, while 660–724 is generally considered good.

Two main agencies track credit: Equifax and TransUnion.

Your score is influenced by:

• Payment history
• Credit utilization
• Length of credit history
• Types of credit used

Getting Your First Credit Card

Most major banks offer newcomer credit cards without requiring Canadian credit history.

Credit limits may range from CAD 7,000 up to CAD 20,000 depending on eligibility.

Best practice: Keep utilization below 30% and pay balances in full when possible.

Direct Deposit and Payroll Setup

Direct deposit transfers your salary directly into your bank account.

You will need:

• Branch number (5 digits)
• Institution number (3 digits)
• Account number

Your bank can provide a void cheque for payroll setup.

Using Interac e-Transfer

Interac e-Transfer allows you to send money using an email address or mobile number.

Daily limits may reach approximately CAD 4,000 depending on your bank.

Avoiding Common Banking Fees

• Use your own bank’s ATMs
• Maintain required minimum balances
• Downgrade accounts after promotional periods
• Monitor transaction limits

Questions You Probably Have About Canadian Banking

Which Bank Should I Pick?

There is no single “best” bank for everyone. TD, RBC, BMO, CIBC, and Scotiabank all provide competitive newcomer programs.

Your ideal choice depends on:

• Branch access near your residence
• Length of fee waiver
• Bonus eligibility requirements
• Credit card approval criteria
• Online banking preferences

Compare current offers directly on official bank websites before applying.

Can I Set Up Banking Before I Arrive?

Yes. Some banks allow you to open accounts up to 12 months before arriving in Canada, depending on eligibility and country of residence.

This helps with transferring funds securely and meeting proof-of-funds requirements.

How Much Money Do I Need to Start?

Many banks do not require a minimum deposit to open an account. However, certain premium accounts require minimum balances (often between CAD 4,000 and CAD 8,000) to avoid monthly fees after promotional periods end.

Are My Deposits Safe?

Your money is protected by the Canada Deposit Insurance Corporation (CDIC) up to CAD 100,000 per insured category, per institution.

This coverage is automatic and free at CDIC member institutions.

You’re Ready to Start Banking

You now understand what documents to bring, which banks offer newcomer programs, and how to avoid common fees.

Opening an account typically takes less than 30 minutes in a branch or online.

Compare current offers, gather your documents, and choose the bank that best fits your needs.

Welcome to Canada — your financial journey starts here.

About the Author

This guide was researched and written by Talal Eddaouahiri, founder of MoneyAbroadGuide.com, specializing in banking and financial systems for newcomers to North America.

Important Disclaimer

This article is for educational purposes only and does not constitute legal, financial, or professional advice. Bank offers, bonuses, and policies change frequently. Always confirm eligibility, documentation requirements, and promotional details directly with the financial institution before making decisions.

FAQs

Q1. Which bank offers the best newcomer program?
Major Canadian banks such as TD, RBC, BMO, CIBC, and Scotiabank all provide competitive newcomer packages. The best option depends on your personal situation and banking preferences.

Q2. Can I open a bank account without Canadian credit history?
Yes. Most major banks offer newcomer credit cards without requiring prior Canadian credit history.

Q3. How long do fee waivers last?
Newcomer programs typically waive monthly fees for 12 to 24 months.

Q4. Are deposits automatically insured?
Yes. Deposits are insured up to CAD 100,000 per category by CDIC at member institutions.

Q5. What happens after the promotional period ends?
Standard account fees apply. You may choose to downgrade your account to reduce or eliminate fees.