Opening an account in a Canadian bank is one of the first things that should be planned immediately after moving to this country. You will need an account to get debit and credit cards, make everyday purchases, and build a credit history.
According to a study by the World Economic Forum, Canada is one of the three countries with the safest banks in the world. There were only two minor bankruptcies of regional banks in almost 100 years.
Canada has a developed and extensive banking system. There are almost 90 banks, about 6 thousand bank branches, and more than 18.6 thousand bank-owned ATMs — the highest figure per capita in the world.
What You Need To Know Before Opening a Bank Account in Canada
Before opening an account, you need to find the answers to the following questions:
- How will you use the account — as a savings account or as a check account? Savings accounts are for the accumulation of funds at a small percentage, and check accounts are used for making daily purchases.
- What are the account maintenance fees? Large banks do not charge immigrants during the first 6–12 months. Students and seniors can open free accounts.
- Is there a limit on transactions? Unlimited debit cards have an increased service charge. Fees are normally lower for cards with a limit, but if you exceed the limit of transactions, you will have to pay a fine (about C$1 per transaction).
- What is the interest that will be accumulated for keeping money in a savings account? This is usually around 1% for accounts in Canadian dollars and less than 0.5% for accounts in US dollars.
- Are deposits insured?
What You Need To Open a Bank Account
You can open a bank account in Canada, even if you do not have a job and even if you have recently immigrated. However, you can open an account only when you have already arrived in the country. Usually, you need to contact the bank in person and provide the following:
- Your Social Insurance Number (SIN)
- Two IDs from the list: Canadian driver’s licence, SIN, Permanent Resident Card or Confirmation of Permanent Residence. You can also provide one ID from this list plus an employee ID card with your photo, a debit or credit card with your name and signature, or a passport of your home country
You can open an account within several minutes. You can immediately get a temporary or permanent debit card and open a credit card (you will receive it by mail a few days later). You will get a copy of the account agreement within 7 business days after opening the account.
You can close your bank account free of charge within 14 days after opening it by calling the bank by phone. In this case, the bank will reimburse the costs associated with opening the account.
Choosing a Bank
The largest banks in Canada in terms of total assets (“Big Five” banks) are Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Bank of Montreal, and Canadian Imperial Bank of Commerce.
All these banks have special offers for immigrants who arrived in Canada no more than 2–5 years ago: accounts with no service charge for 6–12 months, credit cards and loans with no credit history required, as well as other bonuses.
Royal Bank of Canada (RBC)
- Bank account without a monthly fee for 12 months
- Maintenance fee after a grace period is C$10.95 to C$30
- Two free international money transfers per month for the first 6 months
- Car loan, credit card, and mortgage with no credit history required
Toronto-Dominion Bank (TD)
- Bank account without a monthly fee for 6 months
- Maintenance fee after a grace period is C$29.95 (C$3.95 to C$10.95 for accounts with a limited number of transactions)
- Unlimited transactions on check accounts (withdrawals, payment of bills, etc.)
- Free money transfers with Interac e-Transfer
- Credit card and mortgage with no credit history required
Scotiabank
- Scotia One™ account without a monthly fee for 12 months
- Maintenance fee after a grace period is C$3.95 to C$13.95
- Unlimited electronic transfers and transactions
- Free safe-deposit box for 12 months
- Credit card with no credit history required
Bank of Montreal (BMO)
- Bank account without a monthly fee for 12 months
- Maintenance fee after a grace period is C$10.95 to C$30
- Unlimited electronic transfers with Interac
- Free safe-deposit box for 12 months
- Credit card and mortgage with no credit history required
Canadian Imperial Bank of Commerce (CIBC)
- Bank account without a monthly fee for 12 months
- Maintenance fee after a grace period is C$3.90 to C$29.95
- Unlimited electronic transfers with Interac
- Car loan, credit card, and mortgage with no credit history required
- Cashback up to C$55 for those who use a safe-deposit box
All of these banks have offices in most Canadian cities. In Canada, there are also branches of international banks such as HSBC, Citibank, J. P. Morgan Bank, Société Générale, UBS, and others.
Online Banking in Canada
Apart from traditional banks, Canada has online banks. They offer the same services and products as ordinary financial institutions: check accounts, deposits, loans, credit cards. Among the well-known online banks in Canada are Tangerine (part of Scotiabank Group), Motive Financial, and Motusbank.
It is also not possible to open an account in a Canadian online bank before moving to the country. For example, to open an account in Tangerine, you need a SIN and a check from another bank, which you need to scan and upload to your account in the mobile application so that cash could come to your online account. When creating an account, you must also enter your occupation and place of work in Canada, email address, Canadian home address, and Canadian phone number. Employees of the online bank check this information, and the account becomes active only a few days later. The card will be mailed to the indicated address in Canada. You can use it at any Scotiabank ATM.