Welcome to Canada! You’ve made it this far, gone through the immigration process, and left your home behind. You should be proud of yourself, but the journey isn’t over yet — one of the crucial steps in settling down here is opening a bank account.
Along the way, there are many options you can choose from, but finding the best package for you can be a bit challenging. Fortunately, Hafez Exchange is here to help.
With a variety of services such as USD transfers to Canada, international money transfers, and buying and selling of major currencies, Hafez Exchange enables you to manage your finances more securely and efficiently.
Additionally, with 24/7 support and competitive rates, you can handle your financial and currency needs in Canada without any worries.
We’re here to help! We’re aware of the best programs, scams, benefits, and needs in Canada. Here, we’ll talk about the best banks for newcomers, including opening accounts, credit cards, and more.
The Best Banks for Newcomers in Canada
Newcomers to Canada benefit from banks offering no-fee accounts, credit-building options, and free money transfers, making financial transitions easier.
National Bank of Canada
Eighty-nine percent of National Bank’s newcomer clients say they would recommend their bank to others. This is because you get an account with no fees for up to three years, while most other alternatives offer only one year.
Additionally, National Bank provides extra support with a helpline for one year. You will have free access to ask questions about healthcare, housing, immigration, and more.
Their bank accounts are also competitive, offering unlimited transactions. Moreover, the bank provides benefits such as investment accounts, loans, and credit cards. This is an excellent starting point for newcomers.
How to Compare the Best Bank Accounts in Canada for Newcomers in 2024
When comparing bank accounts, focus on fees, interest rates, accessibility, customer service, account options, and additional features. Online banks typically offer better interest rates, lower fees, and less in-person support. Major banks provide more personalized services but charge higher monthly fees after the initial account setup.
Also read: Rental conditions for newcomers in Canada.
Best Bank Accounts for Newcomers
Here are the best bank accounts for new immigrants in Canada, categorized for your convenience.
BMO NewStart Program
As the oldest bank in Canada and ranked number one in customer satisfaction among the Big Five Canadian banks, BMO offers a wide range of services and boasts a strong presence with over 900 branches and 3,300 ATMs nationwide. This makes it an excellent option for anyone who wants to visit a branch and speak with someone in person. Additionally, their extensive network of ATMs makes cash management easy.
Newcomers to Canada can receive up to $600 in cash rewards with a new account and earn savings. They offer a fee-free monthly plan for up to one year, unlimited BMO Global Money Transfers with no fees, and a $60 cash bonus with a safety deposit box rental.
Newcomers can save over $203 in monthly plan fees in the first year with a checking account. After that, you will need to pay $16.95 monthly unless you maintain a minimum balance of $4,000. This bank offers unlimited transactions and fee-free global money transfers.
EQ Bank
EQ Bank, a purely online bank in Canada, has an excellent reputation. It is best known for high-interest rates and no fees. Apart from newcomers, its personal account is one of the best options for any Canadian. Your deposits will earn up to 4% interest.
In addition, with EQ Bank, unlike most savings accounts, you can perform unlimited transactions. You can also get the EQ Bank Card with 0.5% cashback, free ATM withdrawals, and no foreign exchange fees when spending abroad.
The EQ Bank Personal Account combines one of the highest interest rates in Canada with transaction flexibility, all without any monthly fees for its users.
Best Combined Checking and Savings Offer for Newcomers
Neo Everyday Account
Neo is a new, purely online institution. This account is best for tech-savvy newcomers who want the best banking package. The Neo Everyday Account combines checking and savings into one account. Like EQ Bank, you will earn a high interest rate with unlimited transactions. Currently, Neo offers a 4% interest rate on deposits.
This account comes with the Neo Money Card, a unique debit card that offers cash back, which is typically reserved for credit cards in Canada. With additional promotional offers, you will get 1% cash back on gas and groceries. Neo also offers its own credit card that comes with cash back and other rewards.
This banking package is free, but you can add a monthly fee of $4.99 to your equity account, which increases your cash back. Neo also protects your deposits up to $100,000.
What Services Does a Bank Account for Newcomers Offer?
Bank account offers for newcomers make it easier to integrate into Canada’s financial system. They combine various products needed for everyday banking in Canada. Sometimes, they provide easier access to credit products such as credit cards, car loans, and mortgages. Bank account offers for newcomers usually include a fee-free period ranging from one to three years. After that, a monthly fee is typically required.
Latest Banking Offers for Newcomers to Canada
RBC (Royal Bank of Canada)
Benefits for Newcomers:
The Royal Bank of Canada (RBC) is the largest bank in Canada. RBC’s program for newcomers offers free banking for the first year. After that, a monthly fee of $11.95 applies, which can be reduced by activating other RBC products.
You will enjoy fee-free international money transfers and unlimited debit transactions. A significant benefit of the RBC credit card is that you can get one without any credit history. The card is a standard, entry-level option that provides 1% to 2% cash back. While it might not be a premium option, it is an excellent way to start building your credit score.
Also read: Can the excitement of Hamster Kombat lead to a surge in the game’s token price?
Scotiabank
Scotiabank offers fee-free banking for one year to all newcomers. After the first year, the monthly fee increases to $16.95 unless you maintain a minimum balance of $4,000 in your account. The bank also offers unlimited transactions and fee-free international money transfers.
In addition to these programs, Scotiabank provides specialized mortgage loans for newcomers. They also offer car loans and credit cards without requiring an existing credit score.
Which Bank is Best for Newcomers to Canada?
Deciding which bank is the best choice for new immigrants depends on each individual and their unique needs and preferences. By reviewing banks and considering the products and services they offer, you can make an informed decision about the best bank to start your journey in managing your money in Canada.
How Can a New Immigrant Open a Bank Account in Canada?
Many Canadian banks have special programs for new immigrants, known as newcomer programs, which make the process easier. To open an account, you typically need to provide identification documents, proof of immigration status, and sometimes a Canadian address.
Steps to Open a Bank Account as a Newcomer in Canada
Some Canadian banks offer online programs, allowing you to open a bank account before arriving in the country. If you are already in Canada, the requirements may vary by bank.
Typically, you can apply online using your Social Insurance Number (SIN) and a Canadian address. If you do not have these documents, you will likely need to visit a bank branch in person to open your account.
Required Documents for New Immigrants to Open a Bank Account in Canada
Make sure to have the following documents with you when visiting a bank branch in person:
| One of the following | One of the following |
| Valid passport | Permanent residence card |
| Canadian driver’s license | Immigration visa and landing records |
|
Canadian government ID card |
Confirmation of permanent residence
or temporary work permit or study permit |
Required Documents for International Students to Open a Bank Account in Canada
International students need more documents compared to others. They must provide proof of enrollment in a post-secondary institution. This proof should include the name of the institution, the student’s name, the program, and the academic year.
How to Compare Bank Accounts for Newcomers in Canada
Newcomer bank accounts are similar, making comparisons difficult. The most important factor to review is the fees. Typically, there will be a temporary no-fee period, after which a monthly fee will apply. Ideally, look for accounts with a longer no-fee period followed by a lower monthly fee. Some accounts have no monthly fees, while others allow you to open an account with a minimum deposit.
Additionally, a higher interest rate is ideal. Some accounts offer up to 4% interest on deposits. Most bank accounts in Canada are insured by the Canada Deposit Insurance Corporation (CDIC), meaning your deposits are protected up to $100,000.
Key Considerations for Newcomers When Choosing a Bank in Canada
Newcomers should look for special newcomer account packages. Also, consider other packages offered by the bank. Ideally, you should have access to credit cards, investment accounts, and loans if needed.
If in-person banking is important, look for a large bank with a strong branch network. Sometimes, these banks can offer services in your native language.
Who Qualifies as a Newcomer in Canada?
Canadian banks generally classify newcomers as individuals who have moved to Canada within the last five years. This group includes permanent residents, foreign workers, and international students.
Can Non-Residents or Foreigners Open a Bank Account in Canada?
While it is possible to open an account online before arrival, most banks will want to see your visa or residency documents. Alternatively, you can use a correspondent bank or open an international account. Some banks operating in your home country may have branches in Canada, making it easier to open a Canadian dollar account.
Benefits of Opening a Bank Account in Canada as a Newcomer
Opening a bank account in Canada is crucial for integrating into the financial system. It simplifies daily financial transactions such as receiving salaries, paying bills, and making purchases. It also opens the door to credit products like credit cards, loans, and mortgages.
Canadian banks are among the safest in the world. Most accounts are insured by the Canada Deposit Insurance Corporation (CDIC), which protects your deposits up to $100,000.
Big Banks vs. Online Banks: A Comparison for Newcomers to Canada
Big banks are generally more convenient and better suited for newcomers, though they tend to charge higher fees in the long run. On the other hand, online banks usually offer better packages but can be more challenging for newcomers. The best strategy is to start with a big bank and switch to an online bank after the no-fee period ends.
Big banks are more convenient because they offer more comprehensive packages. They provide special programs, language support, and in-person branch access for newcomers. Additionally, they offer a wide range of services, making them a one-stop-shop for newcomers. However, once your initial 1-3 year period ends, you will likely have to pay higher fees.
At this stage, it is a good time to choose an online bank. Online banks offer better packages but have fewer customer support resources. They usually do not advertise newcomer packages or provide language support. Since they are smaller, they tend to offer fewer packages, so you may need to use multiple banks for a comprehensive solution. Online banks generally do not charge fees and offer higher interest rates. However, they lack physical branches, so you cannot speak to someone in person.
To avoid overwhelming yourself, starting with a newcomer program from a big bank is the best option. After the no-fee period ends, switch to an online bank. This strategy facilitates integration into Canada’s financial system while avoiding high fees.
Also read: The tax system and tax filing in Canada.
Do You Need a Credit Card as a Newcomer to Canada?
You do not need a credit card, but having one is essential for building a credit score. A strong credit score is crucial for obtaining loans in Canada. Some landlords may also want to see your credit score to approve you for a lease.
How Much Credit Do Newcomers to Canada Need?
To avoid damaging your credit score, aim to have a credit limit three times higher than your monthly card expenses. Your monthly balance plays a significant role in calculating your credit score. A credit card balance over 35% can negatively impact your score.
If you can’t stay within this limit, focus more on using your debit card while you work towards building a higher credit score. Eventually, you can request an increase in your credit limit. However, be cautious with credit cards as they come with high interest rates. Ensure you don’t overspend and always pay your bill in full.
