How to open your first bank account in Canada as a newcomer

One of the first things you should do after arriving in Canada is open a bank account. It keeps your money safe, it is how most jobs pay you, and it is the first step to building a credit history in Canada. The good news is that it is easy, and it is often free for your first year.

Why you need a Canadian bank account

Carrying large amounts of cash is risky. A bank account lets you keep your money safe, pay your rent, receive your pay from work, and send money using e-transfers (the Canadian way of transferring money).

It also helps you start building a record of good money habits in Canada, which matters later when you want to rent an apartment or get a phone plan.

Newcomer accounts are made for you

Canada's five big banks — RBC, TD, BMO, Scotiabank, and CIBC — all offer special newcomer accounts. These usually have no monthly fee for the first year, which saves you money while you get settled.

Here is something many newcomers do not know: you usually do not need a credit history, and sometimes not even a SIN, to open a basic account. Your student or work status is enough to get started.

Do not spend weeks comparing every bank. Pick one that has a branch near you and open an account — you can always switch later if you find a better fit.

How to actually open the account

Just walk in and ask — most banks can open an account for you there and then. You can also start the process online with many banks, then finish it in a branch.

What to bring

Bring these when you go to open your account:

Chequing vs savings

Chequing account. This is for your everyday money. You use it to pay bills, spend with your debit card, and receive your pay.

Savings account. This is for money you want to set aside. Keeping it a little out of reach makes it easier to save.

Debit card vs credit card

This is an important difference to understand.

Watch out for fees

Ask your bank these questions so there are no surprises:

• What is the monthly fee after the first free year?
• How many free e-transfers do I get each month?
• Is there a minimum balance I need to keep?

Knowing the answers helps you choose the right account and avoid paying for things you do not need.

Take the first step

Opening a bank account might feel like a big official task, but it is quick, and the staff help newcomers every day. Once it is done, you have a safe place for your money and the first building block of your financial life in Canada.

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