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For every newcomer, financial matters become an important consideration during the settlement process. Which Canadian bank should I choose? Which bank account should I open? Credit card or debit card?
As French expats, we have gone through all these steps ourselves and are very familiar with the process. You’ll see it’s important to choose wisely to benefit from the best offers, build your credit history, and why not accumulate some reward points along the way.
Here is our guide for you: welcome to Canada!
The main banks in Canada are:
You can also find:
This process of researching banks can be done remotely before you arrive in Canada, and we recommend doing so to make your settlement easier. You will need to demonstrate at customs upon arrival that you have sufficient funds.
You will avoid certain delays related to money transfers, be able to present a Canadian bank statement to the customs officer, and finally, have immediate access to your money.
Before opening an account at any bank, shop around to thoroughly compare the services offered by each one. Once you’ve chosen a bank, switching to another one can be a lengthy process and may result in fees. It’s best to select the right bank from the start based on your profile.
Bank fees, services, communication, welcome offers, branch proximity. Be sure to consider everything.
Once you’ve chosen your bank, you can begin the process of opening a new bank account. Next, make an appointment with your new advisor.
Two pieces of photo identification will be requested, such as a Canadian passport, a Canadian-issued driver’s license, a permanent resident card, a study permit, etc. Some banks may also require proof of address. For more details on this, here is the link to the Canadian Bankers Association.
If you are doing the procedure remotely, you will need to complete an online form and various documents, which your advisor will provide to you.
You must complete your file with:
The complete file should be sent by post to your future bank.
No minimum deposit is required, nor do you need to prove employment. But sooner or later you will surely need to make an international money transfer if you are coming from abroad for an initial deposit into your new account. There will be a transfer time of around one to three days.
To send money internationally, there are several companies that offer this service:
These are intermediaries that allow you to have an online account to send, receive or spend money internationally. Fees may vary, so be sure to compare your options.
After registering with one of these sites, set up your transaction, add your bank details, and confirm the transfer. However, be aware that some banks, such as National Bank of Canada, will require your first transfer to be bank-to-bank, not through an intermediary.
Each bank will offer a series of products associated with a package. You can start by opening a personal account (savings, chequing or a combined account). Depending on your banking institution and the type of account, service charges vary.
Banks can provide you with a bank debit card. Withdrawals, cash deposits, transfers. All these transactions are possible at an Automated Teller Machine (ATM), using a Personal Identification Number (PIN). You’ll find them everywhere, open 24 hours a day. Prefer the ATMs of your banking institution, otherwise you will pay additional fees.
The bank allows you to transfer/receive funds from one account to another either by automatic transfer (e.g., Canada Revenue Agency) or Interac e-Transfer, or to pay pre-authorized or non-pre-authorized bills. Your bank can provide you with a chequebook, which you can use to pay bills, purchase goods, or access services.
Ask for a credit or charge card.
These different services vary from bank to bank, and most are also available online or by phone.
A debit card allows you to make immediate withdrawals from your chequing account, but it does not offer any points or rewards benefits.
A credit card is not linked to your chequing account like a debit card is, so you can apply for one from any financial institution based on your profile. You’ll have access to a credit limit, allowing you to defer payment for purchases while earning reward points. It’s important to pay your card in full every month. No balance, no interest, no debt!
A charge card is also not linked to your chequing account. Additionally, there is no pre-set spending limit for the cardholder; only the issuer knows the actual limit. Here, the balance must be paid with each statement and cannot be carried over with interest.
A prepaid card is useful abroad, for example, for exchanging money into foreign currencies.
As an expat, another piece of information to know is that you will need a credit card in Canada.
It is essential if you plan to borrow money in the future for a car or home purchase. No bank will be willing to accept a credit application if you have no credit history.
Two agencies, Equifax and TransUnion, are responsible for informing the institution about your credit file, i.e., whether you are a trustworthy person or, in other words, a good payer. It shows that you pay your card balances on time and do not accumulate debt. Read our article to find out how your credit score is calculated.
Every newcomer should start using a credit card as soon as possible to begin building a credit history. However, you will need to find a bank willing to issue you a credit card:
Your credit history starts to build as soon as you begin paying rent and bills, for example, but it may take some time before the bank agrees to increase your credit limit.
Not all credit cards are created equal. That’s why we’ve designed a credit card comparator and a ranking of the best credit card offers to help you.
Finally, a credit card is necessary for making purchases online.
This program is particularly aimed at newcomers or those who have lived in Canada for less than five years, aged 18 or older.
Currently, NBC’s program for newcomers is the best on the market. The National Bank has a network of 440 branches in Canada and 3,300 ATMs.
I recommend the National Bank, which is perfect for expats and caters to permanent residents, temporary workers, and international students.
BMO (Bank of Montreal) specifically targets newcomers or those who have been living in Canada for less than five years, who are either permanent residents or foreign workers.
With the BMO Performance Chequing Account for Newcomers, you can receive up to $700 as a welcome bonus and a Walmart delivery pass for up to 12 months.
Get a promotional interest rate when you add a Savings Amplifier Account*
Plus, enjoy:
Selecting the best bank for newcomers represents much more than a simple administrative formality. It is the foundation of your financial journey in Canada, which will influence your ability to build a credit history, access financing, and optimize your personal finances.
Take advantage of temporary free packages, personalized support, and multilingual services to facilitate your integration.
The National Bank and the Bank of Montreal stand out with their specialized programs tailored to the reality of newcomers.
Some financial institutions may offer multilingual services, resources on finances in Canada, or personalized support. The choice depends on your specific needs and your region.
Opening usually takes 30 to 60 minutes in a branch. Some banks offer online pre-approval before arrival. The debit card is available quickly, while the credit card can take 7 to 14 days.
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