The Best Bank Accounts for Newcomers to Canada - Mr. Thrifty Canada

For newcomers to Canada, picking the right bank account is an important first step to establishing a sound personal financial plan. With that in mind, we wanted to provide an overview of the account packages offered by the Big Banks.

Good News: The Big Banks Want You!

Like the packages offered to students, the Big Banks offer some of their best bank accounts to newcomers to Canada!

Let’s start off with the basics:

Who Qualifies as a Newcomer to Canada?

The eligibility criteria vary from bank to bank; however, generally, the accounts described here are available to permanent residents who arrived in Canada in the last three to five years. Many, but not all, of the bank packages are also available to temporary workers and international students.

When Do The Deals End?

The fee waivers generally end a year (six months in the case of TD) after account opening. At that point the regular fees applicable to your bank package will apply.

What Documentation is Required to Open a Bank Account?

You will generally need two pieces of identification, including at least one government-issued ID, as further explained in this helpful overview by the Canadian Bankers Association. It is important to note that you do not need a job to open a bank account.

In addition, if you want to qualify for one of the bank’s special packages, you will need to produce proof that you meet the eligibility requirements.

Can I Open an Account and Transfer Money Before I Arrive in Canada?

Depending on where you are arriving from, Scotiabank and HSBC will let you open an account online and transfer money before you arrive — which may be a very important consideration for many newcomers. The downside of HSBC is that it does not have a nationwide brick and mortar presence in Canada – so it could be convenient to open pre-arrival, but inconvenient to use once you arrive.

The Thrifty Criteria: What Should a Newcomer to Canada Look for in a Bank Account?

General Criteria

No Minimum Balance
No Monthly Fee
Free Unlimited Transactions, Including Interac eTransfers
Large ATM Network with Convenient Locations
Access to Credit Designed for People with No Credit History

Brick and Mortar Location

We think it is important for newcomers to open an account at a bank with a brick and mortar location where you can make in-person visits and establish a relationship.

Online banks have compelling offerings for all Canadians and we would encourage newcomers to take advantage of online bank offerings as well – post arrival in Canada. In particular, as noted in our guide to high interest savings accounts, you are likely to get a much higher everyday interest rate in a savings account offered by an online bank.

Bank Accounts from the Big 5 Banks

Bank	No Minimum Balance, No Monthly Fee	Free Unlimited Transactions (incl Interac)*	Credit (subject to credit approval)	When Does the Free Package Expire ?
Scotiabank StartRight Program – Preferred Package	✔	✔	✔ no annual fee options car loans available (only 10% down)	one year
CIBC Welcome to Canada Banking Package – CIBC Smart for Newcomers Account	✔	✔	✔ no annual fee options car loans available	two years
RBC Newcomer Advantage – RBC No Limit Banking Account	✔	✔	✔ no annual fee options car loans available	one year
TD New to Canada Banking Package – TD Unlimited Chequing Account	✔	✔	✔ no annual fee options car loans available	six months
BMO NewStart Program – Performance Plan	✔	✔	✔ No annual fee BMO CashBack Mastercard	one year

* Certain pay per use fees, such as using another bank’s ABM, apply – see terms and conditions for all details

Assessing Your Big Bank Options

Convenience is Key

Think of the Big Bank options as a convenient landing spot — a way for newcomers to get quickly integrated into the Canadian banking system with little or no cost — and not necessarily a permanent destination.

Reassess Once You Get Your Bearings

As noted, the fee waivers are time-limited. Hopefully, by the time the waivers expire newcomers will be sufficiently integrated into the banking system to consider all options, including online banks.

Similar Offerings

The packages offered by the Big Banks are all pretty similar in nature with the notable exception of TD, which only waives the monthly fee for a period of six months. We’ve noted the basic features in the chart. Other features generally include free safety deposit boxes, mortgages for people with limited or no credit history and special interest rates on deposits.

Other Bigger Bank Options

We restricted our Big Bank review to the Big 5 because of their national presence.

National Bank and HSBC have competitive newcomer to Canada bank account plans and, if you live in an area where they have a significant presence, they are worth considering.

Online Banking Options

While we do believe a significant brick and mortar presence is an important consideration in a newcomer’s first Canadian bank account, no-fee online bank account options do exist. Having a no-fee online account, even as a secondary option, can provide additional convenience (not to mention a ready option when the Big Bank deals expire).

The major limitation for many online banks (other than Manulife, Tangerine and Simplii) is a lack of credit card offerings. Even where there are credit card offerings they aren’t necessarily geared towards people with no or limited credit history.

No-Fee Chequing Accounts from Online Banks: A Comparison Chart

Bank	No Minimum Balance, No Monthly Fee	Free Unlimited Transactions (incl Interac)*	ATM Network	No Annual Fee Card (subject to credit approval)	Bonus Offers
Simplii Financial	✔	✔	Free access to CIBC ATMs	Offers a no annual fee card, but not directed to newcomers	frequently offers specials – check site for current offer
Motusbank No-Fee Chequing Account	✔	✔	No fee access to The Exchange Network of ATMs	n/a	none
Alterna Bank No-Fee eChequing Account	✔	✔	No fee access to The Exchange Network of ATMs	n/a	none
Tangerine No-Fee Daily Chequing Account	✔	✔	No fee access to Scotiabank’s ATM Network; No fee access to Global ATM Alliance ATMs outside of Canada	Offers a no annual fee card, but not directed to newcomers	none
Manulife All-in Banking Package	✖ $10 monthly fee – rebated if you save $100 per month	✔	No fee access to The Exchange Network of ATMs	Offers a no annual fee credit card, but not directed to newcomers	Free year of Amazon Prime and up to 2 months free Audible (offer details on website)
Manulife Advantage Account (Combined Chequing and Savings)	✔	✖	No fee access to The Exchange Network of ATMs with $1,000 minimum balance (otherwise per item charge)	Offers a no annual fee card, but not directed to newcomers	None – but noted for promotional savings rates

* Certain pay-per-use fees, such as using another bank’s ATM, apply – see each bank’s terms and conditions for all details

Assessing Your Online Bank Options

Simplii, Motusbank, Alterna, Tangerine and Manulife Bank Stand Out

Simplii Financial, Motusbank, Alterna, Tangerine and Manulife Bank all best fit the Thrifty Criteria, though none of them offers a student-oriented credit card (or, in the case of Motusbank and Alterna, any credit card at all). Simplii, Tangerine and Manulife each offer a very good no annual fee credit card (but these cards are not geared towards newcomers with limited credit history).

Look for Bonus Offers

Tangerine is offering a cash bonus of up to $200 for new clients who open both a high interest savings account and a checking account – see website for full details on this time-limited offer.

Simplii, owned by CIBC, has the added advantage of access to the CIBC ATM network and a brick and mortar location (which could come in handy for, say, certified cheques and the like). (Alterna’s parent company has a couple of locations in Ottawa.)

Simplii periodically features bonus offers for new account opening — it is currently offering a bonus of up to $200 for new chequing accounts until October 31, 2020 – see website for full details on this time limited offer.

As noted above, the Manulife All-in Banking Package has a $10 monthly fee. However, the fee is rebated if you are able to save $100 per month in the Manulife High Interest Savings Account. If you can manage to do this (and we would recommend setting an automated transfer so you do not forget), the All-in Banking Package is a very worthwhile option to consider.

Manulife Bank’s Advantage Account is a good banking package but the minimum balance requirement to avoid most fees may be unsuitable to many students.

What About Other Services, Such as Money Transfers and Currency Exchange?

Some of the banking packages mentioned above also include discounted transaction fees on money transfers.

However, as we discuss in our article on how to save money when exchanging currency, you are likely to get a better deal outside of the Big 5 Banks.

Mr. Thrifty has personally saved a lot of money by using OFX and it’s a service he strongly recommends – so much so he struck up a special deal with OFX for Thrifty readers.

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