How Canadian Banking Works

Types of financial institutions

• Big banks. RBC, TD, Scotiabank, BMO and CIBC are the largest, with branches nationwide and well-known newcomer programs.
• Credit unions and caisses populaires. Member-owned institutions that are often regional, such as Desjardins in Quebec and Vancity in British Columbia.
• Digital banks. Online-only banks, such as Tangerine or EQ Bank, often have low or no monthly fees and higher savings rates, but no branches.

Accounts you'll hear about

What you'll need to open an account

• A passport or other government-issued photo ID
• Proof of your immigration status, such as a work permit, study permit or permanent resident documents
• Proof of address. A lease, utility bill or a letter from where you're staying often works.
• Your SIN, if you have one. Banks usually ask for it for tax reporting, but you may be able to provide it later.

Opening an account, step by step

1. 1

   Step 1: Choose an institution

   Compare monthly fees, newcomer perks and whether you want a branch nearby. Two or three quick comparisons are enough.

2. 2

   Step 2: Apply online or book an appointment

   Many banks let you start online. A branch appointment is helpful if you'd like to ask questions in person.

3. 3

   Step 3: Bring your documents

   Take your ID, immigration documents and proof of address. If something is missing, ask what else the bank will accept.

4. 4

   Step 4: Set up your card and online banking

   Choose a PIN you'll remember but nobody could guess, and install the bank's app so you can check your balance and pay bills.

5. 5

   Step 5: Add your SIN and direct deposit

   Once you have a SIN and a job, give your SIN to your bank and set up direct deposit so your pay arrives automatically.

Everyday banking, explained

• Debit card. Accepted almost everywhere, and tapping to pay is standard.
• Interac e-Transfer. Send money by email or phone number. It's widely used to pay friends, split bills and sometimes pay rent.
• Pre-authorized payments. Automatic withdrawals for rent, phone and other regular bills.
• Mobile banking. Check balances, pay bills and deposit cheques by taking a photo.

Fees to watch for

• Monthly account fees, which are often waived with a minimum balance or a newcomer offer
• Per-transaction fees on basic plans
• ATM fees at machines outside your bank's network
• Overdraft and “non-sufficient funds” fees when you spend more than you have
• Exchange-rate margins and transfer fees when sending money abroad. Compare the full cost, not just the headline fee.

Sending money home

Many newcomers support family abroad. Banks, specialist transfer companies and some apps all offer international transfers, and the cost has two parts: the fee and the exchange rate. A service with a low fee but a poor rate can end up costing more, so compare how much will actually arrive.

Is my money safe?

Deposits at member banks of the Canada Deposit Insurance Corporation (CDIC) are insured up to $100,000 per insured category, per institution. Credit unions are covered by provincial deposit insurers, and limits vary by province.