Did you recently move to Canada and need to open a checking account to receive deposits and international transfers?
Even if there are a lot of administrative processes to do when you arrive, one of your first steps should always be to open an account in a financial institution as soon as you get your SIN number.
But when you’re new here, one of your primary concerns is determining what banks fit your needs and which one can provide expected services.
With plenty of online and brick-and-mortar banks these days, you won’t run out of options.
Some financial institutions even offer exclusive deals for immigrants.
In this article, you’ll learn about these banks, and their newcomer offers, and how you can open a bank account easily as a newcomer.
Why Should You Open a Checking Account Quickly
Moving to a new country is a huge step in life.
Each year, many people move to Canada for multiple reasons, such as working, studying, or settling here.
However, when a newcomer arrives in a completely different country, many administrative tasks must be done first.
One of them should always be to open a checking account in a financial institution for the following reasons.
Receive Deposits
Opening a checking account is essential to getting your employer’s salary as a worker.
While there are other ways to receive the payment from your employer, most companies still prefer making bank deposits as these solutions are fast and secure.
Besides that, even if you work for an international company, you can still receive money in the local currency with your account.
Some financial institutions offer the possibility to also open checking accounts in another currency like American dollars (USD) to help you with your futures transactions.
Make International Transfers
Having an account will also allow you to make international transfers with your loved ones worldwide.
As international transactions can quickly become expensive with unexpected fees, it’s always wise to ask banks directly what their policies are about this.
As you still probably need to make a transfer with your born country, asking about transfer delays is highly recommended as these kinds of payments aren’t dependent only on the banks but also on external partners.
If you choose a good one, you can even negotiate for a limited time free international payments to save money from expensive fees.
I personally use Wise to make all my worldwide transfers.
They are faster, cheaper, and more accessible options simultaneously.
You could even earn up to £500 on your very first transfer by using our exclusive link.
Make Local Transfers With Interac
You could also need to make local payments with ease when you arrive.
It’s handy when you need to buy used products from other people.
With Interac, a national solution to make local transfers, you can easily make your payments at cheap rates.
Many banks’ packages even offer free Interac transfer with your checking account.
You can also plan your payment for a later date.
This solution is also recommended when you must pay your rent as it’s one of the most accessible and secure solutions to use.
Get Cheque Specimens
Finally, by opening a checking account in a bank, you’ll also get cheque specimens that can be requirements for many things and even prove your residence here in Canada.
Furthermore, it could also be handy when you want to open an account in an online bank.
5 Easy Steps To Open a Newcomer Checking Account
For someone who has just arrived in Canada, opening a new account can be stressful considering all the other tasks.
But rest assured, you got covered.
I’ll guide you on the process for a more convenient account opening by following these easy steps.
Determine Your Needs
So the first thing to do before going to a physical branch or applying online is to ask yourself what your needs are for a bank account.
We previously explained some use cases where you could need a specific type of bank account.
But there are many reasons to select one package from a bank or another.
Is your purpose is about saving money?
In that case, you should focus on accounts with no monthly fees at all or with small monthly fees.
As a newcomer, I’m not aware of the possibility of holding an account without any fees.
Still, as soon as you get at least one account in a traditional bank with a cheque specimen, you’ll be able to open a second account with no monthly payments fees in online banks.
In waiting, some institutions will offer you reduced monthly fees on your checking account by opening others services like a credit card or a savings account.
Don’t forget that traditional banks also have a lot of advantages that their monthly fees cover.
So, if you like the comfort of having someone answer your questions fast or know the state of your transfers with ease, you should always opt for a brick-and-mortar bank.
Do you need formal advice or support?
Then, it could be wise to ensure that either your advisor or the support is available when you are available yourself.
Take a look at their available hours before taking a decision, as it can quickly be a requirement, especially when you’re a new immigrant.
Do you need to make significant payments?
With traditional accounts, you should have a maximum limit on the amount that you can daily transfer.
If for whatever reason, you need to do it regularly, then it could be handy to discuss this specific need with an advisor.
Note that some bank advisors can also increase this limit for a limited time.
Once you have determined your purpose, choose the type of account you need.
Select a Bank
Picking up the right bank when you arrive in a completely different country while still learning how things work is not a natural process, so it’s sometimes difficult to know where to start and what are the available options.
So to give you an idea, here are some of the exciting benefits you can fancy as a newcomer.
Royal Bank of Canada (RBC)
- No-monthly-banking-fee for a year
- Speak with support using your language
- 2 free international money transfers
- Free small safe deposit box for up to 2 years
- Free 1 book of 50 cheques for newcomers
National Bank of Canada
- Close your account without penalties for up to 3 years
- Sign up from your country online before arriving in Canada
- Unlimited free online transactions in your first year
- Get your first order of cheques for free
- Free small safe deposit box
- Free and exclusive phone support service
Scotiabank
- Unlimited free international transfers
- Free small safe deposit box for a year
- Personalized support for your preferred language
- Earn a $300 bonus when you meet their requirements
- Transfer your money to Canada, even before landing
Desjardins
- No-fee accounts
- Free basic deposit box for a year
- Free ATM withdrawals
TD Bank
- No chequing account fees on your first year
- Unlimited rebated international money transfers for a year
- $300 bonus (if eligible)
- No ATM withdrawal fees
From this point, let me tell you this.
All these offers suited Canadian new immigrants.
There is no option better than another.
But for your utilization, one could fit better for you.
That’s why I highly recommend you to read these few points to check and ask your bank advisor:
- Initial deposit amount required and monthly maintenance fees
- The debit card associated with your account is allowing online payments or not
- Account activity notifications and alerts
- International transfer rates
- Daily maximum limits
- ATM fees
- Device conversion fees as you could sometimes need to make payments in USD
- Opening hours and availability of your bank advisor and customer service team
- Special promotions when you choose to have multiple products with them
Check for requirements
Now that you finally found the right financial institution, it’s time to know about the account requirements.
You can either visit a branch or do all the processes through your chosen bank’s website.
These are the standard requirements in most Canadian banks for new immigrants:
- Government-issued ID/ Passport
- Permanent resident card or confirmation of permanent residence
- Work permit (for foreign workers)
- Social Insurance Number
- Proof of Enrollment (for international students)
- Minimum Opening Deposit (if required)
Note that the bank will also ask for your other personal information for creation purposes only.
Sign the Consent
As you open a bank account, a service, you have to agree to all the bank’s terms.
So, you need to read the agreement carefully before signing documents or accepting the terms if you register online.
If you want a joint account or you’re a minor, keep in mind that you’ll need the information of your co-owner and adult for ages below 18.
Enjoy Your Account
Once you have finished all the steps above and completed the process, you’re ready to use your account.
If your bank account comes with cheques, they will provide you with cheques to use for payments and a few cheque specimens to not use for payments.
You might also have to wait a few days to receive your debit card by mail or to pick it up in your local bank branch.
However, you can already start funding your account or enroll in online banking.
In addition, you can also sign up for alerts to receive notifications when your balance is running low or when a transaction is successful.
Conclusion
Opening a checking account should always be one of the first steps for a Canadian new immigrant to be able to receive, send and spend money in the national currency when it’s needed.
With one, you’ll be able to make purchases in your favorite store, pay for activities or pay for services with your debit card.
You will also be able to send transfers locally with Interac or internationally.
Don’t hesitate to ping me on Instagram to let me know your choice and what bank you choose at your arrival.
