Opening a bank account in Canada is usually a quick and simple process. Whether you are a Canadian citizen, a permanent resident, a temporary resident, or a newcomer planning to move to Canada, most major banks allow you to open chequing or savings accounts with a few identification documents.
Canada has a very stable and well-regulated banking system with major institutions like the Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Scotiabank, etc., offering a wide range of personal banking services. These banks also offer specialized banking programs to new residents, such as international students and immigrants, making it easier for them to start managing their finances in the country.
This guide explains how to open a bank account in Canada, the documents required, the types of accounts available, and the best banks to consider.
Key Takeaways: Opening a Bank Account in Canada
Can a foreigner open a bank account in Canada?
Yes. Foreigners can open a bank account in Canada. Many Canadian banks allow foreigners, including permanent residents, international students, and temporary workers, to open accounts either in person (at a branch) or online, depending on the bank’s policies. You will typically need valid identification, immigration documents such as a PR card or study or work permit, and proof of address.
How to Open a Bank Account in Canada
To open a Canadian bank account, you can go to a bank branch and bring valid identification and possibly additional documents, based on your residency status. You will need two pieces of ID, one of which should have your full name and birthdate. Canadian citizens, permanent residents, and temporary residents can provide a Social Insurance Number (SIN) for tax purposes, investment income, and earn interest.
Here is a breakdown:
Meet the qualifying criteria
You must be:
- The sole applicant (unless it’s a joint account)
- Have a valid address. Banks have newcomer programs that may allow you to open an account before arriving in Canada.
- At least 13 years old (or 14 if you’re in Quebec)
- Bringing official photo ID (passport or driver’s license)
Step 1: Choose your preferred Canadian bank
To choose the right Canadian financial institution, compare monthly fee prices, check for everyday banking services, interest rates on savings accounts, and ATM locations. Also, consider the monthly e-transfer fees and whether it has unlimited transactions.
Step 2: Collect the necessary documents
You can set up your new account at the bank, on their website, or over the phone. You will need two forms of identification, such as a valid passport, driving license, or another form of personal identification, and proof of address. You may need to provide a Social Insurance Number (SIN).
Step 3: Select the type of bank account you want to open
You can choose various bank accounts, such as chequing accounts, savings accounts, and special programs. You can even open a separate business account to manage your finances and have multiple accounts based on your needs.
Step 4: Sign the application forms
You must sign a signature card, an account agreement, and other documents based on the account type. You can often use online statements to set up a bank account.
Step 5: Activate mobile and online banking
Visit your bank’s website and register your bank account online. For that, you will need a debit card or a credit card number. After creating a username and password, download the bank’s official app on your smartphone and set up mobile banking.
The Canadian Banking System
The cornerstone of Canada’s banking system is its regulatory framework, which is supervised by the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada. This includes over 65,000 ATMs where you can withdraw money without paying fees. You can also use them to transfer money, pay taxes, or bills.
Canada’s modern banking system is divided into three main categories:
- domestic banks
- subsidiaries of foreign banks, and
- full-service branches of foreign banks.
The presence of international banks, either through subsidiaries or branches, further enriches Canada’s financial landscape. These international banks include the HSBC Bank Canada, Citibank Canada, and ICICI Bank Canada. Major Canadian banks like Scotiabank and Royal Bank of Canada (RBC) have a significant international presence.
Whether you’re a student, worker, or someone considering gaining permanent residency in Canada, opening a Canadian bank account is one of your first and most important financial steps.
Types of Bank Accounts in Canada
There are different types of bank accounts in Canada:
- Chequing accounts: You can use them for everyday banking, like spending, bill payments, and withdrawals. They often have monthly fees, but you can sometimes waive these by maintaining a minimum balance.
- Savings accounts: You can use them to save money and earn interest. However, savings accounts usually have limits on free transactions.
- Registered and long-term savings accounts: Accounts such as Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), and First Home Savings Account (FHSA) are for long-term savings, often with tax benefits. Contributions can reduce your taxable income so that you can save money for your future (like retirement or a first home).
- Specialized accounts: These include student accounts, newcomer accounts, and joint accounts. Newcomer programs often waive fees for a period, allow unlimited transactions, and help with credit building. Students enjoy lower monthly fees, while joint accounts allow two or more people to share the same account and store mutual funds.
- Business bank accounts: These are separate accounts for a registered business. You can use them for record-keeping, tax compliance, and business credit.
You can use this account comparison tool to find the right account for your needs.
Documents Required to Open a Canadian Bank Account
To meet the eligibility criteria, the primary cardholder must provide proof of address and identity. Here is a list of some of the documents to open a bank account in Canada.
– Valid Passport
– Driver’s license
– Temporary resident permit
– Work visa
– Permanent resident card
– NEXUS Card
Proof of address:
– Lease agreement
– Utility bills
– Credit card statements
– Telephone bills
– Employer letter
– Educational institution letter
– Government tax assessments
– Mortgage statements
– Property tax receipt
Opening a Bank Account in Canada for Non-Residents
As a non-resident in Canada, you can open a bank account in person at a local branch or set up an account online. Here are the steps to consider:
In-person
You can open a bank account the old-fashioned way, by talking to a representative face-to-face. To start:
- Choose a bank that offers non-resident services, such as Scotiabank, TD Bank, Royal Bank of Canada, or BMO Bank.
- Talk to a bank representative, ask them any bank account questions, and let them know you want to set up a non-resident account.
- Provide the bank with the necessary documents.
- Provide your signature on all application forms.
- Wait for processing, which in-person can take 30 minutes, especially if you have all the documents.
- Once approved, you may need to provide a minimum direct deposit for some types of accounts.
Online
Digital banking divisions, like Simplii Financial, Tangerine, can help you open an account in Canada remotely. To start:
- Visit the official bank website and create a bank account online.
- Fill out the application forms for online banking.
- Upload digital copies of your passport, utility bills, mortgage statements, or any other documents.
- Wait for processing, which can take from a couple of minutes to a few business days.
- Download the mobile banking app.
How much does it cost to open a bank account in Canada?
You can open personal bank accounts in Canada for free. However, there are monthly fees associated with your account and any other services you may use. Monthly fees for low-cost accounts at banks like BMO, Laurentian, and TD Canada Trust start at around $3.95/month, but many standard accounts cost more.
For example, the best bank accounts at most major Canadian banks, such as Royal Bank of Canada, Toronto Dominion Bank, etc., all offer specialized “Newcomer to Canada” banking packages. They provide lower or waived monthly fees for a period, which can help you save money on a new chequing account.
| Bank account costs at a glance | |
|---|---|
| Monthly fees | $3 to $30 or more |
| Transaction fees | $1.00 to $1.50 per transaction |
| ATM fees | $1.50 to $2.50 (network access fee) $1.50 to $5 (convenience fee) |
| Foreign currency conversion fees | 2.5 percent of the transaction value |
The Best Banks in Canada for Newcomers
| Bank name | Tier 1A capital ratio in percentage | Total asset value (in dollars) | Return on Assets (RoA) percentage | |
|---|---|---|---|---|
| 1 | Royal Bank of Canada | 14.6 | 1.511 trillion | 0.8 |
| 2 | Toronto-Dominion Bank | 14.8 | 2.046 trillion | 0.4 |
| 3 | Bank of Nova Scotia | N/A | 1.412 trillion | 0.8 |
| 4 | Bank of Montreal | 13.27 | 4 trillion | 1.08 |
| 5 | Canadian Imperial Bank of Commerce (CIBC) | 14.8 | 746.88 billion | 0.71 |
| 6 | Desjardins Group | 21.0 | 464. 7 billion | N/A |
| 7 | National Bank of Canada | N/A | 333.83 billion | 0.82 |
| 8 | EQ Bank (Equitable Bank) | 13.2 | 71.5 billion | 0.13 |
| 9 | Laurentian Bank of Canada | 10.9 | 48.8 billion | -0.01 |
| 10 | Canadian Western Bank | 11.9 | 43.1 billion | 0.7 |
Things to Consider Before Opening a Bank Account in Canada
Before opening a bank account in Canada, you should consider the following factors:
- How you plan to use the account: Do you need a bank account for everyday transactions, saving money, paying bills, or receiving income?
- Account fees and charges: Review monthly maintenance fees, transaction limits, ATM charges, and any additional service fees.
- Interest rates: If you are opening a savings account, check the interest rate to understand how much your balance can earn over time.
- Deposit protection: Confirm whether your deposits are protected by the Canada Deposit Insurance Corporation (CDIC), which insures eligible deposits if the bank fails.
Before signing up for any account, ensure you fully understand the associated terms and conditions including any fees that may apply. Ask questions for more clarity and keep a copy of the agreement for your records.
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