Welcome to Canada! Banking here works differently than in many countries — and understanding the system early will save you money and frustration. This complete guide walks you through everything a newcomer needs to know: opening an account, using debit and credit cards, sending money, building credit, and avoiding common mistakes.
KOHO is the easiest way for newcomers to start banking in Canada. Open with your passport, get a Visa card instantly, no monthly fees. Use code 45ET55JSYA for $100.
Get $100 with KOHOCanada has one of the most stable banking systems in the world. The major banks (called the "Big Five") are:
There are also credit unions (member-owned cooperatives), online banks like Tangerine and EQ Bank, and fintech services like KOHO. All deposits at CDIC-member institutions are insured up to $100,000.
This is your everyday spending account. You use it to pay bills, receive your paycheck (via direct deposit), make debit card purchases, and send/receive e-Transfers. Most Canadians have a chequing account at their primary bank. Monthly fees typically range from $0 (newcomer packages or no-fee banks) to $30 for premium accounts.
A High Interest Savings Account earns interest on money you're not spending immediately. EQ Bank currently offers some of the best rates at 2.5-3%. You typically can't use a savings account for everyday spending — it's for money you're saving.
A TFSA is a registered account where your investment growth and withdrawals are tax-free. Every Canadian resident over 18 gets contribution room each year ($7,000 in 2026). As a newcomer, you start accumulating TFSA room from the year you become a resident — this is a powerful tool once you're settled.
Debit cards (also called Interac cards) pull money directly from your chequing account. You use them by inserting the chip or tapping (contactless) and entering your PIN. There's no debt — you can only spend what's in your account.
Credit cards give you a credit limit and bill you monthly. Paying your bill in full each month means you pay no interest and build credit history. Credit cards often earn rewards (cashback, travel points). To get a credit card as a newcomer, start with a secured card or a newcomer-specific card.
Interac e-Transfer is how Canadians send money to each other. It's built into almost every Canadian bank's mobile app. To send money, you just enter the recipient's email address or phone number and an amount. The recipient gets an email/text notification and deposits it into their account. Transfers typically arrive within minutes. Most banks allow free e-Transfers in their basic plans.
Your credit score in your home country doesn't transfer to Canada. You start fresh. Here's how to build it quickly:
Canada has a self-reporting tax system. Each year (deadline April 30), you file a tax return with the CRA (Canada Revenue Agency) reporting your income. Your bank sends you a T5 form if you earned $50+ in interest. Key things for newcomers: you may qualify for GST/HST credit and Canada Child Benefit even in your first year — file your taxes to access these benefits.
Major banks charge high fees and poor exchange rates for international transfers. Better alternatives:
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