Best Banks for Newcomers to Canada 2026

Q: Best Strategy for Newcomers Open a Big 5 newcomer account immediately for credibility (landlords, employers) Open KOHO for everyday spending and cash back Open EQ Bank for savings (high interest rate) After 6–12 months, evaluate whether to keep the Big 5 account or switch What Is a Chequing vs. Savings Account in Canada?

In Canada, a chequing account is your primary day-to-day account for receiving pay, paying bills, and making purchases. It typically earns little to no interest but has unlimited (or high) transaction limits.

Banking for Newcomers to Canada: 2026 Complete Guide

Moving to Canada is exciting — but setting up your finances quickly is critical. Without a Canadian bank account, you cannot receive your first paycheque, pay rent, or apply for a SIN number effectively. The good news: Canada's banking system is world-class, and most major banks have dedicated newcomer programs that waive fees and let you apply before you land.

This guide covers every major option for 2026, including which banks accept newcomers with no Canadian credit history, how to open an account from abroad, and which accounts give you the best value in your first year.

Bank	Program	Fee-Free Period	Open From Abroad	Credit History Required
TD Bank	New to Canada Package	Up to 1 year	Yes	No
RBC	RBC Newcomer Advantage	Up to 1 year	Yes	No
Scotiabank	StartRight Program	Up to 1 year	Yes	No
CIBC	Smart Account (Newcomer)	Up to 2 years	Limited	No
BMO	NewStart Program	Up to 1 year	Limited	No
Simplii Financial	No Fee Chequing	Always free	No	No
KOHO	Prepaid Visa	Always free	Yes	No
EQ Bank	Personal Account	Always free	No	No

🇨🇦 Best Bank for Newcomers to Canada

KOHO accepts newcomers with no credit history required. Get a free Visa prepaid card, earn cash back, and start building your Canadian credit profile. No monthly fees.

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Documents You Need to Open a Bank Account

Canadian banks require government-issued ID and proof of address. Requirements vary slightly by bank and whether you apply in-person or online from abroad.

In-Person (After Arriving)

Passport or Canadian PR card
Study or work permit (if applicable)
Confirmation of Permanent Residence (COPR)
Any two pieces of Canadian ID (SIN card, driver's licence, utility bill)

Opening from Abroad (Online)

Passport (scanned copy)
Acceptance letter or visa documentation
Foreign address (temporary, pending Canadian address)
TD and RBC both allow full account opening before you land

Pro Tip: Open your account 2–4 weeks before arriving. This lets you wire money from your home country to fund your Canadian account and avoid being cash-strapped on arrival day.

Big 5 Banks vs. Digital Banks: Which Is Better for Newcomers?

The Big 5 (TD, RBC, Scotiabank, CIBC, BMO) offer newcomer programs with free banking for the first year — valuable because their standard accounts charge $10–$30/month. After the free period ends, fees kick in unless you maintain a minimum balance.

Digital banks like KOHO, Simplii, and EQ Bank charge $0 forever. They lack physical branches but are perfect for day-to-day banking, international transfers, and earning higher interest on savings.

Best Strategy for Newcomers

Open a Big 5 newcomer account immediately for credibility (landlords, employers)
Open KOHO for everyday spending and cash back
Open EQ Bank for savings (high interest rate)
After 6–12 months, evaluate whether to keep the Big 5 account or switch

What Is a Chequing vs. Savings Account in Canada?

In Canada, a chequing account is your primary day-to-day account for receiving pay, paying bills, and making purchases. It typically earns little to no interest but has unlimited (or high) transaction limits.

A savings account is for storing money and earning interest. EQ Bank's savings account currently pays among the highest rates in Canada at 2.5–4%+ depending on the product.

As a newcomer, open both: a chequing account at a Big 5 bank (for salary deposits and bill payments) and a savings account at EQ Bank or a digital provider.

Banking Fees to Watch Out For

Canadian banking can be expensive if you're not careful. Here are the main fees newcomers encounter after the free period expires:

Monthly account fees: $4–$30/month depending on the account tier
NSF (Non-Sufficient Funds): $45–$48 per bounced payment
International wire transfers: $15–$40 per transfer outbound
Foreign currency transactions: 2.5% conversion fee on most cards
ATM fees: $1.50–$5 for out-of-network withdrawals
Overdraft: $5 per occurrence + 21% annual interest

Avoid fees: Use KOHO or Simplii Financial for everyday spending — both charge $0 monthly fees and no foreign exchange markup (with KOHO Premium).

How to Receive Money from Abroad

Most newcomers need to transfer savings from their home country to Canada. Options include:

Wise (formerly TransferWise): Best exchange rates, fees typically under 1%
Remitly / WorldRemit: Fast, mobile-friendly, good for smaller amounts
Bank wire transfer: Reliable but expensive ($15–$40 per transfer)
Xe Money Transfer: No transfer fee, competitive rates for large amounts

For large transfers (over $100 CAD), banks are required to report to FINTRAC. This is routine — keep documentation of the source of funds (savings statements, property sale documents, etc.).

Building Credit as a Newcomer

Canada's credit system is separate from your home country. You start with zero credit history, which makes it harder to get approved for credit cards, car loans, or mortgages. The fastest way to build credit:

Open a secured credit card (KOHO's credit building feature, Capital One Secured, Home Trust Secured)
Use it for small purchases monthly
Pay the full balance every month — never carry a balance
After 6–12 months, apply for a regular unsecured credit card

See our full guide: How to Build Credit as a Newcomer to Canada

Frequently Asked Questions

Can I open a Canadian bank account before arriving? +

Yes. TD Bank and RBC both allow you to open a chequing account online before you land in Canada. You'll need your passport and visa/permit documentation. KOHO can also be opened from anywhere in the world.

Do I need a SIN to open a bank account? +

No. You can open a bank account without a SIN number. However, if you want to earn interest, the bank will eventually ask for your SIN for tax reporting purposes (T5 slip). Get your SIN from Service Canada as soon as possible after arriving.

What is the best bank for newcomers with no credit history? +

KOHO is the easiest to open with zero credit history — it's a prepaid Visa, so there's no credit check. For a full bank account, TD, RBC, and Scotiabank all have newcomer programs that don't require Canadian credit history.

How much money should I bring to Canada? +

Most immigration advisors suggest bringing enough for 3–6 months of living expenses. In Toronto or Vancouver, budget $2,500–$4,000/month for a single person including rent. Bring at least $5,000–$100 CAD to cover first/last month's rent and initial setup costs.

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