Introduction

Over 430,000 new permanent residents were welcomed to Canada in 2023, with many settling in major cities like Vancouver and Toronto^[1]. One of the first and most important tasks for anyone arriving is setting up a local bank account. You need it to receive your salary, pay rent, and manage daily expenses. Without a Canadian account, you will face high fees for using foreign cards and struggle with basic tasks like getting a phone plan or renting an apartment.

In Vancouver, where the cost of living is high, choosing the right bank account can save you hundreds of dollars in fees during your first year. A good newcomer package also helps you start building a Canadian credit history immediately, which is essential for future goals like renting a better apartment, financing a car, or getting a mortgage. This guide cuts through the marketing to show you exactly which bank accounts offer real value for newcomers in 2025, based on welcome bonuses, fee structures, and credit-building perks.

Think of it like finding the best lunch spot in a new city. You wouldn't just walk into the first place you see. You'd compare prices, check the menu, and read reviews. Choosing a bank account requires the same diligence. A poor choice can drain your funds with hidden fees, while a good one sets a strong financial foundation. For example, after setting up my own account, I used our free income tax calculator to understand my take-home pay, which helped me budget for exploring Vancouver's amazing food scene, from the best Asian lunch spots in downtown Vancouver to cozy spots for Chinese comfort food on a rainy day.

Quick Answer

Best Bank Account for Newcomers Canada

For most newcomers, the TD New to Canada Banking Package offers the best overall combination of a high welcome bonus, a strong no-fee credit card to build credit, and extensive branch access.

The TD package typically includes a $300 cash bonus, 12 months of no monthly fees on a premium chequing account, and approval for a TD Cash Back Visa* credit card with a $1,000 limit without requiring a Canadian credit history. This is a powerful combo to start your financial life. For those who prefer a fully digital experience and want to maximize interest on savings, Tangerine or Simplii Financial are excellent no-fee alternatives, though they lack physical branches. If your priority is accessing a large branch network in Vancouver with personalized newcomer advice, RBC's Welcome to Canada program is also a top contender, often including a safe deposit box and free international money transfers.

Your choice depends on your priorities. If you want cash in hand and a credit card to build your score, TD is hard to beat. If you never want to worry about monthly fees and are comfortable banking online, start with Tangerine. For resources on settling in, the Settlement.Org BC newcomer resources site is invaluable. Remember, you can have accounts at more than one bank. Many newcomers open an account with a big bank for the credit card and branch services, and also open a high-interest savings account with an online bank like EQ Bank.

Summary: The TD New to Canada package is the top pick for 2025, offering a $300 cash bonus and a credit card to build your score from day one. However, your best choice depends on whether you value branch access (TD, RBC) or prefer avoiding fees forever (Tangerine, Simplii). Start by securing your Social Insurance Number (SIN), as it's required for most account openings.

Comparing the Best Bank Account Packages for New Immigrants to Canada

The "Big Five" Canadian banks (RBC, TD, Scotiabank, BMO, and CIBC) all have dedicated programs for newcomers. They understand you are a valuable long-term customer, so they compete with welcome bonuses and perks. However, their packages change frequently, and the fine print matters. Here is a detailed comparison of what each major bank offers for newcomers as of early 2025.

RBC Welcome to Canada Program

Royal Bank of Canada (RBC) has a strong reputation for newcomer services. Their program includes one year of the RBC Signature No Limit Banking account with no monthly fee (normally $16.95/month). You also get a free safety deposit box for one year, which is useful for storing important documents like your passport and immigration papers. A key feature is no fees on your first two incoming international money transfers, which can save you $50 or more if family is sending you funds.

RBC will also consider you for an RBC credit card without a Canadian credit history. The RBC Cash Back Mastercard* is a common offer. While their welcome bonus is often less flashy than TD's, RBC's strength is its extensive network of advisors who specialize in helping newcomers. In Vancouver, you can find RBC branches in most neighborhoods, including busy areas like Metrotown and downtown.

TD New to Canada Banking Package

TD's package is often the most advertised and competitive. The headline offer is a $300 cash bonus when you complete a few simple steps, like setting up direct deposit. You get 12 months of the TD All-Inclusive Banking Plan free (normally $29.95/month), which includes unlimited transactions and a premium credit card annual fee waiver. The bundled TD Cash Back Visa* Infinite card (normally $139/year) is a high-quality card that earns cash back on all purchases.

This package is powerful because it addresses two critical needs at once: daily banking and credit building. The $1,000 starting credit limit is standard. TD also has a vast branch network with long hours (many are open 8am-8pm and on weekends). For a newcomer working odd hours, this accessibility is a major plus. Just be prepared to switch to a lower-fee account or meet the minimum balance requirement ($5,000) before the 12-month free period ends to avoid the high monthly fee.

Scotiabank StartRight Program

Scotiabank's StartRight program provides 12 months of no monthly fees on their Ultimate Package account (normally $30.95/month). They frequently offer a welcome bonus, such as 30,000 Scene+ points (worth about $300 towards movies, dining, and groceries) or a $300 cash bonus. A unique perk is that they offer a free small safe deposit box for three years.

Scotiabank is also known for its partnerships. They may offer special deals on remittances through Scotia Global Money Transfer. For credit, they typically pre-approve newcomers for a Scotia Momentum Visa* card. One thing to note is that to keep the Ultimate Package free after the first year, you need to maintain a $5,000 minimum daily balance, which can be a challenge for some.

BMO Performance NewStart Program

Bank of Montreal (BMO) sometimes has the most generous cash bonus. Their current offer requires a minimum deposit (e.g. $1,000) and setting up a direct deposit to qualify for a $400 welcome bonus. You receive 12 months of the BMO Premium Plan account free (normally $16.95/month). This account includes unlimited transactions and a fee waiver for a premium BMO credit card.

BMO also offers the BMO NewStart Program, which can help you get a credit card and a small loan or line of credit to build credit faster. Their newcomer seminars, often held in community centers, are a helpful resource. In Vancouver, BMO has a significant presence, making it easy to find a branch.

CIBC Smart for Newcomers

CIBC's Smart for Newcomers package gives you 12 months of the CIBC Smart Account free (normally $4.95-$16.95 depending on transactions). They offer a tiered welcome bonus: you can get up to $400, with $100 for opening the account and another $300 for setting up a recurring direct deposit of at least $100 for three consecutive months. This incentivizes you to use the account as your primary bank.

CIBC also provides a credit card opportunity through the CIBC Dividend Visa* Card. A useful feature is their partnership with Western Union for low-cost international money transfers. For newcomers who plan to send money home frequently, this can be a deciding factor.

Summary: The Big Five banks all offer 12-month fee waivers and credit card opportunities, but their bonuses differ. TD offers a straightforward $300 bonus, while BMO and CIBC can provide up to $400 with conditions. RBC focuses on service and extra perks like free safe deposit boxes. Always check the latest offers online or in-branch, as promotions change quarterly.

Opening a Bank Account in Canada: A Step-by-Step Guide for Newcomers

The process of opening your first Canadian bank account is straightforward if you have the right documents. You can often start the application online, but you will usually need to visit a branch to finalize it and show your original identification. Here is exactly what you need to do, from preparing your documents to walking out with an active account and debit card.

Step

1: Get Your Social Insurance Number (SIN) Your Social Insurance Number (SIN) is a nine-digit number issued by the Canadian government. It is required for working and accessing government benefits. While some banks may let you open an account with just your passport and proof of address, you will need your SIN to apply for a credit card or to set up direct deposit for your job. You can apply for your SIN online through Service Canada or at a Service Canada Centre. Bring your Confirmation of Permanent Residence (COPR) or work permit. This should be one of your first tasks after arriving.

Step

2: Gather the Required Documents Banks in Canada are regulated by the Financial Consumer Agency of Canada (FCAC) and require specific documents to verify your identity and status. You will need two things:

1. Primary Identification: This proves who you are. Acceptable documents include your valid passport, your Permanent Resident (PR) card, or your Confirmation of Permanent Residence (COPR) document.
2. Proof of Canadian Address: This is often the trickiest part for newcomers. Banks need to see a document with your name and a Canadian residential address. Acceptable documents include:

• A rental agreement or lease.
• A utility bill (e.g. electricity, gas, internet) in your name. You may not have this immediately.
• A letter from a recognized institution (like a government agency, college, or employer) sent to your address.

If you don't have proof of address yet, speak to the bank. Some may accept a letter from your employer or your educational institution. Others might allow you to use the address of a friend or family member with their consent, but this is less common.

Step

3: Choose and Apply With your SIN and documents in hand, you can choose a bank. Review the comparison table above. I recommend visiting bank websites and looking for their "Newcomer to Canada" pages. You can often begin an application online, which saves time at the branch. When you apply, you will be asked about your employment, income, and the purpose of the account. Answer honestly. Once your online application is submitted, you will typically be asked to book an appointment at a branch to complete the process.

At the branch, a representative will review your original documents, finalize your account opening, and order your debit card. They will also discuss your credit card application. You will usually get a temporary debit card or access information immediately, with your permanent card mailed to your address within 5-10 business days. Set up online and mobile banking before you leave.

Summary: To open an account, secure your SIN first, then gather your passport and Canadian proof of address. You can start applications online, but a branch visit is usually required to show original documents. If you're struggling with proof of address, explain your situation to the bank advisor, as they often have solutions for newcomers.

Building Your Canadian Credit Score from Day One with Your New Bank Account

A Canadian credit score is a numerical representation of your creditworthiness, ranging from 300 to 900. Landlords, cell phone companies, and future lenders all check this score. As a newcomer, you have no credit history here, so your score starts at zero, not 300. This makes getting approved for services difficult. The credit card component of your newcomer banking package is the primary tool to build your score quickly and correctly.

How the Newcomer Credit Card Works

When a bank like TD or RBC approves you for a credit card as part of their newcomer package, they are using your immigration status and documents as a substitute for a Canadian credit history. They typically start you with a low limit, often $1, 000. This card is your key to building a credit file. The most important rule is to use it responsibly. This means charging small, regular expenses you can afford to pay off in full every month, like groceries, transit passes, or a meal from The Storm Cafe when you're too busy unpacking to cook.

Never miss a payment. Set up automatic payments from your chequing account to pay at least the minimum balance, but ideally the full statement balance, by the due date. Payment history is the single biggest factor in your credit score, accounting for 35% of it. Using less than 30% of your credit limit (so, under $300 on a $1,000 card) also shows you are not overly reliant on credit. After 6-12 months of consistent, on-time payments, you will have established a good credit history, making it easier to get approved for other things.

Additional Ways to Build Credit

Your first credit card is the main tool, but you can supplement it. Some phone companies offer plans that report your payments to credit bureaus. Alternatively, consider a secured credit card from Capital One or Home Trust if you are not approved for a regular newcomer card (though this is rare with the big bank programs). Another advanced strategy is getting a small credit-builder loan from a credit union, but focus on the card first.

Once you have a score (usually after 6 months), you can check it for free through services like Borrowell or Credit Karma. This helps you track your progress. A good credit score will make life in Canada smoother and cheaper. It can mean the difference between paying a large deposit for a phone plan or getting approved with no deposit, and it's important when you're ready to sign a lease on a new apartment. Use our free rent affordability calculator to see how much you can comfortably spend on housing as your income grows.

Summary: The credit card from your newcomer package is essential for building credit. Use it for small, regular purchases and pay the full balance on time every month. Keeping your usage below 30% of the limit and maintaining a perfect payment history for 6-12 months will establish a solid credit foundation, making future applications for apartments and loans much easier.

Why Online Banks Are a Smart Second Account for Newcomers in Canada

While the Big Five banks are great for getting started, online-only banks (also called digital banks) should not be ignored. They have no physical branches, which means they have lower overhead and pass those savings to you in the form of no monthly fees and higher interest rates on savings accounts. For a newcomer managing a tight budget, these accounts are perfect for holding your emergency fund or saving for short-term goals.

Tangerine and Simplii Financial: The No-Fee Champions

Tangerine (owned by Scotiabank) and Simplii Financial (owned by CIBC) are the two largest no-fee digital banks. They offer chequing accounts with unlimited free transactions, free Interac e-Transfers, and no minimum balance requirements. This means you never have to worry about a monthly fee eating into your budget. They often run promotions for new customers, such as Tangerine's common offer of a $200 cash bonus when you open an account with a referral code and set up direct deposit.

The catch? No branches. All service is done via phone, chat, or email. You can use Scotiabank's ABMs for free if you're with Tangerine, and CIBC machines for free if you're with Simplii. For many tech-savvy newcomers, this is a fair trade-off. These accounts are ideal as a secondary account where you keep your daily spending money, while your main Big Five account handles your payroll deposit and credit card payments.

EQ Bank and Wealthsimple Cash: For Maximizing Savings

If your goal is to earn interest on your savings, look at EQ Bank and Wealthsimple Cash. EQ Bank's Savings Plus Account often has one of the highest everyday interest rates in Canada (e.g. 2.5-4.0%, depending on the rate environment). It also includes free Interac e-Transfers and bill payments. It's not a traditional chequing account (no debit card for in-store purchases), but it's fantastic for parking your savings.

Wealthsimple Cash is a hybrid product that acts like a chequing account with a high interest rate on all balances. It comes with a prepaid Visa card you can use anywhere. Wealthsimple is particularly popular with younger newcomers and investors. Neo Financial is another digital player that offers cash back on purchases made at specific retailers through its prepaid Mastercard. These digital tools are great for managing money once you're settled. After you've built your credit, you might use the cash back to treat yourself to a late-night food run in Vancouver without guilt.

Summary: Online banks like Tangerine and Simplii offer permanent no-fee banking, while EQ Bank and Wealthsimple provide high interest on savings. They are excellent as secondary accounts for daily spending and saving goals. However, due to a lack of branches and newcomer-specific credit products, they are best used alongside a traditional big bank account when you first arrive.