Newcomer’s Guide to Canadian Banking: Accounts, Fees, and Your First 90 Days
Arriving in Canada is exciting—and a little overwhelming. The fastest way to feel settled is to set up your money life quickly and confidently. This guide walks you through how Canadian banking works, which accounts to open, how to avoid unnecessary fees, and how to build your credit history. Follow the steps, and in your first 90 days you’ll have a streamlined system that supports your new life in Canada.
Where to bank: Big banks, credit unions, or digital?
Canada’s “Big Five” banks have branches everywhere, broad ATM networks, and newcomer packages with fee waivers and credit card offers. Credit unions are member‑owned, often with competitive fees, strong customer service, and local roots. Digital banks typically offer no‑fee chequing, higher interest on savings, and free Interac e‑Transfers, but no physical branches. Many newcomers choose a hybrid: a big bank chequing account for cash deposits and in‑person needs, and a digital bank high‑interest savings account for emergency funds and short‑term goals.
Chequing vs. savings: The foundation
A chequing account is for everyday transactions: paycheques, bill payments, Interac e‑Transfers, and card purchases. Watch for monthly plan fees, ATM network rules, and e‑Transfer limits. A savings account should pay you interest and act as a buffer; don’t leave large balances in chequing just to avoid fees—move surplus cash to high‑interest savings where it works harder.
Cutting fees and maximizing value
Newcomer packages may waive monthly fees for the first year and include a credit card with no annual fee. Always check the fine print: minimum balance requirements, the number of free transactions, and non‑network ATM charges. If your bank charges for e‑Transfers after a limit, switch to a plan that includes unlimited transfers or move frequent transfers to a digital bank with no fees. Ask about student, newcomer, or professional discounts—many offers are not advertised loudly.
Interac e‑Transfer: Canada’s everyday money rail
Interac e‑Transfer is the default way Canadians send money to friends, landlords, and small businesses. Set up AutoDeposit to reduce the risk of interception and to receive funds instantly. Confirm transfer limits for large transactions like rent deposits. For international transfers, compare bank fees with specialized remittance services; sometimes you’ll secure better exchange rates and lower costs outside your bank.
Holds, deposits, and ID
Banks may place holds on cheques and large deposits—this is normal. Ask your branch about hold policies and how to expedite access (building a track record helps). Keep acceptable ID handy: passport, Canadian immigration documents, and proof of address such as a lease or utility bill. If you don’t yet have Canadian bills in your name, ask your landlord or employer for a letter confirming your address.
Overdrafts and credit lines
Overdraft protection prevents declined payments when your chequing account is short, but it’s a loan with interest or fees. A personal line of credit may offer a lower rate for short‑term borrowing and is preferable to carrying a credit card balance. If you use either, create a plan to repay quickly—interest can add up.
Start your credit history deliberately
In Canada, credit is a cornerstone of financial life. If you lack Canadian history, begin with a no‑fee card or a secured card (you provide a refundable deposit). Charge a small recurring bill—like your phone plan—and pay the statement in full each month. After six to twelve months of on‑time payments and low utilization (keep balances under 30% of your limit), you can request a limit increase or apply for a second card to expand your profile. Monitor your reports with Equifax and TransUnion to verify accuracy.
The essential 90‑day setup checklist
- Open a no‑fee or fee‑waived chequing account and a high‑interest savings account.
- Enroll in online banking, set strong passwords, and enable two‑factor authentication.
- Set up direct deposit for your paycheque and government benefits.
- Enable Interac e‑Transfer AutoDeposit and learn your transfer limits.
- Apply for a no‑fee or secured credit card; set up autopay for the full balance.
- Build a starter emergency fund—aim for $1,000 quickly, then three months of expenses.
- Create a simple budget and automate transfers to savings on payday.
- Register for CRA My Account to manage taxes and benefits online.
- Update your address across accounts to ensure you never miss a bill.
- Save your banking agreements and fee schedules in a secure folder for reference.
Scams and security: Protect your money
Canada is generally safe, but phishing, SIM‑swap attacks, and fake job or rental listings do happen. Your bank and the CRA will never ask for passwords or demand payment in gift cards or crypto. Use unique passwords and a password manager, add 2FA everywhere, and set up real‑time banking alerts. For e‑Transfers, Autodeposit reduces the chance of interception. If you suspect fraud, contact your bank immediately and file a report with the Canadian Anti‑Fraud Centre.
Beyond the basics: Registered accounts
Once your money system is stable, learn about registered accounts that deliver tax advantages. A TFSA lets you invest or save with tax‑free growth and flexible withdrawals. An RRSP gives you a tax deduction now and defers taxes until retirement. If homeownership is a goal, Canada’s First Home Savings Account (FHSA) combines tax deductions with tax‑free withdrawals for a first home. You don’t need to open everything at once—add these when your budget is consistent and your emergency fund is growing.
Your new normal
Canadian banking is designed to be convenient—once you set it up. Pair a fee‑friendly chequing account with a high‑interest savings account, automate the right tasks, and build your credit with small, predictable transactions. In 90 days, the basics will run on autopilot, freeing your energy for the goals that brought you to Canada in the first place.