How to choose the best bank in Canada for you

Banking in Canada is reliable and convenient, though not always free. With some research, you can find out which is the best bank in Canada for you.

It’s becoming more common to offer free banking for your first year, so shop around and don’t be afraid to say you will bring your business elsewhere.

Before you decide on a preferred bank, take into consideration which branches are convenient to your home and place of work, what their opening hours are, and who offers the best credit cards in Canada for your needs.

First things first: you’ll (hopefully!) have some money you’ll be looking to transfer into your new account.

CurrencyFair and TransferWise are two of the best ways to arrange an international money transfer, and both companies are offering discounts to Moving2Canada customers.

You can learn more about them, and your other options, in our international money transfer guide.

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BMO

BMO is Canada’s oldest bank and older than Canada itself! It has 200 years’ experience in helping newcomers settle and get their new life started in Canada. Their NewStart program offers newcomers arrived in Canada within the last five years 12 months free banking with no minimum balance required as well as a free safety deposit box, unlimited electronic and Interac E-transfers.

Find out more about what BMO offers here.

HSBC

HSBC Bank Canada is part of the global HSBC network, with a footprint in many countries across the globe. Their 130+ branches are predominantly located in Canada’s major cities. They offer a service called “Global view”, which is a big draw for people who already have HSBC accounts in other countries, and makes accessing and transferring their money between their personal HSBC accounts worldwide simple.

The “HSBC Canada Newcomers Program” offers a range of services and savings specifically tailored to newcomers and is valued up to $700.

Find out more about banking with HSBC in Canada. 

National Bank

The National Bank of Canada is the sixth-largest commercial bank in Canada. It is headquartered in Montreal and has branches in most provinces, although it does not have as many branches as its competitors outside major urban centres outside the province of Quebec. If, however you are planning on moving to Quebec, National Bank is in fact the largest bank in the French speaking province (where it is called Banque Nationale du Canada). National Bank offers newcomers a tailored package of services valued at up to $600. Newcomers who choose to go with National Bank will also benefit from a year of access to their Assistance service for newcomers.

Find out more about banking with National bank.

Tangerine

Tangerine’s biggest selling point is its no-fee banking. It offers chequing accounts (known as ‘current accounts’ in other countries) which pay interest to the customer. The average Canadian will spend $220 in fees each year, and Tangerine helps customers avoid these.

And because they’re a subsidiary of Scotiabank, you can still have free access to Scotiabank ATMs all over Canada. You may still wish to open an account like the Scotiabank or BMO ones above however, as Tangerine accounts cannot accept some types of international money transfers.

But they remain a good choice for many newcomers to Canada who are looking to save money. You can find out about the Tangerine chequing account here.

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When choosing which is the best bank in Canada for you, be sure to learn about how your bank deals with each of the following.

Banking fees

Many banks charge you to have a checking or chequing account (known in other countries as a ‘current’ account).

Fees range from $5 to $30 per month, depending on the number of monthly transactions you wish to make. You may be able to have these fees refunded if you maintain a sizeable balance, usually at least $1,000. In any case, do some research and see which is the best bank in Canada for your circumstances.

Cheques

Cheques (spelled ‘checks’ in the US) remain a popular payment method in Canada. This comes as a surprise to many newcomers travelling from countries where these have been largely phased out.

Many employers will request a ‘void check’ at the beginning of your employment. This is because it will contain the bank details they require to transfer money to your account. A void check is simply a check with the word ‘void’ written across it. Your bank may give you some of these for free when you open your account.

Check books are often required for paying rent. It can cost up to $40 for a book of 100 cheques, so be aware of these costs when choosing the best bank in Canada for you.

ATM charges

You will usually be able to use ATMs belonging to your own bank without being charged. However, if you use another bank’s ATM, then you will usually incur a fee for each transaction.

If you use an ATM machine that does not belong to a bank (e.g. a privately-owned ATM at a bar or restaurant), both the ATM machine and your bank will charge you fees.

Using these privately-owned ATMs is very expensive. It could cost as much as $4 or $5, so try to avoid using them.

When deciding which is the best bank in Canada for you, keep in mind whose ATMs are close to you, and your work.

Debit cards

So long as you don’t exceed the number of monthly transactions permitted by your bank, debit cards can be used almost everywhere without any additional fees. Canadians tend not to carry much cash as a result.

Interac e-transfer

The Interac e-transfer system (pronounced “Inter-ack”) is a collection of banks and merchants who all use the same payment system.

Money can be transferred online simply by entering the receiver’s email address – you don’t need the other person’s bank details.

Both parties must have a Canadian bank account that has Interac email transfer capabilities. It costs $1 per transfer.

Interac proper is the Canadian debit system which all debit card issuers offer. However, some institutions will also offer Visa or Mastercard debit on top, which has the advantage of worldwide acceptance.

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While these options are free at first, bear in mind the above points about access to ATMs and branches. They may not be the best bank in Canada for you if you have to pay fees to use other banks’ ATMs.

In Vancouver, a free checking account is available from Coast Capital Credit Union (customers can use Coast Capital ATMs and HSBC ATMs free of charge).

Simplii offer free banking in Canada, unlimited transactions, free cheque books. It’s an online bank, and you use CIBC cash points free of charge.

Tangerine offers fee-free chequing and savings accounts, and they’ll even pay you a small amount of interest. They operate almost entirely online, which can be convenient for many.

It’s worth considering who offers the best credit cards in Canada for your needs when choosing a bank. Whether you avail of a credit card is up to you, however you should note that credit rating is considered important in Canada and using a credit card responsibly and always paying your bill on time will go some way to starting to build your all-important credit score.

There’s a multitude of credit card options depending on your needs, and your bank itself will likely have many options that could suit you. Credit cards in Canada are often grouped into the following broad categories: No Annual fee, and those with an annual fee but that also offer rewards or perks.

The rewards offered by these types of credit cards can be Cashback or points earned on your purchases that can be redeemed for products, airline travel, or even cinema tickets. Usually the tastier the rewards attached to the credit card, the higher the annual fee will be, so be sure to check the fine print to avoid any surprises.

Although some cards may have an annual fee, they can often offer attractive perks like travel insurance, extended warranties on purchases or a special kind of insurance when you rent cars called ‘auto collision waiver’. These perks can make the annual fee pay for itself but will depend entirely on your usage and individual needs.

If air travel is your thing and you want to get the best value out of your long-haul trips back home to see your family and friends, you may want to consider a credit card associated with one of the major airline loyalty programs such as Aeroplan (who are affiliated with Air Canada),  AirMiles (who support many major airlines) or Westjet Rewards (a growing domestic carrier with new international routes).

All the banks we have provided links to above offer a range of credit card services which help newcomers to build their credit history at a low cost. Click the banners and links above to research their newcomers’ products and see if theirs are the best credit cards in Canada for you.

Just as your research about the best bank accounts should be thorough, so too should your research on the best credit cards in Canada.

Researching the best credit cards in Canada for you

You can learn which are the best credit cards in Canada for you by understanding how much you can expect to pay, what value you can get in return. Here are five simple things you’ll need to figure out:

1. Read the terms and conditions carefully. Understand what the the consequences will be if you don’t pay off your bills on time.

2. Ask to see a fee schedule so you know exactly how much you can expect to pay. Learn what their interest-free grace period looks like – in other words, the period of time after making a purchase during which no additional charges are incurred.

3. Research what incentives or rewards are on offer. The best credit cards in Canada (or certainly the most competitive ones) will have generous programs for its customers. Ask how quickly they can be obtained, and what conditions need to be met to unlock them. Find out if the rewards are revoked in cases of late payment, or any other reason.

4. Inquire whether a deposit is required, and if so, when will you get it back.

5. Ask about their fraud protection policies, and what will happen if there is unauthorized spending being made with your card.

Using international cards

International bank cards will not always work, so please check with your local bank first. You may need to give them advance notice of your travel plans.

Using cash advance on your foreign credit card is also costly as you pay cash advance fees and exchange rate fees. Try taking out large amounts at one time to save yourself from getting charged a lot of fees.

And to avoid confusion at the counter…

The process of putting money into your bank account is known as a ‘lodgement’ in some countries (e.g. Ireland, UK). This term is not widely used in Canada. Instead, Canadians call them ‘deposits’.

• Read: Learn how to shop around for other utilities in Canada

You’ve now learned more about choosing the best bank in Canada and the best credit cards in Canada. You can also save yourself time and money by getting your travel insurance (which is mandatory for IEC work permits) and resume arranged early. See our guides for more.