Canadian bank account

Which bank can you recommend?

Do I need a bank account in Canada?

If you plan to work in Canada, opening a Canadian bank account is a must. Most employers don’t issue checks anymore—they pay wages through Direct Deposit—so you’ll need an account not only to receive your salary but also to cover essentials like rent, groceries, and utilities.

The good news: opening an account is simple. You can usually walk into a branch and, in about 15 minutes, leave with a new account. You’ll get a debit card on the spot, and the bank will often offer a credit card, which they’ll mail to your address.

Sometimes, a branch may ask you to book an appointment first, but don’t worry. You can either schedule a visit for a later date or try another branch—chances are someone will be able to help you immediately.

Which bank is best?

Since you’ll be travelling to many different places during your Work and Travel adventure, it’s important to choose a bank that operates nationwide and has a large network of ATMs. A bank with Canada-wide coverage makes it easy to access your money no matter where your journey takes you. The most widespread choices are the “Big Five” Canadian banks.

The good news is that all major banks offer newcomer accounts, which usually come with no monthly fees for the first year. This lets you manage your money without extra charges while you settle into life in Canada.

Big Five Banks in Canada

Royal Bank of Canada (RBC)

Toronto-Dominion Bank (TD)

Bank of Nova Scotia (Scotiabank)

Bank of Montreal (BMO)

Canadian Imperial Bank of Commerce (CIBC)

Which bank can you recommend for newcomers?

I personally recommend CIBC. They have branches and ATMs all across Canada, which makes banking easy no matter where you live. Their CIBC Smart™ Account for Newcomers is also free for the first two years, which is a great perk when you’re just getting settled.

If CIBC offers you a free credit card, choose the one that gives cashback. You can earn cashback on everyday purchases like gas, groceries, restaurants, and a small percentage on almost everything else when you pay with the card. Once you’ve accumulated $10 or more, you can apply it directly to your credit card balance.

Depending on your spending habits, you can easily collect $300 or more in cashback over a year. It’s basically free bonus money for buying the things you already need—♫♪ money, money, money ♪♫

What is the "Global Money Transfer" from CIBC?

CIBC’s Global Money Transfer is a no-fee way to send money from Canada to over 100 countries. You can send money directly from your CIBC account, and the funds are deposited straight into the recipient’s bank account (or, in some countries, available for cash pickup).

Key points:

  • No transfer fee charged by CIBC
  • Minimum transfer: $100 CAD
  • Maximum transfer: up to $75,000 per 24 hours (limits depend on the account or card you’re using)
  • Delivery time: usually 1–3 business days
  • Works directly with the recipient’s bank account
  • You need a CIBC account to use it

It’s a convenient and safe option if you prefer not to use third-party money transfer services.

How is money transferred within Canada? Do I need the recipient's bank details?

In Canada, you usually don’t need the recipient’s bank details to send money. All you need is their email address (or mobile number). This system is called Interac e-Transfer, and it’s the most common way Canadians send money to each other.

To send an Interac e-Transfer, you simply:

  1. Open your online banking app.
  2. Choose “Interac e-Transfer.”
  3. Enter the recipient’s email address or phone number.
  4. Enter the amount.
  5. Set a security question and password that only the recipient knows.
  6. Send!

The recipient gets an email or text notification and can deposit the money straight into their bank account—usually within seconds. It’s fast, secure, and works between almost all Canadian banks.

Do I have to use one of these "Big Five" banks?

Not necessarily! While many newcomers default to the major banks, Canada also has several online-only options. 

Two of the most popular online banks are:

  • Tangerine (owned by Scotiabank)
  • Simplii Financial (owned by CIBC)

Both are 100% digital, offer easy remote signup, and are part of Canada’s deposit-insurance system, so your money is protected. 

However, to verify your identity online, Tangerine requires a Canadian government-issued photo ID, such as a Canadian driver’s licence or provincial ID card. Simplii Financial, on the other hand, allows newcomers to open an account using a foreign passport as proof of ID.

Yay, the first Canadian credit card!

If you plan to stay in Canada for a while—or eventually immigrate—a credit card is a smart way to start building your credit history. Your credit history is important in Canada, as it affects your ability to finance a car, buy a house, or get a loan in the future.

Many Canadian credit cards also offer cashback, travel points, or loyalty rewards on everyday purchases. Some cards come with extra perks like travel insurance, extended warranties, or airport lounge access.

Keep in mind that in Canada, renting a car or booking a hotel usually requires a credit card, not a debit or prepaid card, so having one can make travel much smoother.

When you first get a credit card in Canada, your credit limit will likely be small, often around $500 for newcomers. However, if you consistently pay your bills on time, your limit can increase quickly—sometimes tripling within six months, or even reaching $3,000. Banks usually notify you by mail when they offer to raise your limit.

Here’s an important difference from many other countries: in Canada, your credit card balance is not automatically deducted from your chequing account. You must log in to online banking and pay your bill manually.

To stay on top of payments:

  • Register both your debit and credit cards in online banking as soon as you receive them.

  • Switch to online statements under the “Statements” or “Notifications” tab, so you get an email each month when your statement is ready.

Most banks, including CIBC, give you 21 days from the statement date to pay your bill. Paying on time protects your credit score and helps you avoid interest charges.

What very few travellers know! And I learned the hard way.

  • Always pay your credit card in full before the due date on your statement.
    • Paying late or only a portion of the balance will incur high interest, usually 19–25% at most Canadian banks.
  • Never withdraw cash with a credit card at an ATM.
    • This is called a cash advance, and interest starts accruing immediately at the high rates mentioned above.
  • Never transfer money from your credit card back to your chequing account.
    • This is also treated as a cash advance, and the bank will charge high interest from the moment of the transfer.

What about Wise? Can I use it as a bank account?

Wise is great for moving money between countries, but it’s not a full replacement for a Canadian bank account. Here’s why:

  • If your employer pays you by cheque, Wise cannot cash it.
  • Withdrawing cash from Wise incurs fees, so it’s not ideal for regular spending.
  • Wise is not a Canadian bank, so your money isn’t protected by CDIC insurance like it would be at a major Canadian bank.
  • Keeping a large balance in Wise can be risky, as the account could be temporarily locked for various reasons.
  • Wise won’t help you build a Canadian credit history, which is essential for financing a car, phone, or home in Canada.
  • Wise has no perks for daily spending. Many Canadian credit cards offer cashback on everyday purchases, travel insurance, rewards points.

If you plan to stay long-term or immigrate, opening a real Canadian bank account with a credit card is strongly recommended. It provides security, convenience, and helps you start building credit from day one.

Why Wise can be a great option for temporary workers

Even though Wise isn’t ideal as a primary bank account, it can be very useful for getting your tax refund after leaving Canada:

  1. Open a free Wise account >> here <<.
  2. Once your account is set up, you can create Canadian bank details within Wise.
  3. Update your direct deposit information in your CRA (Canada Revenue Agency) online account to your new Wise account details. This ensures you’ll continue receiving payments even after leaving Canada.
  4. You can then close your Canadian bank account and rely on Wise until your tax return is filed and your refund is deposited.
  5. Once the funds arrive in your Wise account, you can transfer them to your home country bank account.

Bonus: >> With this link, Wise waives the fee for your first transfer up to $800 CAD <<, how awesome is that? 

Tip: Check if Wise is available in your country before setting up your account.

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