Which bank account can you recommend in Canada?
Do I need a bank account in Canada?
If you plan to work in Canada, you should open a Canadian bank account because it will make your life much easier. Nowadays, most employers don’t write checks; instead, they deposit wages directly into your account through Direct Deposit. As a result, you’ll need a bank account not just to receive your pay, but also to cover essentials like rent and utilities.
The good news is, opening a bank account in Canada is simple. Walk into a branch, and within 15 minutes, you can walk out with your new account. The bank will hand you a debit card immediately, and they’ll likely offer you a credit card, which they’ll mail to your address.
In some cases, banks may ask you to book an appointment first. Even so, don’t let that discourage you. Visit the nearest branch, and if no slots are available, you can make an appointment on the spot for a later date, or you can try another branch where someone might assist you right away.
Which bank is best?
Since you’ll travel to many different places during your Work and Travel experience, it’s important to choose a bank that operates across Canada and has a wide network of ATMs. To make things easier, look for a bank with national coverage, so you can access your money wherever you go. In general, the largest and most widespread options are the “Big Five” banks in Canada.
No matter what, all major banks offer special newcomer accounts, which typically include no monthly fees for the first year. This means you can manage your finances without worrying about extra charges as you settle in.
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?
Personally, I can recommend the CIBC, where I only have had good experiences. They have branches and ATM machines all over Canada. The CIBC Smart™ Account for Newcomers is free for two years.
If CIBC also offers you a credit card that is free, then choose the one with cashback. You get cashback on gas, groceries, restaurants, and certain % on the rest if you pay by credit card. As soon as you accumulated $10 in cashback you can credit this against the credit card bill. Depending on your spending habits, as much as $300 cashback and more can accumulate throughout the year. It is free ♪♫♪money, money, money♫♪♫
Disclaimer: I might receive a commission if you are using the above affiliate link, but it will not cost you anything. This makes it possible to support all Work and Travellers on the Working Holiday Canada adventure. Thanks a lot for the support.
At CIBC you can earn an additional $450 sign up bonus. (Special Promotion)
All ‘small print’ terms and conditions are on the CIBC website > here < on the bottom.
What is the "Global Money Transfer" from CIBC?
- It is a free way to transfer money to over 50 countries.
- Best and safest option if you don’t want to sign up with third-party providers.
- Minimum amount you can send in one transaction is $100 CDN
- Maximum amount is $30,000 per 24 hours
- The recipient receives the money within 1-3 business days.
- The money is transferred directly to the recipient’s bank account.
How is money transferred within Canada? Do I need the recipient's bank details?
In Canada, you do not need the recipient’s bank details, only their e-mail address. That’s right. Nothing else. It is called “Interac e-Transfer”.
In the online banking app, you select “e-transfer” and, in addition to the amount, also set a password that only the sender and recipient know. The recipient receives an e-mail notification and with the password they deposit the amount right into their account. Super fast and all done within 5 minutes.
Do I have to use one of these "Big Five" banks?
There are some alternative banks in Canada with which you can do everything online. My personal favorites that I use myself. I am very satisfied and feel my money is safe, because they are owned by the major banks:
- Tangerine (owned by Scotiabank)
- Simplii Financial (owned by CIBC)
- EQ Bank (owned by Equitable Bank)
Yay, the first Canadian credit card!
If you plan to immigrate to Canada, or even just stay a little longer, then a credit card is a great way to start building your credit history. This is especially important if you eventually want to finance a car, buy a house, or take out a loan. In Canada, your credit history plays a key role in how lenders assess your financial trustworthiness.
- Also, many Canadian credit cards offer cashback, travel points, or loyalty rewards on everyday purchases.
- Some also come with benefits like travel insurance, extended warranties, or airport lounge access.
- In Canada, renting a car or booking a hotel often requires a credit card, not a debit or prepaid card.
At first, your credit card won’t allow for large purchases, as most newcomers start with a credit limit of around $500. However, if you consistently pay your credit card bills on time, your limit can increase significantly, sometimes tripling within just six months, or even rising to $3,000. Typically, the bank will notify you by mail with an offer to raise your limit.
Here’s something very important to know about credit cards in Canada: Unlike in many other countries, your monthly credit card balance is not automatically deducted from your chequing account. Instead, you must log into online banking and pay the bill manually. For this reason, it’s crucial to register both your debit and credit cards in online banking as soon as you receive them. Also, be sure to switch to online statements under the “Statements” or “Notifications” tab. This way, you’ll get an email each month alerting you that your statement is ready.
Keep in mind that you’ll have a payment deadline, which is usually 21 days after the statement date. (For example, CIBC follows this 21-day rule.) Paying on time not only protects your credit score, but also helps you avoid interest charges.
What very few travellers know! And I learned the hard way.
- Always pay the full amount of the credit card before the due date mentioned in the credit card statement. If you either pay too late, or only a part of the amount, the outstanding amount will accumulate interest with high interest rates. These are 19-25% for pretty much all banks.
- Never withdraw cash with a credit card from an ATM, only with a debit card. If you withdraw cash with the credit card, this amount is considered “cash advance” and interest is charged at the above interest rates.
- Never transfer money to the credit card and then withdraw it or transfer it back to the chequing account. If you transfer money back from the credit card to your bank account, it is also considered a “cash advance” and the bank is going to charge high interest.