How to open a bank account in Canada as a newcomer

Types of bank accounts in Canada

Two main types of bank accounts can be found in Canada: chequing accounts and savings accounts. Chequing accounts are good for day-to-day transactions, including cashing your paycheque or having it deposited automatically. You’ll often receive cheques and a debit card along with the account.

There’s often a fee for the use of a chequing account but it varies depending on things like your account balance and number of transactions per month. Aside from traditional chequing accounts, you can also find specialized ones geared at certain age groups or demographics, such as youth/students, newcomers and seniors.

Savings accounts are designed to help you save and grow your money. Which is why they usually come with higher interest rates as compared to chequing accounts. Beyond traditional savings accounts, there are other savings accounts that are focused on helping you grow your savings.

For example, there are high-interest savings accounts which, as the name implies, carry an even higher interest rate, among other features. And there are registered savings accounts, such as a tax-free savings account (TFSA), which offers tax-sheltered options (i.e., it’s not taxed in Canada when you withdraw funds). Keep in mind these other options require you to present a social insurance number at your bank to open the account.

As we’ll see below, newcomers to Canada often open both chequing and savings accounts as they each provide distinct benefits to help you manage your money.  

BMO offers a newcomer bank account to make money management easier for anyone who’s arrived within the last five years.

How to open a bank account in 5 easy steps

If you’re a newcomer to Canada and are ready to open a bank account in Canada, here’s how to get started.

Step 1: Research your banking options

Start your journey by researching Canadian banking options online, or in person at a local branch. Here are some things to look out for:

• What bank account options are available? (For example, chequing and savings accounts)
• Are there any fees to be aware of? (such as maintenance fees, foreign transaction fees, overdraft fees, etc.)
• How user-friendly is it? (For example, is there a mobile app or easy-to-use website)
• How many branches or ATMs are accessible nearby?
• What are the eligibility requirements?
• How can I deposit or transfer money? (BMO offers international money transfer options for eligible destinations. Fee, exchange rates, limits and conditions may apply)
  

Reviewing various options and answering these questions can help you find the right fit for you. Under the BMO NewStart^® Program, you can get two years of no monthly fee banking with the Performance Plan chequing account.

Step 2: Choose your bank account in Canada

After doing your research and comparing various bank account options, choose the one that works best for you. Before opening an account, however, make sure you meet the eligibility requirements.

The good news is that, as a newcomer to Canada, you simply need identification to get started. You won’t be disqualified from opening a bank account if you’re unemployed, have experienced bankruptcy, or don’t have funds to transfer to the account right away.

After you’ve chosen the financial institution, consider opening both chequing and savings accounts.

With a chequing account, you can:

• Deposit income earned
• Use a debit card to pay for day-to-day expenses like groceries
• Write a cheque for rent that uses money from your chequing account
• Retrieve cash from an ATM

With a savings account, you can:

• Save for a rainy day
• Have a buffer of cash for emergencies
• Plan for short and long-term goals like travel, a down payment, and more
• Earn interest on your deposits

Remember: your chequing and savings accounts can work together and help you get a fresh start in Canada. The chequing account helps you manage money in your day-to-day life, while your savings account helps you prepare and plan for the future.

Step 3: Gather the appropriate documentation

You can choose from various types of identification when opening a bank account in Canada. But they must be original, not photocopies.

For example, if you’ve already moved to Canada you can use:

• Your Canadian Permanent Resident Card
• The Immigration, Refugees and Citizenship Canada (IRCC) form

Also, be sure to bring a piece of government ID, such as your passport or a Canadian driver’s licence.

If you’re opening a bank account in Canada prior to moving here, you may use:

• Your passport from your home country
• The Immigration, Refugees and Citizenship Canada (IRCC) form

The documentation required may vary by bank and can change based on your situation (the process may be different for international students or foreign workers, for example) so make sure to ask your financial institution for their requirements.

Once you have paperwork set, it’s time to open a bank account in Canada.

Step 4: Open a bank account in Canada

Now that you’ve done your research, chosen a financial institution, and gathered your documents, it’s time to actually open a bank account in Canada.

As a newcomer to Canada, you may need to go in person to open a bank account. You can find a BMO branch using our locator to get started.

After opening a bank account in Canada, be sure to keep any important paperwork and get the tools that are necessary to manage your account, including:

• A debit card, for day-to-day spending and getting cash
• A chequebook for writing cheques for things like rent
• A Personal Identification Number (PIN), which is a 4-digit number that adds a layer of security when you use your debit card
• Website account log-in information (you can create a username and password online)
• The mobile app, if applicable

Step 5: Manage your bank account in Canada

After you open your bank account in Canada, it’s time to manage your money and keep your accounts safe and active.

Your debit card allows you to make deposits and withdraw cash at ATMs, pay for everyday expenses, and review your account balances.

For your convenience, with a BMO bank account, you can also manage your money online or through the mobile app. You can access your account from the comfort of your own home or while on the go. Review your account balances, make transfers, pay bills, and see your transactions. You can even manage your bank account in Canada with BMO using your telephone by calling 1-800-363-9992.