Where to start Banking in Canada as a Newcomer?

Published: February 5, 2024

Woman sitting on couch looking at credit card in her left hand while holding a cell phone in her right hand

As a newcomer to Canada, some of the most important things to manage your personal finances, is to plan for doing banking and getting easy access to your money when you need it.

Upon arrival in Canada, one of the most important tasks is to open a bank account. But the options available can make decision-making complicated. Which accounts? Where? Who will best understand your needs as a newcomer? Banking in Canada might be very different from banking in your home country.

This article will try to help you better understand Banking in Canada and where to start as a newcomer!

Know The Accounts You Will Need in Canada

Three important types of accounts in Canada are a chequing account, a savings account, and a credit card. We will explain all three of these in detail below.

Learn more about TD's New to Canada Banking Package

To open these accounts, you’ll first need to provide some basic forms of identification verifying your legal name, as well as your Canadian address and phone number in order to complete your account profile. You will also be asked to show official government identification, such as a passport, driver’s license or another form of government-issued ID, along with your proof of current immigration status in Canada for newcomers.

Here are two simple steps to take to begin banking in Canada:

Step 1: Know the difference between a Chequing and a Savings account in Canada – and how to use them

There are two types of personal deposit accounts in Canada: a chequing account, and a savings account. Most newcomers may want both. Let’s do a quick comparison between the two.

A chequing account is an account used for daily transactions. This includes buying groceries, paying bills, rent as well as auto-deposit transactions such as having your employer deposit your salary directly into your account. Your account can be accessed through a debit card to withdraw cash from Automated Teller Machines (ATMs) or bank branches. Your debit card can also be used to make purchases both at a store or online.

Chequing accounts usually don’t pay any interest on the balance. They may include a monthly fee along with a fee for transactions, such as withdrawals, cheques, bill payments, and purchases etc. A good practice is to look for a chequing account that includes the number of monthly transactions for no additional fee that suits your needs. You can also find some chequing accounts that come with unlimited transactions, such as the TD Unlimited Chequing Account – a great option if you need a lot of transactions each month.

A savings account is used for saving money you don’t need right away. For example, you may wish to save for education, buying a home, paying for a vacation or a wedding, and for when the unexpected happens – like a car breakdown. Unlike chequing accounts, savings accounts do pay you interest. The money you leave in this account will earn interest – that’s extra money that will grow in your account to help you save for your future goals.

You can choose from one of TD’s three savings accounts to achieve your savings goals

Step 2: Apply for a Canadian credit card

A credit card is a payment card generally issued by a bank that can be used to make purchases, pay bills or depending on the card, withdraw cash. When you apply and gets approved for a credit card account, your credit card provider gives you a set credit limit. Based on that limit, your credit card allows you to borrow funds to make purchases and pay for them later by a due date or with interest if paid after the due date.

Getting a Canadian credit card has many advantages. It helps in establishing credit history. Having good credit can help you to secure loans, access competitive mortgage rates, and even improve your prospects as a rental tenant. A credit card can be a helpful tool for building a positive credit history. Having a credit card also makes it easy for you to make purchases and, in some cases, receive rewards on what you spend.

Ready to bank? Learn more about TD's New to Canada Banking Package today.

If you're looking for your first Canadian credit card, it's important to understand how different cards work and how to use them to your advantage.

TD offers a wide variety of credit cards with different perks and exciting rewards.

Above information on basic banking products in Canada and how to apply for them might be helpful in starting your financial journey in Canada.

Why Choose TD?

150 years helping Canadians

TD has a proud history of delivering financial solutions to Canadians for more than 150 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, a reputation for excellence in financial services, and the ability to also serve you in more than 60 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.

TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.

Ready to Bank?

Learn more about TD New to Canada Banking Package today.

Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.

Legal Disclaimer: Information provided by TD Bank Group and other sources in this article is believed to be accurate and reliable when placed on this site, but we cannot guarantee it is accurate or complete or current at all times. Information in this article is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice and should not be relied upon in that regard. This information is not to be construed as a solicitation to buy. Products and services of the TD Bank Group are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this article is subject to change without notice.

® The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.

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