Banking Basics for Newcomers to Canada

When you arrive in Canada, there are many everyday tasks to take care of. You’ll likely be looking for a place to live, setting up a phone plan, or registering for essential services. Opening a bank account is often one of the first steps.

Banking in Canada may work differently from what you are used to. Account types, identification requirements, and payment methods may not be the same as in your home country. As you review your options, you may wonder which bank may best support your needs as a newcomer to Canada. Some financial institutions offer programs, tools, and guidance designed specifically for people who are new to the country.

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Opening a bank account may help you receive income, pay bills, and manage everyday expenses. Taking time to understand how banking works in Canada may help you make informed decisions as you settle in.

This article outlines key considerations to help you get started.

Bank Accounts in Canada: Which Ones Will You Need?

Bank accounts may go by different names, and that may feel confusing at first. In Canada, there are three important types of accounts you may consider.  These include a chequing account for everyday transactions, a savings account for setting money aside, and a credit card to help build a Canadian credit history. Each serves a different purpose, which we will tell you about below.

Before opening an account, you will need to provide identification to confirm your legal name and status in Canada. Financial institutions typically require government-issued photo identification, such as a passport or driver’s license. You will likely need to provide documents related to your immigration status, such as landing documents, a study permit, or a temporary resident visa. Proof of your Canadian address and phone number may also be required to complete your profile.

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Understanding Different Bank Accounts and Credit Cards in Canada

When you begin banking in Canada, you will likely encounter three core financial tools: a chequing account, a savings account, and a credit card. Each serves a different purpose in managing your money.

1. Chequing Accounts: Managing Daily Transactions

A chequing account is typically used for everyday banking. You can use it to receive your salary through direct deposit, pay rent and bills, shop in stores or online, and withdraw cash from an ATM or bank branch using a debit card.

Chequing accounts generally do not earn interest. Depending on the account, there may be a monthly fee and transaction limits. Some accounts include a set number of monthly transactions, while others may offer unlimited transactions. For example, the TD Unlimited Chequing Account.

When choosing a chequing account, it may help to consider how often you expect to use it and what services matter most to you.

2. Savings Accounts: Setting Money Aside

 A savings account is typically used for money you do not plan to spend right away. You may choose to save for education, a home, travel, a major purchase, or unexpected expenses.

Unlike most chequing accounts, savings accounts generally earn interest. This means the money you leave in the account may grow overtime. Because savings accounts are designed for short-to long-term goals, they are often used less frequently for everyday transactions. Depending on the account, there may be a transaction fee for exceeding your account's monthly limit of transactions.

TD offers several savings account options to support different savings needs and preferences:

• TD Every Day Savings Account: A simple, no-monthly-fee savings account designed for everyday saving with flexible access to your money when you need it.
• TD Growth Savings Account: A savings account that offers competitive tiered interest rates, helping your savings grow faster as your balance increases.
• TD ePremium Savings Account: Designed for customers with larger balances, offering a higher interest rate when you maintain a qualifying minimum amount.

Reviewing features such as transaction limits, access options and minimum balance requirements can help you choose the savings account that best aligns with your financial goals.

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3. Credit Cards: Building Credit in Canada

In addition to deposit accounts, many newcomers choose to apply for a Canadian credit card. However, individuals who are New to Canada may not yet have an established Canadian credit history and may not qualify for every type of credit card right away.

A credit card allows you to make purchases within an approved credit limit.  You borrow funds up to that limit and repay them according to the card’s terms. In this way, a credit card functions as a short-term borrowing tool.

Establishing a credit history is an important part of financial life in Canada. A positive credit record is often considered when applying for a mortgage, personal loan, or rental housing. Using a credit card responsibly may help you begin building that history.

Credit cards may also offer features such as rewards or purchase protections, depending on the card. If you are considering your first Canadian credit card, it may be helpful to compare options and understand how repayment and interest work.

TD offers a range of credit cards with different features and benefits to choose from.

Choosing a Bank in Canada

As you consider where to begin your banking journey, you may wish to explore options designed specifically for newcomers.

TD offers the TD New to Canada Banking Package, created to support eligible newcomers. The package brings together savings and benefits across chequing accounts, savings accounts, credit cards, and International Money Transfers, helping simplify your first steps in Canadian banking. You can review the details of the TD New to Canada Banking Package here. https://www.td.com/ca/en/personal-banking/products/banking-offers-for-newcomers

After arriving in Canada, you can book an appointment with a TD Personal Banking Associate to open your accounts and discuss your options. They can review products, answer questions, and help you understand how different services work. You can check the TD branch locations to find one close to you.

Support is also available in multiple languages. The Ready to Bank booklet, offered in 11 languages, provides an overview of banking basics in Canada and may help you prepare before or after your arrival.

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Why Choose TD?

More than 160 years of helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, and the ability to also serve you in more than 80 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. The 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 TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.

Sources:

Government of Canada. (2024). Banking services. Financial Consumer Agency of Canada. Retrieved from https://www.canada.ca/en/financial-consumer-agency/services/banking.html

CIC News. (2024, February). Where to start banking in Canada as a newcomer. Retrieved from https://www.cicnews.com/2024/02/where-to-start-banking-in-canada-as-a-newcomer-0242690.html

CIC News. (2023, January). Banking in Canada: Where do you start? Retrieved from https://www.cicnews.com/2023/01/banking-in-canada-where-do-you-start-0132446.html

TD Canada Trust. TD New to Canada Banking Package. Retrieved from https://www.td.com/ca/en/personal-banking/products/special-offers/newcomers-to-canada-banking-package/

TD Canada Trust. Chequing Accounts. Retrieved from https://www.td.com/ca/en/personal-banking/products/bank-accounts/chequing-accounts

TD Canada Trust. TD Unlimited Chequing Account. Retrieved from https://www.td.com/ca/en/personal-banking/products/bank-accounts/chequing-accounts/unlimited-chequing-account

TD Canada Trust. TD Every Day Savings Account. Retrieved from https://www.td.com/ca/en/personal-banking/products/bank-accounts/savings-accounts/every-day-savings-account

TD Canada Trust. TD ePremium Savings Account. Retrieved from https://www.td.com/ca/en/personal-banking/products/bank-accounts/savings-accounts/epremium-savings-account

TD Canada Trust. TD High Interest Savings Account. Retrieved from https://www.td.com/ca/en/personal-banking/products/bank-accounts/savings-accounts/high-interest-savings-account

TD Canada Trust. Credit Cards. Retrieved from https://www.td.com/ca/en/personal-banking/products/credit-cards

TD Canada Trust. Branch Locator. Retrieved from https://www.td.com/ca/en/personal-banking/branch-locator/#/

TD Canada Trust. Ready to Bank Booklet. Retrieved from https://www.td.com/ca/en/personal-banking/documents/pdf/542-23708-1688-Ready-to-Bank-Booklet-EN.pdf