Banking and Finances

Section 1

Opening a Bank Account in Canada

Opening a bank account is one of the most important first steps for newcomers in Canada. A bank account can help you receive pay, pay bills, use a debit card, send money, build financial history, and manage everyday spending.

Canada has several major banks that offer newcomer banking packages. These include RBC, TD, Scotiabank, BMO, CIBC, and the National Bank of Canada. Many of these banks offer programs specifically for newcomers, which may include monthly fee waivers, debit transactions, Interac e-Transfers, credit card options, international money transfer offers, or cash bonuses.

To open a bank account, you may be asked to provide identification and documents that show your status in Canada. Common documents may include a foreign passport, Permanent Resident card, Confirmation of Permanent Residence, work permit, study permit, visitor record, or proof of address, such as a lease agreement or utility bill.

Some banks may also ask for your Social Insurance Number, also called a SIN. A SIN is used for work, taxes, and some government services. If you need help understanding what a SIN is, visit MapleLanding’s Social Insurance Number section in the Finding Work guide.

MapleLanding does not recommend one bank over another. Newcomer offers change often, so always compare the official bank websites before opening an account.

Section 2

Comparing Newcomer Banking Packages

Many banks in Canada offer newcomer packages, but the best choice depends on what your family needs. Some newcomers may care most about avoiding monthly fees. Others may care more about international money transfers, a credit card with no Canadian credit history, branch access, or cash bonuses.

At the time of writing, RBC offers newcomer banking benefits such as one year of no monthly fees, credit card options, and international transfer features. TD offers a newcomer banking package with one year of no monthly fees, unlimited transactions, and credit card options. Scotiabank’s StartRight program may include first-year value, banking services, credit options, and international transfer features. BMO’s NewStart program may offer a longer monthly fee waiver period and newcomer banking support. CIBC’s newcomer package may include two years of no monthly fees and credit card options. National Bank may offer up to three years of reduced or waived monthly fees, depending on conditions.

The “best” bank depends on your situation. If you want the longest possible monthly fee discount, compare BMO, CIBC, and National Bank carefully. If you want a credit card with no Canadian credit history, compare RBC, TD, CIBC, and National Bank. If you send money internationally, compare transfer fees and exchange rates, not just the advertised “no fee” offer.

Section 3

Basic Budgeting

Budgeting means understanding how much money comes in, how much money goes out, and what needs to be saved. A simple budget can help newcomer families avoid surprise expenses and make better financial decisions.

Start by listing your monthly income and expenses. Separate fixed expenses, such as rent, phone bills, insurance, and utilities, from changing expenses, such as groceries, transportation, clothing, and entertainment.

One common budgeting strategy is the 50/30/20 rule. This means using about 50% of income for needs, 30% for wants, and 20% for savings. Needs include rent, groceries, electricity, transportation, and insurance. Wants include eating out, entertainment, and non-essential shopping. Savings can include emergency savings, future goals, or money set aside for unexpected costs.

Life in Canada can come with irregular expenses, especially during winter. Heating, winter clothing, car repairs, school supplies, gifts, and emergencies can all affect a family’s budget. Try to set aside a small amount each month for unexpected costs, even if it is only a little at first.

A realistic budget should be based on prices near where you live. For example, grocery prices, rent, transportation costs, and phone plans can vary by city. Avoid building a budget around prices from places far away or offers that are not realistic for your area.