Opening a bank account in Canada as a newcomer: documents, your rights and the free account
What to bring to the bank, why it can't turn you down for not having a job, how to get a no-fee account in your first year, and what to compare before you choose.
The direct answer: to open a bank account in Canada you usually need two documents from reliable sources: one showing your name and address, and another showing your name and date of birth. A foreign passport is accepted as one of them. You have the right to open an account even if you have no job and no money to deposit right away, and even if you have declared bankruptcy in the past. As a newcomer, during your first year in Canada you qualify for an account with no monthly fee at 14 financial institutions that have signed a public commitment to offer one, including the country's six largest banks.
Your bank account is where your pay and government payments land, so open it in your first weeks, alongside getting your Social Insurance Number (SIN). If you're still sorting out your priorities, start with your first weeks in Canada.
Documents you need to open an account
The Financial Consumer Agency of Canada (FCAC) sets out two options for proving your identity when opening a personal account:
| Option | What you provide | Accepted examples |
|---|---|---|
| Option 1 | Two documents from two reliable sources: one with your name and address, the other with your name and date of birth | Government ID, foreign passport, tax notice of assessment, government benefits statement, utility bill, bank or credit card statement |
| Option 2 | One document with your name and date of birth, with your identity confirmed by a client in good standing with the same bank or by a person of good standing in your community | Your passport, plus confirmation from someone who knows you |
In practice, newcomers bring their passport and their status document in Canada (a permanent resident card or its confirmation, the COPR, or a work or study permit). The most common problem in the first days is proof of address: a lease or your first utility bill in your name usually solves it, and it's worth asking the bank in advance exactly what it will accept from you.
Does the bank ask for your SIN?
Financial institutions need your number to report income from interest and dividends, so you may be asked for it on interest-bearing accounts. On the other hand, the government's page states that you are not required to give your number to apply for a credit card, a mortgage or a line of credit.
Your rights when opening an account
These rights apply to federally regulated banks, and they matter to you directly, because many newcomers are wrongly told they need a job first:
- You have the right to open an account without a job.
- You have the right to open an account without depositing any money right away.
- You have the right to open an account even if you have declared bankruptcy in the past.
- The bank must get your express consent and enter into an agreement with you before opening the account.
When can a bank refuse you?
The grounds for refusal are specific: the bank believes the account will be used for illegal or fraudulent purposes, you have a history of fraud within the past seven years, you gave false information, you refuse to have your identity verified, or the bank believes your presence could cause harm or harassment to its staff or customers. Being a newcomer or having no income is not among them.
If a bank refuses to open your account, it must tell you in writing and give you its complaint-handling procedures and the contact details of the Ombudsman for Banking Services and Investments (OBSI) and of the FCAC.
The free first-year account and the low-cost account
Since 1 December 2025, an updated commitment signed by 14 federally regulated financial institutions has been in effect, and the FCAC monitors how it is applied. It is a commitment these institutions made, not a law binding every bank in Canada. The signatories are: Alterna Bank, Bank of China (Canada), BMO, CIBC, Hana Bank Canada, ICICI Bank, Industrial and Commercial Bank of China, Innovation Federal Credit Union, Laurentian Bank, National Bank, RBC, Scotiabank, Tangerine and TD.
| Account type | Who it's for | Fees | What to watch for |
|---|---|---|---|
| No-cost account | Newcomers in their first year, people aged 18 or under, students, seniors receiving the Guaranteed Income Supplement, and Registered Disability Savings Plan beneficiaries; some institutions include other groups | No monthly fee | Ask: what happens once your first year is over? |
| Low-cost account | Everyone | A maximum of $4 a month | How many transactions are included |
| Regular chequing account | For day-to-day transactions and your pay | A flat monthly fee or a per-transaction fee, sometimes waived if you keep a minimum balance | Fees add up quickly on pay-per-transaction accounts |
| Savings account | For setting money aside to earn interest | Varies by institution | Ask about the interest rate and any withdrawal or transfer fees before opening |
What the no-cost and low-cost accounts include
- At least 12 debit transactions a month, plus 6 more transactions, for a total of at least 18.
- Cheque writing, a debit card and free monthly digital statements.
- Electronic transfers such as Interac e-Transfer.
- No minimum balance, and no fees on deposits or pre-authorized payments.
Don't wait for this account to be offered to you; ask for it by name: a no-cost account for newcomers. You can compare accounts with the official comparison tool listed in the sources below.
Can you open an account before you arrive?
The official pages we reviewed don't explain how to open an account from outside Canada. Immigration, Refugees and Citizenship Canada recommends opening an account as one of the first things you do after you arrive, and notes that some banks let you apply online, while the government's page says accounts are usually opened in person at the institution with acceptable ID. Some banks advertise newcomer programs that start before you travel. Before you transfer money to one, ask the bank in writing: is the account fully open now, or is this just an application? What do you need to complete in person after you arrive? And does it count as the free first-year account?
Interac e-Transfer: everyday transfers between accounts
This is the usual way to send money to someone in Canada using their email address or phone number, and it is included in the no-cost and low-cost accounts at the signatory institutions. The safety rules published by the FCAC:
- Your bank may charge a fee to send and set a maximum amount, so ask about both.
- If you use a security question, choose an answer that is hard to guess, give it to the recipient in a secure way, and don't put it in the transfer message.
- Turn on Autodeposit if your bank offers it; it deposits money directly without a security question and protects you from email fraud.
- A transfer that has been deposited into the recipient's account cannot be cancelled. Check the recipient before you press send.
- Be wary of any unexpected transfer from someone you don't know.
How to avoid fees in your first months
- Non-sufficient funds (NSF) fees: since 12 March 2026, federally regulated banks may not charge more than $10 for non-sufficient funds, may not charge more than one such fee within two business days on the same account, and may not charge any fee at all if the overdraft is less than $10.
- Low-balance alerts: your bank must send you an electronic alert when your balance drops below a set amount, $100 by default, which you can change. Make sure your phone number and email are correct.
- ATMs: using another bank's ATM costs a fee, so use your own bank's machines.
- Cheque holds: the first $100 of any cheque you deposit is available immediately if you deposit it with a teller, and on the next business day if you deposit it at an ATM or by phone. The rest can be held for up to 4 business days for a cheque of $1,500 or less deposited with a teller, 5 days through other channels, and up to 7 or 8 business days for larger cheques.
- Government of Canada cheques: you can cash them free of charge at any bank, even one where you are not a customer if the cheque is for $1,750 or less, as long as you show acceptable ID.
To see how much in fixed fees your budget can take, put your numbers into the budget tool or read the monthly budget guide.
Big bank or digital bank? What to compare
No bank is best for everyone. The bank that suits a student who lives on their phone is different from the one that suits a family that needs a nearby branch and an advisor to explain mortgages. Compare on these points:
| What to compare | The question to ask the bank |
|---|---|
| The no-cost account commitment | Are you a signatory? Which free account am I entitled to in my first year? |
| After the first year | What fees will apply once my first year is over? Can I switch to the low-cost account? |
| Branches and ATMs | How many branches and ATMs are near where I live and work? Can I deposit cash and cheques easily? |
| Service in my language | Is service available in my language, or an interpreter at the branch? |
| Deposit insurance | Are you a member of the Canada Deposit Insurance Corporation (CDIC)? |
| Sending money abroad | What is the international transfer fee? And what exchange rate do you apply compared with the published rate? |
| Your first credit card | Do you offer a credit card to people with no Canadian credit history? On what conditions? |
On safety: the CDIC insures eligible deposits at member institutions up to $100,000 per category, covering chequing and savings accounts, term deposits and foreign currency deposits. It does not cover stocks, mutual funds or cryptocurrencies, or losses from fraud or theft. A digital bank or payment app is not necessarily a member, so check the member directory before you put your money there.
Sending money to family outside Canada
Sending money abroad carries three kinds of cost: the sending fee, the exchange rate margin, which some providers make more on than on the fee itself, and a fee the recipient may pay on collection. Before each transfer:
- Compare the amount that will actually arrive for your family, not just the fee.
- Don't send money with a credit card; the transfer may be treated as a cash advance, with interest charged immediately and no grace period.
- Faster transfers usually cost more, and delivery can take anywhere from minutes to several days.
- Always keep the receipt and transaction number so you can trace the money if needed.
You'll find transfer providers listed in the money transfer services directory; compare their offers on the points above.
What's different in Quebec
In Quebec, cooperative caisses (caisses populaires) are widespread alongside the banks. These caisses are provincially regulated, and deposits in them are protected by the Autorité des marchés financiers, not the CDIC. The rights explained in this guide, from the cap on NSF fees to the free account commitment, come from federal rules covering federally regulated banks and federal credit unions. So if you open your account at a caisse, ask it directly about its fees and its policy for newcomers, and don't assume the same rules apply.
What this guide does not do
- We don't recommend any particular bank, and we receive no payment from any financial institution.
- We don't know every bank's fees today; the figures here are general rules published officially, and detailed fees change, so ask the bank for them in writing.
- We don't give investment advice, and this guide doesn't cover tax-advantaged saving or investing.
Frequently asked questions about opening an account
Can the bank refuse to open an account for me because I don't have a job?
Not at a federally regulated bank. Having no job or no balance is not among the permitted grounds for refusal, and if your application is refused, ask for the refusal in writing together with the complaint procedures.
How long does a newcomer's free account last?
Newcomers qualify during their first year in Canada. The commitment's definition includes permanent residents, protected persons and temporary residents. Ask the bank when the fee waiver ends and what comes after.
Is my foreign passport enough?
A foreign passport is an accepted document, but it only covers your name and date of birth. You also need a second document with your name and address, or a person of good standing with the bank or in your community to confirm your identity.
I deposited my pay cheque and can't withdraw all of it. Why?
The bank is allowed to hold part of a cheque for a set period. The first $100 is available immediately if you deposited it with a teller, and the rest is released within 4 to 8 business days depending on the amount and how you deposited it.
I sent an e-Transfer to the wrong person. Can I get it back?
The FCAC states that a transfer that has been deposited into the recipient's account cannot be cancelled. Call your bank immediately to find out whether the transfer is still pending and what options you have, and make checking the recipient a habit before every transfer.
Where do I complain if the bank treats me unfairly?
Start with the bank itself, in person, by phone or online, with the dates, names and details to hand. The bank must reply in writing within 56 calendar days. If you're not satisfied with the reply, or the time runs out, take it to the ombudsman, OBSI, which reviews complaints free of charge and impartially. The FCAC doesn't resolve complaints itself, but it can guide you through the steps.
If you'd like someone to go to the bank with you or help with the paperwork for free, search the newcomer settlement services directory, then carry on with your next steps in My Canada journey.