In Canada, How to Open a Bank Account
This section will cover all you need to know if you’re a non-resident of Canada and are wondering how to open a bank account there. Whether you can even open a bank account in Canada might be your first concern. The short answer is that it is completely possible for a foreigner who is neither a resident nor a citizen of Canada to open an account there. Remember that while opening an account at some branches may require you to physically visit their location, doing so at others can easily be done online. More information is provided below.
Documents Needed to Open a Bank Account
Basic paperwork is needs for to create a bank account as a non-resident of Canada:
- another form of identification, such as a credit card or driver’s license
- immigration documents
- The Social Security Number
- For complete details, it is best to verify with your preferring branch as different banks may have different documentation requirements.
Online Bank Account Opening for Non-Residents in Canada
It is possible to open a bank account at some branches even before you visit. Online banking is neither safe nor secure, which is one of the online banking misconceptions. In actuality, the reverse is true. All online deposits are protectes by the Canada Deposit Insurance Corporation (CDIC). You will insure for up to 100,000 CAD in the exceedingly improbable event that the internet system malfunctions (75,242 USD). However, investment items (including stocks, bonds, and mutual funds) are not protected.
It is quick and simple to open an online bank account in Canada. Usually, the bank’s website has information and thorough instructions on how to do this. The typical paperwork needed is:
- Travel documents and a passport
- temporary work permit, study permit, or residency permit (if applicable)
In case you have any problems or require assistance understanding the online process, it could be a good idea to get in touch with the bank before creating your bank account online. Depending on the bank you choose, you can contact them via email, phone, or even online chat. They will let you know if any more paperwork is necessary. Please be aware that once you are in Canada, you might also need to go in person to the branch.
Top Canadian banks
The leading six Canadian banks are as follows:
- Royal Bank of Canada
- TD Bank
- Bank of Montreal
- Canadian Imperial Bank of Commerce
What does it cost to start a bank account in Canada?
For a brief time, newcomers to Canada are subject to a monthly banking fee. Fees of up to $30 CAD may apply after that period has expired. If you maintain a minimum balance in your account, many banks may waive this cost for you.
The majority of accounts only permit a set number of free transactions each month. While some accounts allow limitless fee transactions, they will have higher monthly fees and bigger minimum balance restrictions. Once the limit exceeds, there will be a price of around CAD$1 per transaction.
if you use the ATMs owned by your own bank, it is to make an ATM cash withdrawal. If you use an ATM from a different bank, each transaction costs approximately CAD$1.50.
International transfer fees
Bank-to-bank transfers may not be the ideal option if you frequently send money abroad because you risk paying a hidden tax in the form of a subpar exchange rate.
Best Canadian Online Banks
The advantages of online banking are numerous. The majority of people find that using the internet to do tasks is more practical and efficient. An important perk of internet banks is pricing. More information about this is provided below under “Bank Fees and Minimum Deposit.” Savings, high-interest savings, checking, Tax-Free Savings Accounts (TFSA), hybrid, youth, and senior accounts are among the several online bank types.
Bank Fees and the Lowest Deposit
The monthly cost of bank fees in Canada can range from 4 CAD (3 USD) to 30 CAD (23 USD). Most banks don’t demand a minimum deposit to create an account, but if you want your monthly fees to be reduced, you must maintain a minimum monthly amount. Typically, this sum is within the region of 3,500 CAD (2,634 USD).
Checking account monthly fees, ATM fees, transfer fees, foreign transaction fees, checkbook fees, fees for debit transactions exceeding the monthly cap (typically 1 CAD (less than 1 USD) per transaction), stop payment fees, non-sufficient funds (NSF) fees, overdraft fees, paper statement fees, check certification fees, and a host of other fees are all examples of bank fees.
Bank Accounts With No Fees
Youth, students, seniors receiving the Guaranteed Income Supplement (GIS), and beneficiaries of Registered Disability Savings Plans (RDSPs) can open no-fee bank accounts in Canada. You might also want to think about online-only banks since they frequently provide limitless transactions and no monthly fees.
The following banks provide no-fee accounts:
- CIBC, HSBC, RBC Royal Bank, and BMO Bank of Montreal
In Canada, how much does it cost to start a bank account?
For a few times after moving to Canada, banking is free for new residents. Fees up to $30 CAD may apply after that time limit has passed. If you maintain a minimum balance in your account, many banks will not charge you this fee.
Can a foreigner open a bank account in Canada?
As long as they present valid identification in a timely manner, foreigners permit to create bank accounts in Canada. However, the necessary paperwork will vary according to what your chosen financial institution requests. Therefore, when creating a bank account, be sure to inquire as to any additional documents that may require.
Which Canadian bank charges nothing?
Bank EQ. A completely digital bank, EQ Bank. With no monthly fees and no minimum balance restriction, its Savings Plus Account consistently offers some of the greatest interest rates in Canada. Unlimited free transactions, such as bill payments and Interact e-transfers, are available to account holders.
Do Canadian banks generally charge monthly fees?
Numerous online banks now provide some of the top high-interest savings accounts in Canada in recognition of the fact that Canadian bank fees can be extremely costly. These accounts typically provide limitless transactions, no minimum balance requirement, no monthly fees, and free e-transfers.
How long does it take in Canada to open a bank account?
If you have all the necessary documents on hand, opening a bank account goes quickly. You will receive your debit card at the branch after spending roughly 15-20 minutes creating an account once inside the bank.
Can I open a bank account online in Canada without physically visiting a bank?
Non-residents are permits to open bank accounts in Canada, although they hardly ever do so online. To open the account, you’ll probably need to visit a branch in person and present your passport, work visa, and non-resident card. If you’re applying for an account from outside the country, it could be a little difficult.