Opening a bank account as a newcomer

A bank account is one of the first things to set up in Canada. Many employers pay by direct deposit, so you need an account to get paid. It also helps you pay bills and keep your money safe.

This guide covers the basics. We checked these facts on October 12, 2026. Fees and rules change, so follow the links for the latest details.

You have the right to open an account

The Financial Consumer Agency of Canada (FCAC) says you can open a bank account even if you (Opening a bank account):

don't have a job
don't have money to deposit right away
have been bankrupt

The bank must be able to confirm who you are. It can refuse in some cases, for example if it believes you plan to use the account for fraud, or if you don't let it check your ID. If a bank refuses, it must tell you in writing (know your rights).

These rights apply to banks and other federally regulated financial institutions. Most credit unions are regulated by the province, so if you choose one, ask about its own rules.

You can usually open an account in person at a branch. Some banks also let you open one online or by phone. Online-only banks may ask you to have an account at another bank first (IRCC: Banking).

The ID you need

You must show original ID, not photocopies. There are two ways to prove who you are (FCAC):

Two documents from a reliable source. One shows your name and address. The other shows your name and date of birth.
One document with your name and date of birth, plus a person who confirms who you are. That person can be a customer in good standing at the bank, or someone of good standing in your community.

Documents that can count include:

ID from the Government of Canada or a province
A foreign passport
A recent Canadian utility bill
A recent bank or credit card statement
A recent notice of tax assessment or statement of benefits

Just arrived, with no bill in your name yet? Call the bank first and ask which documents it accepts. Bring your passport and your immigration documents.

The bank may also ask for your Social Insurance Number (SIN). Banks need it to report interest and other income for tax (Protect your SIN). Don't have one yet? Read How to get a Social Insurance Number.

Choosing an account

A chequing account is for everyday money: your pay, debit card purchases, and bills. It usually has lower transaction fees than a savings account (Chequing accounts). A savings account is for money you want to keep aside.

Low-cost and free accounts. From Low-cost and no-cost accounts:

FCAC says all Canadians can get a bank account with a monthly fee of $4 or less.
Some institutions offer no-cost accounts. People who can qualify include those 18 or younger, students, seniors who get the Guaranteed Income Supplement, Registered Disability Savings Plan beneficiaries, and newcomers in their first year in Canada.
These accounts include at least 18 debit transactions a month, and the bank can't require a minimum balance.

FCAC also suggests asking about fee discounts for youth, seniors, newcomers, and students. To compare accounts side by side, use FCAC's Account Comparison Tool.

Getting paid by direct deposit

To pay you by direct deposit, your employer needs three numbers:

your bank's institution number
your branch's transit number
your account number

You can give them on a direct deposit form or a void cheque. Ask your bank for a direct deposit form, or look for one in online banking.

A void cheque is a blank cheque from your account with "VOID" written across it in large letters, so nobody can cash it. It still shows your account numbers along the bottom, so give it only to your employer. If you don't have cheques, ask your employer if a direct deposit form is fine.

Our guide to your first week at a new job explains the other paperwork, like tax forms.

Cheque holds

When you deposit a cheque, the bank may hold the money for a few days before you can use it. Federal rules limit how long a bank can hold a cheque, and they make the bank give you part of the money quickly. These rules are being updated (Department of Finance), so check FCAC's Cashing a cheque page for the current limits.

FCAC says the usual limits may not apply to an account that has been open for less than 90 days. So a new account can mean longer holds. Wait until a cheque has fully cleared before you spend the money.

You can cash a Government of Canada cheque for free at any bank, even if you aren't a customer, if the cheque is for $1,750 or less and you show acceptable ID (know your rights).

How to avoid fees

FCAC suggests these habits (Chequing accounts):

Know how many transactions your plan includes. Each extra one costs money.
Some accounts drop the monthly fee if you keep a minimum balance. If your balance goes below it, even for one day, you may pay the full fee.
Use your own bank's ATMs.
Online, app, and ATM banking usually cost less than help from a teller.
Keep enough money in the account to cover your bills.

Banks must also send you an alert, by text, email or app notification, when your balance falls below $100 or an amount you choose. Make sure your bank has your phone number or email, and don't turn the alerts off (know your rights).

NSF fees. NSF means "non-sufficient funds": a payment bounces because your account doesn't have enough money. Since March 12, 2026, federally regulated banks can't charge more than $10 for an NSF fee on a personal account. They also can't charge it more than once in 2 business days, or when you are short by less than $10 (FCAC).

Protect your account from scams

Scammers often target newcomers and job seekers. From the Canadian Anti-Fraud Centre (job scams, bank investigator scam):

Never let anyone use your account to move money. A "job" that sends money into your account and asks you to pass it on can make you a money mule. That money may come from crime.
Never cash a cheque and send part of it back. If the cheque is fake, you owe the bank the money you took out. Learn more in Fake cheque and money mule job scams.
Don't share codes that you get by text or email.
Hang up on surprise "fraud department" calls. Then call your bank yourself, using the number on the back of your card.
Never hand over your bank card, even to someone who says they are from your bank or the police.

Your bank will never contact you to ask for your PIN or password by phone or online (IRCC: Banking). If you see a transaction you didn't make, call your bank right away.

If you think you have been scammed, contact your local police. Also report it to the Canadian Anti-Fraud Centre at 1-888-495-8501 or online (report fraud).

Next steps

Get ready for payday: How to read your pay stub
Spot fake job offers: Job scams that target first-time job seekers
Read Your first job in Canada as a newcomer
Find entry-level jobs in Metro Vancouver and the Greater Toronto Area