🟢 Basic · Step 1 of 22 · Topic: Banking, Budget & Saving

In one sentence

This post shows you how to open a Canadian bank account with no monthly fee, and when a big bank’s newcomer package can still be useful.

▶ Prefer to watch? Here is the 3-minute version.

Words to know

• Chequing account: an everyday account. Your pay goes in, and your bills and debit card purchases come out.
• Monthly fee: money the bank takes from your account every month, just for having the account.
• Online bank: a bank with few or no branches. You do almost everything in an app or on its website.
• Direct deposit: when your employer sends your pay straight into your bank account.
• CDIC: the Canada Deposit Insurance Corporation. It is a federal agency that protects eligible deposits if a member bank fails.

Step 1: See what monthly fees really cost

Big banks often give newcomers 12 months or 2 years with no monthly fee. After that, a full-service chequing account at these banks costs about $12.95 to $17.95 a month.

That is about $155 to $215 a year. Over many years, it adds up to a lot of money.

Some online banks charge $0 a month for an everyday chequing account, with no time limit. For many people, this is the simplest way to never pay monthly fees.

Step 2: Compare no-monthly-fee online banks

Here are three online banks with $0 monthly fees. Checked October 2026 on each bank’s website. Offers change often, so check again on the day you apply.

Bank	Monthly fee	Sign-up bonus	Good to know
Tangerine	$0	$250 when you move your pay. You must deposit your full pay by direct deposit, at least $200 a month, for 2 months in a row. Your Tangerine Client Number must be created by April 30, 2027.	Open the chequing account within 60 days of getting your Client Number. Set up the pay deposit within 60 days of opening it. One bonus per client.
Simplii Financial	$0	$350 when you set up a direct deposit of $100 or more for 4 months in a row. The offer ends January 31, 2027.	Read the full offer terms before you apply.
EQ Bank	$0	No sign-up bonus found	Free, unlimited Interac e-Transfers. You need a Social Insurance Number (SIN) to open an account.

A sign-up bonus is cash a bank pays you for opening an account and following its rules. You only get it if you follow every rule. Save a copy of the terms, and put the deadlines in your calendar.

Step 3: Get your documents ready

Online banks check who you are in their app. You will usually need these things:

• Canadian photo ID, such as a provincial driver’s licence, a provincial photo ID card or your PR card.
• Proof of your Canadian address.
• Your SIN. For example, EQ Bank says your SIN is required to open an account, for tax reporting.
• You must usually be the age of majority in your province (18 or 19) and live in Canada.

Online banks may also use a credit bureau to confirm who you are. This checks your identity. It is not a loan application.

If you only have a foreign passport for now, online sign-up may not work yet. A bank branch can help. At a branch, you must show original documents, not copies. A foreign passport is one of the accepted types of ID.

Step 4: Know when a big bank’s newcomer package helps

The big banks have newcomer packages. These are special offers for people who arrived recently. The fee-free period is:

• RBC, TD and Scotiabank: 12 months with no monthly fee.
• BMO and CIBC: 2 years with no monthly fee.

The biggest reason to use one is a first credit card. Without Canadian credit history, it can be hard to get a card. RBC, TD, Scotiabank and BMO say newcomers can get a card without Canadian credit history, if they are approved. CIBC offers newcomer credit cards too; ask them about approval rules.

Each bank has its own rules about who qualifies. For example, some count from your arrival date, and limits range from 12 months to 5 years. Check the bank’s page first.

Step 5: Plan for the day the free period ends

Many people use two banks. The online bank is the main account where pay lands. The big bank holds the first credit card. Write down the date your free period ends. Before that date, choose one of these:

• Switch to the bank’s low-cost account. Major banks have promised low-cost accounts of no more than $4 a month. Newcomers in their first year can get a $0 account.
• Keep the minimum balance that some banks ask for (often $4,000), so the fee is waived.
• Close the big-bank chequing account. Ask first what happens to your credit card if you do.

Step 6: Keep your money safe

• CDIC protects eligible deposits up to $100,000 per category, for example your own account, a joint account or a TFSA. It is free and automatic.
• Check that any bank is a CDIC member on the CDIC website.
• Your bank will never ask for your password or a one-time code by phone, text or email.

Example

Imagine your free year at a big bank ends, and the fee becomes $16.95 a month.

• One year: $16.95 × 12 = $203.40
• Five years: $203.40 × 5 = $1,017.00

With a $0-a-month account, that $1,017 stays with you. If you also earn a sign-up bonus, such as Tangerine’s $250, you are ahead by $1,017 + $250 = $1,267 over five years.

Common mistakes

• Forgetting the date the free period ends, then paying fees for months without noticing.
• Missing one bonus rule, such as depositing only part of your pay, or stopping the deposit before month 4.
• Opening many accounts just for bonuses, then losing track of them.
• Giving a banking password or one-time code to someone who calls or texts you.

✅ My checklist

☐ I compared at least one $0-a-month online bank
☐ I have my Canadian photo ID, proof of address and SIN ready
☐ I set up direct deposit for my pay
☐ I wrote down any bonus deadlines and the date my free period ends
☐ If I am new to Canada, I know whether I want a big-bank newcomer package for a first credit card

Next step → Step 2: Reading your pay stub: where your money goes before you get it

More in this topic → Banking, Budget & Saving

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There are no affiliate or referral links in this post. This is general information, not financial, tax or legal advice; everyone’s situation is different. Figures were checked in October 2026 and can change.

Sources: Tangerine offers · Simplii special offers · EQ Bank Personal Account · EQ Bank account agreement · RBC Newcomer Advantage · TD New to Canada Banking Package · Scotiabank StartRight · BMO NewStart · CIBC Newcomers · FCAC: opening a bank account · FCAC: free and low-cost accounts · CDIC: your coverage