You can depend upon Canadian banking because it is often more accessible and reliable. However, it isn’t free of cost. Detailed research can fetch you information on choosing the best Canadian bank.
Deciding on a bank takes effort because you will initially have to consider which branches are closer to your residential area or workplace. Next, you will have to think of which branch is offering the best credit cards and what would be the bank timings.
Choosing the best Canadian bank
As a newcomer in Canada, you have the five best alternatives for Canadian banks, including BMO, TD Canada Trust, CIBC, RBC, and Scotiabank. Other significant banks are HSBC Bank Canada and National Bank of Canada. All these banks provide particular incentives to newcomers based on their requirements. To choose the best Canadian bank, make sure you deeply look into their offers for newcomers like you.
BMO Bank of Montreal
It is considered the first Canadian bank and has gained trust and expertise in the field. It is as old as two hundred years and has earned several clients and their loyalty. BMO believes in moving forward with courage to provide a new and settled life to the new arrivals in Canada.
It has welcomed over 12 million customers in wealth management, commercial and personal banking, and investment services.
BMO comprises a New Start program that will serve you with different products and services, making life more convenient for you.
If you’re a newcomer wanting to become a part of BMO, you will get the following benefits:
(Please note: You must have arrived in Canada in the recent five years)
- Twelve months of banking without any fee banking.
- A safety deposit box is free for the first year of banking.
- Limitless electronic transfers.
- BMO’s Joint Telco will offer you a bonus of cash and monthly bonus data for one entire year. This offer lets you stay connected with your friends and family.
CIBC
Canadian Imperial Bank of Commerce is mainly focused on consistent future investments. Recently they have taken initiatives to enhance their client’s experience by modernizing the platforms at the bank.
The Mobile Banking App of CIBC has gained the sixth rank because of its motto of providing top-notch service to its clients. The bank has consistently put effort into executing client-friendly strategies.
The chequing account at CIBC has gradually evolved to fulfill specific customer requirements. Additionally, it has some of the largest ATM networks, with mobile and online banking ranked on top and Apple Pay. As a newcomer, CIBC will make a good choice, especially if you seek hassle-free banking.
RBC
RBC was established in 1864 and has been considered the largest Canadian banking institution in the context of market capitalization.
RBC offers a value of $550 to newcomers, and it also customizes the banking packages for them based on whether they have arrived, are preparing to shift, or planning to settle in the country itself.
The primary benefit for RBC users is that they won’t be charged any fee for cash withdrawal from other countries and can withdraw cash from ATMs at any time.
This will be valuable and more convenient, especially in the long run.
HSBC
HSBC Bank Canada has several branches across the globe and it stems from the global HSBC network. It has over 130 branches situated in the most prominent cities in Canada. They have a Global View service, which applies to people already having bank accounts at HSBC. This Global View feature provides easy transfer and access to money between their personal accounts at HSBC.
Scotiabank
You can open a bank account even before you land up in Canada with Scotiabank’s program named ‘Scotiabank StartRight’. You carry out international money transfers without any fee charges endlessly.
You can access a free-banking facility as a newcomer for one complete year in the first year of opening an account at Scotiabank. You can also access several products and services customized for newcomers.
TD Canada Trust
TD Canada Trust is also referred to as Toronto Dominion Bank. This bank is popular in Canada and the U.S. TD Canada Trust has several branches, ATMs, special incentives for newcomers, and Online Banking Platforms. These factors make the bank a popular choice for newcomers coming to the country.
National Bank
The National Bank has won recognition and an award for being the best bank in the country and is regarded as the sixth largest commercial bank. It has its headquarters in Montreal and is widespread in most Canadian provinces. Unlike its competitors in the urban city centers, it doesn’t have too many branches outside Quebec. However, if Quebec is where you would like to settle then National Bank would make the best choice.
National Bank provides a specialized package with a value of up to $600 for newcomers. This bank also offers Assistance services for newcomers.
What is the process of selecting the best Canadian bank?
You will have to consider a few points while you select the best Canadian bank for yourself as a newcomer. You will need to consider the way the bank works with the following:
Banking Fee
Several Canadian banks charge you some fee in the context of a Current Account or Checking Account. The fee they charge you will rely on your monthly transactions. The fee range will be between $5 to $30 each month.
If you maintain a balance in your account from $3000 to $5000, then you do have a chance of getting a refund.
Cheques
Cheques are prominently used in the country as a payment method. Employers might even ask you to provide a void cheque to transfer money into your account with all the details. Checkbooks play a significant role in rent payment, and enrolment in services like Daycare, in case you have children. Checkbooks might cost you around $40, and you will receive a hundred cheques.
Consider these minute details and costs while selecting the best Canadian bank.
ATM- its charges
As per the rules, you won’t be charged any fee when using your own bank’s ATM, but while you use another ATM not associated with your bank, charges will incur. For ATMs that have private ownership and are located at bars, you might have to pay fee charges. It will cost you around $4 to $5. To avoid paying, stop accessing such ATMs.
When you select the best bank in Canada, consider the ATMs closest to your living location or your workplace.
Debit Cards
Debit cards won’t require you to pay any extra charges, provided you don’t exceed the limit of monthly transactions, as allowed by your bank.
Canadians are observed to carry more cash with them.
Interac e-transfer system
The Interac e-transfer system applies to those banks and merchants in Canada who use a similar payment system.
You can transfer money by simply providing the email contact information of the receiver, without needing his or her bank details.
Both sender and receiver must have a Canadian bank account and also have the potential for Interac email transfer. The debit system in Canada is a part of the Interac Proper, and all those issuing debit cards provide this as an offer. Some of them also issue Visa or Mastercard with a wider acceptance across the globe.
Bank account options that are available for free
You must note that if you have to pay while using other banks’ ATMs, then they won’t prove to be the best banks for you. You can access Coast Capital Credit Union in Vancouver in the context of a Checking Account. You can even avail free Canadian banking, limitless transactions, and free checkbooks through an online bank, Simplii Financial.
Getting Canada’s best credit cards
When deciding which bank to choose, you must certainly consider the banks offering the best credit cards. You must also note that Canada gives importance to how responsibly an individual uses the credit card and timely bill payments also help you build your credit score.
Credit cards can be classified into the following categories:
- Without an annual fee
- With an annual fee, also offers several perks and rewards
The rewards mainly consist of cashback offers on your purchase and are often redeemed with products, and tickets (air or cinema).
The higher the rewards, the higher their annual fee will be. So, you must consider this factor when choosing a credit card.
Few cards have an annual fee attached to them, but they have enticing perks such as extended warranties, special insurance for car rental purposes (auto collision waiver), travel insurance, etc. The perks will add up to an annual fee but they will merely depend on your usage and requirements.
If you prefer air travel quite often, you will have to go ahead with airline loyalty programs like Aeroplan (Air Canada affiliation), AirMiles (supporting significant airlines), and West Jet Rewards (domestic carrier with international routes).
Researching process best Canadian credit cards
The best credit card options will appear before you once you understand the difference between what you will be paying for them and what rewards you will achieve. You can do so by considering the following five steps:
- You must carefully read and analyze the terms and conditions. Read the repercussions of not paying the bills on time.
- Ask the bank for a fee schedule to get a gist of the payments you are supposed to make. Become aware of the interest-free period after making a purchase.
- Research in detail all the rewards and incentives. The best credit card will provide generous schemes to the customers. Look out for all the conditions to unlock these schemes and how much time it will take to obtain them.
- Ask them if you have to make a deposit; if so, when can you possibly get it back?
- Ensure that you investigate the protection policies against fraud. Suppose someone else is illegally spending from your card; what steps will they take?
Other key points to remember
The following two main points are to be kept in mind:
International cards and their usage
You will have to consult your local bank because international cards might not always work. Give them a fair idea of your travel plans. The cash advance feature in your international credit card might cost you a bit of money. Withdraw large amounts at once to avoid these fee charges such as exchange rate fees.
Avoid unnecessary confusion
The term Lodgement is used in countries like Ireland and the U.K for transferring money to your account. However, Canadians use the word ‘deposit’ for the same.
