Banking Basics for Newcomers: How to Get Started in Canada

Starting a new life in Canada involves many steps—one of them is setting up your banking and getting access to your money. Having access to your money can help you manage daily expenses, pay bills, and begin building financial stability.

With many options and services available, it may feel overwhelming to know where to begin. You might wonder which type of account to choose, which bank to use, and how banking in Canada may differ from what you're used to.

This short article offers a helpful overview of banking in Canada to help guide you as you take your first steps.

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Types of Canadian Accounts Newcomers Can Consider

Three important types of accounts you may consider in Canada are a chequing account, a savings account, and a credit card. We will explain all three of these in detail below.

To open these accounts, you’ll first need to provide some basic forms of identification verifying your legal name, as well as your Canadian address and phone number in order to complete your account profile. You will also be asked to show official government identification, such as a passport, driver’s license, or another form of government-issued ID, along with your proof of current immigration status in Canada for newcomers.

Here are two simple steps to take to begin banking in Canada:

Step 1: Find the Right Chequing and Savings Accounts for Your Needs

In Canada, personal banking typically involves two main types of deposit accounts: chequing and savings. Newcomers may choose to open both. Here’s a quick look at how they differ.

• A chequing account is often used for everyday spending. This might include paying for groceries, covering bills and rent, or receiving direct deposits like your paycheck. You can access your chequing account with a debit card to withdraw cash from ATMs or bank branches. This card may also be used for in-store and online purchases.Balances in chequing accounts usually don’t earn interest. These accounts might also have a monthly fee, along with extra charges for certain activities like withdrawals, bill payments, writing cheques, or making purchases. TD offers multiple chequing account options to suit your different needs. When selecting a chequing account, it may be helpful to find one that offers a number of monthly transactions if that aligns with your transaction habits. The TD Unlimited Chequing Account, offers unlimited transactions included in the monthly fee.
• A savings account is designed for money you plan to set aside for the future. For example, you might use it to save for education, a home, a vacation, or even unexpected expenses like a car repair.Unlike chequing accounts, savings accounts may enable you to earn interest. The funds you keep in this type of account will accumulate interest, helping your savings grow over time and bringing you closer to reaching your financial goals.TD offers different savings accounts, each designed to help you achieve your savings objectives. Two of the savings accounts frequently chosen by newcomers are:
  • TD Everyday Savings Account
  • TD ePremium Savings Account

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Step 2: Start Building Credit with a Canadian Credit Card

What exactly is a credit card, and how does it work in Canada? In simple terms, a credit card is a payment tool offered by banks that allows you to borrow money. You can use it to make purchases, cover bills, and, in some cases, withdraw cash (certain fees may apply to qualifying transactions, i.e., cash advances, etc.). Once your credit card application is approved, the issuer assigns you a credit limit that you need to stay within. This limit lets you borrow money for purchases up to the approved limit, with the expectation that you’ll repay it later.

There are many reasons why getting a Canadian credit card can be a good idea. One advantage is it may help you build your credit history. A solid credit history may make it easier to qualify for loans, access competitive mortgage rates, and strengthen your rental applications. Of course, credit cards also offer you convenience for making everyday purchases without paying on the spot. Some may also provide rewards or cash back on spending.

A little knowledge may go a long way. If you’re applying for your first Canadian credit card, it’s helpful to learn how various cards work and how to manage them wisely.

Interested in exploring different credit card options? TD offers a wide variety of credit cards, each designed with unique benefits and rewards to match various spending needs and lifestyles.

Taking the time to understand Canadian banking basics and learning how to set up accounts are your first steps toward managing your finances with confidence. With the right accounts and tools in place, you may be better prepared to handle everyday expenses, save for future goals, and build your financial future in Canada.

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Why Choose TD?

150 years helping Canadians:

TD has a proud history of delivering financial solutions to Canadians for more than 150 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.

With over a thousand branches, a reputation for excellence in financial services, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.

TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.

Ready to Bank?

Learn more about TD New to Canada Banking Package today.Book an appointment to talk with a TD Personal Banking Associate about the TD New to Canada Banking Package. You can book online right away, or visit the TD website to learn more.

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