Best newcomer bank account in canada

[dr feras]

hi dear members,
I have a question in regards to the option of opening a bank account in Canada before arriving, in order to send the funds directly instead of carrying cash while landing. I found online that RBC and scotia bank both offer this service.
- Which one is the better option
- how long does it take to open the account. Asking this because I will probably fly soon after getting my COPR.
- will I be able to generate a proof that I have those funds in my new canadian account to show the immigration officer when I land.
Thanks in advance

 

[BC4life]

I landed last month and have opened accounts both at TD and BMO. I live in Ontario. Process is quite straightforward. Most banks have a newcomer package that gives free banking for 6 to 12 months depending of the bank. With BMO you get the performance plan free for one year (meaning you are not charged even if you do not have the minimum balance requirement). For TD you get any plan free for six months so I went with the most advanced plan which is the All-Inclusive banking plan which gives free chequebooks, free bank drafts and many other perks. You can learn more and compare at the banks websites.

Now the most important thing is getting a credit card to start building Canadian credit as soon as you land. With TD you get a $1,000 1% cashback unsecured credit card. With BMO they could only offer the secured credit card, so I got a $1,000 limit credit card against a hold of $1,000 in my chequing account.

 

[tractorinio]

I landed last month and have opened accounts both at TD and BMO. I live in Ontario. Process is quite straightforward. Most banks have a newcomer package that gives free banking for 6 to 12 months depending of the bank. With BMO you get the performance plan free for one year (meaning you are not charged even if you do not have the minimum balance requirement). For TD you get any plan free for six months so I went with the most advanced plan which is the All-Inclusive banking plan which gives free chequebooks, free bank drafts and many other perks. You can learn more and compare at the banks websites.

Now the most important thing is getting a credit card to start building Canadian credit as soon as you land. With TD you get a $1,000 1% cashback unsecured credit card. With BMO they could only offer the secured credit card, so I got a $1,000 limit credit card against a hold of $1,000 in my chequing account.

Thanks for your post!
Two questions:
1. 1 year of any plan for free in TD - what happens after that year? Any obligations to continue chosen plan afterward? Or maybe some fees for moving to cheaper plan after this year? I suspect that it can't be so generous that you can use the most expensive account for free
2.

I got a $1,000 limit credit card against a hold of $1,000 in my chequing account.

Does that mean that if you have 5000 in your checking account - you will have 5000 limit credit card? And will the secured credit line earn you credit history btw?

 

[angelistamaria]

Hi!
Injecting another question that was not answered: Can you open the account from your country of origin? I heard Scotiabank startright can be opened from you home country and they will send you the certificate that you wired the money to Canada already that you can use as landing POF.

 

[BC4life]

Thanks for your post!
Two questions:
1. 1 year of any plan for free in TD - what happens after that year? Any obligations to continue chosen plan afterward? Or maybe some fees for moving to cheaper plan after this year? I suspect that it can't be so generous that you can use the most expensive account for free
2. Does that mean that if you have 5000 in your checking account - you will have 5000 limit credit card? And will the secured credit line earn you credit history btw?

To reply to your questions
1. For the TD account it is 6 months not one year. Before the six months term you will be charged monthly fees unless you meet the minimum requirements. You are free to change to a lower tier account which has a smaller balance requirement.
2. Yes if you want 5,000 limit then technically you can deposit 5,000 in your chequing account. Please note that you will not have access to the secured amount until the bank waives it or you close the account. Each month you still receive a bill that you need to pay. The 5,000 will remain then untouched.
Yes the secured credit card is just as the same as a standard card only that it has a lien on it. This is different from a prepaid card or a debit card where you withdraw from the funds you have in your account and which do not help build your credit.

 

[BC4life]

Hi!
Injecting another question that was not answered: Can you open the account from your country of origin? I heard Scotiabank startright can be opened from you home country and they will send you the certificate that you wired the money to Canada already that you can use as landing POF.

Yes you can certainly do that although I don't really see the need. You cannot use this account anyway until you are here. Your home account statement are sufficient for proof of funds. And when you come here you can open an account in half an hour with your COPR and passport.

 

[angelistamaria]

Yes you can certainly do that although I don't really see the need. You cannot use this account anyway until you are here. Your home account statement are sufficient for proof of funds. And when you come here you can open an account in half an hour with your COPR and passport.

Thanks, this helps a lot! Reason I thought of opening the account from the home country is that (1) don't want to travel with cash/ bank demand draft due to danger of theft (although they can't withdraw demand draft or travelers check but loss or theft would be a huge hassle), (2) don't want to bother my aging parents or in-laws to do wire transfers of our money for us.

 

[BC4life]

Thanks, this helps a lot! Reason I thought of opening the account from the home country is that (1) don't want to travel with cash/ bank demand draft due to danger of theft (although they can't withdraw demand draft or travelers check but loss or theft would be a huge hassle), (2) don't want to bother my aging parents or in-laws to do wire transfers of our money for us.

If you do not have the possibility to do online transfer from your home country to Canada once you are here, then it makes certainly sense to open the account beforehand prior to landing.

 

[angelistamaria]

If you do not have the possibility to do online transfer from your home country to Canada once you are here, then it makes certainly sense to open the account beforehand prior to landing.

Thank you so much!

 

[mgnlky]

For credit cards, RBC will offer you $2,000 with no Canadian income. Income up to ~40,000CAD can get you $5,000 credit; up to $70,000 will get you about $7,000, and over $70,000 will get you a maximum of $10,000.

 

[BC4life]

For credit cards, RBC will offer you $2,000 with no Canadian income. Income up to ~40,000CAD can get you $5,000 credit; up to $70,000 will get you about $7,000, and over $70,000 will get you a maximum of $10,000.

But how can you prove Canadian income as newcomer?

 

[mgnlky]

But how can you prove Canadian income as newcomer?

You can only prove it if you have a job. So say you are there a few weeks and get a job before going to get a credit card. Show your proof of employment (offer letter, payslip).

 

[kaegon]

I know you are trying to make a point but dont quite get it. The $2000 RBC offers, is it a free credit to be repaid by the offered person upon securing a job? Or this fee is subject to a person paying it in every month so as to build credit level. I'm a bit confused.
Kindly explain the concept of credit building to me please

For credit cards, RBC will offer you $2,000 with no Canadian income. Income up to ~40,000CAD can get you $5,000 credit; up to $70,000 will get you about $7,000, and over $70,000 will get you a maximum of $10,000.

 

[BC4life]

I know you are trying to make a point but dont quite get it. The $2000 RBC offers, is it a free credit to be repaid by the offered person upon securing a job? Or this fee is subject to a person paying it in every month so as to build credit level. I'm a bit confused.
Kindly explain the concept of credit building to me please

The $2,000 is just a credit limit. If you are unemployed as a new immigrant you can get a credit card with $2,000 limit from RBC. If you are employed then you are able to obtain a higher limit credit card.

 

[knight17]

Yes you can certainly do that although I don't really see the need. You cannot use this account anyway until you are here. Your home account statement are sufficient for proof of funds. And when you come here you can open an account in half an hour with your COPR and passport.

Would they accept that? Is it not required to bring these amounts with the applicant to Canada?