You can open a bank account in Canada by visiting a bank branch in person, going online to your chosen financial institution’s website, or by calling and completing the process over the phone.
Whether opening a bank account at one of the big 5 banks, a credit union, or an online bank, you’ll need to verify your identity by confirming your name, date of birth, and address. Depending on the type of account you want, you may also need to supply your Social Insurance Number.
Key Takeaways
- You can open a bank account online, over the phone, or in person at a bank branch.
- Whichever method you choose, you'll need to provide at least two forms of personal identification and possibly a few other documents.
- You can open accounts with traditional banks, online banks, credit unions, and/or caisse populairs.
- The three types of accounts available are savings, chequing, and hybrid accounts.
How to open a bank account in person
To open a bank account in person, you'll need to schedule an appointment and visit a branch of your chosen bank. Be prepared to confirm your name, date of birth, and address for the bank representative.
Once your identity is verified, the representative will help you open the new account. You’ll be issued a debit card and will be able to use the bank account immediately.
What documents do I need to open a bank account in person?
If you're a Canadian citizen, you’ll need to provide two of the following documents to confirm your personal details:
- A valid piece of government-issued identification (provincial/territorial driver’s licence, Canadian passport, etc.)
- A federal, provincial, or territorial tax assessment notice
- A federal, provincial, or territorial statement of benefits
- A recent Canadian utility bill
- A recent bank account or credit card statement
If you're a permanent resident, a recent immigrant, or refugee to Canada, you can also use the following documents during the identification process:
- A valid passport from another country
- A permanent resident card
- A federal, provincial, or territorial ID card
- A Quebec Health Insurance Card
- Canadian immigration Visa
How to open a bank account online?
When opening a bank account online, you’ll need to answer a few questions and then upload documents to verify your identity.
It's possible that you'll be required to visit a bank branch in person to complete the process. This can depend on your personal situation and the financial institution’s procedures.
What documents do I need to open a bank account online?
You'll need to provide similar documentation, no matter whether you choose a traditional or an online bank. At a minimum, you will need two of the following to open an online bank account:
- Proof of identification (provincial/territorial driver’s licence, Canadian passport, etc.)
- A Canadian Social Insurance Number (SIN)
- Proof of address (utility bill, pay stub, etc.)
Comparing the ways to open a bank account
You can open your account at a branch, online, or over the phone, but this can vary between institutions.
Here’s an overview of the different methods you can use to open a bank account:
| Method | How long it takes | Steps | Pros | Cons |
|---|---|---|---|---|
| Online | Less than 10 minutes | * Go to the financial institution’s website and click "Apply" on the account you’d like to open * Follow steps and provide necessary information * May need to go into branch to verify information | * The process doesn’t take long * You can open the account at a time and place that works for you | * Account might not be operational until you complete additional steps, like going into a branch to verify identity |
| Phone | Less than half an hour | * Call the financial institution and a customer service representative will help you * You may have to complete the process at a branch, electronically, or via mail | * You can initiate the process from anywhere at your convenience * Complete it fairly quickly once you reach a customer service representative | * You might be on hold for a while waiting to speak to someone * Your account may not be accessible until you take the necessary steps to complete the process |
| Branch | Half an hour | * Book an appointment at your bank * Bring documents * You should have access to your account immediately | * Access account immediately * Verify information on the spot | * Takes time and you need to go into the branch |
How to choose a bank
You can open a Canadian bank account at one of the traditional big banks, an online or virtual bank, a credit union or, a caisses populaires (similar to a credit union).
Be aware that fees, interest rates, withdrawal limits, and perks will vary between financial institutions, so choose what works best for you.
Online banks
Online banks offer both chequing and savings accounts, but many differentiate themselves from Canada’s traditional, brick-and-mortar banks by offering low or no-fee bank accounts. Most online banks also offer products such as mortgages, investments, and registered accounts.
There are many online banks that are affiliated with traditional banks or credit unions – for example, the online bank Tangerine is an independent subsidiary of Scotiabank. Like Scotiabank, Tangerine is a member of the CDIC, which guarantees customers’ deposits up to a certain amount.
Some newer digital banks, such as Wealthsimple, offer customers access to savings accounts, credit cards, transfers, and bill payments through their website and app. Newer digital banks like this are often not CDIC members, choosing instead to work with CDIC-partner institutions that hold the funds in trust.
Traditional banks
Canada’s traditional big 5 banks are the country’s biggest and most well-known financial institutions, offering an array of chequing and savings accounts along with other financial services.
Canada’s big banks are known as "Schedule I banks", meaning they are domestically-incorporated and governed by the Bank of Canada Act.
Canada’s big banks are regulated by the Office of the Superintendent of Financial Institutions (OSFI). All of Canada’s major banks are CDIC members, thus ensuring clients’ eligible deposits are guaranteed against bank failure.
Credit unions
A credit union is a not-for-profit financial cooperative that operates much like a bank, except in one key way – any dividends and profits are shared with customers, who must sign up as members to use a credit union.
Credit union members have access to savings and chequing accounts, as well as mortgage, insurance, and investments products and advice.
Caisses populaires
Caisses populaires are very similar to credit unions where customers are members, but these institutions operate in French-speaking jurisdictions.
These instututions offer banking services for individuals and businesses.
Determining which bank or credit union is for you
When opening a bank account and determining which institution is best for you, consider the services you need and what that institution offers.
The big 5 banks offer the widest array of products and services, but those services may come with heftier fees than thoes from credit unions or digital banks.
Specifically, keep the following points in mind when comparing accounts between institutions:
- Number of transactions allowed per month
- Interest rate offered
- Minimum deposit requirements
- Access to cheques, money orders, etc.
- Monthly fees
- Number of ATM transactions included per month
- Ability to use ATMs outside your institution’s network
- Convenience and quality of the institution’s online banking services
How to pick a bank account
Determine the purpose of your bank account before opening one. These are your options:
- Savings accounts: For holding and growing your money
- Chequing accounts: For day-to-day transactions
- Hybrid accounts: Combine features of both chequing and savings accounts
- Certificates of deposit: Designed more as an investment with no ability to withdraw your money until the fixed period ends
Savings account
A savings account holds the funds you want to save for either short or long-term goals.
Regular savings accounts are usually fee-free and earn interest, but the big banks typically offer low interest rates. Online banks and credit union often provide higher rates.
Any income gained via a savings account interest rate will be taxed. Beyond a regular savings account, here are some other types of savings accounts offered by financial institutions:
- High interest savings account (HISA): A earns more interest than a regular savings account, and is ideal if you want to grow your money quicker
- Joint savings account: A savings account allowing access to two or more people
- Registered Retirement Savings Plan (RRSP): An RRSP works by deferring taxes until retirement in order to allow your money to grow
- Tax-free savings account (TFSA): Funds placed in a TFSA, and any income earned through this kind of savings account, are not taxed at all, even on withdrawal
- Children’s savings account: Reserved for children under the age of majority, a savings account for children must be opened by a parent or guardian
- Business savings account: This type of account is reserved to build up savings for a business, as opposed to a savings account for an individual
Chequing account
A chequing account is best suited for day-to-day transactions such as ATM withdrawals, paying bills, and making purchases.
Chequing accounts typically earn very little interest as the money in these accounts is meant to be spent.
Here are some other common types of chequing accounts:
- Joint chequing account: This can be accessed by two or more people for making purchases, paying bills, etc.
- Student chequing account: Designed for students in post-secondary school, typically with no monthly fee until after graduation.
- USD account: Specifically for the user to complete save and/or make transactions in U.S. dollars
- Business chequing account: Geared towards handling a business’ day-to-day financial transactions
Hybrid accounts
The best hybrid accounts are designed to offer the daily flexibility of a chequing account combined with higher interest rates typically found with a savings account.
Many hybrid accounts are offered with low or no fees, but you'll likely find these offered by online banks or credit unions, not usually by traditional banks.
A potential issue with hybrid accounts is access – some online banks don't have their own ATMs. This means you'll either have to use unaffiliated ATMs (and possibly pay fees to do so) or transfer your money from the hybrid account to another account with a bank that offers easier access.
Certificate of deposit
A certificate of deposit (CD) is a savings account that's similar to an investment. By buying a certificate of deposit, you agree to invest your funds for a fixed amount of time in exchange for the interest on the initial investment.
Interest rates for CDs are higher than those offered by savings accounts since you're committing to not withdrawing your funds for the fixed period.
There is a catch: Canadians can't buy certificates of deposits in Canada. Instead, you purchase them in the U.S., but you'll need a U.S. bank account first.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Are there fees for opening a bank account?
While there isn't a cost specifically associated with the act of opening a bank account, most banks charge a minimum of $4 per month to keep the account open.
The federal government partners with several financial institutions to offer bank accounts at low or no cost. In particular, accounts designed for youths, students, seniors, and RRSP beneficiaries are typically free of cost.
No-cost bank accounts typically offer the following services:
- Max of 12 monthly debit transactions
- Free debit card
- Cheque writing privileges
- Unlimited deposits
- Pre-authorization setup
More robust bank account packages will cost more, and monthly fees will vary from one institution to another.
How long does it take to open a bank account?
Setting up a bank account online only takes a few minutes as long as you have all the required documents nearby and ready.
Setting up an account over the phone will typically take about 15 minutes.
An in-branch visit to set up a bank account will take about half an hour.
How to close an old bank account
As a rule of thumb, you should always open a new bank account before you close an old one. This allows you to transfer your money into the new account and still have access to it while you're taking steps to close the old one.
When closing a bank account, make sure any direct deposits are re-routed to your new account. Inform your employer if necessary.
Also, make sure automatic payments are re-routed to the new account. This can include:
- Mortgage payments
- Car payments
- Student loan payments
- Credit card payments
- Utility payments
- Cable and internet payments
Allow any outstanding transactions to clear from your old account before transferring money to the new one. If you don’t, you'll will have to pay overdraft fees.
Call your bank to cancel your old account, or do so online. Before officially closing the account, your bank will ensure the account is in good standing and that there aren't any payments outstanding.
Ask your bank to confirm in writing once the account is finally and officially closed.
As long as everything is in order, it shouldn't cost anything to close a bank account.
FAQ
How do I open a bank account for the first time?
Begin by contacting the bank of your choice by phone, online, or visit a branch in person. You'll need to provide your full name and other personal information, but you don't have to be employed or have money to deposit.
How do I open a joint bank account?
Most financial institutions require prospective joint account holders to visit a branch in-person together and bring proper identification. Online banks let you to set up a joint bank account online as long as the proper identifying documents are uploaded correctly.
How do I open a business bank account?
You'll need to supply your bank with the full names and personal information of all business owners, documentation proving the business’ name, and your business’ Canada Revenue Agency number. These requirements may vary by bank.
What is the minimum age to open a bank account in Canada?
Any Canadian resident age 18+ can open their own bank account. Banks often require children under 12 to open an account along with a parent or guardian, but kids between 13 and 18 can sometimes open one on their own.
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