Canada's Big 5 Banks: The Ultimate Guide for Locals, Newcomers, and Students

1. Overview of Canada’s Big 5 Banks

🏦 RBC (Royal Bank of Canada)

• Best All-Around Bank: Largest network, stable service, good for most people
• Key strengths:

  • Newcomer accounts: First-year no monthly fee; most newcomers can get a credit card even without credit history (depends on visa type and branch)
  • Multilingual support available
  • Full range of investment tools (RRSP, TFSA, direct investing, etc.)

🏦 TD (Toronto-Dominion Bank)

• Most Convenient Bank: Largest branch network in Canada, some open on weekends
• Key strengths:

  • Strong support for younger clients (student perks, credit card limits often start higher)
  • Seamless connection with U.S. TD Bank accounts
  • Fast in-person service, easy appointment booking

🏦 Scotiabank

• Best for International Use: Global presence, good for frequent travelers or those with assets abroad
• Key strengths:

  • Passport Visa card: No foreign exchange fees, includes Priority Pass airport lounge access
  • Owns digital bank Tangerine: no monthly fees, clean interface
  • Has branches in Latin America, the Caribbean, and parts of Asia

🏦 BMO (Bank of Montreal)

• Best for Small Business: Canada’s oldest bank, strong in commercial banking
• Key strengths:

  • Fast approval for small business loans and business accounts
  • Full investment options with digital + advisor support
  • Consistent relationship management and dedicated advisors

🏦 CIBC (Canadian Imperial Bank of Commerce)

• Best for Digital Banking: Smooth online experience, remote signup supported
• Key strengths:

  • Online account opening in as little as 15 minutes
  • e-Transfer is instant; mobile app is stable and user-friendly
  • Strong digital features for tech-savvy usersown format content

2. Key Comparison Factors

📌 What Newcomers Care About Most

👉 Newcomer picks:

• RBC – Well-rounded services, flexible credit options, supports multiple languages
• CIBC – Fastest sign-up, COPR-friendly, strong digital experience

📌 Student Account Comparison

👉 Student picks:

• TD – High credit limit, weekend access, solid perks
• CIBC – Fast account setup, free international transfer, strong digital tools

📌 Digital Banking Experience

👉 Digital picks:

• RBC – Feature-rich app, built-in AI insights
• CIBC – Fastest remote account creation, clean digital UX

3. Hidden Banking Fees: What to Watch Out For

⚠️ These extra charges can add up fast — don’t overlook them!

• Non-Teller Transaction Fees: Most basic accounts only include 12–25 free transactions per month (withdrawals, transfers, bill payments). After that, you may be charged $1–$1.50 per extra transaction. TD’s basic account is a common example.

• ATM Withdrawal Fees: Using a non-bank ATM usually costs $1.50–$3. If you're using a competitor’s ATM, you might get charged on both sides — adding up to $5 per withdrawal. BMO and Scotiabank have fewer ATMs, making this fee more likely.

• Foreign Exchange Fees on Credit Cards: Most Canadian credit cards charge a 2.5% foreign currency conversion fee on international purchases. A notable exception is the Scotiabank Passport Visa, which has no FX fee — great for frequent travellers.

💡 Money-Saving Tips:

• ✅ Choose the right account: Student and newcomer plans often waive monthly fees — apply while eligible.

• ✅ Use digital banks: Tangerine (by Scotiabank) or Simplii (by CIBC) have no ATM fees within their partner networks.

• ✅ Use smarter transfer tools: For international transfers, services like Wise or Remitly usually offer better rates and lower fees than banks.

4. Which Bank Is Right for You? Match by Profile

5. Opening Your First Bank Account: What You’ll Need

1. Newcomers

• ✅ Bring your passport, COPR (Confirmation of Permanent Residence), and proof of address (e.g. utility bill, lease agreement).
• Most banks offer “newcomer packages” that waive monthly fees and include credit card options.
• 📌 Recommended: RBC (full services), CIBC (quickest to open)

2. Students

• ✅ Bring your Letter of Acceptance or student ID to qualify for student accounts and credit cards with no monthly fees.
• 🔍 No SIN? Some banks still approve accounts with a passport + study permit + acceptance letter.
• 📌 Recommended: TD (higher credit limits), CIBC (free international transfer)

3. Low-Fee Seekers

• ✅ If you don’t need in-branch services, consider online banks like Tangerine or Simplii — no monthly fees, free transfers, clean app design.
• 📌 Note: You’ll need a local address and phone number to sign up. ATM access is via Scotiabank or CIBC networks.

✅ Final Take: Which Bank Fits You Best?

• 💼 Go with RBC for all-around stability: wide network, strong service, flexible credit options
• 🏪 Choose TD for convenience: lots of branches, weekend hours available
• ✈️ Pick Scotiabank if you travel often: no FX fees with Passport Visa, global ATM access
• 📊 Use BMO for investing or business: solid advisory + integrated business banking tools
• 📱 Try CIBC for a digital-first experience: fast remote onboarding, feature-rich app, instant transfers

🎯 Whether you're new to Canada or simply rethinking your finances, picking the right bank is your first real step toward smart money management.

Hopefully this guide saves you time, money — and a few headaches along the way. 🍁💳