Overview
You might consider opening 2-3 bank accounts based on your needs.
- One of the larger banks
Royal Bank, TD Canada, Scotia Bank, BMO, CIBC fall under this category. Pick one based on the location of ATMs, the hours of operations, as well as the monthly fees. Most of these larger banks will charge you monthly fees, unless you have a minimum balance ($2.5k-$6k) or you use a bunch of services from the same bank (chequing + savings + credit card + investment, etc).
- Tier 2 banks
Outside the big 5 banks, there are banks such as HSBC, Vancity, Tangerine, or Coast Capital. They may have no or lowered fees, somewhat higher interest rates for chequing or savings account, and other perks such as free cheques or no-fee credit card.
- Online-only banks
There are banks that you can apply online such as WealthSimple, EQ Bank, Simplii, Alterna Bank. You can enjoy significantly higher (4-10x) interest rates (0.1-0.5% on Tier 1 banks vs 1.2-2.0%+ on Online banks). Compare the most up-to-date interest rates from RateSupermarket.ca
Tips
- Money transfer can be lengthy and expensive. Compare and check out fee structures and limitations between your bank's domestic/international wire transfer, Interac e-Transfer, or other Payment services such as Paypal or TransferWise, as the fee differences can be significant.
- If you expect to receive money from overseas, make sure to check with Tier 2 or online-only banks if they provide wire transfer services, as some banks may only provide domestic transfers only.
- Check your ATM withdrawal limitations. You may be surprised how low it is in the beginning. Ask your bank how you can increase the limit.
What I'm personally using and why...
- WealthSimple
- Very user-friendly mobile app. Fee-free trading.
- Higher interest rates than most Tier 1 banks.
- Free ATM withdrawal (from any bank in Canada!!!)
- TD Canada
- An advanced ATM machine that spits out $5, $10, $20 or $50 in 3 minute walking distance from home
- Longer hours of operation than other Tier1 banks especially on weekends
- Tangerine
- Fee-free cheque books, Interac e-transfer, Bank-to-bank transfer (between Tangerine and TD, or other banks)
- Higher interest rates than most Tier 1 banks. It's often promotional rate, but I can start a chat conversation every 3-6 months, asking for a better rate, and they keep giving you preferred interest rates.
Referrals