Journeying up North: Getting your first account setup in Canada

One of the most popular destinations for immigrants globally, Canada has been a frontrunner for South Africans looking to move. With more than 50,000⁶ already there, it has become the go-to spot for those looking for better work and higher education due to their flexible immigration policies. But while the whole immigration process is stressful, we’re here to discuss what happens after you’ve completed that step. In this guide we help you understand the Canadian banking system and discuss what all it has to offer.

We also explore international transfers which have been made simpler with Wise - a money services provider. It’s a travel-friendly, international account that lets you send and spend in multiple currencies worldwide that too at the mid-market rate.

What documents are needed to open a bank account in Canada for South Africans?

If you're not a Canadian citizen, you'll need the following documents in order to open a bank account⁷:

• your valid, unexpired passport; and
• your permanent residency card or immigration papers.

Different banks may have specific requirements, so it's a good idea to get in touch beforehand to make sure you have everything you need.

As a general rule, however, it's likely that your bank will accept one of the following immigration papers:

• Temporary Residence Permit;
• work or study permit;
• confirmation of Permanent Residence form (IMM 5292 or IMM 5688)

You'll need to obtain at least a Temporary Residence Permit or a work or study permit before you travel to Canada. Without them, you won't be allowed to enter the country.

Can I open a bank account in Canada without a proof of address?

You should bring proof of your current Canadian. address, such as a utility bill with your name and address or a letter addressed to you. If you're a student or employed, you might bring documents regarding your workplace. For example, some credit unions only allow you to join if you live or work in the credit union's service area⁷.

Send money to South Africa from Canada using the mid-market rate

If you’re a South African expat living in Canada, Wise can help you save money¹ when making international money transfers back to South Africa.

Although the majority of Canadian banks will allow expats to make international transactions, they normally add a markup onto the mid-market exchange rate, meaning you end up paying more for your transfer.

The mid-market exchange rate is the rate that banks use to transfer money between them and is considered the fairest rate in the market. Find out what you would pay for an international money transfer with Wise:

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Wise customers don’t have to pay an additional markup fee but only a small transparent fee to make an international transaction¹. That’s because Wise uses the mid-market rate for overseas payments!

With Wise, South African expats can save money¹ when making international payments from Canada to South Africa.

Join Wise!

Can I open a bank account before I arrive in Canada?

Opening a bank account in Canada remotely is totally doable! All you need to do is reach out to the bank via live chat, email, or phone to kickstart the process. They'll ask you a few questions about your immigration status - whether you're here temporarily or planning to stay long-term.

After that, you'll be contacted by a dedicated team to guide you through the rest of the process. Just make sure your immigration papers are all sorted beforehand, or you won't be able to proceed.

Now, here's the thing: it's not an instant process. It'll take a few days to get everything sorted remotely. Eventually, though, you'll likely need to schedule an appointment and make a branch visit once you've arrived in Canada.

But here's the silver lining: Canadian banks have specialized products for newcomers like yourself, which makes the whole experience a lot smoother. So, considering the limited options and waiting time for the remote process, it might be a good idea to wait and open your account in person once you're here.

Can I open a bank account online?

Just like their online counterparts, many brick-and-mortar banks now offer the convenience of opening an account digitally. The process mirrors what you'd do in person: answer personal questions, upload necessary documents, and verify your identity online or in line with the bank's policy.

Once you've completed these steps and your account is up and running, the bank will send you your debit card by mail.

But if you're looking to open a Canadian account without setting foot in the country, your best bet is Wise's Multi-Currency Account. With Wise, you'll receive a dedicated Canadian bank account number, transit number, and institution number, simplifying currency exchanges across borders, allowing you to easily send money back home to South Africa.

Which bank is best for my needs?

The banking industry in Canada is highly competitive with several exciting products offered to customers, so a straightforward answer to this question is difficult. To find the best bank it is important to clearly define your needs and then look for a bank that best meets them. Fortunately, with the number of options available in the market you are guaranteed to find something that fits your requirements.

The Top Four Canadian banks:

There are five major banks in Canada, all of which have special packages for newcomers. They are the Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Bank of Montreal and Canadian Imperial Bank of Commerce. Let’s have a look at what each of these banks have to offer.

- Royal Bank of Canada

The Royal Bank of Canada (RBC) is the country's largest bank, and offers customer service in over 200 languages. RBC also extends a comprehensive Newcomers to Canada package⁸. For individuals holding temporary visas, RBC offers the RBC Signature No Limit Banking Accountor RBC VIP Banking Account with no charges for up to 6 months⁸. Plus, a fee-free credit card is included.

- Scotia Bank

Scotiabank stands as Canada's third-largest bank, boasting over 4000 ATMs scattered across the nation⁹. With a variety of account options available, each offering its own set of benefits, you're sure to find one that suits your needs.

Even with their basic banking plan, you can rack up points for free movie redemptions. This account typically carries a monthly fee of CAD$11.95, but it's waived if you maintain a balance of CAD$3000 or more in your account at all times⁹.

For students, Scotiabank offers the Student Banking Advantage Plan, which comes with unlimited transactions and no monthly fees. Business owners can also take advantage of Scotiabank's business bank accounts, which include perks like overdraft protection of up to CAD$5,000, personalized business plans, and access to a Visa credit card¹³.

- TD Bank

The Toronto-Dominion (TD) Bank’s New to Canada package includes a checking account that’s fee-free for a year and allows unlimited international transfers with the fees rebated for up to a year¹⁰. You may also qualify for a mortgage, even though you don’t have a credit history.

The bank’s student package includes a bank account with no monthly fees and free and paid credit cards¹⁵. If you’re planning on starting a business, you can get a tailored service plan that includes overdraft protection and a number of fee-free transactions each month¹⁴.

- Bank of Montreal

The Bank of Montreal, Canada's oldest bank, offers a comprehensive package designed specifically for people that have recently moved, including workers, students, and business owners¹¹. With this package, you'll enjoy perks such as unlimited transactions and no monthly fees for up to one year, a complimentary MasterCard credit card, and even a free safety deposit box for the same duration¹¹. Moreover, newcomers may also be eligible for a mortgage, even without an established credit history.

For students, the Bank of Montreal provides a student banking packagefeaturing an account with no monthly fees for the time when you’re a student and for the first year after you graduate¹⁶.

Wise: An alternative way to send money from Canada to South Africa

If you want a truly international account that works pretty much anywhere⁴, check out Wise. Wise is a money services provider, offering a multi-currency account, international money transfer services and a debit card.

Open a Wise account online and you can manage your money in multiple major currencies, including GBP, EUR, USD and many more⁴. When sending money internationally or converting currency, you’ll only pay a low, transparent fee¹ while also getting the mid-market exchange rate every time.

And, you can spend just like a local in multiple countries worldwide⁴ with your Wise card. It automatically converts currency whenever you spend, so there’s no need to change money or carry cash around with you.

Sign up with Wise today 🚀

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

What are the fees to open a bank account in Canada?

Student banking is typically free, while seniors over 60 enjoy substantial discounts. Newcomers to Canada also enjoy a grace period of free banking, but this offer is usually temporary (for the first year). You can look into the specific fees for the bank account you’re looking to open on the organisation’s website.

ATM fees

Withdrawing cash from an ATM is free if you use your bank’s machines, but costs about CAD$2 per transaction when you use another bank’s ATM¹⁷.

International transfer fees

Most major banks offer a set number of free international transfers as part of their welcome packages for newcomers to Canada. However, it's essential to note that while these transfers are promoted as free, you may still incur fees when initiating the transfer, only to be reimbursed at a later date. Additionally, there may be other terms and conditions associated with the service, so it's crucial to carefully review the fine print before opting to use it. We discuss fees charged by major Canadian banks in the table below:

Bank	International transfer fee12
Royal Bank of Canada	6 CAD - 10 CAD + exchange rate markup + any relevant intermediary bank fees
Scotia Bank	1.99 CAD + exchange rate markup + any relevant intermediary fees
TD Bank	Up to 25 CAD + exchange rate markup + any relevant intermediary fees
Bank of Montreal	5 CAD + exchange rate markup + any applicable third party fees

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In wrapping up your journey to Canada from South Africa, opening a bank account is a crucial step towards settling in smoothly. While navigating the Canadian banking system may seem daunting, understanding the requirements and options available can ease the process. But here's a tip to make your financial transition even smoother: consider Wise. With Wise, you can manage your money internationally, from sending money back home to spending in multiple currencies with their convenient multi-currency account⁴.

So, whether you're a student, worker, or newcomer, take advantage of Wise's seamless solutions to make your transition to Canada even more effortless. Welcome to your new home, and here's to a bright financial future with Wise by your side!

Join Wise!

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Sources:

1. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
2. Transaction speed claimed depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions.
3. Eligibility is subject to verification of customers identity. Wise may request additional documents to verify a customer's identity.
4. Please note that certain products or features may not be available
5. in all regions. Please visitwww.wise.com to check for availability and learn more about our offerings.
6. South Africans in Canada
7. Opening an account from overseas
8. Royal Bank of Canada
9. Scotia Bank
10. TD Bank
11. Bank of Montreal
12. International Transfer Fees
13. Scotiabank Overdraft Protection
14. TD Bank Business Account
15. TD Bank Student Account
16. BMO Student Account
17. ATM Fees