When you relocate to a new country, it is crucial to choose one of the Best Banks in Canada in order to establish your financial life.
Consolidating your chequing account, savings accounts, credit cards, and mortgages with a single institution can streamline the process for you.
While the Big Five banks, TD Bank, RBC, CIBC, and Scotiabank, are widely recognized and have a significant presence throughout the country, there are also alternative options that offer competitive savings interest rates and hassle-free interbank transfers. This article will explore some of the best choices for newcomers to Canada.
Top Banks in Canada
In addition to the major players in the banking industry, there are several emerging challenger banks that are disrupting the traditional norms. One such example is Capital One, which has gained popularity in the USA and has now expanded its operations to Canada.
Capital One offers a range of banking options for individuals and businesses, including high-rate savings accounts that do not require a minimum balance. They also provide credit cards with low fees and a feature that gradually improves your credit score over time.
Other notable challengers include Manulife Bank (formerly ING Direct Canada), which offers a diverse range of products, such as the Advantage Account that combines checking and savings with a modest interest rate. EQ Bank is another branchless virtual bank that offers free chequing accounts and some of the best High-Interest Savings Account rates in the country. These and other innovative banks are increasing competition in the Canadian banking scene.
Key Considerations for Selecting a Canadian Bank
Most Canadian banks provide online, mobile, and phone banking services, in addition to having physical branches. Some banks also offer a wide range of financial products and services, including credit cards. Credit cards can be used to establish a credit history in Canada, but it is important to use them responsibly and consistently pay on time to avoid high interest rates.
When choosing a bank in Canada, it is important to consider the types of products and services you are looking for, as well as your location. Some banks may have limited ATM availability in rural areas, while others may be known for exceptional customer service. You can compare fees and products by reading reviews, consulting friends living in Canada, and asking about their experiences.
RBC is a prominent and established financial services company that provides commercial and personal banking, wealth management, insurance, capital markets, and investor services. The company values integrity, teamwork, and diversity. RBC offers internships, graduate schemes, and entry-level positions, such as data clerk roles.
Comparing Account Types from the Best Banks in Canada
Canadian banks offer various types of accounts, some with more benefits than others. For instance, student bank accounts, such as those offered by the Big Five (RBC, BMO, TD, and CIBC), provide 25 free transactions per month. However, Scotiabank’s Student Advantage plan offers unlimited free transactions and the opportunity to earn rewards on debit purchases.
Savings accounts are ideal for funds that you do not need daily access to, such as those set aside for a down payment or tuition fees. Some savings accounts offer high interest rates, while others are designed for long-term investing, such as Registered Retirement Savings Plans (RRSPs) and Guaranteed Investment Certificates (GICs).
It is also important to consider the range of services offered by each bank. Some banks provide online and mobile banking options that allow you to conveniently check your balances and transactions. Additionally, there may be specialized accounts for kids, students, and seniors. Some banks even offer hybrid accounts that combine chequing and savings functions.
Tips for a Smooth Experience
As you research your banking options, consider your financial needs and what you want from a bank. Choosing the best bank for you depends on factors such as transaction limits, fees, top rewards, and more. Creating a comparison chart can help narrow down your choices.
You may also want to look at any awards or recognition a bank has received, as well as whether it is locally-based or not. If you prefer a comprehensive banking solution with branches and affiliated ATMs in your area, choose a bank with a widespread presence across Canada. Currently, Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), and Canadian Imperial Bank of Commerce (CIBC) are the largest banks by market capitalization and considered among the safest banks globally.
Finding Your Financial Fit from the Best Banks in Canada
When selecting a bank, it is important to find one that aligns with your financial goals. This could involve keeping all of your accounts with one institution or picking and choosing products and services from different banks. In any case, weigh the pros and cons of each choice to determine the option that suits you best.
For example, if you want to maximize your savings, consider switching to a no-fee Canadian bank like Simplii Financial. They offer a complete range of banking services, including chequing and savings accounts, investments, mortgages, credit cards, and more. With benefits such as 4% cash back at restaurants and bars, 1.5% back on gas, grocery, and drugstore purchases, as well as a no-fee Visa card, Simplii is an attractive option.
Similarly, if you are a senior with unique investment needs, explore banks that specialize in these types of products. TD Bank, for instance, offers senior chequing and savings accounts, as well as a variety of investment options, including mutual funds and Guaranteed Investment Certificates (GICs).6