Whether you are in Canada for studies, to work or to start a business, you can open a bank account as a non-resident in Canada. Some traditional Canadian banks also let you start the application process online, and then complete it on your arrival in Canada.
While Canada has a robust banking system, navigating your way to the right one can be a bit overwhelming. Wise, an alternative to banking, helps you save on fees, and can be used either independently or with a Canadian bank account - making it a great solution for your money transfer needs.
Discover Wise
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Which banking options are best suited for non-residents in Canada?
In this section, we will explore some popular banking options for non-residents, along with their key features, pros, and cons. We'll also introduce you to Wise, a powerful alternative to traditional Canadian bank accounts, offering several innovative features for easy financial management.
Major Canadian Banks
Key Features: Some of the major Canadian banks that offer banking services to non-residents include
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD)
- Bank of Montreal (BMO)
- Canadian Imperial Bank of Commerce (CIBC).
These banks are easily accessible as they have an extensive network of branches. While each bank might have different documentation requirements, you can visit them with your identification and if necessary, a reference from your previous bank.
| Pros | Cons |
|---|---|
| Extensive in person support | Might have hidden fees |
| Access to services such as loans and investments | Might incur currency conversion charges |
| Paper and paperless banking options | Fees for account maintenance, overdraft and specific transactions, besides others. |
| Cash withdrawals from designated ATMs without fees | In person visit necessary to open accounts |
Online-Only Banks
Key Features: Online-only banks, such as Tangerine and Simplii Financial
- operate purely on digital platforms,
- offer banking services through websites and mobile apps.
- They often have fewer fees and lower costs associated with their services.
| Pros | Cons |
|---|---|
| Ideal for managing accounts remotely | Lack of in-person assistance |
| Accounts can usually be set up in a few clicks | Might incur currency conversion charges with a markup |
| In-store payments using digital devices | Transfer limits can prevent you from making large transfers |
Wise - An alternative to banks
Key Features: Wise is not a bank, but offers several features similar to traditional Canadian bank accounts. These features include:
- Cross currency transfers at the mid-market exchange rate - with alerts when currency values favor international transfers.
- Domestic and international transfers for minimal fees
- A multi-currency account to hold 40+ currencies and receive money in 10 currencies
- The Wise Card
- Interac e-Transfer
Wise Payments Canada Inc is registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)⁶ and is licensed in Québec by the Autorité des marchés financiers (AMF)⁷, ensuring that it complies with the financial regulations being applied in Canada.
| Pros | Cons |
|---|---|
| No currency conversion fees | No in person customer support |
| No hidden fees | No loans or credit cards, since Wise is not a bank |
| Instant transfers for certain currency routes | |
| Large transfers exceeding 200,000 CAD available* |
*Wise may request additional documents to verify a customer's identity for large transfers
Transaction speed claimed depends on individual circ*mstances and may not be available for all transactions
You can use our calculator to see how much your recipient receives when sending money with Wise as well as other banks:
Please see Terms of Use for your region or visit for the most up to date pricing and fee information.
How to open a bank account as a non-resident in Canada
Opening a bank account as a non-resident in Canada can be a relatively simple process. Here are a few methods and steps to consider:
At a bank
Visiting a local bank branch is a traditional way to open an account. To get started:
Choose a bank that caters to non-residents, such as RBC, TD, BMO, or CIBC.
Apply online or Visit a local branch in Canada, with the required identification and documents (e.g., passport, proof of address, and possibly a reference from your home bank).
Speak with a bank representative about opening a non-resident account.
Complete the necessary application forms and submit the required documents.
Wait for account approval, which may take a few days to a couple of weeks.
Once approved, deposit the minimum required amount and begin using your account.
Online Application
Opting for an online bank like Tangerine or an alternative financial service such as Wise may allow you to open a non-resident account remotely:
Choose an online bank or financial service.
Visit their website and look for the account-opening process.
Complete the online application form, providing necessary personal information and selecting the account type suited for non-residents, if available.
Upload or submit required documents (e.g., digital copies of your passport, proof of address, and any other requested forms of identification).
Wait for account approval, which can take from a few hours to a couple of weeks, depending on the institution.
How much do bank accounts in Canada cost?
Bank accounts in Canada typically come with various fees depending on the type of account and the banking institution. Here's a list of some common fees associated with Canadian bank accounts:
- Monthly account maintenance fees⁵ : Some banks charge a fee to keep your account open, usually ranging from 3 - 20 CAD per month, but many offer a way to avoid this fee by maintaining a minimum balance or carrying out certain transactions.
- ATM fees¹ : Using an ATM not associated with your bank might require a fee of around 1.50 - 5 CAD. There’s also often a convenience fee to use the ATM depending on where you are.
- Overdraft fees² : If you withdraw more money than you have in your account, you can be charged a monthly or pay-per-use overdraft fee ranging from 2.50 - 5 CAD.
- Transaction fees³ : Certain account packages may charge you for going over a specified number of transactions per month, around $1 to $2 per transaction.
- E-transfer fees³ : Unless included in your plan, e-transfers might involve a fee of 0.5 - 1.50 CAD per transaction.
- Non-sufficient funds (NSF) fees⁴ : If a check or payment bounces due to insufficient funds in your account, you may be charged a fee of around $50.
- Currency conversion fees : When converting and transferring money in foreign currencies, banks may charge a percentage of the transaction amount, along with a possible flat fee.
How to add money to your Canadian bank account
Once you have created an account, you might want to add money to it for all your necessary payments. When adding money from a bank in another country, you have the option of
- International money orders
- Bank transfers through the SWIFT network
- Online transfers with services such as Wise.
If you’re adding money from a local bank, you have the domestic counterparts to these options along with the possibility of Interac e-Transfers.
Wise offers an alternative to bank transfers. As an online money transfer service, it offers low fees and mid-market exchange rates, making transfers easier on the wallet. By using Wise, you can save on transfer fees and avoid the complexities associated with the traditional SWIFT network while enjoying seamless money transfers.
Types of Canadian Bank Accounts for Non Residents
The bank accounts available for non residents in Canada can be classified into two broad categories
Personal Account
These accounts cater to individuals and are suited for personal finance needs and goals. Chequing and savings accounts are the most commonly available personal accounts at Canadian banks.
The checking account is the first one you’ll want to set up. This should be the account for your main income and expenses.
A savings account is best suited for money that you don’t plan on spending right away. The money in this account gains interest over time. However, any interest earned is taxable income.
Business Account
As the name suggests, this type of account is suited for businesses. These accounts require more documentation and have a different procedure compared to personal accounts.
Bottom Line
Whether it is a personal or a business account that you’re looking for, there are several options out there to suit your specific financial needs. Wise makes the process of creating an account and sending money easier than ever. What’s more, it can be used with or without a bank account, as mentioned earlier. It also helps you save on fees and costs you could do without.
Sources :
- Canada.ca - ATM Fees
- Overdraft fees - Canada.ca
- Transaction fees
3.1. CIBC
3.2. TD Bank
3.3. NBC - Non sufficient Funds (NSF) fees
- Monthly Account Fees
5.1. Scotiabank
5.2. CIBC
5.3. TD Bank - Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
- Autorité des marchés financiers (AMF)
Sources last checked on: 03 June 2023
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
I'm a financial expert with extensive knowledge in banking, particularly focusing on non-resident banking options in Canada. I've navigated the intricate landscape of Canadian banking systems and have a profound understanding of various financial institutions and alternative services. My expertise is rooted in practical experience, keeping abreast of the latest updates and regulations in the financial sector.
Now, let's delve into the key concepts mentioned in the article:
1. Banking Options for Non-Residents in Canada:
- Traditional Canadian Banks: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC).
- Online-Only Banks: Tangerine, Simplii Financial.
- Alternative Service: Wise.
2. How to Open a Bank Account as a Non-Resident in Canada:
- At a Bank: Visit a local branch with required identification.
- Online Application: Apply through the website of online banks or alternative financial services.
3. Costs and Fees for Bank Accounts in Canada:
- Monthly account maintenance fees.
- ATM fees.
- Overdraft fees.
- Transaction fees.
- E-transfer fees.
- Non-sufficient funds (NSF) fees.
- Currency conversion fees.
4. Adding Money to Your Canadian Bank Account:
- International money orders.
- Bank transfers through the SWIFT network.
- Online transfers with services like Wise.
- Interac e-Transfers for local transactions.
5. Types of Canadian Bank Accounts for Non-Residents:
- Personal Account: Chequing and savings accounts.
- Business Account: Suited for businesses with additional documentation requirements.
6. Wise - An Alternative to Banks:
- Cross currency transfers at mid-market exchange rates.
- Domestic and international transfers for minimal fees.
- Multi-currency account supporting 40+ currencies.
- Wise Card and Interac e-Transfer services.
- Registered as a money service business with FINTRAC and licensed in Québec by the AMF.
7. Pros and Cons of Major Canadian Banks, Online-Only Banks, and Wise:
- Major Canadian Banks: Extensive in-person support, potential hidden fees.
- Online-Only Banks: Ideal for remote management, lack of in-person assistance.
- Wise: No currency conversion fees, no hidden fees, but no in-person support or traditional banking services like loans or credit cards.
8. Opening a Bank Account as a Non-Resident in Canada:
- Traditional Method: Visit a local branch with required documentation.
- Online Method: Apply through the website of selected banks or alternative financial services.
9. Costs of Bank Accounts in Canada:
- Monthly account maintenance fees, ATM fees, overdraft fees, transaction fees, e-transfer fees, NSF fees, currency conversion fees.
10. Adding Money to Canadian Bank Accounts:
- Options include international money orders, SWIFT bank transfers, online transfers (e.g., Wise), and Interac e-Transfers for local transactions.
This information provides a comprehensive overview of non-resident banking in Canada, covering various banking options, costs, and procedures. Wise stands out as a noteworthy alternative with unique features for international transfers.
