Banking and paying in Canada: your right to an account, the free first year and the cheque that gets held

Yes, you can open a bank account in Canada straight away, and you even have a right to one: also without a job, without money to deposit and without a Canadian passport. The cost is modest. As a newcomer you get an account without monthly fees in your first year, and after that you can always get a basic account for at most $4 a month. The finding at the source concerns cheques: the legal limits on how long a bank may hold your money do not apply to accounts open for less than 90 days.

What do I need to open an account?

You can open an account with a bank or a federal credit union, in person, online or by telephone, as long as the bank can verify your identity. Without Canadian citizenship you may need to go to a branch for this.

The bank verifies your identity in one of two ways, always with original documents:

• Two documents, one with your name and address and one with your name and date of birth. A foreign passport counts, as does government identification, a tax assessment notice or a utility bill.
• One document with your name and date of birth, confirmed by a customer of that bank or by a respected member of the community.

For a newcomer the proof of address is the tricky part: your passport proves your name and date of birth, but not where you live. So bring your lease or a first utility bill.

What does a Canadian account cost?

Account	Monthly fee	For whom
No-cost account	$0	aged 18 or younger, students, seniors receiving the Guaranteed Income Supplement, RDSP beneficiaries, and newcomers in their first year
Low-cost account	at most $4	everyone
Both	at least 18 debit transactions a month included	—

After that first year the newcomer arrangement ends. Check then whether you fall into another group, or switch to the account of at most $4.

How long may a bank hold my money?

If you deposit a cheque in Canadian dollars drawn on a Canadian bank, the bank must release the first $100 immediately if you deposit it with a teller, or the next business day for any other way of depositing. For the rest, maximum hold periods apply:

Amount of the cheque	Deposited with a teller	Any other way
$1,500 or less	4 business days	5 business days
more than $1,500	7 business days	8 business days

In the first 90 days these limits do not apply. The legal maximum hold periods do not apply to accounts open for less than 90 days. A large cheque, for example for the deposit on your rental home or the purchase of a car, can therefore be held longer in your first months. Keep money available for those first expenses on your Dutch account or your credit card.

Is my money at a Canadian bank insured?

Yes, at an institution that is a member of CDIC, Canada's deposit insurance. It covers up to $100,000 per category, including interest, and per member institution. There are nine categories, such as an account in one name, a joint account and the various savings accounts for retirement and education. Deposits in foreign currency are covered too. Anyone transferring more than $100,000 from the sale of a Dutch house can therefore spread it across categories or institutions.

May I bring cash?

Yes, but from CAN$10,000 you must declare it: on arrival on the declaration card, at a kiosk or verbally to the border officer. This applies to cash and to monetary instruments.

How do I build a credit history?

You start in Canada without a credit history, and landlords and lenders look at it. Canada's consumer agency calls paying on time the most important part of your credit score, and advises using less than 30% of your credit limit. How to start that in your first weeks, together with your SIN and your health card, is in your first weeks in Canada.

If a bank still refuses you an account, it must tell you so, including the complaints procedure and the details of the independent ombudsman OBSI. Keep your Dutch account; why is explained in keeping your bank account and DigiD. The full order is at /canada.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.3: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Canada or go straight to step 5.3 in the open plan.