How to open a savings account in a Canadian bank?

Opening a savings account with a Canadian bank is an important step for anyone who wants to start their financial life in Canada or simply save and grow their savings. The Canadian banking system offers a wide range of savings products, from basic savings accounts to high-interest savings accounts (HISAs), each with its own features and benefits.

Eligibility to open a bank account

Basic rights

All individuals are eligible to open a bank account at a Canadian bank, including federal credit unions and authorized foreign banks. This right extends even to those who:

  • are unemployed
  • do not have money to deposit immediately
  • have been bankrupt in the past

You can open a bank account in person, electronically, or by phone, but the bank must be able to verify your identity through proper identification.

Age and residency requirements

To open a savings account, financial institutions usually require account holders to be of legal age in their province or territory and to be residents of Canada with a permanent address. The age of legal majority in most provinces is 18, but in Alberta, Manitoba, and Saskatchewan, it is 19.

Special considerations for non-residents

Even if you are not a Canadian citizen or do not live in Canada, you can still open a bank account as long as you provide proper identification. However, you may need to visit the bank in person to open an account.

Required documents and identification

Basic identification requirements

There are two ways to meet the identification requirements for opening a bank account. You must provide original documents, not photocopies.

Option 1: Provide two documents from a reliable source:

  • one document showing your name and address
  • another document showing your name and date of birth

Option 2: Provide any document from a reliable source showing your name and date of birth, if your identity is also confirmed by:

  • a customer who is in good standing with the bank, or
  • a person who is in good standing in the community where you are opening the account

Acceptable identification documents

The list of acceptable documents includes:

  • documents issued by the Canadian government or a provincial government
  • recent tax assessment notices issued by the Canadian government or a provincial/municipal government
  • recent statements of benefits from the Canadian government or a provincial government
  • recent Canadian utility bills
  • recent bank account or credit card statements
  • foreign passports

Social Insurance Number (SIN)

Although a Social Insurance Number (SIN) is not required for all types of bank accounts, it is required for interest-bearing accounts under the Income Tax Act. Most banks will require a SIN when opening a savings account.

To obtain a SIN, you must:

  • Be a Canadian citizen, permanent resident, or temporary resident with a work permit
  • Visit a Service Canada office with your original documents
  • Provide proof of identity and proof of status in Canada

Types of savings accounts

Basic savings accounts

Basic savings accounts typically offer modest interest rates and minimal fees. They are ideal for beginners or those who want to keep small amounts of money without complications.

High-interest savings accounts (HISA)

High-interest savings accounts offer significantly higher interest rates than regular savings accounts. As of August 2025, the best HISA accounts offer rates ranging from 2.50% to 5.00%.

The best HISA accounts on the market include:

  • Scotiabank MomentumPLUS Savings Account: up to 5.00% promotional rate
  • CIBC eAdvantage® Savings Account: up to 4.90% promotional rate
  • Tangerine Savings Account: up to 4.50% promotional rate
  • Simplii Financial High Interest Savings Account: 4.25% promotional rate

Tax-free savings accounts (TFSAs)

A TFSA is a tax-free savings vehicle that allows Canadians aged 18 and older to save money without paying tax on the interest earned. Although TFSAs typically offer lower interest rates than HISA accounts, the lack of taxation can make them more attractive for long-term savings.

Youth and senior savings accounts

Many banks offer special savings accounts for children and young adults with educational tools and special incentives.

Similarly, some banks offer special savings accounts for Canadians aged 60 and over with reduced fees or no minimum balance requirements.

Account opening process

Online account opening

Thanks to digital banking, opening a HISA can often be done in five minutes. The process usually includes:

  • Providing personal information: full name, mailing address, and date of birth
  • Identification verification: providing a social insurance number (SIN) for tax purposes
  • Contact information: personal email address, especially if you are opening an online bank account

Opening an account at a branch

If you need assistance or prefer to open a HISA in person, be sure to choose a financial institution with physical branches. You can also usually get help from a customer service representative by phone or online chat.

Special programs for newcomers

Many Canadian banks offer special programs for newcomers that include waived fees, welcome bonuses, and specialized support.

Best banks for newcomers:

  • Scotiabank (StartRight Program): up to $2,200 in value
  • BMO (NewStart Program): over $2,200 in value
  • RBC (Newcomer Advantage): waived product fees
  • CIBC (Smart Account for Newcomers): $450 cash bonus
  • TD Bank (New to Canada Banking Package): up to $1,885 in value

Interest rates and fees

Current interest rates

As of August 2025, interest rates on savings accounts vary significantly:

Regular rates (no promotional periods):

  • EQ Bank Personal Account: 3.50%
  • WealthONE Bank: 3.10%
  • PC Money Account: 3.10%
  • Oaken Financial: 2.80%
  • Neo Financial: 2.50%

Promotional rates (temporary increased rates):

  • Scotiabank MomentumPLUS: up to 5.00% for 90 days
  • CIBC eAdvantage: up to 4.90% for 90 days
  • Tangerine: up to 4.50% for 5 months
  • Simplii Financial: 4.25% for 4 months

Fee structure

Most high-yield savings accounts do not have monthly fees. However, fees may apply for:

  • Overdrafts
  • Interbank transfers
  • Use of other banks' ATMs
  • International transfers

Minimum deposits

Most savings accounts do not require a minimum deposit to open. However, some banks may set minimum balances to qualify for maximum interest rates or waive fees.

Online vs. traditional banking

Advantages of online banks

  • Higher interest rates: thanks to lower operating costs
  • Lower or no fees
  • Convenience: 24/7 access via mobile apps and websites
  • Quick account opening: often can be completed in minutes

Disadvantages of online banks

  • Limited physical services
  • Limited access to ATMs
  • Requirement to have an existing account with another bank to open an account

Advantages of traditional banks

  • Personal service
  • Full range of banking products and services
  • Extensive ATM network
  • Opportunity to build long-term relationships with a banker

Security and deposit insurance

Canada Deposit Insurance Corporation (CDIC)

Most major banks are members of CDIC, which insures eligible deposits up to $100,000. Check to see if your financial institution is a member of CDIC.

Provincial insurance

Provincially regulated credit unions are protected by provincial deposit insurers:

  • Ontario: Financial Services Regulatory Authority of Ontario (FSRA)
  • Manitoba: Deposit Guarantee Corporation of Manitoba
  • Alberta: ATB Financial Act

Tips for maximizing your savings

Monitor promotional rates

  • Keep track of when promotional periods end
  • Be prepared to switch banks
  • Compare standard rates, not just promotional offers

Use automatic savings tools

  • Pay Yourself First: automatic transfer of a portion of your paycheck
  • Savings Finder: analyze your spending and transfer excess funds to savings
  • Round-up programs: round up purchases and deposit the difference

Diversify your savings strategies

  • HISA for short-term goals
  • TFSA for long-term tax-free savings
  • GIC for guaranteed income for a fixed term
  • RRSP for tax-advantaged retirement savings

Common mistakes to avoid

Ignoring fees

Read the terms and conditions regarding:

  • withdrawals over the limit
  • ATM use
  • account inactivity

Not paying attention to promotional rate terms

Promotional rates may require:

  • minimum deposits
  • withdrawal restrictions
  • geographic restrictions

Irregular monitoring of rates

Interest rates change without notice — check them regularly.

Opening a savings account with a Canadian bank is a relatively simple process that can greatly contribute to your financial well-being. By understanding the different types of accounts available, the documentation requirements, and the current market situation, you can make an informed decision that best suits your financial goals. Review your banking relationships regularly and be prepared to switch banks if better opportunities arise.