Having a bank account isn't just convenient — it's the foundation for almost everything else: direct deposit, saving, building credit, accessing benefits. If you don't have one yet, or if you're not sure you have the right one, here's what you need to know.
Opening your first account
In Canada, banks are required to open a basic account for you even if you have no credit history, no job, or very little money. This is a legal right.
You need two pieces of ID. Common combinations:
- Status card + provincial ID (driver's licence or provincial ID card)
- Status card + birth certificate
- Provincial health card + another government ID
The Secure Certificate of Indian Status (the newer card) is accepted everywhere. If you have an older style card, some institutions may ask for a second piece of photo ID. If a bank refuses your Status card, ask to speak with a manager — they are required to accept it.
Choosing the right account
The main things to compare:
- Monthly fee — some accounts have no fee, others charge $4-16/month. Many waive the fee if you keep a minimum balance
- Number of transactions — some plans limit how many debit transactions you get per month. Going over means extra fees
- E-transfer — most plans include unlimited e-transfers now, but check
- ATM access — if you're in a remote community, check which bank has ATMs nearby or which ones reimburse ATM fees
Big banks (RBC, TD, BMO, Scotiabank, CIBC) have the widest ATM networks and most branches. They also tend to have the highest fees. Online banks like Tangerine and Simplii (owned by Scotiabank and CIBC respectively) offer no-fee accounts but no physical branches.
Credit unions operate on a membership model and often have lower fees. In some provinces, they have better branch coverage in smaller communities. Deposits are insured by provincial deposit insurers, similar to CDIC for banks.
Peace Hills Trust is the only Indigenous-owned trust company in Canada (owned by the Samson Cree Nation). They have branches in Alberta, BC, and Saskatchewan. Banking with them can also have Section 87 implications — deposits at an on-reserve financial institution may have stronger tax exemption arguments for interest income.
On-reserve banking challenges
If you live on reserve, you might deal with:
- No nearby branches — the nearest bank could be a long drive away
- Limited ATM access — some reserves have band-operated ATMs, but fees can be high
- Connectivity issues — online and mobile banking require internet, which is inconsistent in some communities
Most banking apps let you check your balance and recent transactions even with a weak signal, because they cache your last known data. You'll need connectivity to send e-transfers or pay bills, but checking your balance doesn't require much bandwidth.
Avoiding common fee traps
- Overdraft fees — decline overdraft protection if you don't want to risk $5 fees every time you go below zero
- Non-network ATM fees — using another bank's ATM can cost $3-5 per withdrawal. Stick to your bank's ATMs or use cash-back at stores
- Paper statement fees — some banks charge $2-3/month for paper statements. Switch to e-statements if you can
- Cheque-cashing services — avoid these if possible. They take 2-10% of your cheque as a fee. A bank account with direct deposit eliminates this entirely
Getting started
- Gather two pieces of ID (Status card + one other)
- Visit a branch or apply online — many banks let you open an account on your phone now
- Ask for a no-fee or low-fee chequing account — don't let them upsell you
- Set up direct deposit for any regular income (employment, benefits, band distributions)
- Download the bank's app and enable notifications so you always know your balance
Last updated: March 2026