DISCLAIMER: We do not recommend any bank.  We do not receive referral fees from any bank.  The information on this page is based on our research, and is for your information only (so do your own research).

All banks are not the same; they have different features, so you should pick the bank that’s right for you, based on what you need:

Do you get a paper paycheque?

If you get a paper paycheque, you deposit it at the bank, either at a bank machine, or using the bank’s mobile app on your phone, or directly with a teller.  Here’s the catch: most banks and credit unions put a “hold” on all cheques deposited by new customers.  They don’t have a history with you, so they don’t know if your cheque will clear, so they often put a 5 or 10 day hold on the cheque before they will release the funds.  That’s a problem if you need the money from your paycheque to pay the rent tomorrow.

The solution? Don’t deposit your cheque at the bank machine or using the app.  Instead, take the cheque directly to a bank teller, and when you make the deposit ask them if they can remove the automatic hold on the cheque, or at least release some of the money (say the first $500) of your cheque for immediate access.  The bank teller has the power to do this (if you ask nicely); you can’t ask a machine to remove a hold.

BONUS TIP: If you bank at the same bank your employer banks at, the teller can clear the cheque immediately because they can see that the money is available in your employer’s bank account, so pick the same back your employer uses (unless you owe money to that bank).

If you get a paper cheque, use a “bricks and mortar” bank to increase the chances of getting your cheque cleared immediately.  In most cases, after a few months of good history you can ask the bank to remove the hold, so you can deposit your cheque using the machine or banking app.

Do you get paid electronically?

If your income is deposited electronically (paycheque, pension, child tax benefit, etc.), do you need a physical bank?  If you often get money orders (some landlords only accept money orders or bank drafts), or need US or foreign cash, a physical bank may be necessary (although many banks now have bank machines that dispense US dollars, and you can get a money order from the post office for up to $999.99).  If you do all of your banking electronically, a “virtual bank” may be your best option.  The two largest “virtual” banks in Ontario are Simplii Financial and Tangerine; see below for details.

NOTE: Banks change their prices regularly, so please refer to the bank’s websites or visit the branch for current terms and pricing.

Here’s our summary of what the banks currently offer

“Free” Banks (on-line only; no branches)

The two largest “virtual” banks in Ontario are Simplii Financial and Tangerine. They both offer:

• No monthly fees with no minimum balance required
• Unlimited debits, bill payments and withdrawals
• Deposits through mobile banking app
• Debit cards that can be linked to Apple Pay, Google PayTM and Samsung Pay®

NSF Fees are $45 at both banks.

Here’s where they are different:

“Almost a Bank” – PC Financial

PC Financial has a PC Money Account, that is NOT a bank account, so you can’t write or deposit cheques, but you can use your debit card everywhere Mastercard^® is accepted, including online and when travelling abroad.  If you are paid electronically you can have your paycheque automatically deposited to your account.

Banks and Credit Unions with Branches

Bank of Montreal – Open your account by January 31, 2020 and set up direct deposit and pay one bill by February 29, 2020 to earn your bonus.

CIBC – currently offering no fees for 12 months (some conditions apply)

DUCA – no current offers but they offer free and full service accounts (some conditions apply)

First Ontario Credit Union – no current offers but they offer free and full service accounts (some conditions apply)

Libro Credit Union – no current offers 

Meridian Credit Union – no current offers

Royal Bank – no current offers

Scotiabank – no current offers

TD Bank – no current offers, but many branches are open late and on weekends

Your Neighbourhood Credit Union – no current offers but they offer free and full service accounts (some conditions apply)

Prepaid Credit Cards

In some cases a credit card is required (booking a hotel room, renting a car, online purchases that don’t accept Visa Debit (most do):

Bank of Montreal Prepaid Mastercard – $7 per year fee, no transaction fee, you can electronically load it with money from your bank account