Navigating Canada's Financial System: A Guide for Newcomers

Moving to Canada means learning a new money system—different banks, cards, fees, and ways to get paid.

The good news: once you understand the basics, day-to-day banking here is pretty straightforward.

A Simple Starting Point: KOHO Essential

If you’re new and don’t want to stress about big bank fees or credit card debt, with KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

1. Open a Chequing-Style Account First

Your first step is usually an everyday spending account so you can:

• Receive your paycheque

• Pay rent, bills, and subscriptions

• Use Interac e-Transfers to send and receive money

2. Add a Savings Account

Next, set up a place for savings, not just spending:

• Keep money for emergencies and short-term goals separate from your day-to-day balance.

• Look for high interest, so your savings actually grow instead of sitting idle.

With KOHO, your whole balance can earn interest, so you don’t need to juggle multiple accounts right away.

3. Understand Credit and Credit Scores

In Canada, your credit history affects things like:

• Getting approved for a credit card, car loan, or mortgage

• Sometimes renting an apartment

4. Get Used to Interac, Debit, and Cards

Day to day, most people use:

• Interac e-Transfers to send money to friends, family, or landlords

• Debit or prepaid cards for groceries, transit, and everyday spending

• Credit cards for bigger purchases or travel (as long as they’re paid on time)

5. Watch Fees and Foreign Exchange

As a newcomer you might still be:

• Moving money from another country

• Paying for things in a foreign currency

Pay attention to:

• Monthly account fees

• ATM and transfer fees

• Foreign exchange costs when spending in another currency

Keeping your main spending in a low-fee, transparent account helps you keep more of what you earn.