Which Bank Should I Pick When I Open a New Bank Account?

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.

Here’s How To Decide

In addition to looking at basic account features, the most important question is how you will actually use your bank day to day.

The factors below all affect whether a virtual (online-only) bank or a traditional bank with branches will work best for you. As you read each section, think about which option fits your situation.

First Requirement

  • The bank must be one where you do not owe any money. Otherwise your bank may continue to take money from your account for debts owing to them and included in your bankruptcy or proposal. It is called the right of offset and why we recommend opening a new bank account when you file.

If You’re Paid By Cheque

If you are paid by paper cheque, you might want to consider a bank with physical branches. Here’s why:

Most banks have a hold period (up to 10 days) on all cheques deposited by new customers. That can be a problem if you need the money from your paycheque to pay rent tomorrow.

There are some possible solutions to reduce or eliminate this hold period:

  • Depositing with a teller, rather than through the bank machine or bank app, may reduce the hold period if you ask.
  • Banking at the same bank as your employer may allow faster access. Again ask the teller.
  • After a few paycheques, ask if holds can be reduced or removed.

In other words, 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.

If You’re Paid Electronically

If your income is deposited electronically (paycheque, pension, child tax benefit, etc.), you may not need in-person banking at all. Instead, consider a ‘virtual bank’.

  • Online banks can work well and keep fees low
  • These banks don’t have branches, but most services are free

Do You Need A Money Order?

Some landlords accept money orders for rent. You can do this through a bank with branches or, if you opt for a virtual bank, you can get a money order from the post office for up to $999.99.

Consider Fees and Services

Once you know what type of bank you need (bricks and mortar vs virtual), look for the bank that has the best account features, with the lowest fees.  This includes fees for Interac e-Transfer®, cheques, stop payments, ABM transactions as well as annual fees.

Do You Need Savings Products or Money Apps?

While savings may not be top of mind when you’re opening a new bank account, this is often the first time your paycheque isn’t being swallowed by debt payments.

As you open your new account, it’s a good time to think about where you might keep savings — do you want a high-interest savings account or, when appropriate, a TFSA?

Some banks also offer helpful spending or savings tools.  For example Tangerine has several options under their “Money Rules” tab to promote smart money habits. You can opt in and out at any time, and you can participate in as many as you can afford. TD MYSpend, when paired with the TD app, helps you keep track of your monthly spending and help improve your spending habits. Wealth Simple allows you to open up to 8 individual accounts you can use for virtual envelope budgeting. Again, many banks offer similar money apps, so check them out when choosing your bank.

Examples of Banks That Fit Each Category

Again, we don’t recommend or endorse any specific bank. Ask about fees, holds, and account features before opening an account. The links below open to the bank’s website in a new tab so you can investigate more.

Virtual Banks – lower fees, generally no branches

Virtual banks generally offer:

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

Virtual banks with chequing accounts as of January, 2026

Others to consider

  • KOHO – not a full service account because you cannot deposit cheques or cash; can only deposit through e-transfers, direct deposit or Visa debt.
  • Neo – does not offer cheques but does have a high interest savings account, offers cashback without a credit card 
  • Shakepay – has high interest bank account, allows automatic deposit of your paycheque, automated bills payments and Interac e-transfers

Banks and Credit Unions with Branches