Financial tips for international students pre- and post-arrival

Pre-arrival financial tips for international students in Canada

Start saving money in a high-interest bank account in your home country. When the money is ready, you must transfer it into a guaranteed investment certificate to improve your chances and speed up the process for a student visa or study permit in Canada.

Read more about Canada’s Student Direct Stream program.

Step 1: Open a Guaranteed Investment Certificate (GIC)

Canada has many banks where you can open a GIC, but “the big five banks” are the most common, with trustworthy reputations dating back centuries.

The big five banks are:

Bank of Montreal (BMO)
Canadian Imperial Bank of Commerce (CIBC)
Royal Bank of Canada (RBC)
Toronto-Dominion Bank (TD)
The Bank of Nova Scotia (Scotiabank).

Any deposits into these banks are insured with the Canadian Deposit Insurance Corporation for up to $100,000.

You earn interest on your money while it waits for your arrival in Canada.

Scotiabank is Canada’s most international bank, with 2,700 locations globally. Based on the number of GICs funded, they’ve helped more international students than other banks. Maybe it’s thanks to their easy online application process.

Step 2: Plan to live in Canada

Canada has a broad range of weather depending on where you go to school—from the misty rains in British Columbia and Nova Scotia to the humid summers of Toronto and the snow piles of Montreal’s winters.

All these cities and provinces have different living costs—rent, food, and school tuition.

The disbursement of funds from your GIC guarantees a minimum of $4,127 CAD ($3,016 CAD in Quebec) on your initial visit and a fixed monthly payout of $1,376 CAD ($1,005 CAD in Quebec).

Will that be enough?

Rent costs

According to Rentals.ca, the average rent in Canada for all property types is $2,193, with the high of a 1-bedroom in Vancouver, BC, costing $2,653 compared to the low of $1,183 in Saskatoon, SK.

Work with your university or college student union, financial aid or a housing office that can help you find affordable options and make finding housing easier so you have somewhere to go when you arrive.

Food costs

According to a Dalhousie University study, the average monthly grocery cost for a woman aged 19-30 was $292, and for men in the same age group, it was $529.

Other

Utilities, such as heat, electricity, and water, if not included in rent, could be around $100-$200 per month.
Internet, if not included in rent, can run between $50 and $125 per month, depending on your needs.
Mobile phone, if you bring your own device (BYOD), will range between $50 and $120 per month, depending on your needs.
And don’t forget clothing, dining at restaurants, transportation and more.

Creating a budget is a smart financial move. Many big banks offer budgeting apps when you bank with them.

You’ll need a social insurance number (SIN) if you need a part-time job. You’ll need a study permit issued by IRCC or CIC to get a SIN, which indicates the permit holder “may accept employment” or “may work” in Canada.

Apply for your SIN here.

Post-arrival financial tips for international students in Canada

Welcome to Canada! We’re so glad you’re here.

Step 3: Open a bank account

Open a Canadian bank account to avoid international banking fees.

Banking is part of everyday life in Canada—whether it’s cheques or email money transfers for your landlord or depositing your first GIC withdrawal (and your first paycheque if you get a part-time job), a bank account will make life easier when you’re here.

While you can open an online bank account in your home country before your arrival with many online-only banks, such as EQ Bank, Neo Financial, or Tangerine, you may need other documentation, like a utility bill or letter from your landlord, before they approve your account.

What you need to open a bank account in Canada

Proof of ID: Canadian driver’s license or valid passport.
Permanent Resident card or an Immigration, Refugees and Citizen Canada form IMM 1000, IMM 1442, or IMM 5292. Some banks may also accept form IMM 5688.
A document card with your photo issued by select provincial authorities.
Proof of entry into Canada

What to look for in a bank account

Category	Details
Account Type	You can choose between a Chequing account for daily expenses like groceries and bills, a Savings account to earn interest, or both, as some digital banks offer.
Monthly Fees	Most banks waive fees for newcomers for the first 12+ months. Always check the fees after the introductory period.
Transaction Limits	Verify if there are limits on free monthly transactions and differences in fees between in-branch and online transactions.
International Transfers	Many accounts initially offer free international transfers. Check post-intro fees and exchange rates.
Debit Card & ATM Access	Consider the size of the bank’s ATM network and fees for using other banks’ ATMs.
Branch Network	Check the extent of the bank’s branch network and proximity to your location.
Interest Rate	Compare the interest rates on your balance with other banks and look for newcomer bonus rates.
Credit Card Access	Determine if you can get a credit card without a Canadian credit history, the credit limit, and whether the provider will initially charge an annual fee.
Cash Rewards	Some banks offer cash bonuses for opening a chequing account and meeting specific criteria. Apps like KOHO offer cashback, interest on balances, and a prepaid card.
Discounts on Products	Opening an account may provide discounts on additional services, like car loans or financial advice.

Many Canadian banks offer specific banking packages for newcomers to Canada.

BMO’s NewStart program offers a free chequing account for one year. After that, it’s $16.95 monthly unless you keep a balance of at least $4,000. You can also apply for a credit card without a Canadian credit score.
TD’s New to Canada Banking Package is free for one year and then $16.95 monthly, which you can avoid with the same $4,000 minimum balance.
CIBC’s Welcome Package gives you no-fee banking for two years but doesn’t offer a credit card.
Royal Bank’s Newcomer advantage is free for the first year, $11.95 monthly, after which you can bring it down to $0 by bundling other RBC products, such as a credit card like the RBC Ion.
Scotiabank’s StartRight program gives you a no-fee banking account, unlimited transactions, and a $1,000 credit limit credit card for free while you’re a student.

Step 4: Build credit with a credit card

A good credit score helps you get better rates on student loans, access better apartments, and may even earn you discounts on your internet or phone bill.

Most of Canada is cashless. A debit or credit card is the preferred way to pay, and sometimes, it’s the only way to pay.

A debit card comes with your bank account but doesn’t help you build credit.
A prepaid credit card works like a debit card—you load it with cash from your account, and you can use it to make purchases online or through apps like Uber, Netflix, or Spotify. But prepaid cards don’t help you build credit. KOHO is a prepaid card with an excellent budgeting app, and you can use their credit builder tool for a monthly fee.
A secured credit card helps you build credit, but you need to provide a deposit that acts as a guarantee if you fail to make payments. Secured cards sometimes charge an annual fee, but they typically have low annual percentage rates (APR) on interest charged for late payments. They may even earn you cash back, like the Neo Financial card.
An unsecured credit card, or what Canadians typically think of when we say credit card, helps you build credit by making regular payments. You can earn rewards like cash back or travel points. Still, they can be hard to get for students with no credit history.

Some banks have specific credit cards tailored for newcomers to Canada.

Scotiabank will give newcomers to Canada their popular Scene+ Visa with a credit limit of up to $5,000. To thank you, they’ll give you 5,000 Scene+ points (which you can use to help pay for groceries, movies, or travel).
RBC’s Cash Back Mastercard earns 2%. I’m getting cash back on groceries with no annual fee. Read more here.
BMO has three no-annual fee options with welcome offers like bonus points and cash back. You can view them here.
MBNA’s True Line Gold Mastercard is an ultra-low-interest credit card with an interest rate of 8.99%, but it charges a $39 annual fee.

Bundling your financial products

While you can have your chequing account with one bank, a savings account with another, and a credit card with a third financial institution, “bundling” or combining all your financial products with one bank is popular in Canada (and can help you save money on fees and earn more rewards.

For example, Scotiabank has a Student Banking bundle where you can earn up to $640** in welcome bonuses and savings when you bundle your banking. While you are in Canada, open a no-fee Student Bank Account, apply for a credit card and set up your savings account.

** Value of up to $640 in welcome bonuses and point value with the Scene+™ Student Banking Bundle includes a $100 cash bonus and up to 13,250 in bonus Scene+ points (valued at up to $132.50) as follows:

Here’s how it works:

$100 cash offer for new Student Banking Advantage^® Plan customers
5,000 Scene+ points ($50 value) for new Scotiabank^® Scene+^™ Visa^* Card customers
1,250 Scene+ points ($12.50 value) for new customers who combine the products above with a new Momentum^PLUS Savings Account
5,000 Scene+ points ($50 value) when you bundle all 3 of the above accounts and complete certain qualifying transactions
$149.90 in savings with the Scotia iTRADE^® perk for Student Banking Advantage Plan holders ($4.99 per trade and Trade 1 Get 1 Free at Scotia iTRADE^®)
$280 in average savings with unlimited no-fee international money transfers compared to in-branch Swift wire transfers (assumes an annual average of 7 in-branch Swift Wire Transfers at $40 per transfer)

Terms and conditions apply.

Step 5: Save more, spend less, invest the rest

It’s my motto—a simple phrase I repeat to myself when making financial decisions.

Instead of going out to a restaurant with a friend, can I stay home, enjoy a meal, and watch a movie with them? I can use the $50 I save to invest, and thanks to compound interest, the earlier you start investing, the faster you reach financial freedom.

That’s not to say you shouldn’t enjoy your life in Canada. What’s the point of having money if you can’t enjoy it?

And I hope you enjoy life in Canada!