Your step-by-step guide for the first 90 days in Canada:
1. Open a chequing, savings or hybrid account
Your first task is getting a Canadian bank account. You’ll need it for almost everything you do with money, from paying rent to receiving your first paycheque.
What’s the difference between a chequing account and a savings account?
Chequing: For everyday spending. Think about rent, groceries, bills and so on.
Savings: For short-term saving, like building an emergency fund while earning interest.
Hybrid: Just like it sounds, a mix of a high interest savings account with the features and capabilities of a chequing.
Neo tip: Open a digital account with a fintech company (like Neo, of course). make it faster to open accounts digitally, plus it comes with less fees and higher interest rates compared to those of traditional banks.
2. Apply for a credit card (and start building credit)
In Canada, your credit history is a big deal. It impacts the ability to rent or buy a house, get a phone plan, or even being approved for financing a car loan. But as a newcomer, you’re starting your credit profile from scratch.
With no or limited credit history, unfortunately, you don’t have your pick of credit cards. Some fintechs and banks offer cards without requiring a long credit history.
- Secured credit card: You put down a deposit and that amount becomes your credit limit.
- Newcomer-friendly cards: A low amount of credit (say $200 to $1,000), which may increase if the card balance is paid off each month.
Neo tip: Use credit-building tools, like those in the Neo app, that track your credit score and give you personalized steps to increase it faster.
3. Set up direct deposits and automated bill payments
If you’re working, ask your employer to deposit your pay directly into your account. Then, set up automatic payments for things like:
- Rent
- Utilities
- Phone
Neo tip: Digital or mobile wallets (A virtual wallet, usually embedded into your phone, that lets you securely store and use all your cards—credit, debit, gift, and more—without needing the physical card) and money tracking apps let you monitor spending, set payment reminders, and avoid skipping bills (which can hurt your credit score).
4. Learn the basics of everyday spending
The cost of living in Canada varies by city, but here are some approximate ranges:
- Groceries: $300 to $500/month per family member
- Transit pass: $80 to $160/month depending on the city
- Rent: $1,200 to $2,500-plus depending on the city or neighborhood and unit size
Neo tip: Use cashback credit cards and rewards programs to get more value from your everyday spending.
5. Plan for sending money home
If you’re supporting family abroad, compare your financial wire options. Banks often charge higher fees and offer weaker exchange rates than fintech institutions for money transfers .
Neo tip: Digital accounts can integrate international transfers, making it easy to send money without having to line up at a bank branch.
6. Start an emergency fund
Unexpected costs happen, like a medical bill, job transition, and a last-minute move. Start putting money aside every month into savings. Even saving $50 to $100 a month is $600 to $1,200, plus compounded interest. Over time, aim for a minimum of three to six months’s worth of expenses.
Neo tip: High-interest savings accounts offered by fintechs usually beat the big banks.
7. Start a long-term savings account
Once you’ve handled the basics, learn about Canadian savings tools:
- TFSA (tax-free savings account): Grow your money tax-free and any earnings in the account can be withdrawn tax-free.
- RRSP (registered retirement savings plan): Save for retirement and lower your taxable income the year you contribute.
- FHSA (first home savings account): Save up for your first home purchase. This registered account works like an RRSP and a TFSA.
Neo tip: Many Canadian online brokers and roboadvisors offer multiple ways to invest, including minimums of $0 to $5,000, and buying fractional shares (some are as low as $5) to baskets of assets, like exchange-traded funds (ETFs) and mutual funds.
The first 90 days in Canada can set the tone for your financial situation. By opening accounts, building credit, and setting into good money habits early, you’ll feel more confident and prepared for the opportunities here.
With fintech on your side, you don’t just have to “make do” with a traditional bank, you can build a secure financial life.
