I am a newcomer. I have started account with one of the big 5 banks and ended up in paying monthly fees. I will share my experience.
Big 5 banks (TD, RBC, BMO, Scotia, CIBC) :-
Pros and cons
- Pay monthly fees ($4 to $30, depends upon the accounts/ or you need to keep minimum balance in checking/account to wave off those fees)
- Special fees for credit card yearly. (credit card not easy to get for new comers)
- Many accounts with less monthly fees have only limited translations (like 12 to 24 per month including all transactions)
- No or very less interest paid in most accounts.
- If you need cheque book, you need to pay another $45 to $85 to get that, also you need to personally request to your home branch.
- For any major changes, you need to personally meet your home branch (only after taking prior appointment on a specific date, you may need to call and fix an appointment (may take 15 to 45 mins to fix an appointment).
- You can wire transfer to anywhere outside canada.
- Very easy to start an account once you take an appointment.
Tangerine bank
Pros and cons
- No fees for any accounts, credit card or debit card.
- 3.5% interest paid for savings account, good interest paid for checking accounts compared with all the Big 5 banks.
- Fully on line operational, you may add/edit/delete accounts, anything as you like.
- For address verification you can go to any nearby canada post-office and show your ID with tangerine DSS number. (dont need to travel to bank/kiosk)
- Same as secure as Big 5 Banks.
- You will get debit card through post within few days. Very easy to get credit card and build credit history.
- You can use all ATM/ABM of scotia bank.
- You can deposit any cheque by simply taking photo of both sides through tangerine app (no need to go to bank/kiosk)
- You cannot wire transfer outside canada but can be transfered to any other banks in canada.
- For account - you need to signup and show ID to nearby postoffice.
- Use account statement as a proof of address.
While signup for Tangerine accounts you can enter any of your friends reference number (known as orangekey) to get additional $50 free. This is an offer just like Uber app. If you dont have an orange key from any friends, you can use this (orange Key 55209416S1 ). Personally I am very happy with tangerine bank. I got debit card in 2 days though canadapost, after verification. You can visit tangerine webpage and read more details.
I recommend all new comers to start an account, since you may close your account with the Big 5 banks soon or later. I have requested my HR department to credit my salary to tangerine account