What is a good credit score in Canada?

In Canada, credit scores range from 300 to 900. A score of 660–724 is considered good, 725–759 is very good, and 760+ is excellent. Lenders typically want at least 660 for mortgage approval.

How long does it take to build credit in Canada?

You can establish a basic credit history within 6–12 months of opening a credit product. Reaching a good score (660+) typically takes 1–2 years of responsible use. Excellent credit (760+) usually requires 3–5 years of consistent, on-time payments.

Is my money safe in a Canadian bank?

Yes. Deposits at CDIC member institutions are insured up to $100,000 per depositor per coverage category. Credit union deposits are protected by their provincial deposit insurance program, with some provinces offering unlimited coverage.

What is the difference between a GIC and a term deposit?

The terms are often used interchangeably in Canada. Technically, term deposits usually mature in under a year while GICs can extend to 5 years. Both lock in your money at a fixed rate and are CDIC insured up to $100,000.

Canadian Banking Guide

From building your first credit score to choosing the right high-interest savings account — this guide covers the full landscape of Canadian banking.

Credit Scores & Credit Reports

Your credit score affects everything from mortgage approval to apartment rentals. Here is everything you need to know.

Understanding Credit

Building Credit

Also see: Best Credit Cards Canada | Best No-Fee Credit Cards

GICs & Term Deposits

GICs are one of the safest investments in Canada, but not all GICs are created equal.

Also see: Best HISA Rates Canada | Best TFSA Savings Accounts

Bank & Account Reviews

Big Banks

Neobanks & Digital Accounts

Also see: Best Online Banks Canada | Best High-Interest Savings Accounts

Banking for Specific Needs

Canadian banking basics

Canada’’s banking system is one of the strongest and most stable in the world. Understanding how it works helps you choose the right accounts, avoid unnecessary fees, and grow your savings.

How banks make money from you:

Monthly account fees on chequing accounts ($4–$30/month)
Foreign transaction fees (2.5–3% on international purchases)
NSF fees ($45–$48 for bounced transactions)
Overdraft interest (21–22% annually)
Interest rate spread on mortgages and loans

CDIC deposit protection: All deposits at Schedule A and Schedule B banks are insured by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor per insured category. Credit union deposits are insured by provincial deposit insurance (e.g., DICO in Ontario, CUDIC in BC) — limits vary by province.

How to choose the right bank in Canada

With dozens of banking options — Big Six banks, credit unions, online banks, and neo-banks — choosing where to bank depends on your priorities:

Priority	Best option
Lowest fees	EQ Bank, Simplii, Tangerine, Motusbank
Best savings rates	EQ Bank, Oaken Financial, WealthSimple Cash
Best mortgage rates	Monolines via broker (MCAP, First National)
Full-service branch network	RBC, TD, Scotiabank, BMO, CIBC, NBC
Best student/newcomer offers	TD, RBC, BMO (free accounts), or Scotiabank
Best senior discounts	Most Big Six (60+ free monthly fee waivers)

Online banks vs Big Six: Online banks like EQ Bank, Tangerine (owned by Scotiabank), and Simplii (owned by CIBC) offer no-fee accounts and higher savings rates by eliminating branch costs. The tradeoff is limited in-person service and sometimes slower issue resolution.

Key Canadian banking terms

Prime rate: The benchmark interest rate set by Canada’’s major banks, closely tracking the Bank of Canada’’s policy rate. Affects variable-rate mortgages, HELOCs, and personal lines of credit.

HISA (High-Interest Savings Account): A savings account offering higher interest than standard savings, typically 3–5% in 2024–2026. Unlike GICs, funds are fully liquid.

GIC (Guaranteed Investment Certificate): A fixed-term deposit earning guaranteed interest. Terms range from 30 days to 5 years. Can be cashable (early redemption) or non-redeemable (locked in).

NSF fee: Non-Sufficient Funds fee charged when a payment or withdrawal exceeds your account balance. Typically $45–$48 per occurrence at Big Six banks.

Void cheque: A cheque marked “VOID” across the front, used to provide your account number and institution number for direct deposit or pre-authorized payment setup.

Protect yourself from banking fraud

Canadian banking fraud losses exceed $500 million annually. Key protections:

Never share your PIN: Not with bank employees, family, or “customer service” callers
Use strong online banking passwords: 12+ characters, unique per bank
Enable transaction alerts: Real-time SMS/email alerts for all transactions over $1
Verify e-Transfer requests: Call the sender directly using a known number — not a number in the message
Check your credit report: Free annual credit reports from Equifax and TransUnion at annualcreditreport.ca

Canadian Banking Guide: Credit Scores, GICs, Bank Reviews & More