Understanding Canadian Banking: A Starter Guide for Nigerians Abroad.

Learn how the Canadian banking system works, what accounts to open, and how to avoid costly mistakes as a newcomer.

🌍 New to Canada? Here’s Why Banking Feels So Different

As a newcomer from Nigeria, your first trip to a Canadian bank might leave you wondering: What’s a chequing account? Why are there so many fees? And what’s the deal with credit cards?

Banking in Canada is structured very differently and if you don’t understand the system, it’s easy to lose money without even realizing it.

This guide will help you understand how banking works in Canada, what accounts you need, and how to manage your money smarter.

🏦 1. Chequing vs Savings: What’s the Difference?

In Canada, you’ll usually open two types of accounts:

Chequing Account

→ For daily spending: bills, groceries, rent, etc.

→ Often comes with a monthly fee (unless waived for newcomers).

→ May include limited “free” transactions per month.

Savings Account

→ Used to store money and earn small interest.

→ Not meant for frequent withdrawals.

→ Interest rates are very low (around 0.5% or less).

2. Understanding Credit in Canada

In Nigeria, credit cards aren’t a big deal.

But in Canada? Credit history is everything.

It affects your ability to rent an apartment, get a car loan, or even a phone contract. To build credit, you’ll need to:

• Get a starter credit card
• Spend small amounts
• Pay your balance on time — every time

Avoid maxing it out, and never miss a payment. That’s how you build a strong score over time.

Tip: Always pay at least your minimum balance on time to avoid interest and protect your score.

3. Fees to Watch Out For

One big shock for most Nigerians in Canada? The number of small fees banks charge.

Watch for:

• Monthly account fees (unless waived for students/newcomers)
• ATM withdrawal fees (especially using other banks' ATMs)
• E-transfer limits
• Foreign transaction fees (for international use)

Tip: Ask your bank if they offer a newcomer package — most waive fees for the first 6–12 months.

4. What You Need to Open a Bank Account in Canada

To open your first account in Canada, you’ll need:

• Your Nigerian passport
• Study permit or work permit
• Proof of address (e.g. lease, phone bill, or school letter)
• Social Insurance Number (SIN) (if earning interest or working)
• You can usually open an account in-branch as soon as you arrive.

You can usually open an account in-branch as soon as you arrive.

5. Sending Money to Nigeria? Be Careful How You Do It

Many Canadian banks charge high fees for international transfers and often hide extra costs in the exchange rate.

That’s why Nigerian immigrants in Canada are switching to Paper — a fintech app built for sending money home, fast and without surprises.

With Paper, you get:

• Real exchange rates
• No hidden fees
• Instant delivery
• Friendly support if anything goes wrong

👉 Try Paper today and make your naira go further.

📌 Final Tips for Managing Your Money as a Newcomer

• Monitor your monthly transactions — small charges add up
• Use your bank’s app to stay updated in real time
• Set up alerts to avoid overdraft or bounced payments
• Use Paper to send money home — don’t rely on expensive bank transfers

Use Paper to send money home — don’t rely on expensive bank transfers

✍️ Conclusion: Learn the System, Then Use It to Your Advantage

Canadian banking takes some getting used to but once you understand the basics, it gets easier.

Start with the right accounts. Ask questions at your bank. Keep track of fees. And most importantly, use tools like Paper that were built for people like you.

You've moved. You've started fresh. Now it’s time to make your money work for you at home and back home.