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Newcomer accounts offer significant promotional benefits that regular accounts don't provide. These include waived monthly fees for 1-3 years, welcome bonuses up to $2,200, and access to credit cards without a Canadian credit history. The core banking features, like unlimited transactions and online banking, are often identical to regular accounts. The main advantages are promotional pricing, special credit approval processes, and additional services like free international money transfers. After promotional periods end, these accounts typically convert to regular accounts with standard fees and requirements.

Most banks define newcomers as people who've been in Canada for five years or less, though specific eligibility varies by institution. Some programs require you to arrive within the next 12 months or have arrived within the past 12 months. National Bank offers the longest eligibility window at five years. Programs typically cover permanent residents, international students with study permits, and temporary workers with work permits. Apply as soon as possible after arriving, since you generally can't switch between different banks' newcomer programs.

BMO's NewStart Program currently offers the highest total value at over $2,300, followed by Scotiabank's StartRight Program with up to $2,200. TD provides up to $1,930, while Simplii Financial offers up to $1,300 in cash bonuses. However, the "best" bonus depends on your banking habits and how long you plan to keep the account. Consider the total value, including fee waivers, not just cash bonuses. Some smaller bonuses come with better long-term account features and lower ongoing costs.

After promotional periods end (typically 12-36 months), your account converts to the equivalent regular account with standard fees and requirements. Monthly fees that were waived will start being charged unless you meet minimum balance requirements. For example, accounts that were free might cost $12-18 monthly afterward. You'll receive advance notice before changes take effect, giving you time to either meet requirements to maintain fee waivers or switch to a different account type. Many people use this opportunity to reassess their banking needs and potentially switch to different accounts or banks.