The best student bank accounts in Canada

Canadians who need to open a student bank account often turn to the major banks. While banks have student offers that are worth considering—we highlight two of the best in Canada below—a number of smaller, online-only financial institutions also cater to students’ banking needs. Here are our picks for the best student bank accounts and best student banking offers in the country.

Best student bank accounts in Canada

Gold: EQ Bank Personal Account

At a glance: The EQ Bank Personal Account is the best bank account for students in Canada. It combines high interest on balance with unlimited transactions and no monthly fees. It’s a strong choice for students wanting to maximize convenience, keep costs low and grow their balance. Considered a hybrid chequing/savings account, the Personal Account comes with a reloadable Mastercard you can use at any ATM in Canada and anywhere that accepts Mastercard—for free.

Silver: Wealthsimple Cash

At a glance: Wealthsimple Cash is another great bank account for students, offering zero fees (including monthly fees, forex fees and overdraft penalties) and unlimited transactions. You also get one of the highest regular interest rates on your balance in Canada, so you can grow your balance. Plus, this hybrid chequing/savings account returns 1% back in cash, stock or crypto every time you spend with your Cash card.

Bronze: Koho Essential

At a glance: Koho Essential is a great basic bank account for students. It offers seamless everyday banking with the option to earn 2.5% interest on your balance and unlimited transactions. Enjoy 1% cash back on everyday spending like groceries and dining, and up to 5% extra cash back at select partners. Plus, get help building your credit history with free credit score monitoring and the optional Credit Building add-on. While there’s a $4 monthly fee, Koho will waive it as long as you make sufficient qualifying deposits.

Best student banking offers in Canada

Gold: BMO Performance Chequing Account for students

At a glance: The BMO Performance Chequing Account provides one of the best banking offers for students in Canada. Enjoy unlimited transactions, a partial fee rebate on eligible BMO credit cards and complimentary identity theft support. The $17.95 monthly fee is waived for students while they’re in school and up to a year after graduation, saving you money during your studies and early in your career. This account is ideal for students seeking an inexpensive and reliable full-service banking experience without compromising on value.

Silver: Scotiabank Student Banking Advantage Plan

At a glance: The Student Banking Advantage Plan is another great banking offer for students. This no-fee account offers students Scene+ points on everyday purchases, unlimited transactions and discounts on investing fees with Scotia iTrade, for those wanting to dip their toes in the world of investing. Plus, you can utilize the student bundles to earn and save even more. And once you graduate, you’ll get a fee-free year of the Preferred Package account as a graduation gift.

What is a student bank account? 

A student bank account is a chequing or savings account offered to students and sometimes young adults, but usually it’s offered to those enrolled full-time in a post-secondary institution. These accounts typically carry reduced fees and may have special features or perks tailored for students. These could include membership in points programs, like Scene+ or Avion, as well as access to special discounts, rebates or higher interest rates.

Do student chequing accounts have fees? 

Most student chequing accounts do not charge monthly fees if you meet the eligibility criteria, which typically include age limits and enrollment in a post-secondary institution. However, students with chequing accounts “probably don’t earn the same kind of interest” as they would with a high-interest savings account, which is designed for young savers but may also charge a fee, says Robin Taub, author of The Wisest Investment.

How can you open a bank account as a student? 

To open an account, you will need to provide proof of enrollment from a Canadian educational institution and a valid form of identification. As proof of enrollment, most banks accept student ID cards, course timetables or letters of acceptance into an eligible program. Passports, driver’s licenses and Canadian government identification cards are generally considered valid forms of identification. International students can usually provide a study permit or temporary resident visa.

Once you have these documents with you, you can open a bank account either online, through an app or in-person at a bank branch. It’s best to check the financial institution’s website first, as each one may have its own requirements.

What should I consider before opening a chequing account? 

Students should consider the account’s monthly fee, the availability of in-person banking services and their spending habits. 

Shannon Lee Simmons, a certified financial planner (CFP), recommends students look for an account with a low or no monthly fee. Students who expect to bank in person should consider the location of bank branches near their living place or college town, she says. If you frequently need access to cash, check if there are ATMs conveniently located near you, and know the withdrawal limits associated with the account before you open it, adds Taub. 

Simmons says students should also consider their financial plan. If you’ll be applying for a student loan or line of credit at the same time or in the future, you might want to hold all your accounts in one place. “You should open a chequing account where the technology or the application allows for easy transfer of money to pay it off as you go,” she says.

Why do some chequing accounts offer interest on your balance?

A chequing account is designed for day-to-day spending, so account holders don’t generally earn much interest. In fact, Simmons says it’s “rare” for a chequing account to offer interest on your balance. For this reason, Taub recommends keeping excess funds—beyond what you need for your daily spending—in a savings account that offers interest. 

As an added benefit, some bank accounts do offer interest on your savings. These are typically known as “hybrid accounts,” because they combine features from savings and chequing accounts. While the interest rates offered are typically higher than what you’ll find at the biggest banks, the rates can change as the Bank of Canada adjusts its benchmark interest rate. 

What perk or benefit should students really keep their eyes out for?

Students should pay close attention to accounts with low or no fees and high interest rates, according to Simmons. When it comes to daily spending accounts, banks’ student offers may also be worth considering, as some come with cash-back rewards or other perks, which can be beneficial depending on your shopping habits. 

For instance, Simmons recommends students explore bundled banking offers. Many banks encourage students and other Canadians to “bundle” their services, which might include a savings account, a chequing account and a credit card. Since students will likely need these financial products in the future, she said having them as a package can be “helpful.” 

Simmons suggests comparing features of many different banks, as some institutions provide higher interest rates for savings accounts, so you may want to store your money in different institutions. “You can actually hold the savings somewhere else, have your day-to-day chequing accounts still at this other place, but really try to get the biggest bang for your buck on the interest,” she says.

Can I open multiple student accounts, either with the same bank or with different banks? 

Canadians can have multiple chequing accounts, either with the same bank or different ones. However, many financial institutions only allow you to open a single student account, because these accounts come with special features or perks. Nothing prevents you from opening student accounts at many different institutions, but Taub cautions against this. If you’re not organized and your money is scattered across many banks, you may find it hard to manage, she says.

If I received a student offer with a bank, what happens after I graduate?

Financial institutions have different policies. Typically, student offers end when you graduate. However, some banks offer a one-year grace period before converting your student account to a regular one for one. As with a regular bank account, you are free to switch banks at any time.

Read more about student finances:

• 6 money saving tips for post-secondary students
• The top 5 questions about RESPs
• Canada’s best student credit cards
• How much money does the government contribute to an RESP?
• On-campus vs off-campus housing
• How to save money as a student