Banking in Canada on a working holiday (IEC)

The IEC working holiday opens Canada to you — but before you earn a single dollar you need two things in the right order: a Social Insurance Number (SIN) and a Canadian bank account. Get them wrong or out of sequence and your first pay period becomes a headache.

Proof of funds: the CAD 2,500 you must show at the border

When you arrive at a Canadian port of entry, a border services officer may ask you to prove you have enough money to support yourself for the first three months. The standard requirement is CAD 2,500 in accessible funds.

You must show a bank statement issued no more than one week before your departure. The statement must clearly show your name and the effective date. Credit cards do not count — only liquid funds such as cash, savings accounts, bank drafts, certified cheques, or traveller's cheques are acceptable. If you're arriving with CAD 10,000 or more in any form, you are legally required to declare it to the border officer.

Getting your SIN — do this first

A Social Insurance Number (SIN) is a 9-digit number required to work legally in Canada and to access government programs. As an IEC working holiday maker, you'll receive a temporary SIN that starts with the digit '9' and has an expiry date matching your work permit.

You can apply for your SIN online through Service Canada — this is the fastest method. You'll need your IEC work permit (the document that says you 'may accept employment in Canada'). There is no fee to apply.

• Apply online at canada.ca or in person at a Service Canada office
• Bring your IEC work permit and passport
• Online applications are processed quickly — in-person visits may require waiting
• Once issued, provide your SIN to your employer before or within 3 days of starting work
• Your temporary SIN (starting with '9') is valid until your work permit expires — keep your permit renewed to keep your SIN valid

Opening a Canadian bank account

Most major Canadian banks — TD, RBC, Scotiabank, BMO, and CIBC — allow temporary residents with a valid work permit to open a chequing account. Many let you start the application online before you arrive and finalise it in branch with your documents.

You typically need: your passport, your IEC work permit, your SIN (some banks let you open without it initially and add it later), and a Canadian address. For the address, many banks accept a hostel, Airbnb, or a friend's address as a temporary address while you find permanent accommodation.

• TD and RBC both offer pre-arrival online account opening for newcomers
• Bring your passport, work permit, and SIN to the branch activation appointment
• A temporary address (hostel, short-term rental) is usually accepted — confirm with your chosen bank
• Most accounts come with a debit card and online banking from day one
• Ask about 'newcomer' or 'no monthly fee' accounts — several banks waive fees for the first year

Getting paid in CAD — what your employer needs

To receive direct deposit from a Canadian employer, you need to provide your bank's transit number (5 digits), institution number (3 digits), and account number (7–12 digits). These are printed on the bottom of a cheque, or you can find them in your bank's app under 'direct deposit information'.

Your employer will also need your SIN for payroll and tax withholding purposes. Federal income tax, Employment Insurance (EI) premiums, and Canada Pension Plan (CPP) contributions are all withheld from your pay. You file a T1 tax return at the end of the year to reconcile — and potentially get a refund.

How Tern helps

Tern walks you through the SIN and bank account steps in the correct order on arrival, stores your Canadian banking details securely, and tracks your withholdings throughout your stay. When tax season arrives, Tern has your income and deduction history ready so filing your T1 return is straightforward — and you don't leave any refund on the table.