If you’ve ever walked past a bank or checked out a credit union’s website, you’ve probably seen eye-catching signs offering free cash, higher interest, or special discounts for opening a new account. These promotions aren’t just advertising tricks, they’re part of how Canadian banks attract new customers, especially young people like students who are just starting their financial journey.
If you are considering opening a new account, you have many options in Canada, and many of them come with these additional benefits. For example, Innovation CU offers its members cash back and referral programs. But what do these offers mean? Are they really worth it? Let’s break them down in a way that helps you make smart money decisions as a student.
Why Banks Offer Bonuses (And Why Students Should Pay Attention)
When banks give out cash bonuses or offer “special student deals,” they’re hoping to gain your business for the long haul. If you’re opening your first chequing or savings account, signing up for a credit card, or just learning how money works, these promotions can offer real value — but only if you understand how they work and what’s required.
Common Types of Banking Offers in Canada
Welcome Bonuses for New Accounts
Many banks offer a cash bonus — often between $100 and $500 — when you open a new chequing or savings account.
But to actually get that money, you usually have to:
- Keep a minimum balance in the account (like $1,000 or more)
- Set up direct deposit (such as pay from a part-time job or government benefit)
- Make a few debit purchases or bill payments
- Keep the account open for a few months (often 3–6 months)
Student Tip: Always read the fine print. If you don’t meet every condition, you may not get the bonus at all.
Credit Card Cash Back Offers
If you’re 18 or older and thinking about getting a student credit card, you might see deals like:
- Introductory cash back (e.g. 10% cash back on your first $2,000 in purchases)
- Sign-up bonuses (e.g. $250 after you spend $1,000 in 3 months)
But be careful: many cards with these perks charge an annual fee — often around $120–$150. And if you don’t pay off your balance every month, the interest you owe can cancel out any rewards.
Student Tip: If you can’t pay your card off in full every month, skip the bonus and look for a no-fee student card instead.
High-Interest Savings Promotions
Some banks offer temporary high interest rates on savings accounts or guaranteed investment certificates (GICs) for new customers:
- Savings accounts with boosted interest for 3–6 months
- GICs offering higher-than-normal rates
After the promo ends, the interest usually drops to normal levels.
Student Tip: These are best if you already have money saved up (from summer jobs or RESP withdrawals) and won’t need it right away.
Referral Programs
Have a friend who’s opening a bank account? Some banks will pay you both for referring each other! For example:
- You share a referral code
- Your friend signs up and meets the requirements
- You each get $25–$100
Student Tip: These programs are a great way to earn a little extra, especially if you and your friends are all opening accounts around the same time.
How to Tell If a Banking Bonus Is Actually Worth It
Before you jump on a banking offer, ask yourself:
- Will I actually meet the requirements (like keeping a balance or setting up direct deposit)?
- Are there monthly fees after the promo ends?
- Do I need the type of account they’re offering?
- Is this something that will help me build good money habits, or just add stress?
Final Thoughts: Use Promotions to Build Smarter Money Habits
Banking bonuses can be a great way to start off your financial life with some extra cash or better savings — but only if you use them wisely. The best deals are the ones that match your lifestyle, don’t require big fees, and help you build responsible habits like saving regularly or paying bills on time.
Before signing up, take a few minutes to read all the terms and conditions. Think about whether you’d still want the account or card even without the bonus. That’s usually a good sign it’s the right fit for you.
