Planning to settle in Canada means knowing how handling financial issues in Canada works. Canada runs one of the most solid and trusted banking systems globally with financial institutions held in high regard around the world.
You must bear in mind soon as you arrive, the process to observe. Don’t worry, opening a bank account in Canada is a mandatory first step to observe in successfully settling in the country. You will necessarily need a personal account for you to receive your salaries, get a phone line, pay for rent or buy accommodation, as well as to pay for gas and electricity, and other things.
This article will guide you on how handling financial issues are made possible as to choose a bank and open a bank account. So, take the opportunity to learn more about banking in Canada through the following sections:
- Choosing a Bank
- Opening a Bank Account
How to Choose a Bank
Knowing how to Choose a bank can be really challenging at your start, but taking a little study may help in making the best choice. Canada has lots of national banks, with offices and branches in many Canadian cities, also with regional banks, credit unions, and international banks. Majority of the Canadian banks provides similar optimal services including online banking and automatic banking machines, and few other programs meant for newcomers, who come with particular newcomer incentives.
Before choosing on a bank, it is good for you to consider which branches are of close proximity to your home and workplace, their business opening hours, financial products offered which fits your preferences. It will make handling financial issues easier.
How to Open a Bank Account
To open a bank account in Canada is easy with lots of options available for you. A lot of hundreds of consumer bank account packages are provided by more than 20 banks throughout all the Provinces. In order to open an account, visit your preferred bank and provided the necessary documents to identify yourself. It is most likely that two original pieces of identification will be required. It is also possible to apply to open an account online on the bank’s website.
In Canada, you are permitted by law to open a personal bank account even if you:
- haven’t got a job,
- do not have deposit money at the time of opening the account,
- have a poor credit rating,
- and (maybe) have been bankrupt before.
Chequing accounts and Savings and Investment accounts are the main types of bank accounts offered. Chequing accounts help you to write cheques and also the basic use of a debit card. A chequing account can be necessary since most employers use a payroll deposit. Nearly all banks will place charges on a chequing account, with monthly charges per total transactions.
Savings and Investment accounts provide savings services. Usually, these type of accounts attracts higher interest than chequing accounts. The Canada government has also designed a good range of registered savings accounts to foster tax-sheltered savings made available at Canadian banks such as:
- Registered Retirement Savings Plans (RRSPs),
- Registered Education Savings Plans (RESPs),
- Registered Disability Savings Plans (RDSPs),
- and Tax-Free Savings Accounts (TFSAs).
Also see here for work benefits…