How to Open a Bank Account in Canada

Moving to Canada, whether temporarily for studies or permanently, requires careful planning, especially when it comes to finances. One key step that can help avoid many future problems is opening a bank account in Canada. This will greatly simplify receiving salary, paying taxes, and managing daily financial affairs. In this article, we'll look at how to open a bank account in Canada, even if you're not a resident, and which banks might be useful for you.

Your Rights to Open a Bank Account in Canada

You have the right to open a bank account (also called a deposit or personal account) in Canada, regardless of your status. Opening an account in a Canadian bank is available to both residents and temporary residents, as well as citizens of other countries. This includes the ability to open an account with federal credit unions and authorized foreign banks, as well as financial institutions regulated at the provincial and federal levels.

You can open an account even if you don't have a job, money to deposit, or if you've been bankrupt before. Banks are required to verify your identity using proper documents, and this process can be done in person, by phone, or online.

Major Banks in Canada

There are several major banks in Canada that offer a wide range of services for residents and non-residents:

• Royal Bank of Canada (RBC): One of the largest banks in the country, offering a wide range of banking services, including programs for new immigrants.
• Toronto-Dominion Bank (TD): Known for its convenient online services and student programs.
• Bank of Nova Scotia (Scotiabank): Offers specialized programs for new immigrants and students, including free transfers and fee waivers for the first year.
• Bank of Montreal (BMO): Known for its senior programs and accessible credit offers.
• Canadian Imperial Bank of Commerce (CIBC): One of Canada's oldest banks, offering convenient solutions for small businesses and individual clients.

Options for Opening an Account

There are several ways to open a bank account in Canada:

Opening an account directly with a Canadian bank is possible:

• In person at a branch. You can visit a branch of any major bank, such as RBC, TD, Scotiabank, BMO, or CIBC, and open an account on the spot. You'll need to provide identification documents, such as a passport, and immigration documents (if applicable).
• Online. Some Canadian banks allow you to open an account online, even before you arrive in Canada or while in the country. For example, RBC and Scotiabank offer such services for new clients, including non-residents. This option is convenient if you want to organize your finances in advance.

There's also the option of opening an international bank account. Some banks, such as HSBC and Citibank, have a global presence and offer their clients the opportunity to open an international account. Such an account can work both in Canada and in your home country, which is especially convenient for those who plan to travel frequently between countries or do business in multiple countries.

Online banks, such as Tangerine and EQ Bank, are gaining popularity in Canada today. They offer a wide range of services without the need to visit a branch. They often attract clients with low or no fees, as well as convenient online services and mobile apps. Opening an account with an online bank can be a great option for those who value convenience and modern technology.

Documents Needed to Open a Bank Account

The process of opening a bank account is relatively simple. Choose a bank, prepare the necessary documents, go to a bank branch or use an online service where you'll be offered to choose an account type and sign an agreement.

To open a bank account in Canada, you should bring the following set of documents:

• Passport;
• Immigration documents;
• Temporary residence, work, or study permit;
• Canadian Social Insurance Number (SIN) — required for opening interest-bearing accounts.

Some banks may require a minimum deposit when opening an account, especially if you're a non-resident or opening an account with special conditions. If you already have a Canadian debit or credit card from another bank, it may be helpful to present it when opening a new account. Some banks may require additional documents, such as account statements or a government-issued ID from your home country.

How to Choose the Right Account

Canada offers a variety of bank account types suitable for different purposes.

Checking Accounts:

• Standard checking account allows you to manage finances through a debit card, checks, and online bill payments.
• Interest-bearing checking account earns a small interest on account balances. This may require a SIN.
• Student/youth account is ideal for students, usually with low or no monthly fees.
• Senior account provides reduced fees and limited free transactions.

Savings Accounts:

• High-interest savings account earns a higher interest rate on account balances. A SIN will be required for tax purposes.
• Tax-Free Savings Account (TFSA) is available only to residents with a SIN.
• Foreign currency accounts allow you to manage funds in US dollars or euros without large currency exchange fees.

Important Aspects of Using an Account

• Location and accessibility. When choosing a bank, consider its location. If it takes a long time to get to the nearest branch, managing your account may become inconvenient. Also check the availability of the bank's online services if you plan to use the account mainly through the internet.
• Fees. Each type of account may have its own fees. These can include monthly service fees, ATM usage fees, transfer fees, fees for transactions outside of Canada, and more. Some banks offer special conditions for new clients, such as waiving fees for the first year.
• Account usage. When choosing a bank and account type, consider how you plan to use the account. If you need an account for salary deposits and daily expenses, look for options with low service fees and a sufficient number of free transactions. For savings, choose accounts with higher interest rates.
• Managing your account. The bank is obligated to provide you with full information about your account, including details about fees. You also have the right to receive electronic notifications about your account status, which can help in managing finances and avoiding unnecessary fees.

What to Do if a Bank Refuses to Open an Account

Although you have the right to open an account, a bank may refuse if it has reason to believe the account will be used for illegal activities or if you have a history of fraud. In such cases, the bank is obligated to provide you with a written explanation of the reasons for refusal and information on how to file a complaint.

Conclusion

Opening a bank account in Canada is an important step for a comfortable stay in the country. Whether you're a resident or planning to move, having a Canadian bank account will make managing your finances easier and help you avoid many future difficulties. It will help you receive your salary, pay bills, build a credit history, and use a local debit card more easily. Contact your chosen bank in advance to learn all the details and start the account opening process as early as possible. Don't hesitate to ask questions and seek clarification from bank representatives on any points you don't understand.