The banking system of Canada

Largest Banks in Canada

According to the World Economic Forum's Global Competitiveness Report, Canada is among the top three countries with the safest banks worldwide. In nearly 100 years, Canada has experienced only two regional bank failures.

In 2024, Canada's banking system remains one of the most advanced and reliable globally. The country has over 80 banks, about 5,600 bank branches, and more than 18,600 ATMs, making it one of the countries with the highest number of ATMs per capita.

The largest banks in Canada by total assets are Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Scotiabank, Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC), also known as the "Big Five." These banks play a key role in the country's economy and continue to show resilience in the face of global challenges.

In 2024, Canada's major banks continue to offer various programs for newcomers to help them adapt quickly and access banking services.

Royal Bank of Canada (RBC)

RBC offers the "Newcomer Advantage" package, which includes free banking for the first year, credit cards with limits up to CAD 15,000 without a credit history, and favorable mortgage and auto loan terms. For customer convenience, RBC provides support in various languages, offering services in 200 languages.

Toronto-Dominion Bank (TD)

TD has developed the "New to Canada Banking Package," which also provides free banking for the first year with unlimited transactions on a current account. Newcomers are offered credit cards with no annual fee in the first year, even without a credit history. TD also offers bonuses of up to CAD 1,785 when certain conditions are met.

Scotiabank

Scotiabank's "StartRight" program offers free Preferred Package account services for the first year, as well as bonuses of up to CAD 2,000 for opening accounts and meeting certain conditions. The program also includes reduced international transfer fees and access to special offers on credit cards and investments.

Bank of Montreal (BMO)

BMO provides the "NewStart" program, under which newcomers can enjoy free Performance Chequing plan services for the first year. Additionally, BMO offers free safety deposit box rental for 12 months and commission-free international money transfers, as well as credit cards and mortgages without requiring a credit history.

Canadian Imperial Bank of Commerce (CIBC)

CIBC also offers free account services for two years, credit cards with no annual fee in the first year, and bonuses of up to CAD 600 when opening accounts and meeting certain conditions.

All of these banks have offices in most Canadian cities. There are also many branches of international banks such as Citibank, J.P. Morgan Bank, Société Générale, UBS, and others.

Technological Innovations and Open Banking

In 2024, Canadian banks are actively implementing new technologies, including artificial intelligence and digital identification systems, making services more accessible and secure for customers. An important trend remains the development of open banking, which allows consumers to safely share their financial data between various services, potentially transforming the financial services market in the future.

Bank Accounts and Payment Methods in Canada

The main payment methods in Canada include debit and credit cards, checks, cash withdrawn from ATMs, and money transfers to and from bank accounts.

Bank Accounts

You can open a bank account in Canada even if you don't have a job and even if you're a foreigner. Usually, you need to visit a bank in person and provide identification, a Social Insurance Number (SIN), and immigration documents. You may also need an employee ID card with your photo or a debit or credit card with your name and signature.

Some banks offer low-cost accounts (around CAD 4 per month). These financial institutions include BMO, CIBC, HSBC, ICBC, KEB Hana Bank Canada, Laurentian Bank, National Bank, RBC, Scotiabank, and TD Canada Trust. For example, RBC offers a "Day to Day Banking" account for CAD 4 per month, and TD Canada Trust has a "Minimum Chequing Account" with a similar cost.

For online banking, there are free checking accounts available at some banks, such as Motive Financial, Motusbank, Tangerine, and Simplii Financial. These accounts have no monthly fees and offer unlimited transactions, making them a popular choice among those who prefer to manage their finances online.

Debit Cards

When you open an account with a Canadian bank, you're typically provided with a debit card that can be used to pay for goods and services, as well as withdraw cash. An important aspect is that banks may set limits on cash withdrawals using debit cards. These limits vary depending on the bank and account type. For example, cash withdrawal limits can range from CAD 500 to CAD 3,000 per day, but in some cases, for premium clients, limits can be increased to CAD 5,000 and above.

Regarding fees for using a debit card, they may depend on the type of card and bank. Usually, there's no fee when using your bank's ATMs, but if you use another bank's ATM or a private operator, additional fees may apply. These fees can range from CAD 1 to CAD 9 per transaction.

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