Canada has most reliable banking systems.
Opening a bank account in Canada is important to settling in the country. You will need a personal account in order to receive your salary, pay for gas, phone line, and etc.
Learn more about banking in Canada in the following sections:
- Choosing a Bank
- Opening a Bank Account
- Bank Services
Canada has many national banks, with branches in most Canadian cities. Further exist: regional banks and international banks.
Most Canadian banks offer online banking and automatic banking machines along with specific newcomer incentives.
Before deciding on any bank, you may want to take into consideration
- Convenience to your home
- Opening hours are,
- Type of financial products
Opening an Account
Opening a bank account is straightforward. There are over 100 bank packages to choose from, by more than 20 banks.
To open an account and provide documents that prove who you are. One must have two original pieces of identification. It is also possible to apply to open an account online.
In Canada, you can open a personal bank account even if:
- Do not have a job;
- Do not have money to put in the account
- Have been bankrupt before.
The main types of bank account are
Chequing accounts enable users to write cheques and use of a debit card. It is necessary if your employer uses payroll deposit.
Savings and investment accounts help users save their money. These accounts generally have higher interest than chequing accounts.
The Government of Canada has a number of savings accounts to encourage tax-sheltered savings.
Security of Banks
Canadian banks are well-managed, well-capitalized, and well-regulated institutions.
In the highly unlikely event of a bank failure in Canada, the deposits are protected up to $100,000 CAD, as the bank is a member of the Canada Deposit Insurance Corporation (CDIC).
In Canada, cheques are often used to pay bills by mail, to pay larger amounts (for example, rent), and as a form of payment where credit cards or direct payments are not accepted.
In Canada, debit cards can be used as an alternate form of payment. The Interac system is a collection of merchants that all use the same payment system.
If you wish to begin using a credit card, you can apply either online or in person. Credit cards enable you to be billed for it within a month. It is also possible to sign up for reward schemes, whereby you earn points for each purchase which can later be cashed in for products and services.
Canadian banks offer a variety of loans including personal loans and those for business. Before signing a loan agreement, it is important to understand your duties in terms of payment schedule, co-borrowing, and interest rates.