How to Open a Bank Account in Canada for International Students
Opening a bank account in Canada is an essential step for international students. This guide will walk you through the process, the required documents, and some key considerations regarding mortgages and loans.
Major Banks in Canada
Canada has five major banks:
1- Royal Bank of Canada (RBC)
2- TD Bank
3- Canadian Imperial Bank of Commerce (CIBC)
4- Bank of Montreal (BMO)
5- Scotiabank
There are also online banks, but this guide focuses on the major physical banks.
Types of Bank Accounts
In Canada, there are three main types of bank accounts:
1. Checking Account
A checking account comes with a debit card and allows you to deposit and withdraw money. It’s used for daily transactions.
2. Savings Account
A savings account is designed for saving money. It typically offers low interest rates, so don’t expect significant earnings from it.
3. Credit Card
There are two types of credit cards available for newcomers:
– Secured Credit Card: Requires a deposit equal to the credit limit. This helps build your credit history.
– Unsecured Credit Card: Available after you establish a credit history and more permanent status.
Required Documents for Opening a Bank Account
To open a bank account in Canada, you will need:
1- Passport
2- Proof of status in Canada (e.g., study permit)
3- Social Insurance Number (SIN)
4- Proof of address (e.g., utility bill, apartment contract)
Opening a Bank Account
In-Person
You must be physically present in Canada to open a bank account. Here’s a step-by-step process:
1. Visit a bank branch with the required documents.
2. Fill out the necessary forms.
3. Deposit money into your new account, if desired.
Appointment for Credit Cards
If you want to get a credit card, you may need to make an appointment with a bank representative. This is particularly necessary if you have no prior credit history in Canada.
Fees and Charges
Opening a bank account is free, but there are usually monthly fees. However, if you are an international student, you can get an account without monthly fees by showing proof of your student status. For non-students, monthly fees start at $3 to $4, depending on the bank and account type. Some banks waive these fees if you maintain a minimum balance.
Managing Your Account
With your bank account, you can:
1- Transfer money
2- Pay bills and set up auto payments
3- Manage transaction limits
4- Apply for mortgages, credit cards, and loans
5- Invest
Choosing the Best Bank
The best bank for you depends on your needs and preferences. Different banks offer various benefits such as air miles, movie tickets, and cashback. Evaluate these perks and choose the one that aligns with your lifestyle.
Mortgages and Loans
Mortgages
As an international student, getting a mortgage is challenging. You need to establish a credit history and have a steady income, which is difficult with a part-time job. In high-cost cities like Toronto and Vancouver, this is especially tough.
Loans
Similarly, obtaining personal loans without a stable income is not feasible.
Money Transfers
Transferring money internationally from Canadian banks can be expensive and slow. Consider using services like Wise, which offer faster and cheaper transfers with the convenience of managing multiple currencies.
Opening a bank account in Canada is a straightforward process but requires in-person verification and several documents. While international students can enjoy benefits like no monthly fees, building a credit history is essential for accessing more financial products like mortgages and loans. Choose the bank that best fits your needs and enjoy the various perks offered.
Also Read-Benefit of studying in Canada a pathway to permanent Residency
Let Worldbridge Immigration Services be your guide to a successful future in Canada
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Website: www.theworldbridge.ca
Email: info@theworldbridge.ca
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