Banking Details
Banking in Canada: A Guide for Newcomers
Researching and comparing different banking packages is advisable to find the right fit for your needs as a newcomer in Canada. Some banks offer free services and incentives tailored for newcomers, such as secured/unsecured credit cards without a credit history, free safety deposit boxes, fee waivers, and automobile roadside assistance.
Opening a Canadian Bank Account:
In-Person: Visit a local bank branch to open a Canadian bank account. Two accounts will be opened in your name: a Chequing Account and a Savings Account.
Online from Home Country: Certain countries like India and UAE allow opening a Canadian bank account remotely through banks like Scotiabank or SBI.
Understanding Account Types:
Chequing Account: Similar to a Savings Account in your home country, this account is used for day-to-day transactions. You can easily deposit and withdraw money from it, and it's typically used for bill payments and transfers within Canada.
Savings Account: Functions like a deposit box/locker where you can keep money. Transfers are made to the Chequing Account when needed. No interest is earned on funds kept in the Chequing Account.
Debit and Credit Cards:
Debit Card: Provided immediately upon account opening, it functions similar to a debit card in your home country. Use it to withdraw cash from ATMs and make purchases.
Credit Card: Sent to your Canadian address via post and activated using the provided number. Once activated, the bank sends the PIN through post. Using the credit card responsibly helps build a credit history, which is crucial for future financial transactions such as obtaining loans or mortgages.
Managing Credit:
Building Credit History: Using your credit card for various purchases and paying bills on time helps establish a credit history in Canada. This history is essential for future financial endeavors like buying a car or a house.
Responsibility: It's important to pay your credit card bills on time and in full to avoid negative impacts on your credit score.
Deposit Proof of Funds:
Once your accounts are open, and you've received your debit and credit cards, you can deposit proof of funds into your Chequing Account.
NOTE: Building a positive credit history is crucial in Canada and can significantly impact your ability to access various financial services in the future.
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