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.

TIPS

Paper Statements for Proof of Residency: Opt for paper statements of your bank account to be sent by post to your Ontario address. These statements serve as proof of three months spent in Ontario, a requirement for obtaining OHIP (Ontario Health Insurance).

Bank Account Options: Consider ICICI Bank for affordable account charges, although its presence in Canada is limited. Be aware that Canadian banks charge fees based on the number of transactions, including debit card, credit card, or net banking transactions.

Request Paper Statements: When opening your account, request the bank to send a paper statement of your first month's transactions to your Canadian address. This statement will contain your local address and can serve as proof of address when applying for a health card.

Access to ATMs: TD Bank has the most extensive network of ATMs across Canada, providing convenient access to cash withdrawal services.

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Last updated 1 year ago