Those moving to Canada from elsewhere will need to open bank accounts, get credit cards, perhaps rent a safe deposit box for valuables, and find a place to borrow money to make large purchases such as cars and houses. Opening a bank account is the first step to managing your financial life in Canada.
There are a wide range of different bank account types in Canada, but they fall into two main groups. These are chequing and savings accounts. They serve different purposes and it may be a good idea to have both types of accounts, one for short-term needs, one for the future and to save for emergency needs.
What Do You Need To Open A Bank Account?
Before opening that bank account, you will need a Social Insurance Number or SIN. This SIN is your identifier for reporting taxable income such as bank account interest which is subject to taxes. There are several pieces of information you should have before going to a bank to open a bank account.
All banks in Canada require the client’s full legal name, the address of residence, occupation information, and date of birth. Next be sure to have two forms of identification that can include a Social Insurance Card, a Permanent Resident Card, a form for Citizenship and Immigration to Canada, A passport issued by a foreign country such as where you last lived, or a birth certificate that was issued in Canada.
You are proving that you have received permanent Canadian resident status within the last two years. You will also need the minimum amount of money the bank requires to open an account.
Choosing The Type Of Bank Account
There are a lot of different types of chequing accounts and savings accounts to choose from. A bank employee can go over each choice of banking account with a potential customer, explaining the benefits and costs of each one. The main purpose of a chequing account in Canada is to handle money on a day to day basis.
The customer makes money deposits to the bank, then draws on that money to pay bills, pay for shopping, withdraw money, and so on. There will be different fees depending on individual account rules. Some chequing accounts have smaller fees with a minimum balance maintained.
There are accounts for senior citizens and chequing accounts that may be interest bearing under certain conditions. Choosing the correct chequing account is important for convenience and costs.
Savings accounts are a way to accumulate money in a safe place to have in case of emergencies or special events. People with savings accounts make regular deposits of money they don’t need immediately, so it can earn interest and the total amount in the account can continue to grow.
Savings accounts are a safe way to accumulate money that is available when you need it. There are different types of savings accounts with different costs and interest earning rates.
Bank accounts in Canada are safe places to keep one’s money as they are governed by the Bank act of Canada and are protected by the Canada Deposit Insurance Corporation for up to $100.000 per account or person. This protection and coverage is free and automatic for each bank customer.
Bank accounts can offer services such as multiple branches, online banking, automated banking machines, telephone banking, and debit payments. Many banks also offer credit cards and safety deposit boxes to rent. The first place to apply for a loan may be your bank. For more information, please visit the website.
