Discover Canadian bank accounts [update in 2023]
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Do you plan on living and working in Canada? There are many things to handle. One of them is to open a Canadian bank account.
Legally, you’re not required to have a Canadian bank account to work in Canada. However, most employers in Canada prefer you to have one to make payments and pay taxes easier.
Good news is that Canada's banks offer a lot of Canadian bank accounts to help consumers satisfy each demand for their transactions.
DNBC’s experts will help you to discover Canadian bank accounts.
How much to open a Canadian bank account?
In Canada, charges and fees will be different from each bank. It’s hard to state which bank account is best in Canada with a preferable fee. However, you can calculate the following fees to have a general picture of how much money to open an account.
Discover Canadian bank accounts [update in 2023]
In Canada, if you’re a newcomer, banking is free, but it just lasts for a specific period of time. Once that period is over, fees can go up to CAD$30. Many banks will waive this fee if you leave a minimum balance in your account.
Most accounts offer a limited number of free transactions each month. After the free transaction is over, banks will start charging CAD$1 per transaction.
While some accounts offer unlimited free transactions, they’ll charge higher monthly fees & minimum balance requirements.
It’s free to withdraw cash from an ATM if you use the same bank’s network.
However, it costs about CAD$1.50 per transaction if you use a bank's ATM outside the bank network.
International transfer fees
If you plan on sending money overseas, bank-to-bank transfers can not be the optimal way. You can be charged a hidden fee in terms of a poor exchange rate. In addition, your home bank can still charge a fee to get the transfer completed.
Can a foreigner open a bank account in Canada?
Even when you’re not a Canadian or live in another country, it’s possible to open a bank account as long as you prove the legal identification.
In Canada, you have the right to open a bank account, even when you are jobless, don’t have money to put in the account at that moment or even have been bankrupt.
How about opening a bank account in Canada from overseas? It’s possible to open a bank account in Canada from overseas. However, the process will take some days. You will be required to have your immigration documents in order.
If you need to apply for a bank account before reaching Canada, it can be easier to have an international bank account.
What do you need to open a bank account in Canada?
Specific requirements of opening a bank account can depend on each financial institution. So, it’s a good idea to contact the bank to make sure you have all required documents.
Commonly, most banks will accept one of the following immigration papers:
- Temporary residence permit
- Work or study permit
- Confirmation of permanent residence
In most cases, you’ll be asked to give the following documents and information:
- Your valid passport
- Your immigration papers or permanent residency card
If you plan on working, studying, or moving to Canada, you need to apply online on the Canadian government website before reaching Canada.
- Your Social Insurance Number (SIN)
With a SIN, you can work in Canada. SIN consists of 9 digits issued by the Canadian government to track an individual income and get access to government programs and benefits.
To successfully apply for a SIN, it’s required 2 documents:
- A valid primary document showing your legal status and identity in Canada. It can be a work or study permit.
- A valid secondary document to confirm your identity. It can be a passport or government-issued ID.
There’s no fee when you apply for a SIN. You must hand in all the required and legal documents and take them to a Service Canada office nearby. In some cases, you can apply by mail.
- Proof of address
It includes a utility bill, a copy of a lease, and student enrollment documentation will usually be accepted.
What to consider before opening a bank account in Canada?
Before opening a bank account, you need to consider the following:
- how you'll use your account (saving or making payments)
- charges or fees applied on the account
- the interest you'll gain on the money from your account
- whether your deposits are protected by deposit insurance
Before signing up for an account, make sure you get to know all the terms and conditions stated in the account. Ask any related questions that you don’t know. Remember to keep a copy of your account agreement for your records.
You can decide to change your bank account from one financial institution to another if it offers a better product that suits your needs. It’s a great idea to review your banking service.
Most financial institutions have some detailed steps to help you manage the transfer. This can include arranging for your old financial institution to transfer your pre-authorized debits to your new one.
Keep your old account open during the transfer. Cut up old debit cards and checks to prevent fraud.
Check your statements from both financial institutions until you’re sure that the new account works well and smoothly.
More about DNBC Financial Group
Established in 2017, DNBC Financial Group became a popular platform of the money international transfer with payment solutions at fair fee and competitive exchange rate.
DNBC Financial Group now draws more and more customers to make international transactions with a fast and simple full-online payment solution.
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