Banking In Canada
Canada has one of the strongest and most reliable banking systems globally, with Canadian banks and financial institutions held in high regard around the world.
Choosing a Bank
Choosing a bank can seem overwhelming at first, but a little research can help in making the right decision. Canada has several national banks, with offices and branches in most Canadian cities, as well as regional banks, credit unions, and international banks. Most Canadian banks offer similar quality services such as online banking and automatic banking machines, and many of the major ones offer programs for newcomers, which come with specific newcomer incentives.Before deciding on a bank, you may want to take into consideration which branches are convenient to your home and place of work and what their opening hours are, as well as which financial products they offer that match your banking preferences.
Opening a Bank Account
Opening a bank account in Canada is straightforward and there are many options available to you. There are over 100 consumer bank account packages to choose from offered by more than 20 banks across the country. To open an account, go to the bank of your choice in person and provide documents that prove who you are. It is very likely that two original pieces of identification will be required. It is also possible to apply to open an account online on the bank's website.
The main types of bank accounts available are chequing accounts and savings and investment accounts. Chequing accounts enable users to write cheques and typically include the use of a debit card. A chequing account is necessary if your employer uses payroll deposit. The majority of banks charge you to have and use a chequing account, with monthly costs ranging depending on the number of allowed transactions.
Savings and investment accounts help users save their money. These accounts generally have higher interest than chequing accounts. The Government of Canada has also created a number of registered savings accounts to encourage tax-sheltered savings available at Canadian banks such as Registered Retirement Savings Plans (RRSPs), Registered Education Savings Plans (RESPs), Registered Disability Savings Plans (RDSPs), and Tax Free Savings Accounts (TFSAs).
Security of Banks
You can feel comfortable storing your money with Canadian banks as they are well-managed, well-capitalized, and well-regulated institutions. In the highly unlikely event of a bank failure in Canada, the deposits in your savings and chequing accounts are protected up to $100,000 CAD as long as the bank is a member of the Canada Deposit Insurance Corporation (CDIC). The CDIC is a Crown Corporation that was created in 1967 with the purpose of providing deposit insurance and stability to the country's financial system.