Useful Banking Tips For Newcomers In Canada

Useful Banking Tips For Newcomers In Canada

You might be wondering what you will need to do to open a bank account in Canada and have unrestricted access to your money.

Canada has a national system of banking with five large banks having branches across the country and many regional
banks.

The banking system is highly competitive in Canada giving customers options to choose from.

Customers need not worry about their funds deposited in the bank, because Canadian banks pride themselves in the high level of security, ensuring customers deposits is always secured.

You might be wondering what you will need to do to open a bank account in Canada and have unrestricted access to your money.

This article highlights banking and finance tips every newcomer to Canada needs to get acquainted with.

1. OPENING A BANK ACCOUNT

As long as you meet the identification requirements specified in the Access to Basic Banking Services Regulations under the Bank Act, you can open a bank account in Canada.

Even when you don’t have a job or money to deposit in your account, you will still be able to open a bank account in Canada.

Canada has a competitive banking system including accounts tailored specifically for newcomers to Canada, choosing the package that best suits your needs is easy, as you can compare banking packages available online using the Account Selector Tool available from The Financial Consumer Agency Of Canada (FCC).

Never share your banking information with anyone.

Be aware of email and phone scams.

If someone requests for your banking information, you can always check with your bank directly to avoid being scammed.

2. YOUR DEPOSITS ARE SAVE

Canadian banks are well managed, regulated and capitalized.

All Canadian banks that take retail deposits are members of the Canada Deposit Insurance Corporation (CDIC).

In the highly unlikely instance of a bank failure in Canada, be rest assured your deposits are protected.

3. SENDING MONEY FROM CANADA

Banks charge remittance fee for sending money from Canada to any parts of the world.

You can choose services like Western Union or MoneyGram if the recipient does not have a bank account.

4. STARTING A BUSINESS

Canadian banks offer services to Canadian newcomers, who wish to start or manage their business.
These services include:

  • Advice
  • Venture Loans
  • Cash Management Services
  • Overdraft Protection etc.

Business owners and aspiring business people also benefit from seminars and workshops organized by Canadian Banks to help them start or manage their business better.

5. CREDIT CARDS VERSUS DEBIT CARDS

In Canada, the majority of day to day spending is done using two tools for accessing funds: Credit and Debit Cards.

CREDIT CARD: Issued by a Canadian financial institution enables you to make purchases on credit and pay at the specified time.

If you clear your credit before the due date, you will not be charged interest, but failure to comply attracts interest
and it will negatively affect your credit score.

DEBIT CARD: Gives you direct access to funds in your bank account, withdrawal or purchase made with debit cards are charged from your account.

You must have sufficient funds in your account to complete purchase or withdrawal.

6. CREDIT SCORE

Credit Score is an efficient tool to check if you are creditworthy.

The credit score is calculated by analyzing your transactions regarding payment of bills and especially repayment of the loan and credit cards.

Having a good credit score is important, the higher the credit score, the better your chances of future loans approval.

Although your credit history in your home country is not taken into account in Canada, it could still be useful.

If possible, keep a copy of a letter of recommendation from a financial institution in your home country.

Originally posted 2020-06-10 06:00:04. Latest Buzz On IbuzzUp Media



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