Opening A Bank Account In Canada As An International Student

International students in Canada can open a bank account in Canada, either at a traditional financial institution or an online-only bank. The process of opening a bank account usually doesn't take very long, and the bank representative can help set up other services, such as online banking and applying for a credit card. Students can open a checking account, which allows them to deposit and withdraw money as often as they want, or a savings account, which is used to save money for the long term.

What documents are required to open a bank account in Canada as an international student?

As an international student, it is a good idea to open a student bank account in Canada before your arrival. This is because some study permits require you to have a Canadian bank account, and it will make it easier for you to adapt to life in Canada.

To open a bank account in Canada, you will need to bring at least two pieces of identification (ID) with you when you visit a branch. This can include your passport, Temporary Resident Visa, SIN, student ID card, or other proof of enrolment. Some branches may also require you to provide your local home address.

If you are applying for a study permit, you will need to show that you have enough funds to support yourself during your stay in Canada. This is called the 'proof of financial support' requirement, and you will need to show that you have access to at least $20,635. Acceptable documents to show proof of financial support include:

• Bank statements from the past four months
• A bank draft that is convertible to Canadian dollars
• Proof of payment for tuition and housing
• A letter of financial support from family or any other person
• Proof of funding paid from within Canada, such as a scholarship

You can also apply for a Scotiabank Student GIC Program, which can help you meet the IRCC's proof of financial support requirement. This program requires you to wire transfer at least $20,835 CAD to Scotiabank in Canada, with $20,635 credited to your GIC and a $200 program fee.

Additionally, consider building your credit score by applying for a credit card. This will allow you to borrow money in the future for larger purchases, such as a car or a home.

What are the benefits of opening a bank account in Canada as an international student?

As an international student in Canada, you will need to manage your finances and support yourself through your studies. Here are some of the benefits of opening a bank account in Canada:

Simplified financial transactions

A local bank account will make it easier to manage your day-to-day finances, from paying bills to withdrawing money from ATMs. It will also simplify transactions with family and friends, and you can avoid currency conversion fees.

Proof of funds

To study in Canada, international students need to provide proof of funds to cover living and study costs. Having a Canadian bank account can help with this requirement, and it will also be useful when it comes to organising accommodation and other first-month tasks, such as getting a phone plan.

Student accounts

Some banks offer student-specific accounts with perks and tailored discounts. These accounts often have no monthly account fees and can include benefits such as unlimited transactions and international money transfers.

Building a credit score

As an international student, you will not have a credit score in Canada when you arrive. Opening a bank account and building a credit history will be necessary if you want to take out a loan or apply for a credit card.

Safety

It is safer to open a Canadian bank account than to travel with large amounts of cash.

What are the best banks for international students in Canada?

As an international student in Canada, you can open a bank account to manage your day-to-day expenses. There are two types of bank accounts in Canada: checking accounts and savings accounts. A checking account is used for day-to-day banking needs, such as withdrawing funds at a branch, online, or through ATMs, and paying bills. A savings account is used for saving money over the long term and is useful for emergency savings.

When choosing a bank, you may want to consider the account fees, minimum balance requirements, and the number of branches and ATMs. It is also worth looking at the perks and benefits offered by each bank, such as welcome offers, student discounts, and reward points.

Scotiabank

Scotiabank, officially known as the Bank of Nova Scotia, is one of Canada's Big Six banks. It offers the Student Banking Advantage® Plan, which has no monthly account fees and allows unlimited debit and Interac e-transfer transactions, as well as international money transfers. Before you arrive in Canada, you can apply through Scotiabank's Student GIC Program, which can help meet the proof of financial support requirement for your IRCC application.

Toronto-Dominion Bank (TD Bank)

TD Bank is another one of Canada's Big Six banks. It offers a range of credit cards with features such as no annual fee, competitive low variable rates, or travel rewards. TD also offers the TD International Student GIC, which can help you obtain your study permit under the Government of Canada's Student Direct Stream (SDS) program.

Canadian Imperial Bank of Commerce (CIBC)

CIBC is the second oldest of Canada's Big Five banks and is the smallest of the big five. It offers a range of benefits for students, including free trading with CIBC Investor's Edge for investors aged 18-24, SPC+ membership with discounts of up to 30% at over 450 top brands, and Journie Rewards, which offers savings of up to 10 cents per litre on gas. CIBC also offers global money transfers with $0 transfer fees to over 130 countries.

National Bank of Canada

The National Bank of Canada is one of the Big Six banks and offers a range of financial products and services for students.

Royal Bank of Canada (RBC)

RBC is also part of the Big Six and offers a range of banking products and services for international students.

In addition to these large banks, there are also smaller banks, credit unions, and caisses populaires that offer specific accounts for students.

Can an international student open a bank account in Canada before arriving?

International students can open a bank account in Canada before arriving, although the process may vary depending on the bank and the student's country of origin. Some banks, like Scotiabank, offer international student programs that allow students to open an international account before travelling to Canada and then convert it to a regular student chequing account upon arrival. This can help fulfil the requirement of providing proof of financial support when submitting a study permit application.

To open a bank account in Canada, international students will typically need to provide at least two pieces of identification, such as a passport, student ID, or Temporary Residence Permit/Study Permit. Some banks may require additional documents, such as proof of address in Canada or a local phone number. It is recommended to contact the bank beforehand to enquire about their specific requirements.

When choosing a bank, international students should consider factors such as service offerings, convenience, branch locations, monthly fees, perks, and flexibility. Many banks in Canada offer special perks for international students, such as waiving monthly fees or providing bonuses. It is also important to understand the terms and conditions of the account, including transaction fees and other charges.

While it is possible to open an international account with some banks before arriving in Canada, not all providers offer this service. Additionally, full account functionality may not be available until the student has physically relocated to Canada. Therefore, it is essential to review the requirements and offerings of different banks before making a decision.

In summary, while international students can open a bank account in Canada before arriving, it is important to research the options, requirements, and limitations of different banks to make an informed decision.

What are the different types of bank accounts available for international students in Canada?

As an international student in Canada, you can choose from various bank accounts offered by different financial institutions. The six major banks in Canada are:

• Bank of Montreal (BMO)
• Bank of Nova Scotia (Scotiabank)
• Canadian Imperial Bank of Commerce (CIBC)
• National Bank of Canada
• Royal Bank of Canada (RBC)
• Toronto-Dominion Bank (TD Bank)

In addition to these, many smaller banks, credit unions, and caisses populaires also offer specific student accounts.

Types of Bank Accounts

The most common type of bank account in Canada is the chequing account, which is used for everyday transactions like withdrawing cash, paying bills, and sending money. Many banks offer student chequing accounts with no monthly fees and unlimited transactions. To qualify for a student chequing account, you may need to be 23 or under and provide proof of full-time enrolment in a post-secondary education program.

Another option is a savings account, where you can keep money that you don't need immediate access to. This can be helpful if you want to build up your savings while studying in Canada.

If you are planning to study in Canada, you may also want to consider opening a Guaranteed Investment Certificate (GIC) account. The GIC is a requirement for the Student Direct Stream (SDS) program, which offers faster processing of study permits for students from certain countries. The GIC account also serves as proof of financial support for your visa application.

Other Considerations

When choosing a bank account, you may want to consider the rewards offered by different institutions. For example, some banks offer travel rewards or cashback on purchases. Additionally, if you need to send money internationally, look for a bank that offers low-fee or no-fee Interac e-transfers and international money transfers.

Frequently asked questions