Douglas Olsen
As an international student, opening a bank account in Canada is a straightforward process that can be done online or in-person. Most major banks offer student accounts with various benefits, such as no monthly fees, rewards, and unlimited transactions. To open an account, students will need to provide proof of enrollment and a valid form of identification, such as a passport, driver's license, or student visa. With a Canadian bank account, international students can easily manage their finances, send and receive money, and build their credit score to help achieve financial goals like renting an apartment or buying a car.
| Characteristics | Values |
|---|---|
| Number of ID proofs required | 2 or 3 |
| Acceptable ID proofs | Passport, Canadian Driver’s License, Canadian Government Identification card, Student ID, etc. |
| Other requirements | Local home address in Canada, active phone number |
| Types of accounts | Checking accounts, savings accounts, student accounts, credit card accounts |
| Benefits of student accounts | No monthly fees, reward points, shopping discounts, no-fee chequing accounts, etc. |
| Perks of specific banks | TD Bank – no monthly fees and no minimum balance requirements for TD Student Chequing Account; Scotiabank – $4,127 + interest deposited into your account, no monthly account fee, unlimited debit and Interac e-transfer transactions, international money transfers |
| Other benefits | Building credit rating, obtaining a study permit, safe way to save money, budgeting, financial aid, etc. |
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What You'll Learn
Types of bank accounts
As an international student in Canada, you can choose from several types of bank accounts, each serving a different purpose. Here are some of the most common types of bank accounts available to international students in Canada:
Chequing or Checking Accounts
Chequing accounts are the most common type of bank account in Canada and are ideal for day-to-day banking activities. With a chequing account, you can deposit and withdraw money, write cheques, and use a debit card for purchases or ATM withdrawals. Many Canadian banks offer student chequing accounts with unlimited transactions and no monthly fees. These accounts often come with additional perks, such as reward points or shopping discounts.
Savings Accounts
Savings accounts are meant for collecting money over the long term. You can choose to transfer money from your savings account to your chequing account as needed. Savings accounts are a good option if you want to build an emergency fund or save for specific goals, such as travel or large purchases. Some savings accounts, like the Guaranteed Investment Certificate (GIC), also help international students meet the requirements for a study permit under the Student Direct Stream (SDS) program.
Credit Card Accounts
Credit cards are convenient for making purchases without carrying cash and offer a grace period before you need to pay for them. Building a credit history with a credit card can help you borrow money in the future for larger purchases, such as a car or a home. Many banks in Canada offer student credit cards with features like no annual fee, low-interest rates, or travel rewards.
Student-Specific Accounts
Many Canadian banks offer student-specific accounts, which may include chequing or savings accounts tailored to students' needs. These accounts often have benefits such as no monthly fees, free SPC memberships, and perks like cash rewards. Student accounts may also provide unlimited free Interac e-transfers, making it easy to send money to other students or pay bills.
When choosing a bank account in Canada, it's important to consider your specific needs and compare the offerings of different financial institutions, including the Big Six banks and smaller alternatives. Factors such as proximity to your university, transaction fees, and international money transfer options may influence your decision.
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Required documents
As an international student, you will need to provide certain documents to open a bank account in Canada. While the specific requirements may vary slightly between banks, you will generally need at least two pieces of identification (ID). Here is a list of documents you may need to provide:
- Proof of identity: This can include a valid passport, driver's license, or government-issued ID card.
- Student identification: A student ID card or other proof of enrolment, such as a letter from your school or university on official letterhead or a copy of your tuition bill.
- Visa: Your Temporary Resident Visa or study permit may be required, especially if you plan to work while studying.
- Social Insurance Number (SIN): This is a number issued by the Canadian government for income tracking and access to government programs.
- Proof of address: Some bank branches may require you to provide your local home address in Canada.
- Additional identification: Depending on the bank and your specific circumstances, you may need to provide other acceptable forms of ID.
It is recommended to check with your chosen bank to confirm the specific documents required, as there may be slight variations in requirements. Additionally, some banks offer special programs for international students, such as the Scotiabank Student GIC Program or the TD International Student GIC, which can help with meeting the financial requirements for obtaining a study permit. These programs also allow you to transfer funds to Canada securely before your arrival.
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Choosing a bank
As an international student in Canada, you will need at least two pieces of identification to open a bank account. Most banks will ask for a passport, student ID, and proof of enrolment. Some banks may require a local home address and an active phone number.
There are two types of bank accounts in Canada: checking accounts and savings accounts. A checking account lets you deposit and withdraw money as often as you like, and you usually receive a chequebook and a
Most international students will only need a checking account to pay for living costs while studying in Canada. However, you may also be able to obtain a credit card through your checking account. Credit cards are convenient, allowing you to make purchases without carrying cash and giving you a grace period before you need to pay. However, if you do not pay your credit card bill by the due date, the company will charge you interest on the total amount of the bill.
When choosing a bank, it is important to consider the location of ATMs in relation to your university campus. In Canada, you will be charged a transaction fee every time you use an ATM from a bank that is not your own. It is also worth researching which banks are closest to your university and what they offer students. Many Canadian banks offer great deals for students, such as no monthly fees, reward points, and shopping discounts.
Some banks, such as Scotiabank, offer special programs for international students. Scotiabank's Student GIC Program can help you meet the proof of financial support requirement and transition to life in Canada smoothly. TD Bank also offers an International Student Package, which includes no monthly fees and no minimum balance requirements for the TD Student Chequing Account.
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Credit cards and loans
International students can apply for credit cards in Canada. However, they need a Social Insurance Number (SIN), proof of enrolment, and government-issued ID (passport or Canadian driver's license). Some Canadian banks, such as Scotiabank, offer international student-friendly credit cards with no annual fees and perks such as reward points. Student credit cards are geared towards students who don't have a strong credit history, but approval is not guaranteed. International students can also build their credit scores in Canada by getting and using a line of credit, such as a secured credit card or a student credit card, paying off any existing debt, and creating and maintaining a spending plan.
Regarding loans, international students in Canada can apply for private student loans without a cosigner if they are enrolled at a Canadian school that is already approved by a lender. The lender will consider the student's academic success and career path, home country, expected graduation date, and the school they are attending. The amount an international student can borrow is up to the lender and can cover the total cost of attendance, including tuition and living expenses. The funds are usually disbursed directly to the university to pay tuition fees, and repayment terms vary depending on the lender and the borrower's circumstances. International students may not be eligible for certain forms of funding, such as federal student loans, and should first explore other options such as scholarships, grants, and personal funds.
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Sending money abroad
International students can open a bank account in Canada, and one of the first things they should do is set up a Canadian bank account. This can be done in person or online, but they will need at least two pieces of identification (ID) to open a bank account in Canada.
When it comes to sending money abroad, there are several options available to individuals in Canada. Here are some of the ways to transfer money internationally:
- Bank Transfer or Wire Transfer: This is an electronic payment method where money is sent directly from one bank account to another. Most financial institutions in Canada offer internet banking, allowing account holders to transfer funds without visiting a branch in person.
- Credit Card or Debit Card: Using a credit or debit card is a convenient way to send money online or over the phone. However, it is important to be aware of potential fees, such as credit card issuer cash advance fees and associated interest charges. Debit cards are often a cheaper option and can help avoid these extra costs.
- Mobile Wallet: Mobile wallets, such as the Xe Currency app, offer a fast and secure way to send, store, and receive money internationally. This method allows users to send money directly to their recipient's mobile devices in supported countries.
- Money Transfer Services: Several money transfer services, such as Western Union and Xe Money Transfer, provide secure and convenient ways to send money abroad. These services offer various options, including online transfers, app-based transfers, and in-person transfers at agent locations. They also provide competitive exchange rates and pricing transparency.
- International Money Transfer Providers: Specialist companies like Wise cater specifically to international money transfers. Wise offers competitive exchange rates, low fees, and fast transfer speeds. They also provide security features, such as HTTPS encryption and two-step verification, to protect transactions.
When choosing a method to send money abroad, it is essential to consider factors such as transfer fees, exchange rates, transfer speed, security, and the convenience of the available options. Additionally, it is beneficial to compare different service providers to find the most suitable solution for your specific needs.
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Frequently asked questions
Yes, international students can open a bank account in Canada. It is recommended that students do this as soon as possible after arriving in the country.
You will need at least two pieces of identification, such as a passport, driver's license, or student ID. You will also need proof of enrolment from a Canadian educational institution.
Student bank accounts in Canada often have no monthly fees and unlimited transactions. Some banks may also offer loans or lines of credit, as well as the opportunity to build your credit score.
Scotiabank offers the Student Banking Advantage® Plan with no monthly fees, unlimited transactions, and the option to apply for an unsecured credit card. CIBC also offers a similar plan with no monthly fees and the opportunity to earn cash rewards. Other recommended student accounts include the First Nations Bank of Canada Student Chequing Account and the Koho Essential account.
