Lana Oconnell
As an international student in Canada, choosing the right bank account is an important step to getting settled in your new country of residence. Canada has a wide range of banks, from the Big Six banks to smaller banks, credit unions, and caisses populaires, each offering unique benefits to students. When choosing a bank, it's essential to consider factors such as account fees, minimum balance requirements, transaction fees, and the availability of ATMs near your university campus. Additionally, some banks may offer perks such as reward points, shopping discounts, or introductory bonuses. Understanding the specific needs of international students, many banks in Canada provide tailored solutions, including international student bank accounts, no-fee global money transfers, student discounts, and credit cards with no Canadian credit history required. In this paragraph, we will explore the best banks for international students in Canada and the key features that make them attractive choices.
| Characteristics | Values |
|---|---|
| Account fees | Many student accounts have low or no monthly fees, no minimum balance requirements, and unlimited transactions. |
| Perks | Some banks offer perks such as reward points, shopping discounts, and small cash bonuses. |
| Credit cards | Some banks offer student credit cards to help build a credit score. |
| Overdraft protection | Some banks offer overdraft protection to prevent transactions from being declined when the account balance is too low. |
| ATM locations | Choose a bank with ATMs on or near your university campus to avoid transaction fees. |
| International transfers | Some banks offer free international transfers. |
| Eligibility | To open an international student account, you may need to provide a visa, study permit, proof of enrollment, and photo ID. |
| Banks | CIBC, RBC, Scotiabank |
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What You'll Learn
Account fees and perks
When it comes to account fees and perks, there are a few things to consider when choosing the best bank for international students in Canada. Firstly, many student bank accounts in Canada offer low or no monthly fees, with some banks waiving monthly fees entirely for students. This can be a significant advantage, as monthly fees for personal chequing accounts can typically cost around $15 per month or $180 per year.
In addition to monthly fees, it's important to consider other potential account fees, such as transaction fees, ATM fees, and international transfer fees. For example, CIBC, one of Canada's largest banks, offers the CIBC Smart Account for Students, which waives the fee for the first non-CIBC ATM withdrawal in Canada each month and offers unlimited transactions. Additionally, CIBC has partnered with Interac, Mastercard, and Western Union to facilitate international transfers, although additional fees may apply for this service.
When it comes to perks, some student bank accounts offer welcome bonuses, cash bonuses, or rewards points. For instance, Scotiabank's Scene+™ Student Banking Bundle includes welcome bonuses of up to $300 in value, which consists of $125 cash and up to 17,500 Scene+ points (worth up to $175). CIBC also offers a free SPC+ membership for students, providing discounts of up to 30% at over 450 brands.
Furthermore, some banks provide opportunities for students to build their credit history and score. For example, RBC offers a credit card with no credit history required for international students who arrived in Canada within the last 12 months. This card also has no annual fee and offers a welcome bonus of 10% cash back on the first $2,000 spent in the first three months.
Overall, when choosing a bank account as an international student in Canada, it's important to consider not only the fees but also the perks and benefits offered, which can help offset any costs and provide additional value.
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Chequing and savings accounts
Chequing accounts are the most commonly used bank accounts in Canada. They are used for day-to-day banking, such as withdrawing funds at a branch, online, or through ATMs. Many student chequing accounts come with unlimited transactions and no monthly fees. To qualify for a student chequing account, you may need to be 23 or under and provide proof of enrolment in a full-time post-secondary education.
There are several options for student chequing accounts in Canada. The CIBC Smart Account for students offers low or no monthly fees, unlimited transactions, and small cash bonuses. Additionally, you can qualify for this account before arriving in Canada. The RBC Advantage Bank Account is another option with similar features, and both accounts may qualify you for a student credit card without a Canadian credit history. The Simplii Financial No Fee Chequing Account is also a no-fee option for students above the age of majority.
If you are an international student, you may want to consider the TD International Student Banking Package, which combines both bank accounts and credit cards. This package includes unlimited international money transfers with transfer fees rebated for up to 12 months when using TD Global TransferTM.
Online banks, such as KOHO and EQ Bank, also offer attractive features for international students. For example, the KOHO account comes with a prepaid Mastercard and allows you to earn cash back on select categories and interest on your balance. The EQ Bank Personal Account offers unlimited transactions and high-interest rates on deposits, combining the benefits of chequing and savings accounts.
When choosing a chequing account, it is important to consider the location of ATMs near your university campus, as you will be charged a transaction fee for using an ATM from a different bank. Additionally, some banks offer rewards or shopping discounts, which can be beneficial for students.
Savings accounts are also available for students in Canada. These accounts are useful for collecting money over the long term and earning interest on your balance. You may consider opening a savings account if you are working or want to save for travel or emergencies. While some banks offer separate savings accounts, the EQ Bank Personal Account combines the benefits of both chequing and savings accounts, allowing you to earn interest on your deposits.
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Eligibility criteria
When it comes to eligibility criteria for international students looking to open a bank account in Canada, there are a few key requirements to keep in mind. Firstly, you must be able to provide valid proof of your student status. This can include a valid student visa or study permit, proof of enrollment or acceptance at a Canadian college or university, and a photo ID such as a passport. Some banks may also require you to be under a certain age, usually 23 or 25, and enrolled full-time at a post-secondary institution.
It is important to note that different banks in Canada may have their own specific eligibility criteria for international students. For example, CIBC offers benefits to international students who meet their eligibility requirements, such as the CIBC Smart Start or CIBC Smart for Students accounts. Additionally, RBC offers credit cards and banking solutions to international students who have arrived in Canada within the last 5 years and can provide proof of entry and supporting documents.
When it comes to choosing a bank account as an international student in Canada, you may want to consider the various benefits and perks offered by different financial institutions. Many banks offer student accounts with low or no monthly fees, unlimited transactions, and small cash bonuses. Some banks may also provide opportunities to earn rewards points or receive discounts at select retailers. Additionally, having a credit card can be beneficial for building a credit history in Canada, which can be useful for future loan applications.
To open an account, you may be able to do so online or over the phone, but it is generally recommended to visit a bank branch in person to ensure a smooth process. It is also worth considering the location of ATMs and the availability of physical branches when choosing a bank, as you will be charged a transaction fee for using an ATM from a different bank.
Overall, by understanding the eligibility criteria and the various benefits offered by different banks, international students can make an informed decision when choosing a bank account that suits their needs during their time studying in Canada.
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International money transfers
Some banks offer no-fee global money transfers, such as CIBC, which allows for transfers to over 130 countries with no transfer fee. Scotiabank also offers unlimited free e-transfers as part of its StartRight Program for international students. TD Bank also offers unlimited international money transfers with transfer fees rebated for up to 12 months when using a TD Global Transfer with a TD Student Chequing Account.
Other banks, such as RBC, offer a limited number of free Interac e-Transfer transactions per month, with a fee charged for additional transactions. It is also worth noting that some banks, like BMO, have partnerships with money transfer services like Western Union, which can be a convenient option for sending money internationally.
When choosing a bank for international money transfers, it is important to consider not only the fees but also the convenience and accessibility of the transfer service. Some banks may have minimum balance requirements or other restrictions that could impact your ability to send money internationally. Therefore, it is always a good idea to carefully review the terms and conditions of any bank account before opening an account.
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Credit cards
As an international student in Canada, you may want to get a credit card to build your credit history and make purchases easily. Many credit cards offer rewards such as travel/rewards points or cash back, often with no annual fee.
When choosing a credit card, consider your spending habits and choose one that suits your needs. For example, if you regularly travel back home or enjoy visiting foreign destinations, you may benefit from a credit card that offers travel rewards. On the other hand, if you want to put some money back into your pocket, you may prefer a credit card that offers cash back.
- TD Canada Trust offers a special international student banking package that combines bank accounts and credit cards. They also offer a TD International Student GIC, which can help meet proof of financial support requirements for Canadian study permit applications.
- Scotiabank offers a credit card with a limit of up to $5,000 with no annual fees and 2x points towards groceries, Cineplex, Home Hardware, and more. They also offer the Scene+ Student Banking Bundle, which includes a CAD 125 cash offer and up to 17,500 Scene+ points.
- RBC Royal Bank offers a credit card with no credit history required for international students who arrived in Canada within the last 12 months. Their RBC Cash Back Mastercard has no annual fee.
- CIBC offers a Student Line of Credit with a credit card for international students who meet the eligibility requirements for their CIBC Smart Start or CIBC Smart for Students benefit.
It is important to note that some banks may require you to have a Canadian co-signer or provide proof of enrolment in a Canadian educational institution when applying for a credit card as an international student. Additionally, always use credit cards responsibly and pay off your balance on time and in full each month to avoid late payment fees and build a good credit history.
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Frequently asked questions
The best bank for international students in Canada will depend on the individual's needs and preferences. However, some of the banks in Canada that offer accounts for international students include:
- Royal Bank of Canada (RBC)
- Toronto-Dominion Bank (TD Bank)
- Bank of Montreal (BMO)
- Bank of Nova Scotia (Scotiabank)
- Canadian Imperial Bank of Commerce (CIBC)
A chequing account is a type of bank account that allows you to deposit and withdraw money as often as you like. It usually comes with a chequebook and a debit card. Chequing accounts are the most commonly used bank accounts in Canada and are useful for day-to-day banking needs.
A savings account is a type of bank account that is useful for saving money over the long term and for emergency savings.
When choosing a bank account in Canada, it is important to consider the account fees, minimum balance requirements, and transaction fees. It is also worth looking at the location of ATMs in relation to your university campus, as you will be charged a fee for using an ATM from a different bank.
Many bank accounts for international students in Canada offer perks such as waived monthly fees, reward points, shopping discounts, and no-fee global money transfers. Some accounts also offer credit cards with no annual fee and cashback rewards.
