Lori Meadows
As an international student, opening a bank account in Canada is essential to managing your day-to-day expenses and keeping your money safe. There are two main types of bank accounts in Canada: checking accounts, which allow you to deposit and withdraw money as often as you like, and savings accounts, which are useful for long-term savings and emergency funds. Many banks in Canada offer accounts specifically designed for international students, with benefits such as low or no monthly fees, unlimited transactions, small cash bonuses, and access to credit cards. When choosing a bank, it's important to consider factors such as account fees, minimum balance requirements, and the availability of ATMs and branches. Additionally, some banks offer perks like international money transfer services and discounts at select retailers. By understanding your financial needs and comparing the features offered by different banks, international students can select the best bank account to suit their requirements during their stay in Canada.
| Characteristics | Values |
|---|---|
| Banks | 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) |
| Account Types | Checking accounts, savings accounts |
| Checking Account Features | Deposit and withdraw money, chequebook, debit card, credit card facility |
| Savings Account Features | Long-term savings, emergency savings |
| Fees | Account maintenance fees, transaction fees, ATM fees, local and international transfer fees, minimum balance requirements |
| Eligibility | Proof of enrollment, age requirements, valid ID, study permit, passport, visa |
| Perks | Discounts, cash bonuses, rewards points, overdraft protection, unlimited transactions, no monthly fees, welcome offers, free international transfers, access to credit cards |
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What You'll Learn
Newcomer programs and eligibility criteria
International students in Canada have a variety of banking options, each with its own set of newcomer programs and eligibility criteria. Here is a detailed overview of some of the available options:
Royal Bank of Canada (RBC)
RBC offers a Student Banking Package, which includes a credit card, forex cards, a checking account, and a savings account at no cost to the student. This package is ideal for students who want to manage multiple financial products simultaneously. RBC also offers a Cash Back Mastercard, which provides a 10% cash back credit on net purchases for the first three months, up to a maximum total spend of $2,000. To be eligible for this offer, newcomers must be permanent residents or international students who arrived in Canada within the last 12 months or temporary resident workers who arrived within the last 48 months. Additionally, RBC provides a Newcomer High Net Worth Program, which waives the requirement for income from employment when applying for an RBC mortgage, as long as you can provide proof of Canadian income from other eligible sources.
Canadian Imperial Bank of Commerce (CIBC)
CIBC offers the Smart for Students account, which provides unlimited transactions at no monthly fee and cashback on purchases. They also have the CIBC Student Deposit Programme, which allows students to send money to their Canadian account with no service fees. Additionally, CIBC has a Refer-a-Friend program where both the referrer and the referred friend can earn rewards. To be eligible for this program, individuals must be residents of Canada, have reached the age of majority in their province or territory, hold a CIBC Canadian dollar chequing or savings account, and be registered for CIBC mobile or online banking.
Toronto-Dominion Bank (TD)
TD offers the TD Student Checking Account, which is designed for students, including international students. This account provides unlimited transactions and zero monthly fees for full-time students. Additionally, TD provides the TD International Student Banking Package, which includes unlimited international money transfers with TD Global TransferTM to over 200 countries.
Bank of Montreal (BMO)
BMO features a Student Checking Account that is tailored to meet the unique banking needs of students, including international students. This account offers an unlimited number of transactions, no monthly fees, and additional benefits for student loans.
Simplii Financial
Simplii Financial offers an International Student Deposit Programme that can be applied for online in just 5 minutes. Students can transfer funds from their home country to their Simplii account with no service fees. They also offer a Simplii Financial Cash Back Visa card, which provides rewards and helps build credit in Canada.
KOHO
KOHO is an online bank that offers a prepaid Mastercard designed specifically for newcomers to Canada. As a KOHO account holder, you can earn cashback in select categories and interest on your balance. The higher-tier subscription plans come with additional benefits, and you get unlimited transactions and the ability to set up direct deposits.
It is important to note that eligibility criteria and newcomer programs may vary over time, so it is always advisable to visit the bank's website or contact them directly for the most up-to-date information.
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Monthly fees and minimum balance requirements
When choosing a bank account, it is important to consider the monthly fees and minimum balance requirements. Many student bank accounts in Canada offer low or no monthly fees. For example, the CIBC Smart Account for Students and RBC Advantage Bank Account waive monthly fees for full-time students. TD Canada Trust also offers a student chequing account with no monthly fees and no minimum balance requirements.
Some banks may offer unlimited transactions with no additional charges, while others may provide a limited number of free transactions. It is worth noting that online banks typically do not charge monthly fees, but having access to a physical branch can be useful when navigating a new banking system.
Student accounts may also come with minimum balance requirements. While some accounts may offer unlimited transactions, others may provide additional transactions at no extra cost if you maintain a minimum monthly balance. It is important to understand the fees charged if your balance drops below the minimum requirement.
When choosing a bank, it is recommended to consider your specific needs and compare the offerings from different institutions. Some banks may provide special promotions or benefits for students, such as waived fees or discounts on certain services. Additionally, consider the convenience of ATM locations and the user-friendliness of their online banking platform.
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International money transfers and foreign exchange
Account Fees
When it comes to account maintenance, transaction fees, ATM fees, and international transfer fees, some banks offer accounts with no monthly fees, such as the TD International Student Banking Package, which includes a student chequing account with unlimited transactions and no monthly fee until the age of 23 or with proof of full-time enrolment.
Minimum Balance Requirements
It is important to be aware of minimum balance requirements and any fees charged if your balance drops below this threshold. Some banks may require a minimum balance to waive off monthly fees or provide additional transactions.
ATM Accessibility
Consider the location of the bank's ATMs in relation to your campus for easy access to cash withdrawals. Additionally, using an ATM outside of your financial institution's network may incur fees.
Online Banking
Choose a bank with user-friendly online banking and mobile apps that make managing your finances convenient.
Currency Exchange Fees
Inquire about the bank's exchange rates and fees for international transactions, as converting foreign currency can be costly. Banks like CIBC may have exchange rates that include a markup, resulting in higher fees.
International Money Transfer Options
Some banks offer international money transfer services directly. For example, TD Bank offers TD Global Transfer, allowing registered users to transfer money from their TD personal bank accounts. CIBC offers CIBC Global Money Transfer with no transfer fees to over 130 countries. However, some banks may charge fees for sending or receiving international transfers, and you typically need the recipient's banking details.
Specialist International Payment Providers
Consider using a specialist international payment provider like Wise or OFX, which often offer better exchange rates, lower costs, and faster delivery. Wise, for instance, allows you to send money to over 140 countries at the mid-market exchange rate with minimal fees.
Credit Cards
Getting a credit card as an international student in Canada can help build a credit history and score. Some banks offer credit cards with no annual fees and cashback rewards, which can be beneficial when travelling or purchasing merchandise.
In summary, when selecting a bank account as an international student in Canada, consider account fees, minimum balance requirements, ATM accessibility, online banking features, currency exchange fees, and international money transfer options. Additionally, specialist international payment providers and credit cards can enhance your financial flexibility.
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Credit cards and loans
TD Canada Trust, for instance, offers an International Student Banking Package that combines bank accounts and credit cards. This package provides a convenient way to handle finances while studying in Canada. TD also offers a TD Credit Card to help students build their Canadian credit history. Similarly, Scotiabank's StartRight™ Program provides international students with a credit card with a limit of up to $5,000 and no annual fees. The card earns Scene+ points on everyday purchases, which can be redeemed for travel, gift cards, and more.
RBC Royal Bank also offers credit cards with no annual fees, such as the RBC Cash Back Mastercard and the RBC Rewards + Visa. Additionally, RBC provides automotive financing for permanent residents and temporary foreign workers in Canada for less than three years.
Simplii Financial, backed by CIBC, offers the Simplii Financial Cash Back Visa card, which helps international students build their credit history in Canada. This card provides a $2,000 credit limit and does not require a credit history.
When considering a credit card, it is important to use it responsibly and pay off the balance on time to avoid late payment fees and build a good credit history.
In terms of loans, TD Canada Trust offers a Student Line of Credit for eligible international students, even without a Canadian credit history, provided they have a Canadian co-signer. Similarly, RBC Royal Bank offers residential mortgages to eligible international students without a Canadian credit history.
Overall, there are several credit card and loan options available for international students in Canada, each with its own features and benefits. It is important to research and compare these options to make an informed decision that best suits one's financial needs and goals.
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Student discounts and perks
Some banks offer additional perks for international students, such as TD Bank, which offers the TD Student Checking Account with unlimited transactions and zero monthly fees for full-time students. CIBC also offers a Smart for Students account with unlimited transactions, no monthly fees, and cash back on purchases.
RBC is another popular choice among international students, offering the RBC Student Banking Package with zero monthly charges and unlimited transactions.
Other banks that offer student perks include Simplii Financial, with its No Fee Chequing Account and a $300 welcome bonus, and Tangerine, with its No-Fee Daily Chequing Account and up to $400 cash back by signing up.
Some banks also offer specific discounts based on the degree programme you are studying, so it is worth checking if you qualify for any of those. Additionally, free SPC+ membership is a common perk offered by some banks, which provides exclusive student deals and discounts of up to 30% from various top brands.
When choosing a student bank account in Canada, it is important to consider factors such as monthly fees, minimum balance requirements, the number of free transactions, and any additional perks or discounts that may be offered.
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Frequently asked questions
Some good banks for international students in Canada include the Royal Bank of Canada (RBC), the Canadian Imperial Bank of Commerce (CIBC), and Toronto-Dominion Bank (TD Bank).
There are two types of bank accounts in Canada: checking accounts and savings accounts. Checking accounts allow you to deposit and withdraw money as often as you like and are generally used for day-to-day expenses. Savings accounts are useful for saving over the long term and for emergency funds. When choosing a bank account, consider the account fees, minimum balance requirements, and the number of ATMs available. Many student accounts offer low or no monthly fees, unlimited transactions, and small cash bonuses.
To open a bank account as an international student in Canada, you will typically need to provide a valid photo ID (such as a passport), proof of enrollment at a Canadian college or university, and your Canadian visa or study permit.
