Over the years, Canada has shown tremendous growth in the educational sector. Not just for the resident students, the country is also active in getting international students from different corners of the world. After getting admitted to any of the universities, it is important for opening a student bank account in Canada. Abroad learning is at its peak where students from different countries choose to switch their nations for fulfilling their purpose of studying. However, opening student bank account in Canada is the foremost prerogative.
Several benefits can be availed and are required to hold as it creates seamless financial flow and management. If this is your first time opening a student account, the below tips will guide you effectively.
Steps to Open a Student Bank Account in Canada
In a foreign country, it is a must to hold a student account. For this, you may be new to the system and must require some credible helping hand. Hence, go through the given steps that can help you get the best student bank account in Canada without any hustle and bustle.
Step 1 – Documents Required for an International Student Bank Account
There could be majorly two documents required to be presented while opening a new student bank account in Canada. The newbies who have yet not had their student bank account must have these documents mentioned below:
- Proof of Study Permit
- Passport of the Student
- Letter of Acceptance
- Travellers’ Cheques
- Local Address Proof, If Required
Step 2 – Choose a Bank or Credit Union
After the first step, you are required to find the best student bank accounts in Canada. So, let us help you to get one either offline (walk-in to the bank’s branch) or online. You may look for multiple options for banks or credit unions for opening a student account. There are different types of student bank accounts in Canada. In this, you may get perks of interest rates, services charges, etc.
Surely, the above factors are important to look for while opening a student account. But it is also significant that the bank is in proximity, they are good with the customer after service and the online operations are easily accessible. You have to book an appointment for setting up the student account which can be done on-call or online.
Run through the listed are the best student bank accounts in Canada.
- Bank of Montreal (BMO)
- Royal Bank of Canada (RBC)
- Canadian Imperial Bank of Commerce (CIBC)
- Simplii Financial
- Kindred Credit Union
- Toronto-Dominion (TD) Canada Trust
- Libro Financial Group
- Education Credit Union
- Hongkong and Shanghai Banking Corporation (HSBC)
- Your Neighbourhood Credit Union
Step 3 – Select Your Choice of Student Account
It is not at all necessary that only one type of student account is permitted. You may go for more than one type of student account. The idea of the best student account in Canada is to hold two different accounts. If you do not know what type of student accounts we are talking about, look below to comprehend better:
1. Saving Student Account
This is the best in terms of students in preference. Here, the finance can be banked for a long term with a higher interest rate compared to the Checking account.
2. Checking Account
By its name, you must have understood that it gives the liberty to regularly check the account. The account holder can have perks like short term withdrawal, credit card bill payments, and issuing checkings. But along with this, there is a disadvantage of earning less interest rate.
3. Foreign Currency Account
This is best suitable for those who are not Canadian citizens. This is because it allows the person to keep some amount of money in different currencies. It helps the account holder to quickly extract such money if required in urgency. Also, there will be no stress to run for currency conversion. But such transactional charges vary from bank to bank that needs to be researched before opening a student bank account in Canada.
Step 4 – Activate Your Debit Card
After you have completed all the tasks of opening a student account, your bank will provide you with a “plastic card” also known as a “Debit card”. Along with this, a PIN will also be given to you. This works as a security check which allows any transactions done with that to be at your acknowledgement. But this needs the first transaction to be done to activate the services.
Let us understand well what all these Debit Card can get you one by one:
- You can use the Debit card to transact money through an ATM (Automated Teller Machines).
- You can make payments or deposit money through the card.
- This is a perfect substitute for cash.
- Easy check-ins in account balance by installing Bank Mobile Application with Debit Card linkage.
- You can often transact even being far away from your bank’s branch.
- It is valid for all types of payments.
- It eliminates the risk of cash mismanagement or theft.
- You may lock your debit card instantly in case of loss so that no unwanted things can take place.
Attractive Services to Avail by Student Bank Account in Canada
At times, financial needs turn into hardships due to the standard of living in Canada. Also, you go through restricted budgets that create problems in your daily living. But if you know what advantages you can get from a student bank account in Canada, it will surely be delightful for you.
Apply for a Credit Card
A credit card is an addition to your existing and limited finance. This acts like an instant loan or credit you avail of from your bank that can be paid in a given period. In Canada, there are three diverse forms of credit cards such as Visa, MasterCard, and American Express. If you go for Visa or MasterCard, the payments are conveniently accepted everywhere. In addition to this, you get grace time if you miss your deadline so no charges are applied till then. Similar to a debit card, credit cards also have a PIN that should be confidential.
- It is advisable to acknowledge all the terms and conditions of the bank.
- Avail this service only if you are regular with your income and are certain to make all the debts clear on time.
- You will be charged interest on any payment you do after the due date.
- Remember to clear your loans each time or else it will add on to your debts as charges regardless of your debt amount.
Avail Lines of Credit
After accomplishing your student bank account in Canada, you will be entitled to get a loan or a line of credit. All that you need is a security deposit against the loan you will take to be handed over till the time you pay back the debt.
- You will be charged a higher interest rate if the lines of credit are not clear on time.
- Discuss the bank’s policies with their representative advisor to adhere to all the rules without mistakes.
- You need to have a security deposit equivalent to the amount you have taken.
- The bank will forage the security to settle the amount of the loan that seems to be pending.
Applying for a student account is a great deal as it ensures your systematic and seamless financial management. All the details mentioned above are taken to be considered while applying for a student bank account in Canada. It will hopefully help for any student studying in Canada to happily hold a student account. Accordingly, the aforementioned services can also be availed if required which will dismiss all the financial transactions and management struggles for a scholar. This is the first big step towards not just being accountable towards your money but also truly realizing interdependence.
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Frequently Asked Questions (FAQs)
An international student bank account can be opened through a TD offering without monthly charges. There is no minimum balance needed to maintain the account. An international student can also open a savings account, credit card, and every other benefit if falls under eligible criteria.
The following banks offer the best student bank accounts in Canada:
– Bank of Montreal (BMO)
– Canadian Imperial Bank of Commerce (CIBC) (set up your Canadian bank account from your home country)
– Hongkong and Shanghai Banking Corporation (HSBC)
– Royal Bank of Canada (RBC)
To apply for a student bank account in Canada, the online form is available on the bank’s website. You will be asked for your social security number and an identity card for verification purposes. Afterwards, you will be required to deposit $25 as your initial deposit. You can also get a custom campus card if your university fits the criteria of the service provider.
No, this falls under minors’ age and hence there cannot be a separate account for them to own. But they can have a joint account. This can actually work well for them to decide on the best student bank account in Canada.