Canadians have the right to open bank accounts, and banks are required to provide them. You may open an account at any local branch of a chartered bank.
You will need to have proper identification to open a bank account. A list of acceptable forms of identification can be found here: https://cba.ca/newcomers-to-canada
Talk to different banks and ask about what they offer. If you’re making a large deposit ($10,000 or more), you’ll need to tell the bank from where it came from.
Types of Bank Accounts
Chequing
These accounts are for everyday banking such as cashing and depositing cheques, depositing cash, and paying by cheque. Chequing accounts usually have a monthly fee, so make sure you know what it is before you open the account.
- You may buy overdraft protection. That means you can have a negative balance in your account. This protects you from running out of money. Overdraft protection usually has a monthly fee. A high interest rate will be charged on the amount you have overdrawn.
Savings
If you open a savings account, you may earn interest; that is, a small percentage of the money you leave in the account. Interest rates vary from bank to bank.
Business Accounts
These are special accounts set up under the name of a business.
- These accounts allow the business owner to receive and write cheques under the company’s name rather than their own. They are useful to keep personal funds separate from business funds.
- Business accounts have features and fees that differ from personal accounts.
Chequing, savings, and business accounts are called by different names at different banks.
Make sure you understand what kind of account you have and what it will cost. Be sure that you understand from which account you’re taking money from or using for debit card purchases. Some savings accounts charge a user fee every time you use a debit card.