Student life is full of challenges, especially when it comes to financial management. For international students newly arrived in Canada, choosing the right student bank account is the first step towards successfully managing personal finances. This article provides a comprehensive analysis of student bank accounts in Canada to help you make an informed decision.

 

 

The Big Five Banks in Canada

 

The Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Scotiabank, Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC) are the major players.

 

Excluding investment-related accounts, the main types are checking accounts and savings accounts. Typically, money in a savings account earns interest but incurs fees for direct consumption, while money in a checking account can be used directly for consumption but does not earn interest. However, some online banks like EQ Bank, Neo, and Wealthsimple combine both accounts, offering interest without transaction fees.

 

Canadian banks offer a variety of account options for international students, each with unique offers and restrictions. Here are some common offers and restrictions provided by the Big Five banks for student bank accounts:

 

1. Royal Bank of Canada (RBC)

   • Offers:
     • RBC Student Banking Account: Typically offers unlimited transactions and free electronic transfers.
     • Multiple account options: Offers various accounts to meet different student needs, including no monthly fee accounts.
     • Credit card offers: Provides credit cards for students, sometimes including reward points and other benefits.
   • Restrictions:
     • Minimum balance requirements: Some accounts may require maintaining a minimum balance to avoid monthly fees.
     • International student restrictions: International students may need to provide additional documents and meet specific conditions.

2. Toronto-Dominion Bank (TD)

   • Offers:
     • TD Student Chequing Account: Offers no monthly fee, unlimited transactions, and free Interac e-Transfer electronic transfers.
     • Student credit cards: Provides credit cards specifically for students, sometimes including special offers and reward programs.
   • Restrictions:
     • Age restrictions: Some offers may only apply to students of certain age groups.
     • International remittance restrictions: International remittances may incur additional fees.

3. Scotiabank

   • Offers:
     • Scotiabank International Student Account: Offers specialized accounts for international students, typically including no monthly fee and unlimited transactions.
     • Rewards and offers: Provides reward points and special offers, such as movie tickets and other entertainment benefits.
   • Restrictions:
     • Account type restrictions: Different accounts may have different services and fee structures.
     • Documentation requirements: Opening an account may require additional identity verification and documents.

4. Bank of Montreal (BMO)

   • Offers:
     • BMO Student Banking Account: Offers no monthly fee accounts, typically including unlimited transactions and free electronic transfers.
     • Student credit card offers: Provides specialized student credit cards, sometimes including cashback or reward points.
   • Restrictions:
     • Transaction restrictions: Some accounts may have restrictions on transaction types or numbers.
     • International student services: International students may need to meet additional requirements or face service restrictions.

5. Canadian Imperial Bank of Commerce (CIBC)

   • Offers:
     • CIBC Student Account: Offers no monthly fee accounts, including unlimited transactions and free electronic transfers.
     • Student credit cards: Provides competitive interest rates and reward programs for student credit cards.
   • Restrictions:
     • Account upgrades: As age increases, student accounts may need to be converted to other types of accounts.
     • International student documents: International students may need to provide
     • additional documents and meet specific opening conditions.

 

When choosing a bank and account, students are advised to consider their personal needs, such as transaction frequency, international remittance needs, and credit card options, and to carefully read the terms and conditions of each bank. Additionally, for international students, understanding the documents required and any potential restrictions during the account opening process is crucial.

 

Account Selection Advice

 

Typically, most people open a student account, but if you are sure that your deposit exceeds the minimum deposit limit of a premium account, such as having C$5,000 in a TD All Inclusive account or C$6,000 in a CIBC Smart Plus Account to waive account fees, you can consider opening such an account directly. Of course, make decisions based on actual situations, as banks offer account opening rewards and other promotions. Student account opening rewards are usually a few tens of dollars, while premium accounts may offer a few hundred dollars. However, such promotions may require you to complete certain tasks, such as a number of transfers/consumptions/Direct Deposits, etc. The requirements for premium account promotions may not be suitable for new international students.

 

 

Steps to Open a Bank Account

 

1. Schedule a Bank Visit

   • Visit the bank's official website or call the bank directly to schedule an account opening appointment.
   • Choose a suitable time and the nearest branch.

2. Prepare Required Documents

   • Gather all documents and information required for opening an account.

3. Visit the Bank Branch

   • Visit the bank at the scheduled time.
   • Discuss account options and any questions with the bank representative.
   • Fill out and submit the account opening application form.

4. Complete Account Setup

   • Set up online banking and mobile banking services.
   • Receive a debit card and/or credit card.
   • Learn how to use the account for daily transactions.

 

Documents Required for Account Opening

 

Basic Documents:

• Valid passport: As the primary proof of identity.
• Student visa or study permit: To prove your student status in Canada.
• Admission letter from a Canadian school: To prove your study plans in Canada.

 

Possible Additional Documents:

 

• Additional proof of identity: Such as a driver's license, health card, etc.
• Proof of Canadian address: Such as a lease agreement, utility bills, etc.
• Student ID: Some banks may require seeing a student ID as additional identity verification.
• SIN (Social Insurance Number): Although not all banks require it, providing a SIN can simplify tax and employment-related processes.

 

 

Account Opening Tips

 

If you have Canadian Permanent Residency (PR), it's best. If not, you can pretend. Because the benefits enjoyed by international students holding a Study Permit are significantly lower than those holding Canadian citizenship/PR. International students' SINs are easily recognizable, starting with 9. If the bank knows your SIN, many banks won't approve your card application if they see you're an international student. Fortunately, most of the time, filling out forms online is optional. If you're applying offline, don't give it away. If your persona is that you haven't had time to apply, say it hasn't come down yet. If your persona is that you have a high salary, say you don't remember and need to go home to find it. In short, don't give people a chance to fill it into the system.

 

In most cases, identity verification requires 2 pieces of Photo ID. The standard configuration for international students is a Study Permit + Passport, but this exposes you as a pure international student. The trick is to apply for a local Provincial ID, such as a BCID in BC province, which is basically an ID card. Then you can use the BCID instead of the Study Permit, as PR retains the original nationality.

 

Additionally, information between different banks in Canada is not shared (except in special circumstances, e.g., MBNA is a subsidiary of TD, Simplii Financial is a subsidiary of CIBC, the subsidiary and parent bank may share the same backend system), so if RBC knows you're an international student, it doesn't affect you pretending to be PR at TD.

 

In your journey as an international student in Canada, having a suitable bank account is not only the foundation for managing daily finances but also a guarantee that allows you to focus on your studies and life. Choosing the most suitable student bank account means you will enjoy convenient transactions, reasonable fee structures, and possible additional benefits.

 

As your account is successfully opened, a new journey of financial management is about to begin. But remember, a bank account is only part of financial management. As an international student, you may also need to consider the need for international remittances, whether receiving support from family or handling tuition payments. At this time, PandaRemit (PandaRemit) becomes your ideal choice with its convenient and secure international remittance services.

 

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Now, visit the official website of PandaRemit (PandaRemit) to learn more and start your smart financial management journey. Let PandaRemit become your reliable assistant in your study life in Canada, helping you focus more on your studies and life, and enjoy a worry-free study abroad experience.

 

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