When you move to Canada, you will need a new bank account so that you can manage your day-to-day expenses and save for your future. Banking in Canada is very safe. All Canadian banks are governed by the Bank Act of Canada. When you put your money in a bank account in Canada, the Canada Deposit Insurance Corporation (CDIC) insures up to $100,000 of it. You do not have to pay for this insurance.
What type of bank account should you open?
Most banks in Canada have several types of chequing accounts and savings accounts you can choose from. You will probably want to have both a chequing and a savings account.
Chequing accounts are good for managing your day-to-day needs. You will use your chequing account to pay your bills, shop, and get cash. Most chequing accounts have fees. You should ask your bank for details.
Savings accounts are a good place to put money that you do not need for day-to-day living. Maybe you want to save for a new car or a family trip. When you put money in a savings account, you earn interest so your money will grow. If something happens and you urgently need the money, you can take it out of your savings account easily.
How to receive salary and benefit payments and pay your bills automatically?
Direct Deposit is a convenient and safe way to have money deposited into your account automatically. No more holds on cheques you deposit or trips to the bank or bank machine. You can set up Government of Canada payments such as the Canada child benefit (CCB) as a direct deposit or your employer may offer to direct deposit your payroll into your bank account.
To make bill payments easier and on time, you can instruct your billing company to set up pre-authorized payments (PAPs) to automatically take money from your account for regularly recurring expenses when bills are due. Alternatively, through online banking, you can set up pre-authorized debits (PADs) as another convenient way to pay bills or transfer money when these transactions occur on an ongoing basis. Examples include utility payments, insurance premiums and charitable donations.
How can you get money when you need it?
When you open a bank account, you will get a bank card, also called a debit card. You will also get a Personal Identification Number (PIN). You will use these to get money out of your bank account, put money into your bank account, pay bills, check your account balance, and more.