From filling out an initial program application to receiving a student visa, turning study abroad dreams into a reality takes patience and care.听
Upon arriving in Canada, opening a student bank account is an important part of settling in as an international student. Doing so requires some time and research to figure out which bank and accounts are a good fit, and some banks require an in-person meeting to set up an account. But, once students have tackled these first steps, banking in Canada is fairly straightforward! We’ll go through the process, step by step, below. From key documents, to how different banking products work, we’ve got you covered.
Getting ready to go? Check out our pre-arrival checklist for international students!
Step 1: Gather Key Documents
Before students decide on a bank, it’s important to prepare all the documents they need to prove their identity. To open student bank accounts, one must show (ID). One document must show their full name and address, and the other must include their full name and date of birth.
Acceptable ID may include their:
- Passport
- Letter of Acceptance
- Study permit
- Canadian driver鈥檚 license
- Canadian or Provincial/Territorial Government Identification Card
- , like a lease agreement or recent utility bill (may vary by region)
Some banks may also accept an institution-issued student card as valid ID. It’s smart to bring multiple pieces of ID to the bank, just in case.听
Note: Canadian financial institutions require original physical documents. (Digital scans and photocopies are not accepted as valid ID).
Step 2: Choose a Bank
To open an account, international students may need to visit their bank in person. Check the bank’s website or call the local branch to see what their requirements are.
Canada has five major banks, which have branches in most communities. They are:
Other banking options include , or direct banks such as or .
Step 3: Choose the Account Type(s)
All banks offer different accounts and services, but it’s smart to ask about student account options (often fee-free with proof of enrolment) and new account incentives.
If students only open one banking account, make it a chequing account. This is the account needed for most of their purchases, so make sure it鈥檚 a Canadian dollar account and has no monthly fees.
We also recommend opening a savings account. Besides offering higher interest than a chequing account, a savings account is useful for budgeting. Transferring money into a savings account each month can help students stay on top of their spending and develop good financial habits.
During the bank appointment, it’s also smart to ask about:
- Where to find a direct deposit form or void cheque (which is needed to set up a paycheque at a part-time job, or to include with a rental lease off campus)
- How to set up
- How banking fees work (what is included with the plan and what costs extra)
- Any minimum balance rules (having a set amount of money in the account at all times)
- How to switch accounts or renew their student status with the bank
Following a budget is an important part of balancing life and study overseas. Check out our top budgeting strategies for international students.
Step 4: How to Use Student Bank Accounts
After choosing a bank and opening a student bank account, students will be given a debit card. They’ll also be given, or will choose, a PIN (personal identification number), which is essentially a passcode linked to the card.听
The PIN protects against other people using the account. It’s important to never share the PIN with anyone else. Also, don鈥檛 make it something that鈥檚 easily guessed, like a birthday.
Once the debit card is activated, students may:
- Make debit card purchases
- Withdraw and deposit money at ATMs or bank branches
Most banks and financial institutions also offer online banking services. Using online banking, account owners can check their account balance, make payments, and even transfer money to another account at any time. Bank branches are usually only open Monday to Friday during the day and have limited hours on evenings and weekends. So, students will likely use online banking services most often, but should avoid using public wifi (like at coffee shops and libraries) while banking.
Being an international student is a great experience, but it also comes with risks. Here are some tips for avoiding international student scams.
Step 5: Consider Getting a Credit Card
In Canada, banks typically offer cards from one of three credit card companies: Visa, MasterCard, or American Express. Visa and MasterCard are the most widely-accepted options.
Credit cards are convenient, but if students don’t pay most or all of the balance off every month, their debt can add up quickly. , reviewing the terms and conditions is essential. They can also contact the campus’ international student office for guidance if they have any questions. There’s no shame in asking questions to better understand how the card works.
Some banks offer student credit cards, but in general, finding one with the lowest possible interest rate works well. Even if they don鈥檛 think they鈥檒l need to use a credit card, it may be a good idea to apply for one anyway to .
Other options for financial support include applying for a student loan or . These generally have lower interest rates than credit cards, but sometimes require collateral or a safety deposit. So, if students don’t make payments on their loan, their collateral may be forfeited and they’ll be charged a higher interest rate. As with a credit card, it’s really important to understand the terms of a loan or line of credit. Students should take their time to consider their options, and shouldn’t feel rushed into signing up.
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Thanks for reading! You now know a little more about how to open student bank accounts in Canada. For more student budgeting tips, visit the 老九品茶 blog.
