All about Canadian Banks
Hello 🙂 today I wanna write about how you can open a bank account and what types of account we have and what should we know before opening a bank account. My goal is to help new immigrants by sharing my experiences.
There are two types of account checking, saving. You don’t get any interest on your checking account but you would pay interest if you have money on your saving account and interest rate is almost 2% and all transactions on your checking account are free of charges but if you pay for something with your saving account you will charge so don’t forget to move your money from saving account to checking account and then do the transaction. For instance, when you are going to buy something from a store when you want to pay for that after inserting your card you have 2 options to select: 1. saving account 2.Checking account. So always choose the checking account otherwise you’ll be charged.
The other thing that you should consider when opening a bank account is the monthly fee which is between 5$-30$ per month and it depends on your monthly transaction numbers.
Checking account vs saving account: Checking accounts are better for everyday transactions such as purchases, bill payments, and ATM withdrawals. They typically earn less interest — or none. Savings accounts are better for storing money and earning interest, and because of that, you might have a monthly limit on what you can withdraw without paying a fee.
There are some great points that you should know like sending money online just by having an email address or cellphone number. Did you know there is Drive-Thru ATM? it’s so easy and helpful, especially in winter. Direct deposit is the easiest way to guarantee immediate access on the date of payment without concerns of late, lost or stolen cheques, or holds on funds.
How to open a bank account?
First you need to find a closest bank branch near where you live so simply search on Google map then prepare the documents like
- Passport or driver’s license
- PR copy | Student visa | work permit
- SIN number
Different banks have different offers so carefully choose the one suit for you. Banks have some offers for new immigrants that I put here:
My suggestion is after getting your credit card try to use a credit card because credit history is really important in Canada and use your debit card if only you wanna withdraw cash or there is an emergency. I’d like to mention that it’s better to have two credit cards like Mastercard and Visa cause some stores only accept Mastercard and some just accept Visa.
what is your credit score?
Your credit score is a three-digit number that comes from the information in your credit report. A credit score shows how well you manage credit and how risky it would be for a lender to lend you money. Your credit score is calculated using a formula based on your credit report. Credit scores from 660 to 724 are considered good; 725 to 759 are considered very good, and 760 and up are considered excellent. Your credit history is important because lenders, insurers, employers, and others may use it to assess how you manage financial responsibilities. … Your credit history determines your ability to obtain credit. Your credit history determines the terms of credit granted, such as the interest rate you will pay.
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