How to Open a Bank Account in Canada

If you are moving to Canada to live and work then you will most likely need to open up a bank account for your self. You may be able to get along without one for a little while, but if you are working then you will need to have a Canadian account for your paycheck to be deposited into. And if you are not living with someone else that pays for utilities then you will need to have a bank account in order to pay for your utilities each month.

Banking in Canada is a simple process with little difficulty or red tape. The banks and banking services that you will find in Canada are comparable to those that you would find in the United States. Banks in Canada offer online banking as a benefit of their accounts. They also offer access to you cash at any ABM in the country. An ABM is an automated banking machine which is the equivalent of an ATM or automated teller machine in the United States. They are the exact same things just with different names.

Canadian banks come with an assurance from the government just like banks in the United States do. In Canada the Canada Deposit Insurance Corporation, or CDIC, is the federal corporation that provides deposit insurance and helps contribute to the stability of the financial system in Canada. They have done so since 1967 and are the equivalent of the FDIC in the United States. However, there is a major difference between the American FDIC and the Canadian CDIC and that is the amount of your money that is covered by them. As you may know, the FDIC covers depositors up to $100,000 per account per bank. The CDIC on the other hand only guarantees up to $60,000 per depositor per bank.

When you are looking for a bank to open an account you will find many choices. It is advisable to ask around for recommendations to help you in your search. And you should pay special attention to the fees charged by the banks as they all charge a little differently. The largest banks in Canada are the Royal Bank of Canada, TD Canada Trust, the Canadian Imperial Bank of Commerce, the Bank of Nova Scotia and the Bank of Montreal. You will also find some international banks that you may recognize such as ING Bank, HSBC, Citibank and more.

To open up a new account you will need to have two government issued pieces of identification. You will also need to have proof of address. And all foreign residents are usually required to have a reference from an employer or university or a previous bank before being granted a new account.