As a newcomer to Canada, one of the most important things about managing your personal finances is planning your banking and having easy access to your money when you need it.
When you arrive in Canada, one of the most important tasks is to open a bank account. But the options available can complicate decision-making. Which accounts? Or? Who will best understand your needs as a newcomer? Banking in Canada can be very different from banking in your home country.
This article will attempt to help you better understand banking in Canada and where to start as a newcomer!
Know the accounts you’ll need in Canada
Three important types of accounts in Canada are a checking account, a savings account and a credit card. We will explain these three elements in detail below.
Learn more about the TD Banking Package for Newcomers to Canada
To open these accounts, you will first need to provide some basic identification documents verifying your legal name, as well as your Canadian address and telephone number to complete your account profile. You will also be asked to present an official government ID, such as a passport, driver’s license, or other form of government-issued ID, as well as your proof of your current immigration status to Canada for Newcomers.
Here are two simple steps to follow to start banking in Canada:
Step 1: Know the difference between a chequing account and a savings account in Canada – and how to use them
There are two types of personal deposit accounts in Canada: a checking account and a savings account. Most newcomers may want both. Let’s do a quick comparison between the two.
A current account is an account used for daily transactions. This includes purchasing groceries, paying bills, paying rent as well as auto-deposit transactions, like asking your employer to deposit your paycheck directly into your account. Your account can be accessed via a debit card to withdraw money from automated teller machines (ATMs) or bank branches. Your debit card can also be used to make purchases in-store or online.
Checking accounts generally pay no interest on the balance. They may include monthly fees as well as fees for transactions, such as withdrawals, checks, bill payments and purchases, etc. A good practice is to look for a current account that includes the number of monthly transactions without additional fees and that suits your needs. You can also find checking accounts that offer unlimited transactions, such as TD Unlimited Chequing Account – a great option if you need a lot of transactions per month.
A savings account is used to save money that you don’t need immediately. For example, you may want to save for college, buying a house, paying for a vacation or a wedding, or for unforeseen events like a car breakdown. Unlike checking accounts, savings accounts earn you interest. The money you leave in this account will earn interest – it’s extra money growing in your account to help you save for your future goals.
You can choose from one of three TD Savings Accounts to meet your savings goals.
Step 2: Apply for a Canadian credit card
A credit card is a payment card usually issued by a bank that can be used to make purchases, pay bills or depending on the card, withdraw money. When you apply and get approved for a credit card account, your credit card provider gives you a set credit limit. Based on this limit, your credit card allows you to borrow funds to make purchases and pay them later on a due date or with interest if you get paid after the due date.
Getting a Canadian credit card has many benefits. This helps in establishing credit history. Having good credit can help you get loans, access competitive mortgage rates, and even improve your prospects as a renter. A credit card can be a useful tool for establishing a positive credit history. Having a credit card also allows you to easily make purchases and, in some cases, receive rewards on what you spend.
Ready to bank? Learn more about the TD Banking Package for Newcomers to Canada today.
If you’re looking for your first Canadian credit card, it’s important to understand how different cards work and how to use them to your advantage.
TD offers a wide variety of credit cards with different perks and exciting rewards.
The above information on basic banking products in Canada and how to apply for them might be helpful in starting your financial journey in Canada.
Why choose TD?
150 years of helping Canadians
TD has proudly provided financial solutions to Canadians for over 150 years. TD also brings a century of experience helping newcomers meet the unique challenges of the Canadian banking system.
With over a thousand branches, a reputation for excellence in financial services and the ability to also serve you in over 60 different languages, TD has become one of the largest and most trusted banks in the world. Canada, now serving 16 million Canadians.
TD offers online support and great resources to newcomers on topics like banking basics, immigrating to Canada, credit score essentials, and more. TD is open longer for your convenience and has thousands of ATMs across Canada to help you meet your everyday banking needs quickly and easily.
Ready to bank?
Learn more about TD, new banking package in Canada today.
Make an appointment to speak with a TD Personal Banking associate about the TD banking package for newcomers to Canada. You can online booking right away, or visit TD website to learn more.
Legal disclaimer: The information provided by TD Bank Group and other sources in this article is believed to be accurate and reliable when posted on this site, but we cannot guarantee that it is accurate, complete or current at all times. The information contained in this article is provided for informational purposes only and is not intended to provide financial, legal, accounting or tax advice and should not be relied upon in that regard. This information should not be construed as a solicitation to purchase. TD Bank Group products and services are only offered in territories where they can be legally offered for sale. All products and services are subject to the terms of the applicable agreement. The information contained in this article is subject to change without notice.
® The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
“Amateur problem solver. Hipster-friendly alcohol lover. Beer buff. Infuriatingly humble tv geek.”
