Hello Outlier,
One important aspect of living in Canada is banking because this is the most likely place that you will store your money and carry out financial transactions.
Based on my experiences, the experiences of others as well as research, I realised that some banks are better suited to students than others. This is because these banks offer numerous student banking benefits that some do not offer. These benefits range from free money (yes, free money) to removal of monthly fees and lower fees for students. Some benefits are given when the account is opened newly, while some are given for the duration of your studentship. They may seem trivial, but the long-run effects they have will save you a lot of money as a student.
Some things to note while choosing a bank/ banking are:
1. The proximity of a bank branch to your accommodation/ campus. Sometimes you may have to go to the bank in person and not having a branch close by can be stressful. My bank has branches on my campus, so I can go between classes and carry out enquiries and transactions.
2. Banks charge for using other banks’ ATMs to withdraw money. Some charge as much as CAD$3.00 per transaction. So, the closer your bank or its atm, the better for you. The society is a cashless one, but the occasional cash at hand comes in handy for several reasons.
3. Interac transfer is your best friend for money transfers within Canada. It is a means of transferring money from one Canadian account to another that only requires the sender to have the email address of the recipient. This email address must be the one connected to the account. Convenient and fast, it usually does not have any service charge depending on your bank and is available with every Canadian bank. Look out for banks with free E-transfers. The maximum amount that one can send is dependent on the bank and the transaction limit on your account. It can also be used to pay for purchases instore and online depending on where it is accepted. Look out for the sign that says Interac or Interac E-transfer.
4. Credit cards and debit cards are two different things with some similar as well as different functions. Noting the charges on these cards is crucial in selecting a bank. Most bank charges across the different banks fall within a range, but some are higher and lower than others. One can survive without owning a credit card, but it is almost inevitable as the financial institutions, as well as other institutions, require your credit
history in the future.
5. Depending on the bank, the requirements for acquiring a credit card differ. For all of them though, approval is required from the financial institution to qualify for a credit card. For me, I was able to apply for and obtain approval for a credit card the same day after filling forms. My card came in the mail two weeks later. A friend using a different bank was tasked with depositing a minimum of CAD$500 dollars which she would have access to only when she settled in the country as a permanent resident or a citizen before she could be considered for a credit card. Choose your banks wisely.
6. Different banks have different charges on their accounts. An example is banks begin to
charge you after you have exceeded the allowable number of withdrawals. This charge
can be as high as CAD$2. Some even charge per transaction after the exceeded number of transactions. Note: transactions include every online and in-person purchase. These usually happen with debit cards. Another charge is some banks charge for a hardcopy of your financial statement while some do not. They also charge differently for foreign transactions, so this is should be considered.
7. Banking with one bank is sufficient for a person. These banks usually have other accounts that if you want to open can be done under the umbrella of your existing account. For example, you can have a US savings account, personal savings account and a chequing account all under the same bank. Ask at the specified bank what offers they have depending on your needs. No need to have one account in HSBC and another in TD. All that will be accruing are bank charges.
Below are some recommended student banks and some of their benefits. This list is based on personal research, experiences and the experiences of some people I came in contact with. Things may evolve over time, and as thus, more updated information can be found on their websites, or by reaching out to the banks via phone call, in-person or via email. Although some of these bank accounts can be opened online, it is advisable to open them in person.
1. CIBC (Canadian Imperial Bank of Commerce): This bank may probably be the best for international students. Information is available on their site. Their offers include:
● CAD$60 to your account contingent on carrying out some instructions
● Easier credit card process
● SPC membership that gives students discounts in select stores
● Easier and cheaper international transactions
● Refer a friend bonus of 25 dollars
● Many branches and ATMs
● And many more.
2. RBC (Royal Bank of Canada): An amazing bank. Information can be found on their
site. Some benefits they offer students include:
● CAD$60 to your account contingent on carrying out three instructions.
● No minimum balance.
● No monthly charges on your account for a period of time
● 25 free debit card transactions per month, and then CAD$1.25 afterwards
● Many ATMs
● And many more.
Sometimes they also hand out free phone sim cards and CAD$35 worth of phone plan payment.
Offers may change with time, however.
3. BMO (Bank of Montreal): this is another student-friendly bank, but the student offers
are not as juicy. More information can be found on their website:
The offer includes:
● 25 free transactions a month
● No monthly fees for the duration of study
● Free E-transfers
4. Scotiabank: Information can be found on their website:
Benefits include:
● No monthly fees on the account for a period of time.
● Free unlimited transactions.
Other prominent banks exist in Canada, but these are the top four student banks I’ve found. Please feel free to reach out with questions.
Till next time,
Esther