How do I open a bank account in Canada?
Whether it is to receive a paycheck, subscribe to a telephone service, rent a house or simply do your shopping, a bank account is obviously necessary in everyday life. This article will familiarize you with the popular banks in Canada and Quebec.
Understanding how the banking system works in Canada
To open a bank account in Quebec from France, it is essential to understand how Canadian banks work. Credit card, debit card, fees to expect, here are the essentials to know.
The debit card
Before opening an account in Canada, you will need to choose between two main types of bank cards: debit cards and credit cards.
With a debit card, expenses are deducted from the current account as they are incurred. With this type of bank card, it is called immediate debit.
The credit card
With a credit card, expenses are debited from the account at once. This means that the transactions for the month are combined into a single debit, usually at the end of the month. This is a deferred debit.
For certain purchases or transactions, such as car rentals, a credit card may be required by the seller to ensure the buyer's creditworthiness.
Monthly fees
You want to open a bank account in Quebec from France? The monthly fees are an important element to take into account. If beyond a certain number of transactions, making operations on your account can generate bank fees, these vary according to the bank and your status.
For example, as a newcomer, you can benefit from offers that allow you to make unlimited transactions for free. This type of offer is usually limited in time.
Other services
As in a French bank, your Canadian bank will offer you many additional services. You will be able to make international transfers and in particular a transfer of funds from or to your country of origin, to place your money in a savings account, but also to make a loan.
Using a credit card can be an advantage when borrowing. It allows you to build up a credit history, which is essential for the bank.
How to choose your bank in Canada?
Here are some essential tips for choosing a bank in a new country.
Contact your bank in France
One of the first steps before opening a bank account in Canada is to check with your French bank to see if it has a partnership with a Canadian bank.
In some cases, this could allow you to save fees when transferring money between your European account and your Canadian account. In addition, it may allow you to withdraw money free of charge with a French card in local ATMs.
Compare offers for "newcomers
Many banks have "newcomer" offers with free months or cash.
It is useful to compare the different banks and the offers they provide, while keeping in mind the account closing fees that you may be asked to pay once your stay is over.
It is also necessary to find out the cost of transfers to and from abroad since you will probably have to make transfers with your home bank.
Physical presence of the bank in your city
Finally, you can also take into account different criteria such as the location of the bank in your city, that is, the number of establishments present. Indeed, any withdrawal of money made in another bank will involve bank charges.
What are the popular banks in Quebec?
Canadian Banks
Many banking institutions exist in Canada and Quebec. The following are some of the major banks:
- Royal Bank of Canada (RBC)
- Bank of Montreal (BMO)
- National Bank of Canada (NBC)
- Scotiabank (BNS)
- Laurentian Bank of Canada (LBC)
- TD Canada Trust
- Canadian Imperial Bank of Commerce (CIBC)
A Proudly Quebec Bank
With the largest network of ATMs in Quebec, the Desjardins cooperative is also the most popular banking institution among the Quebec population. In fact, nearly 50% of the Quebec population trusts this bank.
You want to open a bank account in Quebec from France? Take advantage of our partnership to open an account with Desjardins.
International banks
Several international banks are present in Canada including :
Online-only banks
What documents are required to open a bank account in Canada?
Since you are not a Canadian citizen or permanent resident, if you are thinking of opening a Canadian bank account, it is recommended that you call the customer service department of the chosen bank first to confirm the exact procedure for opening an account.
Regardless of the bank you choose, whether it is a traditional bank or an online bank, in order to open a bank account in Quebec from France, you will need to have certain documents.
In general, the documents required to open an account consist of :
- Your passport or an identity document. To find out which pieces of identification are accepted, you can visit the Government of Canada website.
- A valid mailing address
- Your immigration documents such as your work permit.
- Your Social Insurance Number (SIN). For more information on the SIN, you can consult our article on the subject. Note that additional information such as a local address, phone number or email address may be required.
How to open an account from France?
Even if you are a non-resident, it will be easy to open an account in Canada. The process will depend on your nationality. If you live in France, Europe or one of the partner countries, you can even open your account remotely.
Not all banks offer this service, but the Royal Bank of Canada (RBC), HSBC Bank, Scotia and Desjardins Bank, for example, do.
Our latest tips
In conclusion, we remind you that it is possible to open a bank account in Canada even if you are not employed, do not have funds to deposit immediately or even if you have gone bankrupt.
Also, before opening a bank account, it is a good idea to look at the interest you will earn on your account and compare banks. Also, find out if your deposits are protected by deposit insurance, which may be safe, in case your financial institution fails.
Don't forget, thanks to Talentech, an international recruitment agency in Canada, you can benefit from a partnership to open an account with Desjardins, especially for newcomers.
