Complete Steps to Open a Student Bank Account in Canada

Over the years, Canada has shown tremendous growth in the educational sector. Not just for the resident students, the country is also active in getting international students from different corners of the world. After getting admitted to any of the universities, it is important for opening a student bank account in Canada. Abroad learning is at its peak where students from different countries choose to switch their nations for fulfilling their purpose of studying. However, opening student bank account in Canada is the foremost prerogative.

Several benefits can be availed and are required to hold as it creates seamless financial flow and management. If this is your first time opening a student account, the below tips will guide you effectively.

Steps to Open a Student Bank Account in Canada

In a foreign country, it is a must to hold a student account. For this, you may be new to the system and must require some credible helping hand. Hence, go through the given steps that can help you get the best student bank account in Canada without any hustle and bustle.

Step 1 – Documents Required for an International Student Bank Account

There could be majorly two documents required to be presented while opening a new student bank account in Canada. The newbies who have yet not had their student bank account must have these documents mentioned below:

• • Proof of Study Permit
  • Passport of the Student
  • Letter of Acceptance
  • Travellers’ Cheques
  • Local Address Proof, If Required

Step 2 – Choose a Bank or Credit Union

After the first step, you are required to find the best student bank accounts in Canada. So, let us help you to get one either offline (walk-in to the bank’s branch) or online. You may look for multiple options for banks or credit unions for opening a student account. There are different types of student bank accounts in Canada. In this, you may get perks of interest rates, services charges, etc.

Surely, the above factors are important to look for while opening a student account. But it is also significant that the bank is in proximity, they are good with the customer after service and the online operations are easily accessible. You have to book an appointment for setting up the student account which can be done on-call or online.

Take a look at detailed overviews of student banking facilities offered by some of Canada’s leading banks: 

Bank of Montreal (BMO)

The Bank of Montreal offers students a wide range of banking services. These include chequing accounts, savings accounts and student credit cards. Bank of Montreal’s savings accounts for students are available in two categories – Premium and Performance. Each of these accounts offers unique features and rewards. With unlimited transactions, the bank’s student savings accounts offer a promotional interest rate of 5.50%. Loaded with features, interested students can open a BMO savings account by logging on to their website. 

Royal Bank of Canada (RBC)

The Royal Bank of Canada offers students two types of bank accounts. The first is the RBC Advantage Banking for Students. Designed for students above 13 years of age, it allows account holders to make unlimited debit transactions in Canada and charges no monthly fees for full-time students. The RBC Leo’s Young Savers Account is designed for students below 12 years of age. Automatic money transfers, no minimum balance and attractive interest earnings are just some of its many attractive features. 

Canadian Imperial Bank of Commerce (CIBC)

CIBC ensures easy banking for students of all backgrounds. Whether a high school student or someone pursuing their graduation, a professional student or an international one, the bank has something for everyone. CIBC offers savings and chequing accounts for students. The bank’s extensive branch network makes it accessible on almost all major campuses. With attractive rewards and features, CIBC offers an encouraging financial hand to young and senior students alike. 

Simplii Financial 

Simplii Financial won the Ipsos Financial Service Excellence Award for two consecutive years. The bank offers a wide range of benefits in its Student Banking services. No fee chequing account and exciting monetary rewards are some of the top advantages of choosing Simplii Financial as your financial partner for student life. The bank ensures a smooth college life for all its clients, from Canadian to international students. 

Scotiabank

Scotiabank’s student account ensures that learning and saving go hand in hand for students in Canada. The bank offers a wide range of financial services to its young clients. The Student Banking Advantage Plan and Getting There Savings Program for Youth are the two types of accounts the bank offers to students. Facilities like unlimited transactions, free e-transfers and mobile banking are available across all student accounts. With other services like a personal line of credit for students and the Scene+ Student Banking Bundle, Scotiabank offers a holistic financial assistance package for Canadian youth. 

Toronto-Dominion (TD) Bank

Toronto Dominion Bank offers multiple financial solutions for students. Their student banking products include savings accounts, credit cards, chequing accounts, and other lines of credit. One of the many advantages of the bank is that it caters to broad student groups. The bank has designed customised packages and products for school, college, professional, and international students. Interested students can book an appointment, visit a branch, or call the bank’s customer care to avail themselves of their student banking services. 

Libro Credit Union

The Libro Credit Union offers banking services for students through its youth banking services. Applicants below 25 years of age can apply for chequing and savings accounts at the bank. Attractive features like zero monthly fees and unlimited transactions are available on chequing and savings accounts.  Besides these, the Registered Education Savings Plan (RESP) is also available to help plan your kid’s future in advance. Libro Credit Union also offers multiple educational plans to help teach children about financial concepts from a young age. 

Your Neighbourhood Credit Union

YNCU’s student banking department looks after its clients before, during, and after their education. Some of the bank’s famous products for students are Simply Starter Chequing Account, Student Line of Credit and Collabria Mastercard. With rewarding features, students can focus fully on semesters without worrying about finances. Besides these products, the bank offers seamless internet and mobile banking services. Interested students can book an appointment with the bank and get personalised solutions to their financial situations. 

National Bank

National Bank offers banking services personalised to a student’s field of study. Some of the banks’ popular products are chequing accounts, credit cards, and other lines of credit. Students between 14 to 24 years of age are eligible for the bank’s no-fee chequing account. Other popular National Bank offerings include banking offers for students and GICs for international students. An appointment with the bank’s professional can be arranged in person, over the phone or via video call to apply for their offer.

Step 3 – Select Your Choice of Student Account

It is not at all necessary that only one type of student account is permitted. You may go for more than one type of student account. The idea of the best student account in Canada is to hold two different accounts. If you do not know what type of student accounts we are talking about, look below to comprehend better:

1. Saving Student Account

This is the best in terms of students in preference. Here, the finance can be banked for a long term with a higher interest rate compared to the Checking account.

2. Checking Account

By its name, you must have understood that it gives the liberty to regularly check the account. The account holder can have perks like short term withdrawal, credit card bill payments, and issuing checkings. But along with this, there is a disadvantage of earning less interest rate.

3. Foreign Currency Account

This is best suitable for those who are not Canadian citizens. This is because it allows the person to keep some amount of money in different currencies. It helps the account holder to quickly extract such money if required in urgency. Also, there will be no stress to run for currency conversion. But such transactional charges vary from bank to bank that needs to be researched before opening a student bank account in Canada.

• Step 4 – Activate Your Debit Card
  

After you have completed all the tasks of opening a student account, your bank will provide you with a “plastic card” also known as a “Debit card”. Along with this, a PIN will also be given to you. This works as a security check which allows any transactions done with that to be at your acknowledgement. But this needs the first transaction to be done to activate the services.

Let us understand well what all these Debit Card can get you one by one:

• • You can use the Debit card to transact money through an ATM (Automated Teller Machines).
  • You can make payments or deposit money through the card.
  • This is a perfect substitute for cash.
  • Easy check-ins in account balance by installing Bank Mobile Application with Debit Card linkage.
  • You can often transact even being far away from your bank’s branch.
  • It is valid for all types of payments.
  • It eliminates the risk of cash mismanagement or theft.
  • You may lock your debit card instantly in case of loss so that no unwanted things can take place.

Attractive Services to Avail by Student Bank Account in Canada

At times, financial needs turn into hardships due to the standard of living in Canada. Also, you go through restricted budgets that create problems in your daily living. But if you know what advantages you can get from a student bank account in Canada, it will surely be delightful for you.

Apply for a Credit Card

A credit card is an addition to your existing and limited finance. This acts like an instant loan or credit you avail of from your bank that can be paid in a given period. In Canada, there are three diverse forms of credit cards such as Visa, MasterCard, and American Express. If you go for Visa or MasterCard, the payments are conveniently accepted everywhere. In addition to this, you get grace time if you miss your deadline so no charges are applied till then. Similar to a debit card, credit cards also have a PIN that should be confidential.

• • It is advisable to acknowledge all the terms and conditions of the bank.
  • Avail this service only if you are regular with your income and are certain to make all the debts clear on time.
  • You will be charged interest on any payment you do after the due date.
  • Remember to clear your loans each time or else it will add on to your debts as charges regardless of your debt amount.

Avail Lines of Credit

After accomplishing your student bank account in Canada, you will be entitled to get a loan or a line of credit. All that you need is a security deposit against the loan you will take to be handed over till the time you pay back the debt.

• • You will be charged a higher interest rate if the lines of credit are not clear on time.
  • Discuss the bank’s policies with their representative advisor to adhere to all the rules without mistakes.
  • You need to have a security deposit equivalent to the amount you have taken.
  • The bank will forage the security to settle the amount of the loan that seems to be pending.

End Thoughts

Applying for a student account is  a great deal as it ensures your systematic and seamless financial management. All the details mentioned above are taken to be considered while applying for a student bank account in Canada. It will hopefully help for any student studying in Canada to happily hold a student account. Accordingly, the aforementioned services can also be availed if required which will dismiss all the financial transactions and management struggles for a scholar.  This is the first big step towards not just being accountable towards your money but also truly realizing interdependence.

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