Finances are such an integral aspect of planning and budgeting for life in Canada, that having them in order and on track is a top priority for most newcomers. Understanding finances typically begins with familiarizing yourself with the financial ecosystem in Canada and figuring out a bank to open an account. Trusted and authentic sources can help you better navigate and find answers to popular banking, investment, and finance questions thus ensuring a smooth transition to settling in Canada.
Here are three tips to help you figure out banking in Canada:
1. Get to know the types of Canadian bank accounts
The two most common account types in Canada are ‘chequing accounts’ and ‘saving accounts’ — each one of them serves a function that may be different from what you’re used to in your home country. A chequing account is typically used for day-to-day transactions or to deposit your work pay-cheques. A savings account, like the name suggests, is used to set money aside for short, mid, or long-term goals. Most banks allow customers to move money back and forth between chequing and savings accounts at no charge.
2. All about Canadian credit
Building a credit history in Canada is very important. You can start by applying for a Canadian credit card and using it wisely. Most banks assist newcomers by offering a credit card free of charge as part of the newcomer package while opening a bank account. Credit cards are an alternative form of payment that can be used for a variety of expenses, such as utility bills, online purchases, and travel.
3. Evaluate tax-free investment options
There are certain tax-free investment options available to all newcomers in Canada; these are offered in partnership with the Canadian government. One such option is the Tax-Free Savings Account, popularly known as TFSA. It is a financial product for individuals who are 18 and older and have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime.
About Arrive x RBC
Get started on the right foot with your finances in Canada. Figuring out your financial life in Canada is more than just finding a bank account, it’s also about finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner to support your financial needs.
Arrive is a dynamic social and professional network designed to help newcomers succeed in Canada. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.