Opening A Bank Account In Canada For Non Residents with these Easy Steps In 2024

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Canada’s natural splendor, high quality of life, and friendly local culture attract people from all over the world to work, study, and live here.

If you are thinking of moving to Canada, you may want to open a bank account before you arrive. It can be difficult to Opening A Bank Account In Canada For Non Residents, but you’re not out of luck. Contacting a Canadian bank and requesting their assistance can often provide you with the results you wish for.

This article will teach you everything you need to know about Opening A Bank Account In Canada For Non Residents. Below, you will find information about international students and skilled workers.

Let’s get started.

Why Open a Bank In Canada?

The Canadian banking industry is reliable, and you can rest assured that the money you transfer to your account before you arrive is secure. The Canadian banking system has remained resilient while other countries have faced unexpected bank failures. The Canadian banking system is one of the most accessible in the world – more than 99 percent of Canadian adults have a bank account.

Are Canadian Banks Safe?

There is a great deal of safety in Canadian banks and credit unions. Their performance must be disclosed, and they must follow rules and regulations set by federal or provincial authorities.

The deposits of most Canadian financial institutions are insured by provincial or federal governments, ensuring the safety of their money up to $100,000.

Can A Foreigner Open A Bank Account In Canada?

Absolutely, yes! Canadian government regulations allow non-residents with valid temporary resident visas or permits to open bank accounts at diverse financial institutions. Foreigners can open bank accounts regardless of employment status, funds available for deposit, or bankruptcy history. Opening A Bank Account In Canada For Non Residents person, online, or by telephone is possible. A variety of identification methods will be used by the bank to verify your identity.

Do You Need A Canadian Bank Account To Work In Canada?

A Canadian bank account is not legally required to work in Canada. The majority of employers, however, prefer you to have a 401(k) plan so that you can pay taxes and process payments more easily. The credit history you build will also help you in the future.

When you are employed in Canada, your taxes must be paid. The Canada Revenue Agency accepts payments from non-residents by bank transfer or money transfer services such as WorldRemit. The non-resident must have a Canadian bank account to make payments to the agency.

Types of Opening A Bank Account In Canada For Non Residents

There are two general types of bank accounts available to Opening A Bank Account In Canada For Non Residents.

Personal Account

A personal finance account is suited to individuals’ needs and goals. The most common personal accounts at Canadian banks are chequing and savings accounts.

The first account you’ll need to open is a checking account. Your main income and expenses should go into this account. Savings accounts are a good idea for money you don’t plan to spend immediately. As time goes on, the money in this account accrues interest. Income earned from interest, however, is taxable.

Business Account

These accounts are suitable for businesses, as their name implies. The procedure for these accounts is different from that for personal accounts and requires more documentation.

Top Banks For Opening A Bank Account In Canada For Non Residents

Royal Bank of Canada

A member of Canada’s Big Six financial institutions, the Royal Bank of Canada is known as RBC. It was founded in 1864 to provide credit to merchants on Halifax’s waterfront and incorporated as the Merchants’ Bank of Halifax in 1869. RBC operates in 29 countries globally. The bank also offers online banking, investment banking, wealth management, and direct investing services, as well as traditional banking services like in-person banking, savings accounts, and chequing accounts. As well as being one of Canada’s largest mortgage lenders, the Royal Bank of Canada (and its subsidiaries) is a very popular bank. Their requirements for non-resident banking are as follows:

Opening A Bank Account In Canada For Non Residents requirement includes

•  An original passport and a national ID card or driver’s license with a photo are required. 
• The proof of residential address must also include a voter’s card or utility bill.”

Fortunately, RBC offers newcomers support, as well as international toll-free numbers and collect numbers for international clients.

ScotiaBank

A big part of the Canadian economy is the Bank of Nova Scotia (Scotiabank), which is a major bank throughout the country, not just in Nova Scotia. A more or less permanent member of Canada’s Big Six financial institutions, Scotiabank is the oldest and largest financial institution in the country. The company also operates in parts of Central America, South America, Europe, and Asia, as well as the United States, Mexico, the Caribbean, and the Caribbean Islands. A total of over 89,000 people were employed by Scotiabank, which held a total of about $1.4 trillion in assets as of January 2024. You can set up an account by following these steps:

• To apply for Scotiabank account, you will need government-issued identification that has a photograph and signature, as well as a second piece of information, such as a credit card, debit card, or tax ID card, as well as proof of address, such as a utility bill or landlord’s letter. 
• A bank statement or a reference letter from a reputable bank is required if you are a non-resident customer.

Tangerine

The Tangerine Bank is an online bank that offers services through a sleek mobile application rather than a brick-and-mortar location. The Canada Deposit Insurance Corporation protects deposits on behalf of clients through its wholly-owned subsidiary, Scotiabank. There are an increasing number of online-only banks in Canada, including Tangerine. The company was founded in 1997 as ING Direct Canada. In the years since Tangerine was acquired by Scotiabank in 2012, it has developed a reputation for being an affordable (or no-frills) institution. The company also offers business savings accounts, investment funds, credit cards, and mortgage loans. A Social Insurance Number is required to use Tangerine.

Bank of Montreal

The Bank of Montreal (BMO) was formed in 1817 as the Montreal Bank. A Canadian Big Six bank with headquarters in Toronto and the eighth biggest in North America, BMO has over 13 million customers worldwide. This financial institution has been around for more than 200 years, offering various products and services, such as bank accounts, credit cards, mortgages, loans, lines of credit, and investment platforms. 

All provinces and territories in Canada, except Nunavut, have bank branches and ATMs. Additionally, it has a strong online banking portal and a highly regarded mobile app for customers to use. Customers who want to organize all their finances under one roof can take advantage of BMO’s resources as a one-stop shop.

You can open a bank account by following these steps:

• The only identification required is a government-issued photo identification.
•  You must have a valid, original, and in good condition photo identification.
• Government agencies, including a federal government, a province/territory/state level government, or a foreign government, must issue the eligible piece of identification, including one with a photo.
• As a secondary identification, you must bring a bank card.”

TD Bank

Toronto-Dominion Bank, also known as TD Bank, is Canada’s largest bank, serving 27 million clients worldwide. One of Canada’s Big Six banks is Toronto-Dominion Bank or TD Bank. More than 27.5 million customers worldwide, including 15 million in Canada, use its products, reflecting the company’s many decades in business. There is a wide range of products available from TD Bank, including savings accounts, credit cards, investments, and lending. A variety of devices can access EasyWeb, its digital banking platform. The following are the requirements for Opening A Bank Account In Canada For Non Residents with them:

• A driver’s license or passport is required, as well as two pieces of identification. 
• Tax reporting requires a Social Insurance Number.

Canadian Imperial Bank of Commerce 

The CIBC bank has 11 million customers in Canada and offers a wide range of banking products and services. The Canadian Imperial Bank of Commerce provides banking and wealth management services. Several segments are included in its business: Canadian Commercial Banking, U.S. Commercial Banking, Foreign Exchange, Capital Markets, and Corporate and Other. It provides financial advice, products, and services to individuals and small businesses. To opening a personal bank account, here’s what they say:

• Providing a government-issued photo identification that is both valid and original and is not substantially defaced is required for opening a personal bank account. 
• An additional form of identification is required, such as a bank card or foreign passport.

Required Documents For Opening A Bank Account In Canada For Non Residents

Banks in Canada may ask for the following information when Opening A Bank Account In Canada For Non Residents:

• Passports
• A valid driver’s license
• A resident’s right to work, a student’s right to study in the country, or a resident’s right to residence
• Form IMM 1000, IMM 1442, or IMM 5292 from Immigration, Refugees and Citizenship Canada (IRCC) is required.
• Social Security Number
• If you have a Canadian address, please provide it.
• Employer-issued ID card

A Canadian bank account can be opened more easily if you have these documents on hand.

It may not always be necessary to provide a SIN or proof of address. Your SIN may not be required to open an interest-free account.

Application Process For Opening A Bank Account In Canada For Non Residents

Offline Application

An account can be opened by visiting a local bank branch. The first step is to:

• You can choose a non-resident-friendly bank, such as RBC, TD, BMO, or CIBC.
• Please bring your passport, proof of address, and perhaps a reference from your home bank when applying online or visiting a local branch in Canada.
• A non-resident account can be opened by contacting a bank representative.
• Make sure all the necessary forms and documents are completed and submitted.
• Allow a few days to a week for the account to be approved.
• Your account will be ready for use once you make a deposit of the minimum required amount.

Online Application

You may be able to Opening A Bank Account In Canada For Non Residents by using an online bank like Tangerine or an alternative financial service like Wise:

• A bank or financial service that offers online banking is a good choice.
• Visit their website to open an account.
• Select the account type suitable for non-residents if available, and complete the online application form.
• Documents required (e.g., digital copies of your passport and proof of address) can be uploaded or submitted.
• Depending on the institution, account approval can take between a few hours and a few weeks.

What Is The Cost of Opening A Bank Account In Canada For Non Residents?

There will be various fees and charges from bank to bank in Canada. As a guide, here are some costs you can expect.

The Monthly Fee

The first three months of free banking are limited for newcomers to Canada. There are fees that can be incurred after that period has expired, and they can be as high as CAD$30. It is common for banks to waive this fee if you maintain a minimum amount in your account.

The Transaction Fee

There are usually a limited number of free transactions per month with most accounts. The fee per transaction is about CAD$1 once the limit is exceeded. The monthly fees and minimum balance eligibility for some accounts may be higher, even when they offer unlimited free transactions.

ATM Fees

Cash withdrawals from ATMs are free if you use your bank’s machines. When you use an ATM owned by another bank, you will have to pay around CAD$1.50 per transaction.

Transfer Fees Abroad

Sending money overseas regularly may not be best handled through bank-to-bank transfers. There is a possibility that you will be charged a hidden fee in the form of a very poor exchange rate. The transfer may still be subject to a fee from your home bank.

Benefits of Opening A Bank Account In Canada For Non Residents

It is beneficial to Opening A Bank Account In Canada For Non Residents. To study and work in Canada as a temporary resident, you do not have to have a Canadian bank account. A Canadian bank account, however, would be much more convenient. 

As a Canadian living, studying, or working in the country, managing your finances is convenient and efficient. A local bank account provides easy access to receiving salary, paying bills, making transactions, and tracking expenses.

The second benefit of having a Canadian bank account is that it allows you to construct a credit history, which will be useful for securing loans, mortgages, and credit cards in the future, even if you have poor credit score you can get Best Credit Cards for Bad Credit in Canada with several benefits. It is possible to enhance your financial opportunities in Canada by establishing a positive credit history.

You can also get access to a variety of banking services when you open a bank account in Canada. Financial products, such as investment options, savings accounts, and other financial products, can help you achieve your financial goals.

What if I Do Not Have a SIN?

An SIN is an identification number issued by the Social Security Administration. The Government of Canada issues it as a 9-digit number that uniquely identifies your income or taxes. The Temporary Resident Visa (TRV) does not allow tourists to apply for a Social Security Number.

You must provide a SIN when applying for a Canadian interest-earning account. The financial institution is required to report the interest earned on your account to the Canada Revenue Agency (CRA) since it is considered taxable income. Your social security number is not required unless you are opening an interest-earning account. 

The financial institutions of the tourist’s choice may allow them to open bank accounts without a SIN.  

FAQ’s For Opening A Bank Account In Canada For Non Residents

Conclusion

As long as you do your research and provide the required documents and identification at the time of account sign-up, your banking experience will be seamless. My goal is to explain in this article what steps a non-resident must take to Opening A Bank Account In Canada For Non Residents.