A bank account is necessary for every Canadian and resident in the country for multiple reasons. Everything from processing transactions, paying taxes, and proving your address depends on a bank account. Here are the necessary steps to take when signing up for a bank account in and out of Canada.
What You Need to Open a Bank Account For
Any Canadian citizen or resident has the right to open a bank account for personal and entrepreneurial uses. Bank accounts come in handy when you want to deposit funds, save, receive your salary, pay taxes, and run a business legally in Canada.
Opening a bank account is the right of every Canadian citizen and resident, but this is extended to foreigners. Whether looking for a job, touring the country, or bankrupt, you can sign up for a bank account. You only have to provide the proper documentation to process the request.
Requirements And Documentation Needed
And while you can open one using multiple options, the bank must ascertain you have the proper documents before activating your account. The necessary documents and requirements for this process include a document indicating your name and place of residence or an identification document with your date of birth. You can choose from one of the following:
- ID issued by the Canadian government
- Canadian utility bills
- Federal or provincial government-issued tax assessment slips
- Statements for benefits issued by the federal or provincial government
- Foreign passport (For foreigners and dual citizens)
- Your national Id (For foreigners and dual citizens)
- Immigration documents
- Any other supporting document requested of you
Where and How to Do It
Canadians can open an account online or in person. As long as you provide the necessary documents, you can set up an account and start using it as soon as you’re approved. International users can also open a bank account, but this can only be one online. Consequently, you have to use an international bank in the country. In most cases, you will begin the process abroad, then finalize the process once you arrive in Canada.
Depending on their requirements, you have to liaise with the bank for more details. The process may take a couple of days to complete when you’re signing up from abroad.
What Happens After You Create the Account?
Once you open a bank account, you will wait for the team to communicate the status of your application. This generally takes about five to twenty minutes if you are in Canada. If you’re abroad, the process may take a few days considering the bank has to confirm precise details. Once your account is ready, you will receive communication from the bank concerning its completion.
Cost, Validity, And Processing Time
Opening an account is free unless you set up a premium account. In this case, the charges will vary from one bank to the next. Setting up one takes at least five minutes or at most a few days, depending on your location, and an account is valid for a lifetime or until you opt to deactivate your or leave Canada if you’re a resident.
Digital Banks and Their Benefits
Digital banks are online banking options that users can open from any location. These are a great alternative for individuals that do not need a traditional bank account, especially if you won’t be staying in Canada for too long. Some of their most notable benefits include:
- Quick sign up
- Easy accessibility
- Zero monthly charges
- Better access to transaction records
- App banking
Online Banks Available in Canada
Canada has an array of online banking options for individuals who require this option. You can peruse the available options to find one that suits your needs. Some of the most popular online banks include:
- Wealthsimple cash
- EQ bank
- Simplii Financial
- Neo Money
You can also use online banking wallets to send and receive money.