When it comes to managing finances as a student in Canada, choosing the right bank account is crucial. Whether you’re an international student or a local, Canadian banks offer various types of accounts tailored to meet the needs of students. Below, are the different types of bank accounts available and what you should consider when opening one.
1. Student Chequing Accounts
Student chequing accounts are designed to cater specifically to the financial needs of students. These accounts typically have features such as:
- Most banks waive the monthly maintenance fees for students.
- Many student accounts offer unlimited withdrawals, deposits, and other transactions.
- Free or highly discounted e-transfers for sending and receiving money.
- Some student accounts come with low-cost overdraft protection options.
Examples:
- CIBC Smart for Students Account
- TD Student Chequing Account
2. Savings Accounts
While savings accounts are not exclusive to students, they can be beneficial for setting aside money for future expenses or emergency funds. Key features often include:
- Savings accounts typically offer interest rates on your deposits.
- Some savings accounts don’t charge a monthly fee, although features might be limited.
- There may be restrictions on the number of transactions or transfers you can make each month without incurring fees.
Examples:
- Tangerine Savings Account
- Scotiabank Momentum Savings Account
3. International Student Accounts
These accounts are designed to make banking easier for international students who might not yet have Canadian credit history or a Social Insurance Number (SIN). Special features often include:
- Ability to hold and transact in multiple currencies.
- Some banks waive fees for transactions between home country accounts and Canadian accounts.
- Guidance on opening credit accounts and building a credit score in Canada.
Examples:
- RBC International Student GIC Program
- Scotiabank StartRight Program
4. Joint Accounts
Joint accounts can be opened with a parent or guardian and offer flexibility in managing funds for living expenses, tuition, and other costs. Features may include:
- Both parties can deposit and withdraw funds.
- Helps parents support their children financially while studying.
- Provides a safety net in managing money and avoiding overspending.
Conclusion
Selecting the right bank account can significantly impact your financial stability as a student in Canada. It’s essential to evaluate your banking needs, compare different options, and consider factors such as fees, transaction limits, and additional features. Most importantly, take advantage of student-specific accounts to benefit from fee waivers and other incentives designed to help you manage your finances effectively while you focus on your studies.