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Getting a Bank Account

Without a bank account, its pretty pointless to try and get a job. And the earlier you get a bank account, the better. Anyone (even if they're literally a newborn baby) can have a bank account, but you need to be over the age of 12 to have a fully independent bank account in Canada.

Getting a bank account early on will not only help you increase your financial independence, it will also increase your financial literacy, making you better prepared for adulthood.

The Two Main Types of Bank Accounts

This sub-section teaches you about the two main types of bank accounts/cards.

Checking/Chequing Accounts

Chequing accounts are for daily transactions, also known as chequing. This is where you should put the money that you plan to spend very soon. Money in chequing accounts does earn interest, but its such a small percentage that it's negligible. Generally, you should keep a relatively small amount of money in your chequing account.

Generally, chequing accounts have limits on how many times you can use them in a month, though for most banks, students get unlimited usages (or transactions)

Savings Accounts

Savings accounts are not meant for daily transactions. Savings accounts are where you should deposit large amounts of money that you don't plan on using any time soon. When money is put into a savings account, over time, it will earn interest (which is a small percentage of the total amount of money that the bank adds to your account every year). Usually this is less than 1% interest, mostly under 0.05%. Depending on the amount of money you put in the account, the time it stays in the account, and the type

Types of Savings Accounts:

Regular Savings
High Interest Savings
Student/Youth Savings
Retirement Savings

https://www.policyadvisor.com/magazine/different-types-of-savings-accounts-in-canada/

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Conditions for Account Holders Under the Age of 18

Though all account holders over the age of 12 may have a fully independent bank account, they still have some restrictions

Account holders under the age of 18 cannot have a credit card. They are presented with a debit card.

Credit Vs Debit for Beginners

- - - Credit card: The money on the card is not your money, its the bank's money. You take a certain monthly loan from the bank, which is loaded onto your card. You're limited to spending the amount taken by the loan, if you go over, that's bad. At the end of every month, you have to pay the bank the loan back. The more you use a credit card reliably, over time, the bank will increase the amount you can borrow from them, and your reliability is called a credit score. Many people get credit cards, but many others choose to opt out, using debit instead, to stay financially safe, and keep their spending in track (debit is better for that, as it's your own money you spend)
    - Debit card: The money on the card is your money. The amount of money from your chequing account (called a balance) is tied to your debit card, and you can only spend the amount of money that's in your chequing account. If you want to spend money from your savings account, you'll have to transfer it to your chequing account. If you spend over the amount of money you have, you'll have to pay overdraft fees. Though, if you are a student, overdraft fees are typically forgiven via overdraft protection, BUT, since your account balance is now negative, you should put money back in your account to make the balance at least $0.00.

Bank Account Plans/Packages for Students

Banks, especially major ones, offer specific packages for students in secondary and post secondary school, and those under the age of 18. These banks often give good deals to students, which involve features like unlimited chequing, overdraft protection, etc, because they want to keep customers early on. Many big banks also GIVE STUDENTS MONEY to start an account, usually about anywhere from $75 to $200 on condition that they start an account. Many banks also charge fees if you use their bank card on an ATM that's not owned by their bank, however, many student accounts waive that fee, for example the RBC Advantage Student Account. International Students usually get better deals.

For more research, look at the banks' websites, and talk to trusted adults about which banks they prefer.

These bank plans are from the Big Five major banks in Canada, the five biggest and most reliable banks in Canada, and all, regardless of the name (Like Bank of Montreal, or Novia Scotia) have many offices (branches) in Toronto. It is best, when starting out, to go with a big and reliable bank, as we can see with the US Banking Crisis:

Unlike the ones in the US, these Canadian banks are so steady and immense that they probably won't collapse any time soon, and even if they do, you get paid a lot: $100 000 or more, depending on how much you put into the bank.

CIBC (Canadian Imperial Bank of Commerce) Student Package: CIBC Smart Start

Basic Info on the CIBC Smart Start Account

Account Name: CIBC Smart Start

Incentives:

$125CAD to your account, upon starting an CIBC Smart account with the Smart Start benefit, and meeting all the requirements (see below).
Students 14 and up save up to 30% on 450+ brands when shopping online or in-store with a free SPC+ membership (Student Price Card: an organization giving secondary and post-secondary students discounts for shopping)
This account can be quickly set up online. Link

Offer does not expire.

Account Specifications:

$0.00 monthly fee until age 25
Free unlimited Interac e-transfers
Free unlimited debit and Visa Debit transactions within Canada, using CAD
One free non CIBC ATM withdrawal per month.
CIBC Mobile Banking App with CIBC Insights - helps you keep track of spending

Eligibility Requirements:

Canadian resident 25years of age or younger.
One piece of Gov't issued photo ID (passport, citizenship card, health card, etc)
Open an CIBC Smart account with the Smart Start benefit

CIBC Home Page: https://www.cibc.com/en/personal-banking.html

RBC(Royal Bank of Canada): Student Package: RBC Advantage Student Account

Basic Info on the RBC Student Advantage Package

Account Name: RBC Advantage Student Bank Account

Incentives: $100 CAD to your account, upon starting an RBC Advantage account, and meeting all the requirements (see below).

Offer valid until May 31, 2023, though it is often renewed every few months.

Account Specifications:

$0.00 monthly fee
Free unlimited Interac e-transfers
Unlimited debit transactions within Canada
No RBC fee to use another bank's ATM in Canada
RBC Mobile App - Student edition - helps you keep track of spending
Earn Avion points when you make debit transactions (if you have an Avion account)

Eligibility Requirements:

Full time student living in Canada 13+
One piece of Gov't issued photo ID (passport, citizenship card, health card, etc)
Open an RBC Advantage Account before May 31, 2023
For Reward:

Before July 31 2023, do at least one of the following

- - Make at least three debit transactions
  - Register your RBC Banking account for Interac auto deposit and send one e-transfer
  - Enroll for a Virtual Visa Debit Card and make one transaction

RBC Home Page: https://www.rbcroyalbank.com/

Scotiabank (Bank of Nova Scotia): Student Package: Youth Savings Account

Basic Info on the Scotiabank: Getting There Savings Program for Youth

Account Name: Scotiabank: Getting There Savings Program for Youth

Incentives:

Scene points (You must have a Scene account)
- - 1 Scene+ point for every $5 spent on everyday purchases (using this Scotiabank card, and
  - 1 Scene+ point for every $1 spent at Cineplex.
Scotiabank does not provide a welcome bonus to youth (under 19), however, they do offer a welcome bonus to post-secondary students

Account Specifications:

$0.00 monthly fee until age 18
Free unlimited Interac e-transfers and debit transactions within Canada, using CAD
0.05% interest on deposits up to $499.00, $0.1% interest on deposits $500.00 or higher
ScotiaInfoAlerts mobile app, which alerts you on activity, mobile and online banking, compatibility with ApplePay, GooglePay, SamsungPay

Eligibility Requirements:

Canadian resident 19 years of age or younger.
One piece of Gov't issued photo ID (passport, citizenship card, health card, etc)
- - Children under 12 require a parent's ID, and must be accompanied by a parent+
  - Children 12-15 can use their own ID if they have one, if not, then their parent's ID
  - Children over 16 must use their own ID

Scotiabank Home Page: https://www.scotiabank.com/ca/en/personal.html

TD (Toronto Dominion) Student Package: TD Student Chequing Account

Basic Info on the TD Student Chequing Account

Account Name: TD Student Chequing Account*

*Usually a general TD Everyday Savings Account is included as well.

Expiry Date:

Incentives:

$100CAD Amazon Gift Card upon starting a new TD Student Chequing account by May 31, 2023
$50CAD in Amazon Points upon opening a new TD Rewards Visa account by May 31, 2023
Get 500 Starbucks Stars upon setting up a recurring direct deposit to your new TD Student Chequing account by August 31, 2023

Offer valid until May 31, 2023, though it is often renewed every few months.

Account Specifications:

$0.00 monthly fee until 23 years of age, or for as long as you study in a post secondary institution
Free unlimited Interac e-transfers
Unlimited debit transactions within Canada
No monthly fee for Monthly Plan Overdraft Protection Service
TD Rewards Visa:
- - Annual Fee: $0
  - Interest Purchases: 19.99%
  - Interest Cash advances: 22.99%
  - Additional cardholders: $0
  - 50% more TD Rewards points if linked with Starbucks Rewards Account

Eligibility Requirements:

Canadian resident 12yrs or older, and/or student in Canada at a registered post secondary institution.
One piece of Gov't issued photo ID (passport, citizenship card, health card, etc.)
Open a TD Student Chequing Account, and a TD Rewards Visa before May 31, 2023, set up direct deposit to your chequing account by August 31, 2023
For reward:

Before August 31 2023, do any three of the following

- - Set up a recurring direct deposit from your employer or the Government.
    - - Link your eligible TD Credit Card through My TD Rewards to your Starbucks Rewards Account to get the Starbucks Stars
  - Make an online bill payment of at least $50 through EasyWeb or the TD app.
  - Use Interac e-Transfer® to send or receive at least $50∞
  - Make an online purchase using your TD Access Card with Visa* Debit
  - Set up a Pre-Authorized Transfer Service or Simply Save to a TD Savings Account
  - Apply, be approved and add Overdraft Protection on your new TD Student Chequing Account

TD Home Page: https://www.td.com/ca/en/about-td

BMO (Bank of Montreal) Student Package

Basic Info on the BMO Plus Chequing Account

Account Name: BMO Plus Chequing Account - (Discounted for Students)

Incentives:

$100 Welcome Bonus upon starting a BMO Plus Account

Account Specifications:

$0.00 monthly fee until age 18, or until the end of your post-secondary education
Free unlimited Interac e-transfers
0.01% interest rate
25 debit transactions within Canada, using CAD
BMO mobile app, which alerts you on activity, mobile and online banking, compatibility with ApplePay, GooglePay, SamsungPay

Eligibility Requirements:

Canadian resident 13 to 18 years of age
One piece of Gov't issued photo ID (passport, citizenship card, health card, etc)

BMO-Harris Home Page:

https://www.bmo.com/en-ca/main/personal/
BMO Chequing Accounts:

https://www.bmo.com/main/personal/bank-accounts/chequing-accounts/plus/

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