Banks, trust companies and credit unions offer various services – saving money, writing cheques, getting a debit card, borrowing money, getting a credit card. They charge service fees.
The Canadian Bankers Association offers excellent consumer information. There is extensive general information on a variety of topics as well as newcomers guides prepared by the country's major banks especially for immigrants.
The topics covered in the association's newcomers section include:
- arranging a move to Canada
- opening an account, before and after arrival
- buying a home
- starting a business
- saving money
- borrowing
- insurance
- getting settled in Canada
Information summaries
As well as the bankers association's newcomers section, above, some key information about money and banking is summarized here.
Currency
Canada's currency is the Canadian dollar. Paper money is in denominations of $1000 (rare), $100, $50, $20, $10, and $5. Coins are a penny (1 cent) nickel (5), dime (10), quarter (25), 50-cent piece (rare), and, the loonie and the toonie ($2), so named because of the bird on the coins.
Opening a bank account
Check rates between banks, credit unions and trust companies. You will need to provide some personal information as well as identification such as your passport or your Social Insurance Number. (To open a Canadian account from your home country see the bankers association website.)
Bank machines
Many Canadians do virtually all their banking on automated banking machines (often called ATMs). Bank, or debit, cards are used to make purchases at stores.
Credit
Credit is when you borrow money to buy something now and pay it back later with interest charged. Visa and Mastercard are popular credit cards. You can apply for a card at your bank. Many large chain stores issue their own credit cards. It's also common to borrow money to buy a car and get a mortgage loan to buy a house. Make sure you understand the terms of repayment. Make sure you "stay on top" of your credit so the amount doesn't become unmanageable.
Payday loans
There are several companies that offer "payday" and other loans not offered by banks. A payday loan is basically getting and advance on your next paycheque. Make sure you check the interest rate, which is higher than banks.
Direct deposit
Many employers give you your paycheque by depositing it electronically, directly into your bank account. Government benefits, such as Employment Insurance, are also commonly paid by direct deposit.
Fraud and identity theft
Identity theft is a grave concern. Even if a fraud artist obtains only your Social Insurance Number he could create bank or consumer accounts – and leave you responsible for the bills.
Telemarketing (when someone phones you with a "sales pitch") is a problem because some solicitors are honest while others are not. Never give out personal to anyone over the telephone.
Sending money
Do not send cash through the mail. Go to a bank or Canada Post to get a certified cheque or money order. Another choice to send money is to send it by "wire." Wire services such as Western Union are located at payday loan outlets and in other stores.
Insurance
Insurance offers protection against the damage or loss of home, business or personal possessions. Life insurance and disability insurance protects against income loss. Car insurance (Autopac) is mandatory. Many employers offer insurance such as dental, extended health, life and disability as part of their benefits. If you are buying insurance on your own, compare rates; they can vary widely. Insurance companies are listed in the Yellow Pages. For more information see the independent consumer website
Insurance-Canada.ca.
More information
Manitoba's Credit Unions
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