Having chequing and savings accounts is a crucial step to effectively manage your finances and build financial stability, as this will help you to stay organized, and maintain a clear view of your financial situation. If you are looking to open your first chequing and savings accounts in Canada, continue reading for a step-by-step guide on how to do so.
Before we get into the details of how to open your chequing and savings accounts, let’s ensure that you understand the difference between the two.
A chequing account is a transactional account, which allows you to manage everyday transactions and expenses, while a savings account is used for setting aside money for specific goals (such as an emergency fund or to cover short-term goals, like saving for a vacation). Most savings accounts offer interest on the account balance, allowing your money to grow, over time. Chequing accounts do not offer interests.
A Step-by-Step Guide on Opening Chequing and Savings Accounts in Canada
Now that you have a clear understanding of these two types of bank accounts, here are the steps you need to take to open your account(s):
Step 1: Research the Different Financial Institutions & Accounts Available
Take some time to research the different banks in Canada and the type of accounts they have to offer. Some important factors to consider when selecting a suitable bank are fees (are there transactional fees or monthly service fees?), different services offered, accessibility (is a branch or ATM easily accessible?), online banking options, and customer reviews. Ensuring that you shop around and choose a bank that is suitable for you will play a major role in your financial management.
Step 2: Prepare the Required Documents
In order to open chequing and savings accounts in Canada, you are normally required to provide two pieces of government-issued identification, such as your driver’s license and passport. Additional document requirements may include proof of address and social insurance number (SIN). Gather these documents, ahead of beginning the application process.
If you don’t have a cash flow plan, it’s time to consider having one done.
Step 3: Visit the Bank or Apply Online
Decide whether you want to apply in-person or online. If the bank you’ve chosen allows online application, this may be a more convenient option for you. If you prefer to apply in-person, most banks facilitate walk-ins, or you can schedule an appointment. Bring your identification and the other required documents with you, so that you can complete the application process.
Step 4: Complete the Application Form
Ensure that you take the time to understand and fill out the application form(s) accurately and completely. Review the terms and conditions of the account(s) and, if you have any questions, be sure to ask the financial/bank advisor before proceeding.
Step 6: Deposit Funds into Your Account(s)
Now that you’ve completed the application process, your chequing and/or savings account should de ready for your initial deposit!
Step 7: Set up Mobile/Online Banking
If your bank offers online and mobile banking, enroll to conveniently manage your accounts, monitor transactions and set up alerts for balances updates.
Opening chequing and savings accounts in Canada is straightforward and can allow you to have greater control over your finances. By conducting through research, you’ll be able to make an informed decision on selecting the account type that best suits your financial goals. Choosing the right financial institution and account type is necessary for a good banking experience and being able to manage your finances effectively.
References
Luisa Rollenhagen. (2023, May 30). Chequing vs Savings Account. Wealthsimple: https://www.wealthsimple.com/en-ca/learn/checking-vs-savings-account
The Financial Consumer Agency of Canada. Choosing the Right Bank Account. Canadian Banking Basics: https://bankingquestions.cba.ca/therightbankaccountforyou
Financial Consumer Agency of Canada. Opening a bank account. Government of Canada: https://www.canada.ca/en/financial-consumer-agency.html
Hanna Logan. (2023, May 02). What is a Chequing Account? How Do I Use One? Nerdwallet: https://www.nerdwallet.com/ca/banking/what-is-a-chequing-account
