Are you an international student in Canada, wondering where to park your money? Look no further. This comprehensive guide will walk you through the best banks for international students in Canada, highlighting key factors to consider when opening your student bank account.
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Why You Need a Student Bank Account?
Banking in Canada shares the same fundamental concept as your home country. A bank account is essential for making payments, receiving funds, building credit, and simplifying your study visa application through the Student Direct Stream Program (SDS) by Immigration, Refugee and Citizenship Canada (IRCC).
International Students vs. Newcomer Bank Accounts
While there’s overlap between newcomer and international student bank accounts, some differences exist. International students usually receive a student chequing account by default. They may need to apply for a secured credit card and sometimes even a co-signer for a line of credit. Proof of full-time academic enrollment is typically required.
The Top Banks for International Students in Canada
1. Simplii Financial International Student Program
Simplii Financial, an online bank backed by the Canadian Imperial Bank of Commerce (CIBC), stands out with tailored account offerings for international students. They offer a GIC program for SDS applicants, allowing deposits of $10,000 to $20,000 abroad. You can also open a chequing account from your home country and transfer between $1,000 and $20,000.
Simplii’s no-fee chequing account boasts benefits like:
- $400 sign-up bonus
- Unlimited free debits
- No-fee money transfer
- Access to 3,400+ CIBC ATMs
- No minimum Balance Requirements
*For a limited period, Simplii is offering newcomers a chance to earn up to $1,300 annually when they open a new account. Also, Simplii is offering an Interest rate of upto 6.00% per year for a limited time.
2. CIBC International Student Banking
CIBC offers a CIBC Smart Account (chequing account) with following benefits:
- No monthly fees
- Unlimited transactions
- Access to 4,000+ ATMs across Canada.
International students can use the CIBC student deposit program to open an account before arrival and transfer up to $20,000.
CIBC is offering upto $450 cashback to newcomers who open a new chequing bank account with them. To be eligible for this offer you need to you must be either one of the following:
- Permanent resident or landed immigrant status (including International Students) within the last 5 years
- Foreign worker who has a Canadian work permit issued for at least a 12-month term
3. Scotiabank International Student Account
Scotiabank’s StartRight Program includes a free chequing account, unlimited international money transfers, and an unsecured credit card. The Scotiabank Student Banking Advantage Plan covers unlimited debit transactions, e-Transfers, and more. Account holders also gain access to 4,000+ ATMs nationwide.
Welcome offer: Earn upto $100 when you sign-up
4.RBC International Student Bank Account
The Royal Bank of Canada (RBC) offers a Student GIC Program under SDS and a no-monthly-fee student bank account called RBC Advantage Banking. It includes unlimited free debit transactions and access to thousands of RBC ATMs. RBC also provides credit card options.
Welcome Offer: Get $100 when you open a new RBC Advantage Banking Account for students
5. EQ Bank
EQ Bank, a leading digital bank in Canada, backed by Equitable bank which Canada’s leading challenger Bank. It offers high interest rates on deposits and features like no monthly fees, unlimited transactions, mobile cheque deposits, and free Interac e-Transfers®.
Benefits of EQ Bank bank account:
- Hybrid account i.e. Chequing and Savings account features in one
- High rate of Interest – Earn upto 3.00% rate of Interest. One of the highest rates among all the banks
- NO MINIMUM BALANCE
- Get $20 on opening a new bank account.
- Easy account opening process – Completely online and can be done in 5 minutes.
6. BMO International Student Account
The Bank of Montreal (BMO), Canada’s oldest bank, offers an international student GIC program. They provide chequing and savings accounts, student credit cards, and a global money transfer service. The BMO student chequing account includes 25 transactions per month and free access to BMO ATMs.
7. TD Bank
TD Bank Group serves over 26 million customers globally. Their international student bank account package covers various banking needs, including GIC programs, student chequing accounts, savings accounts, credit cards, and student lines of credit.
8. ICICI Bank Canada
ICICI Bank Canada offers a student GIC program for SDS applicants. They have a Hello Canada Account for new immigrants, including students from several countries.
9. HSBC Student Chequing Account
HSBC, a leading international bank in Canada, offers an international student GIC program under SDS. After arriving, you can open a student chequing account with no monthly fees and enjoy unlimited transactions. New applicants may even receive up to a $150 cashback reward.
10. KOHO
KOHO is a fintech company providing an all-in-one spending, saving, and cashback-earning account. With a free KOHO account, you can earn 0.50% cash back on all purchases and enjoy unlimited debit transactions and e-Transfers.
What to Look for in an International Student Bank Account
When choosing a bank account in Canada, consider the following factors:
- Variety of Accounts: Look for banks offering both chequing and savings accounts. Some banks also provide credit cards and investment options.
- Fees: Ensure you won’t be paying monthly account fees while you’re a student. Be aware of additional service fees.
- Convenience: Access to free ATMs and physical branches near your location can be crucial.
- Credit History: Some banks may waive Canadian credit history requirements for international students.
- International Money Transfer: If you plan on sending money abroad, consider banks that offer waived transfer fees on global money transfers.
How to Open a Bank Account in Canada as an International Student
To open a bank account in Canada, you’ll need:
- Study permit or temporary resident visa
- Government-issued photo ID (e.g., passport or Canadian driver’s license)
- Proof of enrollment in a Canadian post-secondary school program
Visit your chosen bank’s website, book an appointment, and complete your application after arriving in Canada.
Pros and Cons of a Student Bank Account
Pros:
- No monthly fees while you’re a student
- Easier access to credit cards
- Improved financial organization
Cons:
- Limited banking perks
- Potential post-graduation fees
- Yearly proof of school enrollment may be required.
Now that you’re equipped with the knowledge of the best banks for international students in Canada, make an informed choice and ensure your financial journey in Canada is as smooth as possible.
