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Your Money
Banks can help newcomers to Canada get started on the right financial path.
Should you need to convert currency to Canadian dollars, you will need to visit one of the local financial institutions.
In Canada, most people keep their money in bank accounts.Bank accounts are a safe, convenient way to manage your money. Certain types of accounts offer access to services such as the use of a debit card, the ability to write cheques, the option to do your banking from the telephone or Internet and more. Some banks have even entered into an agreement with the Government of Canada to provide low-cost accounts, which include specific features and cannot cost more than $4.00 per month.
Safety
A bank or other financial institution is a safe place to keep your money when you are not using it. In case a bank fails, the government generally insures the money that has been deposited in a bank account (up to a certain limit).
Services
A bank account is useful for a variety of reasons. It may allow you to write cheques, use automated banking machines (ABMs), pay your bills, receive funds through direct deposit or use a debit card for purchases. You can get help with these services at your bank branch, during business hours. You can also have access to many of these services 24 hours a day, seven days a week, at an ABM, or through telephone or Internet banking.
Record-keeping
With your account, you will receive monthly account statements or a bankbook, to help you keep track of your money. These are a great help for preparing a budget. They show you how much you spent and what you spent it on.
Visit the Financial Consumer Agencey of Canada to learn more about the different types of accounts and banking service packages available in Canada, your rights when opening and maintaining a bank account and for help choosing the right service package for your needs and banking habits.
There are numerous financial institutions institutions in the area. Many of the banks in Timmins will be able to meet your needs.
The two main types of bank accounts are chequing accounts and savings accounts.
Chequing accounts
A chequing account allows you to write cheques, and usually includes the use of a debit card. It often has lower transaction fees than a savings account. It may or may not have a flat monthly fee.
Some chequing accounts do not pay interest and some do. When a chequing account pays interest, it usually pays a lower rate of interest than a savings account.
Savings accounts
A savings account is helpful if you want to save some money for short-term needs.
You can take your money out of a savings account at any time, but the type and number of transactions you are allowed to make may be limited, and additional transactions may be expensive. For example, if you want to pay bills, write cheques or make more than two withdrawals per month from your savings account, you may have to pay extra fees. That is why most consumers who open a savings account also have a chequing account for their day-to-day banking needs.
The bank may pay you interest on the money you have in your savings account, but the amount of interest will vary, depending on the financial institution, the type of account you choose and the amount you keep in your account.
Visit the Canadian Bankers Association website to learn more about banks and banking in Canada.
In Canada, credit comes in many forms: credit cards, lines of credit, mortgages, and loans. Credit can be a mortgage to buy a house, a loan to buy a car, a line of credit for larger purchases or a credit card to make everyday purchases more convenient. Getting credit means that you borrow money to buy something now and pay it back later, with interest. Interest is the fee charged for using the money. It's important to understand how different types of credit work, and how to use credit to build a strong personal credit history.
If you want to get a loan, credit card, line of credit or a mortgage in Canada, you will need a Canadian credit history. This may be difficult for newcomers who have not had a chance to develop a credit history here.
Some Canadian financial institutions may recognize your financial history from your home country but most will require you to have some Canadian credit history before they consider lending you money.
Visit the Financial Consumer Agency of Canada for more information on establishing credit.
In certain situations, you may need to borrow money on credit and pay it back later with interest. Interest is the fee a financial institution charges you for borrowing the money.
Credit comes in many forms, including credit cards, lines of credit, pay day loans, mortgages and personal loans.
You can apply for credit at banks, other financial institutions and many stores.
If you borrow money, you should understand exactly when you have to pay it back and how much it will cost to borrow. If you are borrowing money on an installment plan, for example, you will have to pay it back monthly.
Many stores advertise special sales that claim you can buy something now and pay later with no interest. If information is difficult to understand, ask someone you trust for a clear explanation.
The Financial Consumer Agency of Canada provides consumers with information on a variety of financial products and services like bank accounts, payday loans, mortgages and credit reports, as well as on their rights and responsibilities when dealing with financial institutions.
