Citizenship and Immigration Canada
www.cic.gc.ca
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Welcome to Canada: What you should know
Protecting your money
- Canadian money
- Banks and other financial institutions
- Opening an account
- Using bank machines
- Direct deposit
- Sending money
- Applying for credit
- Telemarketing
- For more information
Canadian money
Canada’s currency is the dollar. There are 100 cents in a dollar. Canadian coins include the penny (1 cent), the nickel (5 cents), the dime (10 cents), the quarter (25 cents), the one-dollar coin known as the “loonie” and the two-dollar coin called a “toonie.” The most common paper bills are $5, $10, $20 and $50.
If you don’t have any Canadian money when you enter the country, you may wish to exchange a small amount of your native currency for some Canadian money. Most airports have foreign exchange offices that can do this for you. Try not to exchange too much, however, since the rate of exchange (how much your money will buy) may not be as good as at a local bank.
Banks and other financial institutions
Most Canadians keep their money in the bank. A bank account is a safe place to keep your money. Banks let you write cheques, earn interest, apply for credit and pay your bills. These kinds of financial services are also offered by credit unions, caisses populaires and trust companies.
Opening an account
Most banks have various kinds of accounts, and you can discuss which kind you need with them. To open one, you should be prepared to provide certain kinds of personal information, as well as various forms of identification, such as your passport or your Social Insurance Number. The bank may need your Social Insurance Number for income tax purposes. This is the same for everyone, at any bank. Remember: post office savings accounts do not exist in Canada.
Using bank machines
Many Canadians now use automated banking machines, known as ATMs, to do most of their banking. It’s like a self-service bank, one that’s “open” 24 hours a day, seven days a week. With a bank card, you can use these machines to get cash from your accounts, to pay bills, to deposit cheques, and so on. You will likely pay a small fee for this service.
You can apply for a card at your bank. You will need to create a Personal Identification Number (PIN) for yourself to access your accounts. Don’t lend your bank card to anyone, or tell anyone your PIN. Don’t even let anyone see your PIN number when you enter it in the banking machine. This will keep your account (and your money) safe. Bank cards can also be used to buy things at many stores. The money is taken directly from your account when you use your card. This is known as Interac Direct Payment.
While all of these services are useful, keeping track of all your bank transactions can get complicated. Remember to record everything and take note of your balance and the fees charged by your financial institution.
Direct deposit
Direct deposit has become very popular with Canadians. It means that money owed to you, such as a paycheque or a government payment, is put electronically into your account. You have access to the money immediately, and you don’t have to wait for the cheque to come in the mail or line up at the bank to deposit it. You can request this service if you expect to receive regular payments. Most government departments offer this service, as well as many companies.
Sending money
If you send money through the mail, don’t send cash. Use a certified cheque or money order. Ask your bank about these options. You can also buy a money order at the post office or wire money through private money order or transfer services (listed in the yellow pages of the telephone book).
Applying for credit
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. Interest rates can be quite high, so you should be very careful how you use credit.
Credit comes in many forms: credit cards, lines of credit, mortgages and loans. You can apply for credit cards at banks and trust companies. These cards allow you to buy items on credit and be billed for them within a month. If you pay the full amount back by the due date, you won’t be charged any interest.
If you borrow any money on credit, make sure you understand exactly when you have to pay it back and how much it will cost. This includes monthly payments if you are borrowing money on an instalment plan.
Many department stores now advertise special sales where they claim that you can buy something now and pay for it in a year or in six months with no interest. Make sure you understand exactly what you must pay and when before you sign anything. If any information is hard to understand, ask someone you trust for a clear explanation.
Telemarketing
You may get calls from people who are trying to sell you something. They may be honest, but they might not be. The best way to protect yourself is never to give out any personal or financial information to anyone over the telephone. If you feel uneasy about the caller, just hang up.
For more information
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. To learn more, visit their website at www.fcac-acfc.gc.ca, or contact their call centre at 1‑866‑461‑3222.