Canada is known for its array of top class universities like the University of British Columbia, University of Vancouver, and University of Toronto.

The presence of these universities have made Canada one of the biggest destinations for people seeking to study abroad. This is why there are numerous guides to educate new international students on what to expect as they move to the country.

Beyond knowing the academic structure, accommodation dynamics, and cultural expectations, international students in Canada should also be informed about Canadian financial institutions and what they offer.

This is because having a local bank account makes it easier to pay tuition, manage rent, and handle daily expenses.

This article presents the types of bank accounts for students in Canada, considerations to make before choosing a bank, and an analysis of the five best banks for international students in Canada.

Types of Canadian bank accounts

There are two types of bank accounts in Canada: chequing accounts and savings accounts.

Chequing account

A chequing account is the most commonly used bank account in Canada. It is used for daily banking needs such as withdrawals from a physical branch, online or through ATMs. Student chequing accounts come with unlimited transactions with no monthly fee.

However, one can only qualify for a student chequing account when they are 23 or under. They also need to provide proof of enrollment in a full-time tertiary institution.

Savings account

This account, as the name implied, is used for storing funds and earning interest, rather than making purchases and withdrawals.

With this account, there is a limit to the number of transactions. Additional transactions can come at no extra cost but requires a minimum monthly balance.

A savings account is usually not customized for student life. In fact, its requirements make it difficult for students to accumulate and maintain the funds required to reap the dividends of the current interest rates.

Things to consider before choosing a bank account in Canada

1. Account fees: These include bank charges on account maintenance fees, transaction fees, ATM fees, and charges on local and international transfers.
2. Minimum balance requirements: Understand the minimum balance requirements of the bank and how much is charged if a customer’s balance drops below that.
3. ATM accessibility: Check the bank’s ATM network; see if any is situated near the campus for easy access to cash withdrawal.
4. Currency exchange fees: Know the bank’s exchange rates and fees for international transactions, in case of foreign currency conversion.
5. Student promotions: Check for special promotions or benefits for students such as waived fees or discounts on some services.

How to open bank account in Canada for international students

The first step is to find the bank that you want to operate with as an international student in Canada. After this, you'll need to decide the bank account you're going to open.

There are two main types for you— the Chequing account and the Savings account. Ideally, you are to have a Chequing account because that allows you to easily send money, withdraw money, shop online, etc.

It is an everyday-use kind of account, compared to the Savings account. It also comes with no monthly fees. 

There may be times when you'd have extra money to save. Instead of spending it all, it'll be good to save it for the rainy days. Anytime you need to use some money from the savings account, you can transfer it to your chequing account so that you can spend. 

To open a bank account in Canada, you'll need at least two means of Identification (ID). You can choose from your passport, study permit, letter of acceptance, Canadian government identification card, etc. 

Depending on the bank you have chosen to open your student account with, there may be slight differences in the requirements. So, check with your bank to be sure exactly what their requirements are. 

5 best banks for international students in Canada

There are many recommended banks for international students in Canada. However, what we want to look at in this section are the best banks. Let us look at the five best in Canada, especially for international students.

Scotia Bank.

Scotiabank is Canada’s fourth largest bank and caters to over 10 million small business and commercial banking customers across Canada.

Its Student Banking Advantage Plan is available to full-time post-secondary students in Canada. The plan offers free unlimited transactions and no monthly fees.

Students enjoy no extra fees for teller-assisted transactions and for transfers to/from other banks. The plan also comes with a free credit score and unlimited Interac e-Transfers that come with no extra cost.

Its Visa Debit card can be used online and is compatible with Apple Pay and Google Play. About debit cards, Scotiabank has over 4,000 ATM locations where students can perform withdrawals and other transactions.

Toronto-Dominion Bank.

Being Canada’s second biggest bank, Toronto-Dominion Bank attends to over 25 million customers globally. Its student chequing account is available to all full-time students of a teritary institution in Canada.

The account converts to a paid chequing account when the customer clocks 23, unless they present a proof of study enrollment.

Student accounts come with free unlimited cheques and transactions with no monthly account fees or overdraft protection monthly fees.

Customers also enjoy Interac e-Transfers, no extra fee for teller-assisted transactions, and a 0.01% interest paid on all deposits. Also, there are no additional charges for transfers to/from other banks. 

Students can use Interac e-Transfer to send, request and receive money using an email or mobile phone. Also, they can use the TD International Student Banking Package to send money internationally to over 200 countries with TD Global TransferTM.

This allows students to enjoy unlimited international money transfers with transfer fees rebated for up to 12 months.

Toronto-Dominion Bank’s Visa Debit card can be used online and is compatible with Apple Pay and Google Play. The bank has over 2,500 ATM locations where students can perform withdrawals and other transactions.

Royal Bank of Canada.

Royal Bank of Canada (RBC),  also offers no-fee transactions to you as an international student.

In addition, you get to enjoy things like virtual visa debit for secure online shopping, and free interac e-transfer transactions, among many other benefits.

With its online banking option, you can stay up-to-date and save time by making your transactions online. RBC does not offer cash bonuses. 

The Canadian Imperial Bank of Commerce.

Founded in 1867, CIBC caters to over 10 million customers across Canada and globally, with more than 1,000 branches and 3,000 ATMs. The bank has two types of student accounts: CIBC Smart Start and CIBC Smart Start for Students. 

CIBC Smart Start is designed for students under 25. It comes with no monthly fee until the customer clocks 25.

It offers free unlimited Interac e-Transfer® transactions, free unlimited debit and Visa Debit transactions in Canada, and one free non-CIBC ATM withdrawal in Canada per month.

There is also free trading with CIBC Investor’s Edge where investors between 18 and 24 can trade stocks and ETFs online for fee.

On the other hand, CIBC Smart for Students is aimed for students over 25. It offers no monthly fee provided the customer studies full time.

Similar to CIBC Smart Start, it also offers free unlimited Interac e-Transfer® transactions, free unlimited debit and Visa Debit transactions in Canada, and one free non-CIBC ATM withdrawal in Canada per month.

Customers who open an Investor’s Edge account enjoy a student pricing of 5.95 CAD per online stock or ETF trade.  

Generally, students can open and fund their account through the CIBC Student Deposit Programme before they arrive Canada. Students can earn 50 CAD referral bonus per student they referred, with a maximum of 10 referrals every year. This bonus also extends to the referred student.    

The Bank of Montreal, Canada.

The Bank of Montreal is the 8th largest bank in North America with over 3,000 ATM and branch locations.

It provides personal, commercial banking, and investment banking alongside global market services to more than 13 million customers.

It offers two types of student bank accounts: the Plus plan and the Premium plan. The Plus plan comes with no monthly fees, while the Premium plan offers discounted monthly fees.

But whatever the plan, the student bank account comes with a student budget calculator, alerts, free online and mobile banking, and a 70 CAD cash bonus when opening an account. It also has perks for medical and dental students. 

Simplii Financial 

Launched in 2017 and backed by CIBC, Simplii Financial helps its almost 2 million clients bank, borrow, and invest their funds.

The Simplii Financial International Student Deposit Programme allows students to transfer funds between 2,500 and 20,000 CAD to a new account without service fees.

Application for this deposit account can be done online within 5 minutes even before the student gets to Canada. Account activation will be done physically when the student arrives, while their debit card will be mailed to their Canadian address on their tentative arrival date.

Students can also apply for a credit card to cover student expenses, get rewards, and build their credit in Canada with the Simplii Financial Cash Back Visa card.

Referring an international student gives the referee 125 CAD while the referred gets a welcome bonus of 50 CAD when they transfer funds to their Student GIC Programme Account.

With 3,400 CIBC ATMs across Canada, students can withdraw money close to campus with no withdrawal fee charged. Also, the Simplii Financial mobile banking app facilitates money transfers, bill payments, and deposit cheques.

While the banks described above make it easier to pay tuition, handle daily expenses, and receive funds from home, using them for international remittances usually comes with high fees and unfavourable exchange rates.

Hence, students would require a global money transfer solution like OhentPay, which is designed for swift and affordable cross-border transfers.

OhentPay: Swift, Student-friendly Solution

OhentPay stands out as a reliable and intuitive payment platform for personal and business transactions. It is known for its transparent pricing, fast processing times, and global reach. Students in the Netherlands can enjoy benefits including: 

• Cost predictability with a flat rate of £1.50 for personal accounts with no hidden fees
• An array of 40+ currencies, operating in more than 190 countries
• Swift processing times
• Reliable customer support

In addition to these, students do not need to have Dutch residency requirements—all they need is a valid ID to have an OhentPay account.

With OhentPay, they can receive financial support from home or become freelancers who earn in other currencies using OhentPay for payment. It is way faster, swifter, cheaper, and more convenient than traditional banks. 

Summary

As an international student, choosing the right bank is a vital step in settling in any new country, including Canada. Canada offers top-class financial institutions such as Bank of Montreal, Canadian Imperial Bank of Commerce, and Scotiabank, among others.

While these banks offer flexibility and attractive perks for students, they are not usually efficient for cross-border payments. This is why they need to supplement with Ohentpay, a modern, affordable solution to meet this extra need of international students. 

For instant transfers, strong exchange rates, and zero hidden costs, OhentPay is a go-to option. You can create your free OhentPay account here today. 

If you’d like to send money anywhere in the world and prefer fast transfers at great rates, we recommend the OhentPay money transfer service. Create an account here to get started.

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