The Right Bank Account for You

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1 02 The Right Bank Account for You What You Need to Know There is a lot of choice: there are close to 100 bank account packages to choose from, offered by more than 20 banks in Canada. Comparing accounts is easy using a simple, free, online tool from the Financial Consumer Agency of Canada at There are low-fee and no-fee accounts available. All you need to open an account is identification.

2 The Right Bank Account for You Services, access, fees how do you choose the right bank account? The Types of Bank Accounts Available There are many different types of accounts available with a wide range of services, including: basic chequing and savings accounts, full service accounts with many types of transactions included, low-fee or no-fee accounts, youth, student and seniors accounts. How do you know which account is right for you? Choosing the right account depends on the services you need and want. Opening an Account Anyone can open a bank account provided you have the proper identification. You can open a bank account even if: you don t have a job, you don t have money to put in the account right away, or you have been bankrupt. Identification Needed to Open an Account You will need two specific pieces of identification to open a bank account. There are many different options for identification and a full list is available on the Canadian Bankers Association (CBA) website at It s also possible to present only one piece of identification if your identity can be confirmed by a client in good standing with the bank or by an individual of good standing in the community where the bank is located.

3 How to Shop for an Account There are a lot of accounts to choose from (close to 100!), so it s important to think about the services you want and to shop around for the best account to meet your needs. And it s easy to compare the banking packages available using the online interactive Account Selector Tool available from the federal financial consumer regulator, the Financial Consumer Agency of Canada (FCAC) at The tool is available both online and in print. Choosing the right bank account can save you money. For example, if you want to save money, there are accounts that: allow a certain number of transactions for a lower fee than some unlimited transaction accounts, waive fees if you keep a minimum balance in the account (usually between $1,500 and $5,000). If you need more services, there are banking packages that include more tools for a flat monthly fee or a fee per transaction, including: certified cheques, money orders, overdraft protection, money transfers or cheque returns, U.S. dollar accounts and cross-border debits, multiple accounts (both chequing and savings) under the same monthly fee.

4 More About Low-Fee and No-Fee Accounts Banks in Canada are committed to ensuring that all Canadians can access banking services. Canada s banks provide no-fee and low-fee accounts that include: at least 12 debit transactions per month, at least two in-branch transactions per month, cheque-writing privileges, no extra charge for deposits, debit cards, pre-authorized payment forms and monthly printed statements, and cheque image return or online cheque image viewing. Youth, students, seniors qualifying for the Guaranteed Income Supplement (GIS) and beneficiaries of a Registered Disability Savings Plan are eligible for a no-cost account. More About Accounts for Seniors There are a number of bank account packages designed specifically for seniors. If you are a senior now, or getting close, you may wish to compare the packages for seniors to find out if there is one that meets your needs. There are both low-fee and no-fee accounts available for seniors. These packages offer regular transactions, such as withdrawals, deposits, transfers, bill payments and cheque-writing privileges, in addition to more specialized services such as no-fee money orders, certified cheques and travellers cheques, and a discount on safety deposit box rentals. Guaranteed Income Supplement beneficiaries are also eligible for a no-cost account.

5 Ways to Reduce Your Service Fees Ten tips for reducing your service fees Did you know that there are many different ways to reduce the bank service fees that you pay? 1. Shop around for the bank account package that best meets your needs. You may be paying more for services that you don t use. Use the FCAC s online Account Selector Tool at 2. Maintain a minimum balance in your account. Ask your bank if they offer this. 3. If you have additional products with your bank (for example, a mortgage or credit card), ask if you can get a rebate on service fees. 4. Ask for a senior s discount or a no-cost account (if you qualify) 5. Ask for a youth or student discount or a no-cost account (if you qualify) 6. Plan your withdrawals How many times do you withdraw funds at a bank machine? If your account package has a limited number of withdrawals, make fewer but larger withdrawals to save on fees. 8. Avoid convenience fees Use only your own institution s bank machines. You ll save on fees charged by other financial institutions or independent machine owners to use their machines. 9. Sign up for a low or no-fee account if you only have a few transactions each month. Use the FCAC s online Account Selector Tool to see if one of these accounts might meet your needs. 10. Consider overdraft protection Do you frequently write cheques that result in NSF (non sufficient funds) charges? If so, you might want to consider applying for overdraft protection. The small monthly charge might turn out to be less than you are paying in NSF charges. And some financial institutions levy the overdraft charge only in months when you actually use the overdraft, so there could be additional savings. Ask your bank or shop around to find an arrangement that works for you. 7. Take advantage of cash back Did you know that many retailers offer cash back options at no additional charge when you pay with your debit card? Pay for your purchases and get cash from the retailer to avoid extra transaction fees.

6 Cashing a Government Cheque Without an Account You can cash a federal government cheque of up to $1,500 at a bank even if you don t have an account as long as you can provide two pieces of specific identification from the list of required identification. You can find this list on the CBA website at in the Consumer Information section. Banks also have agreements with British Columbia, Alberta, Quebec, and New Brunswick that allow non-customers to cash provincial government cheques as long as you have the appropriate identification. Questions? If you have general questions about banking in Canada, call the Canadian Bankers Association s Banking Information Line at or send an to inform@cba.ca. More Information Canadian Bankers Association website: The Financial Consumer Agency of Canada: Sign up for a low-fee account if you only have a few transactions each month.