Canadian Banking Basics

Updated for 2015 Canadian Banking Basics An Easy Guide to Answering Constituents Questions How to Use this Guide Answer common questions from constituents on banking Download and email PDF versions of individual articles to your constituents Reprint articles for your householders and mailings Share articles from the www.bankingquestions.cba.ca website on social media

A Note from Terry Campbell President, Canadian Bankers Association We hope you will find this updated 2015 version of Canadian Banking Basics to be a useful resource for answering some of the common questions you may receive from your constituents about banking. Please also visit the companion website at www.bankingquestions.cba.ca to email these articles to others and to reprint them for use in your ridings and communities. If you need more help from a specific bank, we ve provided a handy contact list at the front of this Guide. If you have any questions that can t be answered by the tips and information presented in this Guide, our website at www.cba.ca is a useful reference as well. We welcome any suggestions you may have on how we can improve this Guide for the future. All the best, How to Use this Guide All the articles in this Guide are available as PDF downloads at the www.bankingquestions.cba.ca website. Please use the information in the Guide to: Answer common questions from constituents on banking Download and email PDF versions of individual articles to your constituents Reprint articles for your householders and mailings Share articles from the www.bankingquestions.cba.ca website on social media Learn more at www.bankingquestions.cba.ca, www.cba.ca and www.yourmoney.cba.ca Follow us on Twitter @CdnBankers Connect with us on LinkedIn Subscribe to our YouTube channel www.youtube.com/cdnbankers

Sections 01 02 03 04 05 06 07 08 09 10 11 12 Your Contacts for Canada s Banking Industry The Right Bank Account for You All About Cheques Financial Fraud Prevention Tips Financial Literacy for Seniors Financial Literacy for Young Canadians Banking for Newcomers to Canada Banking for Small and Medium-Sized Businesses Banking for Farmers Saving for a Child s Education Seeking Out Help with Debt How to Make a Complaint

01 Your Contacts for Canada s Banking Industry What You Need to Know We are here to help. If you have questions about Canada s banking industry or need help with a banking question, use this contact list.

Your Contacts for Canada s Banking Industry For questions related to a specific bank, do not hesitate to contact the following: Amex Bank of Canada David Barnes Vice-President, Public Affairs and Communications Tel: 905-474-8012 Email: david.r.barnes@aexp.com BMO Financial Group Paul Lehmann Director, Government Relations Tel: 416-867-3915 Email: paul.lehmann@bmo.com Canadian Tire Bank William H.C. Zeyl Chief Counsel, Canadian Tire Financial Services Tel: 905-465-6004 Email: william.zeyl@ctfs.com Canadian Western Bank Randy Garvey Executive Vice-President Corporate Services Tel: 780-441-2245 Email: randy.garvey@cwbank.com Capital One Bank (Canada Branch) Nathalie Clark Vice President & General Counsel Tel: 416-549-2244 Email: nathalie.clark@ capitalone.com CIBC Michel Liboiron Director, Government Relations Tel: 613-232-7404 Email: michel.liboiron@cibc.com Citibank Canada Troy Underhill Director, Public Affairs Tel: 416-947-5687 Email: troy.underhill@citi.com HSBC Bank Canada Kimberly Flood Senior Vice President and Head of Communications Tel: 416-868-8001 Email: kimberly.x.flood@hsbc.ca ICICI Bank Canada Warren Law Senior Vice-President Tel: 416-302-7909 Email: warren.law@icicibank.com JP Morgan Chase Nancy Sullivan Chief Legal Officer Tel: 416-683-5792 Email: nancy.sullivan @jpmchase.com Laurentian Bank of Canada Gladys Caron Vice-President, Public Affairs, Communications and Investor Relations Tel: 514-284-4500 Email: gladys.caron@ banquelaurentienne.ca National Bank of Canada Claude Breton Vice-President Public Affairs and Investor Relations Tel: 514-394-8644 Email: claude.breton@bnc.ca President s Choice Bank Salvatore Frisina Senior Vice-President Legal and Regulatory Compliance and Secretary Tel: 416-607-4060 Email: sal.frisina@pcbank.ca RBC George Wamala Advisor, Regulatory and Government Affairs Tel: 613-564-4782 Email: george.wamala@rbc.com Scotiabank Monica Masciantonio Senior Manager, Government Communications Tel: 416-866-6387 Email: monica.masciantonio@ scotiabank.com Tangerine Brenda Rideout Chief Strategy Officer Tel: 416-758-5260 Email: brideout@tangerine.ca TD Bank Group Jonathan Ingraham Manager, Government Relations Tel: 613-782-1196 Email: jonathan.ingraham@td.com For questions about Canada s banking industry, or for help in contacting any one of our 60 member banks not listed here, please contact: Canadian Bankers Association Anthony Polci Vice-President, Government Relations Tel: 613-234-4431, ext. 224 Email: apolci@cba.ca Tim Downing Director, Legislative Affairs Tel: 613-234-4431, ext. 223 Email: tdowning@cba.ca Andrew Lockhart Advisor, Government Relations Tel: 613-234-4431, ext. 226 Email: alockhart@cba.ca

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 www.fcac-acfc.gc.ca. There are low-fee and no-fee accounts available. All you need to open an account is identification.

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 www.cba.ca. 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.

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 www.fcac-acfc.gc.ca. 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, email money transfers or cheque returns, U.S. dollar accounts and cross-border debits, multiple accounts (both chequing and savings) under the same monthly fee.

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.

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 www.fcac-acfc.gc.ca. 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.

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 www.cba.ca 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 1-800-263-0231 or send an email to inform@cba.ca. More Information Canadian Bankers Association website: www.cba.ca/en/consumer-information The Financial Consumer Agency of Canada: www.fcac-acfc.gc.ca Sign up for a low-fee account if you only have a few transactions each month.

03 All About Cheques What You Need to Know Mobile cheque deposit is now offered by several banks in Canada. Canada has one of the most efficient cheque clearing systems in the world.

All About Cheques Canada has one of the most efficient cheque clearing systems in the world and, while the use of cheques has been declining with the growing popularity of electronic and card payments, financial institutions in Canada still process more than half a billion cheques every year. Here is some helpful information about the use of cheques and how they are processed by financial institutions. A cheque is an agreement of payment between two individuals or organizations. So when you write a cheque, you are agreeing to pay another individual or organization money that you owe them and you are instructing your bank to make that payment. 600 million! More than 600 million cheques are processed through the payments system in Canada every year. How Cheques are Processed All cheques must be processed or cleared and settled through the payments system. Here s how that works. When you deposit a cheque into your account, your bank will send the cheque to the bank of the person who wrote the cheque. That bank makes sure that the cheque is legitimate and there are enough funds in the cheque-writer s account to cover the cheque, and then sends the funds to your bank. This process can take a few days but, for most cheques, the bank makes the funds available to the customer right away. However, it isn t until your bank gets confirmation from the chequewriter s bank that it knows for sure that the funds are available. What most people don t realize is that, until it receives that confirmation, the bank is really advancing you the money.

Post-dated Cheques Cashed Early Sometimes a post-dated cheque is deposited before the date on the cheque. Banks have processes in place to look for post-dated cheques and do their best to make sure they aren t processed early. You can help in detecting post-dated cheques that are cashed early. Try to regularly review your transactions through online, mobile or telephone banking or at an ABM. If a post-dated cheque you wrote is mistakenly processed before its date, you should contact your bank to let them know. The cheque can be returned and the amount credited back to your account up to the day before the date written on the cheque. Cheque Holds Banks may apply a hold on funds deposited by cheque to manage the risk from losses in case there aren t sufficient funds in the cheque-writer s account to cover the cheque. This hold protects you too since you won t be spending funds from a cheque that might be reversed because of insufficient funds in the cheque-writer s account. Banks are required to provide their hold policies in writing when an account is opened. The maximum hold period for most cheques deposited to a Canadian dollar account is four business days, and banks must make $100 available within a day. Non-sufficient Funds (NSF) If you deposit a cheque and there is not enough money in the cheque-writer s account to cover the cheque, the cheque will be returned to your bank as NSF or non-sufficient funds. If your bank had given you immediate access to the funds, it will then remove the funds from your account. If you were the cheque-writer, very often your financial institution will charge an NSF fee. You can avoid these fees by ensuring there is enough money in your account to cover the cheques that you write. If your financial institution is currently putting a hold on your cheques, ask if there are alternatives to this hold. In addition, rather than receiving a paper cheque as payment from your employer, the government, or individuals, see if the funds can be deposited directly into your account by direct deposit or ask them to send you an email money transfer: then you will have immediate access to all of the money.

Cheques Cashed By a Different Individual (Counter-Signed Cheques) It is possible for a cheque to be legitimately cashed by someone other than the person named on the front of the cheque if it is counter-signed. For example, if you write a cheque to John Smith, he can endorse the cheque on the back and give it to Jane Doe in payment of a debt. Jane can then endorse the back of the cheque and deposit it into her account. This is called counter-signing of cheques and it is permitted in Canada. To protect against someone fraudulently doing this, John Smith can write For deposit only to account of payee with his signature, and then the cheque can only be deposited into his account. Check with your financial institution to find out if counter-signed cheques are accepted. You can learn more about cheque fraud and how to protect yourself against becoming a victim on the Canadian Bankers Association website at www.cba.ca/ consumer-information in the Fraud Prevention section. Stop Payment A stop payment is a service provided by your financial institution, usually for a fee, to prevent a cheque you wrote from being cashed. However, putting a stop payment on a cheque does not guarantee that the funds will not be withdrawn from your account. For a stop payment to work, your request must be made and processed before the cheque is cashed. In addition, occasionally, a cheque with a stop payment may still be cashed if incomplete or incorrect information is given to your bank regarding the amount or date of the cheque, or the name of the person to whom the cheque was written. If a stop payment doesn t work and your cheque is cashed, you are still responsible for the cheque. To get the money back, you will have to contact the person or organization to whom you wrote the cheque.

Fraudulent or Counterfeit Cheques Sometimes criminals will create counterfeit cheques or change the name or amount on a legitimate cheque. This is fraud. There are a number of steps that you can take to protect yourself from cheque fraud. Always keep your cheques in a secure location. Review your monthly bank statement or regularly check your transactions through online, mobile or telephone banking. If you see transactions you didn t do, notify your bank immediately and they will investigate. If you close your account, shred any unused cheques. If you receive a cheque that doesn t look legitimate, ask for a different form of payment. Consider electronic payments such as wire payments, direct deposit of payments, pre-authorized payments for bills or email money transfers. You can learn more about cheque fraud and how to protect yourself against becoming a victim on the Canadian Bankers Association website at www.cba.ca/consumer-information in the Fraud Prevention section. Mobile Cheque Deposit You may have heard recently about a new way to deposit your cheques. Mobile, or remote, cheque deposit allows you to take a picture of your personal cheque, business cheque or money order (depending on the bank) and deposit it electronically using your mobile device. Several banks in Canada now offer this new service. The process is simple. Sign the back of your cheque and then log into your bank s mobile banking application, choose the picture deposit service and follow the instructions. The process is secure and your financial information is not stored on your mobile device. All financial information is also securely encrypted. You can then write deposited on the cheque and store it in a secure place for a short period of time (two weeks is generally recommended) before destroying it. Questions? If you have general questions about banking in Canada, call us at 1-800-263-0231 or send an email to inform@cba.ca. More Information Canadian Bankers Association www.cba.ca/consumer-information Canadian Payments Association www.cdnpay.ca The CPA has created a video to explain how cheques travel through the Canadian payments system.

04 Financial Fraud Prevention Tips What You Need to Know Banks have very sophisticated security systems and teams of fraud experts in place to monitor transactions to protect you from criminal activity. While banks work hard to prevent fraud, there are simple steps that you can take to protect yourself. If you are a victim of fraud, your bank will launch an investigation and, in most cases, you will be reimbursed for any money that was stolen.

Financial Fraud Prevention Tips Banks in Canada take the issue of fraud very seriously and they are working around the clock to protect you. There are simple steps that you can take to better recognize fraud and protect yourself. Here are some tips on the more common types of scams. Debit Card Fraud Debit cards are very safe, with 99 per cent of transactions occurring in Canada without incident each year. There are ways to avoid having your information stolen and your card copied. Always protect your Personal Identification Number (PIN): use your shoulder or your hand to shield your PIN when entering it onto the keypad. Never lend your card or disclose your PIN to anyone. Choose a PIN that would be hard to guess: do not pick things like your birth date, birth year, phone number or house number. Memorize your PIN: don t write it down. If anything seems unusual about the ABM or payment terminal, don t use it; report the situation to police, the retailer or the bank. Regularly review your transaction history and report anything unusual to your bank immediately. Change your PIN periodically. Banks have teams of fraud experts and highly sophisticated fraud detection and prevention systems to protect customers from debit card fraud. If you are a victim of debit card fraud, you will get your money back from your financial institution. When using your debit card, you are protected by the Canadian Code of Practice for Consumer Debit Card Services and Interac policies which guarantee that, if you are a victim of debit card fraud, you will get your money back from your financial institution.

Credit Card Fraud Banks and credit card companies take significant steps to protect customers and minimize fraud as much as possible. For example, did you know that: Banks systems can automatically detect unusual activity in a customer s account? This means that steps can be taken to prevent fraud from occurring. Visa, MasterCard and American Express have zero liability policies in the case of unauthorized transactions? This means if you are a victim of fraud, you won t be held responsible. There are steps you can take to protect yourself, including: Report a lost or stolen card as soon as you notice it is gone. Regularly check your transactions online or on your monthly statement. If there are any charges that you didn t make, report them to your card issuer right away. Never give out your card number over the phone or Internet unless you know you are dealing with a reputable company. Scammers will try to trick people into revealing information about their credit cards either over the phone or through email. It s important to know that your bank or credit card company would never call to ask for personal information like your credit card number, expiry date, PIN, or the security number on the back of your card. Contactless Cards You may have heard about electronic pick-pocketing, where a criminal with a card reader and computer can read the information on contactless cards and commit fraud. Contactless card transactions are processed through the same secure networks used for all other credit and debit card transactions. It s important to know that contactless cards are embedded with multiple layers of security to protect you. For example: Short Range Cards must be very close to a reader for any data to be transmitted. The short range makes it difficult for criminals to gain access to card information from a distance and, even if they could, the card data cannot be used to create a counterfeit card and the encryption technology would make the stolen card information useless.

Encryption Each transaction you make with your contactless card creates a unique encryption code, which expires after the transaction is finished. If someone was able to get close enough to steal data from your card, they would not be able to use the encryption code because it would have expired. Limited Information Your name is not transmitted during a contactless transaction. For Visa and MasterCard, the three-digit security code on the back of your card is also not transmitted. Low Transaction Limits Contactless cards generally have low transaction limits and any larger purchase will require you to enter your PIN. If your card is lost, this will prevent large purchases from being made. Zero Liability Visa, MasterCard and Interac all have zero liability policies for credit and debit card holders. In cases of fraud, you won t be held responsible and will get your money back. Your bank will never send you an email asking you to disclose personal information such as your credit card number, online banking password or your mother s maiden name. Fraudulent Emails Email fraud sometimes called phishing uses fraudulent email messages and websites that look like they are from a legitimate company, such as a bank, credit card company, online retailer or government agency. The email you receive may look real, with company logos and branding, but you may have actually received this spam or mass email from a criminal. Here are some simple steps that consumers can take to protect themselves: Be skeptical. Fraudulent emails can look like they come from a real bank email address. If you have any doubts about whether an email is from your bank or a reputable company, contact them before responding to ensure that it is legitimate. Never send or confirm your personal or financial information by email. Always enter your bank s website using the website address (URL) that you know is accurate. Contact your bank to get the correct website address if you re unsure. Check the domain name shown as the link in the email. When you click the link, if it does not match the name that appears in the browser at the top of the screen, then it may be a fraudulent website.

Whenever entering personal information on the Internet, ensure that you are using a secure website. Look for https:// rather than just http:// in the address bar of your Web browser as well as a closed padlock in the bottom right corner of your browser. Make sure that your home computer is protected. Install a firewall, antispam, anti-spyware and anti-virus software and make sure they are always up-to-date. Regularly review your bank and credit card statements to ensure that all transactions were made by you. Check your credit report at least once a year by contacting credit reporting agencies Equifax Canada or TransUnion Canada. You ll learn more about: Tips for Choosing Secure PINs and Passwords What Seniors Need to Know about Financial Abuse Staying Safe Online WiFi Hotspot Scams Grandparent Scams Overpayment Scams Identity Theft Contactless Card Security Real Estate Fraud How to Protect Against Malware Phoney Bank Inspector Scams Avoiding Counterfeit Bills Staying Safe at the ABM Look for https:// rather than just http:// in the address bar of your Web browser as well as a closed padlock in the bottom right corner of your browser Questions? If you have general questions about banking in Canada, call the Canadian Bankers Association s Banking Information Line at 1-800-263-0231 or send an email to inform@cba.ca. (Please note that if you believe that you have been a victim of fraud, you should contact the police and your bank immediately.) More Information The Canadian Bankers Association (CBA) website has extensive information on fraud prevention at www.cba.ca/ fraud. The CBA also distributes regular free fraud prevention tips by email. Sign up at at www.cba.ca/fraud. Sign up for the CBA s Fraud Prevention Tip at www.cba.ca/fraud.

05 Financial Literacy for Seniors What You Need to Know The Canadian Bankers Association (CBA) offers a financial literacy seminar program, Your Money Seniors, to assist those who are entering retirement with managing their finances and avoiding financial abuse and fraud. Financial abuse and financial fraud targeting seniors are real concerns. While anyone can be a victim of fraud and abuse, there are steps you can take to protect yourself from the common scams targeting seniors. If you have been the victim of financial abuse or fraud, there is help available.

Financial Literacy for Seniors What you need to know: Your Money Seniors, developed in partnership with the Financial Consumer Agency of Canada (FCAC), is the CBA s free, non-commercial seminar program for Canadians entering or already in retirement. The program has three modules to deliver much-needed information on: how to plan your income and make the most of your money in retirement, how to spot and avoid financial abuse, and how to detect and prevent financial fraud. Seniors groups across the country can contact the CBA at www.yourmoney.cba.ca or 1-800-263-0231 extension 260 to request that one or all of the three modules be provided to their group. Here are some tips from the program. Planning for the Unexpected in Retirement A lot can change in retirement. After all, a retirement can span more than 30 years! A leaky roof, a car accident, a health crisis these are only a few of the curveballs life can throw at you. And they can affect you financially if you re not prepared. What would be the implication on your finances if the unexpected happened? How would you manage it? Planning for the unexpected is key to managing your finances in retirement. Here are four ways you can ease the pain of unplanned expenses: 1. Save Put aside some extra money to help you cover a major expense during retirement. Reflect your emergency savings in your overall budget if you don t have any money to cover an unexpected expense, then can you cut back in some areas to build your emergency fund? 2. Do your paperwork Make sure you have Powers of Attorney (POA) for property and for health in place and obtain legal advice to make sure they are properly drafted. 3. Consider insurance When you retire, you may not have the private health coverage that you had when you were employed. If not, consider private health insurance to make sure you can handle the costs of healthcare in retirement. 4. Reduce any debt If you re on a fixed income, it could be a good idea to reduce your debt as soon as possible rising interest rates could increase your debt payments and cut into your income. You can read more about retirement today at www.yourmoney.cba.ca/seniors.

How to Spot and Avoid Financial Abuse A financial abuser can be a trusted person in your life: a spouse, adult child, grandchild or other family member, caregiver, friend or neighbour. Different from financial fraud, financial abuse occurs when someone tries to take or control what belongs to you for their own benefit, not yours. This can include your money, your property, or your personal information. Financial abuse is unethical, and in many cases it is also illegal. Four Red Flags of Financial Abuse 1. A sudden change in living arrangements Are you or is somebody you know suddenly moving in with a relative or into a nursing home against your or their will? It takes some planning to organize a move so it s worth asking what the rush is. There might be a good explanation or it could be a sign of abuse. Ask questions if you re unsure. 2. Abrupt or sudden change of beneficiary Are you being pressured to change your Power of Attorney or will? That s a red flag and a sign that you should get some outside advice from a friend or a professional (i.e., a lawyer or your banker). 3. Confusion about how money is spent or missing money Are you missing money from your bank account or are you seeing unauthorized charges appearing on credit card statements? That s a sign of financial abuse and you should immediately contact your bank or credit card provider. 4. Things are missing Is someone taking your things without your permission? Whether it s a car or a keepsake, if someone is taking things from you and refusing to give them back on demand, it s a sign of financial abuse. Remember, financial abuse is a violation of your rights. It is not your fault, and there is help available. Find the list of provincial hotlines on the Your Money Seniors website at www.yourmoney.cba.ca. Go to www.yourmoney.cba. ca/seniors to read 4 steps you can take if you suspect financial abuse and where you can go for help.

Three Forms of Financial Fraud Financial fraud is any kind of crime that targets your money through your bank accounts, credit cards, or investment accounts. Think of it as the modern-day equivalent of a pickpocket except in this case, scammers are looking for any personal information that can be used to get your money. Here are the top forms that we cover in the Your Money Seniors seminar: Financial Fraud Know the signs, empower yourself: 1. Identity theft A criminal steals your information to access your bank accounts, government benefits just about any area of your life. All this can be done with basic information like your birth date and your name. Identity theft is the gateway to many other types of financial fraud. 2. Credit and debit card fraud When someone gets control of your credit or debit card numbers and begins to make fraudulent charges or withdraw your money. 3. The Grandparent Scam The grandparent scam involves a criminal calling you by phone and claiming to be your grandchild. He or she will then ask for money to help them out in an emergency a car accident or problem in a foreign country. They ll ask you to send money through a money transfer service urgently and with little time to think twice. They ll probably tell you not to tell their parents. Questions? If you have general questions about banking in Canada, call us at 1-800-263-0231 or send an email to inform@cba.ca. (Please note that if you believe that you have been a victim of fraud, you should contact the police and your bank immediately.) If you would like more information about how to book a Your Money Seniors seminar for your seniors group, please call 1-800-263-0231, ext. 260 or send an email to yourmoney@cba.ca. More Information: Canadian Bankers Association The Canadian Bankers Association (CBA) website at www.cba.ca/seniors-fraud Your Money Seniors website: www.yourmoney.cba.ca/seniors Sign up for the CBA s Fraud Prevention Tips at www.cba.ca/fraud The Financial Consumer Agency of Canada 1-866-461-FCAC (3222) www.fcac-acfc.gc.ca Canadian Anti-Fraud Centre 1-888-495-8501 www.antifraudcentre.ca The Your Money Seniors website has five questions you can ask to determine if you re being set up for financial fraud. Read Is it Legit? 5 Questions to Ask and nine ways you can prevent financial fraud from happening to you at www.yourmoney.cba.ca.

06 Financial Literacy for Young Canadians What You Need to Know Financial literacy is an essential life skill. Developing an understanding of money at a young age will help people better manage their money in the future. Banks recognize that they have a role to play in contributing to financial literacy for Canadians and they lead and sponsor many financial literacy programs including the Canadian Bankers Association (CBA s) high school seminar program, Your Money Students.

Financial Literacy for Young Canadians Getting Your Child Interested in Saving Their Money Kids love the idea of having their own bank account. Most banks offer no-fee account packages for children so that they can get started with their savings. It may be convenient to open an account where you already bank so ask if they have a special children s account. You can also compare children s account packages using The Financial Consumer Agency of Canada s (FCAC) online, interactive Account Selector Tool. Many banks also have special websites to help children learn about banking and to get them excited and interested in saving their money. Some also offer branch tours to help children understand how a bank works. As children get older, it is even more important to instill good money management skills as they take on part-time jobs or begin saving for postsecondary education. Helping Youth Understand Finances Financial literacy is an essential life skill. Developing an understanding of money at a young age will help people better manage their money in the future. But managing money is about more than just accounts. All of the major banks post extensive resources for students on their websites including information about: effective budgeting while on campus, planning for a career, and how to become an entrepreneur, available scholarships. Banks offer special accounts for students and other incentives to learn how to manage their money.

Special Accounts for Students Banks in Canada have committed to no-fee accounts for students. You can compare those accounts using FCAC s online, interactive Account Selector Tool. To open an account, a student will need two specific pieces of identification, such as a Canadian-issued birth certificate, a Canadian driver s licence, a passport, or a social insurance card. There are many different options for identification and a full list is available on the CBA s website. Helping Students Prepare for the Future Banks offer podcasts, social networking resources and blogs that can help students plan for the future and manage their money now and after they leave school. How Banks are Helping The banks offer many programs to support and help teach financial literacy skills such as saving and money management. They also jointly support a noncommercial in-class seminar called Your Money Students, which the CBA has been offering for over 15 years to deliver basic money management information to senior high school students in communities across Canada. Offered in partnership with the federal FCAC and delivered by volunteer bankers, the seminar has reached over 225,000 students to date. Teachers interested in booking a free seminar for their class can find out more at the Your Money Students website. Questions? If you have general questions about banking in Canada, call us at 1-800-263-0231 or send an email to inform@cba.ca.

More Information Bank website resources for children and youth: CIBC Advantage for Youth: http://bit.ly/1ybv2tv RBC s Leo s Young Saver Account: http://bit.ly/1ozabrn TD Youth Savings Account: http://bit.ly/1cfoxhv Scotiabank Getting There Savings Account Program for Youth: http://bit.ly/1abzons BMO Youth and Students Banking: http://bit.ly/1aba5gx Laurentian Bank s Operations Account Youth: http://bit.ly/1iu8w6x National Bank Accounts for Children: http://bit.ly/1amdmuy Bank website resources for students: RBC Student Life: http://bit.ly/12lz4mj CIBC Student Life: http://bit.ly/1fjg1hy TD Student Life: http://bit.ly/1bff8fc BMO Student Banking: http://bit.ly/1aba5gx Scotiabank Student Life: http://bit.ly/15ner3d National Bank for Students: http://bit.ly/1pn7zdl Laurentian Bank My Studies: http://bit.ly/1vc22zd Additional Resources Your Money Students Seminars www.yourmoney.cba.ca The Financial Consumer Agency of Canada s financial literacy programs www.fcac-acfc.gc.ca

07 Banking for Newcomers to Canada What You Need to Know All of the major banks offer extensive information on how newcomers to Canada can get started in their new country, including checklists, information, financial services and advice. Getting started with a bank account is easy and there is a lot of choice: there are close to 100 consumer bank account packages alone 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 www.fcac-acfc.gc.ca.

Banking for Newcomers to Canada How Banking in Canada May Be Different Banking in Canada can be a different process than what you may be used to in your home country. While banking services differ around the world, here are some characteristics of Canada s system: A National System of Banking Canada has a national system of banking where each of the five largest Canadian banks has branches in all ten provinces. The benefits of this national system mean that you have access to similar products and banking services at the same price regardless of where you are in Canada. Bank Deposits are Secure Canadian banks are well-managed, well-capitalized and well-regulated. In fact, the World Economic Forum has rated the Canadian banking industry number one in the world for safety and soundness for seven years running. In the unlikely instance of a bank failure in Canada, your deposits in your Canadian dollar savings and chequing accounts (up to $100,000) are protected. The institution must be a member of the Canada Deposit Insurance Corporation (CDIC), and all Canadian banks that take retail deposits are members of CDIC. For more information visit www.cdic.ca. Costs Fees for banking products and services can vary. There are low-fee and no-fee accounts available and higher fees may be charged on accounts that offer additional services. It s important to understand what services you want and then shop around for the package that best meets those needs. It s easy to compare the banking packages available using the online interactive Account Selector Tool available from FCAC.

Interest Rates Interest rates for different products are set by each bank. The decision on how much interest to charge on a loan depends on how risky the loan is and the prices that banks and other lenders pay to raise funds in the broader marketplace. Canada has a very competitive banking industry, so it s important to shop around. Canada has a very competitive banking industry, so it s important to shop around. Opening an Account 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. To open an account, you must present two specific pieces of identification, such as: a Canadian driver s licence, a Certificate of Canadian Citizenship, a Certification of Naturalization, in the form of a paper document or card but not a commemorative issue, a Permanent Resident card or Citizenship and Immigration Canada Form IMM 1000 or IMM 1442.

A foreign passport and an employee card with a photograph are also acceptable pieces of secondary identification. A full list of the kinds of identification that a bank can accept is available on the Canadian Bankers Association (CBA) website at www.cba.ca. 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. Starting a Business Many new Canadians want to start their own businesses and look to banks for financial advice, services and products. The majority of bank business customers are small businesses and banks work hard to meet the needs of this large and diverse group. Banks offer financing, information, advice and many other services to help people start and manage their businesses, including educational and planning resources such as seminars and workshops, credit cards for small business, lines of credit, overdraft protection, telephone banking, online banking, venture loans, and payroll and cash management services.

Questions? If you have general questions about banking in Canada, call us at 1-800-263-0231 or send an email to inform@cba.ca. More Information Bank Websites for New Canadians: The Banking Basics section of the Canadian Bankers Association website, www.cba.ca The Financial Consumer Agency of Canada, www.fcac-acfc.gc.ca Bank Resources to Help with the financial transition to Canada: BMO NewStart Program For those planning to come to Canada soon, or who have recently arrived in Canada, this information helps ensure the financial transition goes smoothly. http://bit.ly/1vg09jp CIBC Welcomes Newcomers to Canada Information on living, working and studying in Canada, as well as getting identification. http://bit.ly/1pnvt8y HSBC New to Canada A checklist for newcomers, advice on getting started in Canada, a Canadian immigration and banking glossary, and information on accounts for newcomers. http://bit.ly/1ybecpn RBC Immigrating to Canada Information about life in Canada, buying a home, employment and financial services that are tailored to newcomers needs. http://bit.ly/12msmdn Scotiabank Start Right Program for New Canadians A banking program for newcomers to Canada. http://bit.ly/uaenik TD Bank Financial Group New to Canada A summary of TD Canada Trust initiatives to help newcomers better understand banking in Canada. http://bit.ly/1frqgiz ICICI Information about a Newcomers to Canada account. http://bit.ly/1iypxdr National Bank of Canada Immigrating to Canada Information about working, studying and starting a business in Canada along with a checklist. http://bit.ly/1vlis0m

08 Banking for Small & Medium- Sized Businesses What You Need to Know The majority of bank business customers are small and medium-sized businesses (SMEs), with banks providing services to 1.6 million SMEs across Canada. As of December 2013, Canada s domestic banks authorized $197.93 billion to SMEs across the country. Authorized lending to SMEs has increased by almost 20 per cent since 2008. Banks provide SMEs with more than just financing. They also offer a wide range of financial and advisory solutions. Banks participate in the federal government s Canada Small Business Financing Program (CSBFP).

Banking for Small and Medium-Sized Businesses Relationships are important in banking, and perhaps never more so than when working with small and medium-sized businesses. Banks play an essential role for SMEs across Canada, meeting their diverse financial needs to drive jobs, innovation, development and growth. What are Small and Medium- Sized Businesses? Canadian Bankers Association (CBA) Business Credit Statistics define an SME as having authorized borrowing under $5 million. Serving the Banking Needs of SMEs SMEs can turn to banks for a variety of financial and advisory solutions. In fact, a majority of these entrepreneurs consistently report that they chose their main financial institution on the basis of non-credit rather than credit products and services 1. These banking solutions include: business chequing and savings accounts, in both Canadian and foreign dollar denominations, tax payment services, foreign exchange services, succession and investment planning, electronic funds transfers, online and telephone banking, payroll and filing services, and coaching podcasts, booklets and seminars. Lending to SMEs Banks work closely with entrepreneurs to provide a range of long-term financing and short-term, day-to-day lending options: term loans, mortgages, leasing, lines of credit, overdraft, and credit cards.

According to Industry Canada s Survey on Financing and Growth of Small and Medium Enterprises close to 90 per cent of SMEs had their debt financing request fully or partially approved in 2011, with less than eight per cent of SMEs stating that their debt financing request was rejected. 2 Questions? If you have general questions about banking in Canada, call the Canadian Bankers Association s Banking Information Line at 1-800-263-0231 or send an email to inform@cba.ca. More Information Bank Resources for Small Businesses BMO Financial Group: http://bit.ly/1fjqm6j CIBC: http://bit.ly/1cbtaqi HSBC Bank of Canada: http://bit.ly/1tzpkdw Laurentian Bank: http://bit.ly/1vg54km National Bank of Canada: http://bit.ly/1yf2anw RBC: http://bit.ly/1cbttkp Scotiabank: http://bit.ly/11ojipi TD Bank Group: http://bit.ly/1gjbrz8 Canadian Western Bank: http://bit.ly/1abutxq Canada s Small Business Financing Program (CSBFP) The banks also participate in the federal government s CSBFP. The government shares risk with lenders through this program, which helps stimulate job and wealth creation. Small businesses or start-ups operating for profit in Canada with gross annual revenues of $5 million or less are eligible for CSBFP loans. Additional Resources Canadian Bankers Association website: www.cba.ca Industry Canada website: www.ic.gc.ca 1 SME Survey Results: Assessments of Relationship with FIs, Strategic Counsel, August 2009. 2 Industry Canada, Survey on Financing and Growth of Small and Medium Enterprises, 2011 released in 2013.

09 Banking for Farmers What You Need to Know All major banks have dedicated departments serving farmers during all phases of their business. All major banks are participating lenders in the Government of Canada s Canadian Agricultural Loans Act (CALA) program to help you establish, improve or develop your farm. Banks offer the AgriInvest account to help farmers recover from small declines in farm income. A wide range of support including advice on business succession is available to young farmers.

Banking for Farmers Banks in Canada are proud of their longstanding business relationship with farmers and agricultural customers. These strong relationships have helped banks work with their customers on the day-to-day issues of running a farm and through the significant challenges that the industry has had to confront. Dedicated Agriculture Departments All major banks have dedicated departments to serve agricultural businesses. These departments are staffed by teams of agricultural specialists that know your industry and are able to provide services during all phases of your business. In addition to business accounts, banks offer products to meet your operating, capital improvement and equipment financing needs as well as products to manage financial risk and expenses. Bank agriculture specialists can also offer advisory services with detailed information on economic conditions, market trends, government policies, and regulatory issues that may impact your farm. Supporting Young Farmers and the Rural Community There has been a resurgence of interest in agriculture by a younger generation of farmers. They play important roles in Canada s agricultural and rural success story. However, sometimes these younger farmers need more support and advice than experienced producers. Your local bank branch can supply the tools, advice and support you need to succeed. Many branches can provide advice on how to develop a business plan, and they often hold business seminars that provide access to experts in your field. Banks also support Outstanding Young Farmer Programs, 4-H clubs and university programs that provide assistance to agricultural youth and entrepreneurship, networking opportunities, and scholarships. Contact your bank to find out what s available. Banks are also working with producers on succession planning to ensure a viable transition to future generations of farmers.