If you are serious about getting work in Vancouver, or anywhere in Canada for that matter, then you are most likely going to need to get a bank account. Good news is that it’s relatively easy to open a basic bank account that allows you access to an Interac card (local equivalent of Eftpos or a bank card) which you can use to spend your cash pretty much anywhere. It’s also fairly easy to get a chequing account, which some will find essential. Bad news is that it’s a little more difficult to get a credit card because you’ll need credit history which 99% of new immigrants to Canada won’t have, because it is something that you build up over time. Still, that is explained in greater depth in the credit history article.
Choosing the right bank
Things to take into account when choosing your bank include number and distribution of ATM’s, whether they accept deposits through their ATMs. Ease of access in getting an account, and maybe even how green conscious they are (for example VanCity goes on about what they are doing for the environment, whereas CIBC just takes your money. Another thing to look at are points programs – if you are going to be doing a fair bit of flying, particularly if it includes to Australia and back, then these programs can be quite rewarding – on Aeroplan, then a return flight to Australia can get you close to earning enough points for a return trip to New York City, which is always nice! Aeroplan is also partnered with CIBC, so you can get more points as you go along. It’s a personal preference, but I seem to be doing a fair bit of flying, so I figured I may as well take advantage of it. I also recently saw that Royal Bank were giving away an ASUS Eee PC to those who signed up to a new account. Now that would be cool!
Applying for an account
To get a bank card, all you need is your passport, your work permit and something that states your address on it. This may be a lease, a phone bill or anything really, it’s not actually essential, but it’s a good idea to have it to ensure you get it right! The process is actually quite simple, just wander into a bank and get an appointment – you may or may not have to wait. You’ll then sign a few forms after the get some details from you, and you should be set up and good to go. Most banks will give you a card there and then.
In Canada, the use of cheques (or checks as they call them) is quite a lot more common than the younger Australian generations are used to. Most places rely on checks, and you will most likely have to pay your rent through it either each month, or some places may ask you to give them a few checks that are post-dated for the next couple of months, so they only become usable after the specified date, say the 1st of May, 1st of June etc. The difficulty of getting a checking account depends on the institution, as it seems that the credit unions are tougher to get checking accounts than regular banks – VanCity refused to give me anything even remotely checking related, while CIBC gave me a checking account straight up in both 2000 and 2008, no questions asked. You may get some checks with your credit card if you get one, but beware, as when cash is drawn off your account using these, they immediately start charging interest as if you had just withdrawn cash off your card. That can be a bit painful at 19% interest.
Credit Cards
Credit cards are where the banks, understandably, get a bit sticky. All credit in Canada relies on your credit history, so if you’ve just arrived and you haven’t got any, then they won’t give one to you unless you put some of your money down first, in an equivalent amount. So in most cases, they’ll ask for a $500 deposit so you can get a $500 limit. They’ll generally say that if you behave yourself and make sure you pay it off all the time for a year or two, then they’ll give you your $500 back and you can keep the credit limit. This can be a bit of a pain, but the alternative is not having one, and lots of things need a credit card in Canada (just like checks), including some car parks that you can pay at with credit card only.
While you are getting your bank account, it’s probably advisable that you either ask for a “void check” or a piece of paper with the details on it that you can give to your employer so that they know where to deposit the money you are earning, if they don’t do it by some other method. Some banks, like CIBC, have a quick change over form they’ll print out automatically for you during the process.
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