The Canadian banking system is a complicated network of institutions, services and programs that cover all your financial needs. Over time, you’ll become more familiar with its complexities.

Chequing Account

- Designed for day-to-day banking, paying bills, making purchases, etc.

- You can deposit and withdraw your money at any time.

- Account balances do not usually earn interest.

- Opening a chequing account is one of the first things you should do when you arrive (or before you get here) so that you have convenient access to your money (and a safe place to keep it).

- Writing a cheque is a convenient way to make a payment from your account when cash, debit, or a credit card isn’t an option. (For example, you may have to pay your rent by cheque.)

- When you deposit a cheque at a bank in Canada, a hold may be placed on it, which means the funds will appear in your account, but you can’t access them right away.

- This is to ensure that the person who wrote the cheque has enough funds to cover the payment.

Savings Account

- Ideal for money you don’t need access to every day

- Account balances earn interest

- Easily access your money when you need it to make payments

- When you open your bank account, you will receive a debit card.

- It lets you conveniently and securely access your money from bank branches and automated teller machines (ATMs); at retailers and stores; and through online, mobile and telephone banking.

Saving Plans

- One of the most popular financial products is the registered retirement savings plan (RRSP).

- As its name suggests, its purpose is to build a fund for your retirement.

- You can deposit a certain percentage of your annual income into your RRSP. That amount is deducted from your annual taxable income, which means you pay less income tax.

- The interest or other income earned in the RRSP is not taxable.

- However, you’ll have to pay tax on the amounts saved when you withdraw them from your RRSP.

- A tax-free savings account (TFSA) is for shorter-term savings

- You can deposit money each year into a TFSA and withdraw it at any time. The interest it earns is not taxable.

- An registered education savings plan (RESP) for your children’s education

- An RESP is specifically designed to finance your children’s post-secondary education.

- It allows you to save money tax-free and receive grants from the federal and Quebec governments.