Opening a bank account in Canada

Chapter 1 of 5

When you go to Canada on a Working Holiday, Young Professionals or International Co-op permit, you will be living there for several months or even years. That’s when the question arises: should I open a bank account in Canada to handle my daily transactions?

Reasons why you should open a bank account

To be paid by your Canadian employer

The majority of Working Holiday permit holders in Canada plan to work for at least some of their stay. Canadian employers need local bank account details to be able to pay you. Similarly, if you are self-employed with Canadian clients, you will need a local account to receive your payments.

It is not really possible for your Canadian employer to make international transfers to your foreign bank account, as the international fees are too high. A Canadian account is, therefore, necessary if you plan to earn money in Canada.

To manage daily expenses

Whether you usually pay your daily expenses by card or cash, opening a local account is essential to avoid paying expensive international withdrawal or payment fees.

In addition, having a Canadian account will enable you to make transfers quickly (for your rent, to pay friends in Canada, etc.).

To get proof of address

When you arrive in Canada, you will have to take care of things such as setting up a local phone number, getting your SIN, etc. You will often need to show proof of address and a local bank contract is one of the easiest and quickest proof of address to obtain when you first arrive (even if you use a short-term address while waiting to find more permanent accommodation).

Do I still need to keep my account open back at home?

Logically, you should keep your account open at least until you can transfer money to your Canadian account. You will also need to keep it open to show proof of recent funds when arriving in Canada. Once you’ve arrived in Canada and opened a Canadian account, you can choose to move all your savings to Canada and close your home account, or you can choose to keep it open.

We do advise you to keep your home account open because:

• It will be one less administrative formality to deal with when you return home after your stay in Canada.
• In case you return home temporarily, you will still be able to pay for things in your home currency.
• It allows you to continue to pay bills at home (such as repayments of outstanding loans) and receive transfers (such as rent payments if you’re a landlord).

If I’m an unpaid intern or don’t intend to work in Canada, is it really necessary to open an account?

Yes and no. It’s not mandatory but opening a local account for the reasons mentioned above (especially since it’s easy to open a bank account) will definitely make your life easier.