How to Open a Bank Account in Canada as an IEC Permit Holder

Do IEC permit holders need a bank account?

When you go to Canada on an IEC 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 Canadian bank account? And if so, how do I do so?

Reasons to open a bank account

1. To receive your pay

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 realistic to expect your Canadian employer to make international transfers to your foreign bank account. A Canadian account is, therefore, necessary if you plan to earn money in Canada.

2. To make purchases

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.).

3. To get proof of address

As a temporary resident in Canada, you will have to take care of things such as setting up a local phone number, getting your SIN, etc.

For these and other administrative processes, you will often need to show proof of address. The easiest and most reliable ways to do so is to show your bank statement (even if your address changes later on).

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:

1. It will be one less administrative formality to deal with when you return home after your stay in Canada.
2. In case you return home temporarily, you will still be able to pay for things in your home currency.
3. 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).