Banking
To learn about the Canadian government system, its benefits and services, read more below.
Steps To Financial Success
1. Open Canadian Bank Account
Why it’s important: You’ll need a local bank account to receive your salary, pay bills, and manage your finances.
• Types of accounts: Most newcomers open a checking account (for everyday banking) and a savings account.
• Newcomer packages: Some Canadian banks offer special packages with benefits like free banking for a period, no-fee international transfers, and credit card offers tailored for newcomers.
• Major banks: RBC, TD, Scotiabank, BMO, and CIBC all offer accounts designed for new immigrants.
2. Obtain Credit Card and Build Credit Score
Why it matters: Your credit history will be crucial for renting an apartment, getting a loan, or even some jobs.
• Starter cards: Many banks offer secured or unsecured credit cards for new immigrants, even without a credit history.
• Pay your bills on time: This will help you build a strong credit score in Canada.
3. Understand Canadian Tax Process
Register for a CRA Account: You will need to register with the Canada Revenue Agency (CRA) for tax-related matters.
• Filing taxes: Everyone in Canada must file an annual tax return, even if you’re not earning an income.
• GST/HST credits: If your income is low, you might qualify for these credits, which are payments to help offset sales taxes.
4. Learn about the Benefits of Registered Accounts
First Home Savings Account (FHSA): A tax-sheltered savings plan that allows you to grow investments and reduce your taxable income to pay for your first home.
• Registered Retirement Savings Plan (RRSP): A tax-sheltered retirement savings plan that allows you to grow investments and reduce your taxable income.
• Tax-Free Savings Account (TFSA): A flexible account where investment growth is tax-free, ideal for short or long-term savings.
Invest and Save.
Investing in stocks, mutual funds, and GICs offers a range of benefits, including potential high returns from stocks, professional management and diversification through mutual funds, and guaranteed stability with GICs. By diversifying across these options, investors balance risk and reward, protect against market volatility, and build long-term financial security. Talk to your banker about these options and consider the best combination for you to grow your money over time.