While on higher education, students usually have many financial needs at varying times during their study. You may be faced with a financial need at a time when your pocket is almost empty and a student account at such times can come to your rescue. Finding a good Student Account Canada, however, needs a little bit of research into the offerings from different banks so as to choose one that best fits your financial needs.
A student account is a type of bank account specially designed for students enrolled in higher education. Having a student account works to your advantage because normally, student accounts come with benefits such as an overdraft at zero interest.
Generally, the benefits of having a student account are the following:
An overdraft without interest
No fees to pay every month
Unlimited transactions (Although this feature varies from bank to bank)
A chequing account (This, too, is subject to bank’s discretion)
24-hour access to your account
Debit purchases across Canada or even outside of Canada
Online recording of transactions
Withdrawals (over-the-counter and through ATM)
Average Cost to have a Student Account in Canada
You do not need to make a deposit of any amount to open a student account. However, you do have to present some documents as part of the bank’s requirement. Normally, the documents needed are the following:
Proof of identification (This can be a passport, visa or driver’s license)
Proof of enrolment issued by the university or college in which you are enrolled (This can be course timetable or student identification card)
If you are an international exchange student, you may need to present your Study Permit (IMM 1442) or Temporary Resident Visa
Popular Student Account Providers in Canada
Student accounts are popular in Canada. They are mostly offered by every bank. But the following are the major providers:
Student accounts are chequing bank accounts specially set for those in tertiary learning institutions. These accounts are offered by different banks in Canada with different benefits including ability to pay in and out easily, debit card and overdrafts without interests. Overdrafts are important to students and banks allow you to spend more than what you have at no extra cost. Some banks allow you to make withdrawals from the ATMs at no charge while some can also give you online access of your account.
Compare Student Account Canada
Canada has top 5 banks which offer attractive student accounts, including CIBC, BMO, RBC, Scotiabank and TD. Out of these, 4 banks offer chequing accounts at no fee while only CIBC offers unlimited transactions at no extra charge. Scotiabank also provides unlimited number of transactions but at a small fee which isn’t that bad. You can also fee waiver as long as you can maintain a minimum balance of $2,000 every day, though not so many students can achieve that. BMO has a unique feature in which your student account remains free for one year after you graduate. National Bank of Canada and PC Financial also offer attractive features. To get a better picture, you should look at compiled comparisons of the various accounts.
What are the typical Student account interest rates & fees?
Some of the top banks offering attractive student account features include CIBC, BMO, RBC, Scotiabank and TD. Each of these banks charge no monthly fee but their transaction limits vary. CIBC offers unlimited number of transactions while BMO offers 30 transactions per month and a fee of $0.60 for each extra transaction. TD and RBC on the other hand offer 25 free debit transactions and a fee of $1.00 and $0.65 respectively for every additional transaction. Scotiabank seems to be the best of all the banks as it offers unlimited transactions, but at a fee of $1.25. A detailed comparison on other features is necessary so as to choose one that best suits your needs.