10 Things That Will Shock You About Canada Banks | Canada Couple

Summary

This video discusses key differences in banking systems, particularly comparing practices in India and Canada. It highlights the lack of interest offered on current accounts in Canada, and the common use of savings accounts, contrasting this with Indian banking norms. The video also explains banking fees, interest rates, and account options available to new immigrants in Canada. It emphasizes the importance of having both credit and debit cards and explores various savings strategies, concluding with tips for navigating banking as a newcomer in Canada.

Takeaways

• 😀 Moving to a new country introduces differences in banking systems, especially between checking and savings accounts.
• 💰 In some countries, people aren't aware that checking accounts do not earn interest, so everyone uses savings accounts instead.
• 🏦 Interest rates on savings accounts in many countries, like Canada, are much lower than in India, often around 2%.
• 🔄 Many banks charge monthly fees for maintaining accounts, even for zero-balance accounts, which is uncommon in India.
• 📦 Some Canadian banks offer incentives like free safety deposit boxes for newcomers, helping with secure storage of valuables.
• 💳 Having multiple credit cards is essential in countries like Canada to build a strong credit history.
• 🔍 Canadian banks often require different account setups, like checking accounts for transactions and savings accounts for interest.
• 📝 When renting apartments in Canada, credit scores and proper account management are crucial for approval.
• 🌐 Online banking in Canada often requires security mechanisms like email verification and secure transfers, differing from practices in India.
• 🏦 Canadian banks have streamlined processes for deposits, withdrawals, and checks, unlike separate lines for transactions in India.

Q & A

What is the primary focus of the video?

The video focuses on the differences between the banking systems in Canada and India, especially when someone moves to a new country.

What banking accounts are commonly used in India?

In India, most people use savings accounts, while current accounts are less common, and many are unaware of the differences between the two.

What is a key difference in interest rates between Canadian and Indian banking systems?

In Canada, interest rates on savings accounts are generally lower, approximately 2%, which is much less than what is commonly offered in India.

How do current and savings accounts function differently in Canada?

In Canada, a current account (or checking account) is used for transactions, while savings accounts are for storing money and earning interest. Some banks even charge fees for using checking accounts.

Why is it important to have a credit history in Canada?

Credit history is crucial in Canada for financial transactions like renting apartments or getting loans. It helps build trust with lenders and service providers.

What should newcomers to Canada be aware of when opening a bank account?

Newcomers should be aware that some Canadian banks charge monthly fees for checking accounts, and they may need to maintain a certain balance or pay a fee for specific services.

What advice is given regarding the use of credit cards in Canada?

It is recommended to have at least two credit cards (one Visa and one MasterCard) to ensure you have coverage at various outlets. Using credit cards responsibly helps build a good credit score.

What are some hidden charges in the Canadian banking system that differ from India?

In Canada, banks may charge fees for using ATMs from other banks, maintaining checking accounts, and other services like deposit boxes, which is less common in India.

What is the significance of debit cards in Canadian banking?

Debit cards are commonly used in Canada for transactions and ATM withdrawals. Unlike India, debit card usage might come with fees, especially when using ATMs of different banks.

Why is it suggested to have both a savings and checking account in Canada?

It’s advised to have both accounts because savings accounts earn interest but are not ideal for regular transactions. Checking accounts, while less likely to earn interest, are used for day-to-day transactions.