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Procedure and rules for opening an account with the Bank of Canada

How to open a bank account. Acceptable and additional identification. Bank requirements during the account opening. Why a bank can refuse to open a bank account.

7 min.

In the modern world, having a bank account is often a necessity. This gives you access to many banking products and services and allows you to perform various financial operations.

Procedure and rules for opening an account with the Bank of Canada

This article describes the procedure and peculiarities of opening a settlement account in the banks of Canada.

Why do you need a bank account?

A bank account means an account opened for the name of a person or a legal entity. It is necessary for various financial operations as well as for cash management.

The person who opened a bank account gains an access to a wide range of opportunities, namely:

  • receiving money transfers (from relatives, acquaintances, employer, etc.);
  • sending money to other persons;
  • conducting non-cash payments in the conduct of commercial activities (settlements with suppliers, partners, payment of wages to employees, etc.);
  • access to Internet banking;
  • making various payments (purchase of goods in online stores, payment of utilities, mobile communications, etc.);
  • receiving assistance from the government (social payments, benefits, etc.).

Reference! The range of transactions that a user can make through his or her bank account depends on his or her status (it can be an individual or organization), as well as the type.

Types of bank accounts

In theory, a wide classification of bank accounts that serve a variety of purposes (currency, insured, correspondent, etc.) is known.

Several basic types are described below:

  1. A settlement account is opened by legal entities and individual entrepreneurs (Canada uses the term one-person business). Such an account is intended for commercial activities: conducting non-cash payments with counterparties, paying taxes, keeping of financial assets, etc.
  2. A loan account is used to repay loan debt. The statement formed from such an account reflects the amount of the unpaid loan, principal debt, charged interest, etc.
  3. Current account - this type of bank account is opened by individuals (for obtaining a salary, making non-cash transfers, payment of goods on the Internet, etc.).
  4. The deposit account is used for the temporary keeping of the free financial assets. In this case, the bank pays the account holder a certain percentage to use his money.

Who can open a bank account?

The following categories of clients can open an account with the Bank of Canada:

  • individuals are ordinary citizens;
  • organizations — legal entities carrying out a particular type of activity;
  • persons with the status of the individual entrepreneur.

Order of opening a bank account

The procedure for opening a bank account includes the following sequence of actions:

  1. Exploring proposals from different banks - in Canada, credit institutions offer many different programs and conditions for opening an account. They need to be studied in detail and the best option to be chosen.
  2. Preparation of documents according to the list approved by a particular bank.
  3. Application for opening an account — you can do this directly on the bank's website. Virtually every credit institution has the option of sending an online application.
  4. Wait for approval of the application and sign a bank account agreement with the bank.

Choosing a banking institution

Choosing a bank is one of the most important steps on the way to opening your account. To make the right decision, you should focus on such useful tips:

  • it is necessary to collect as much information as possible about a particular credit institution (history of creation, the authority on the market of banking services, the range of products offered to customers, the content of the official website, etc.);
  • it is necessary to study the conditions offered by each bank and compare them with each other;
  • it is worth looking at the independent ratings of banks in Canada;
  • it is possible to examine feedback from real users who have or have never opened a bank account at an institution.

Preference should be given to proven reliable banks that have long been operating in the market. This is especially true if it comes to opening a deposit account.

Conditions Analysis

When choosing a credit institution, one of the most important parameters to pay attention to is the proposed terms of service of the account. Here you need to explore the following key points:

  • current rates and special offers;
  • number and convenience of the location of branches and representative offices of the bank;
  • the amount of information that the client will have to provide when opening an account;
  • the presence/absence of convenient Internet banking and mobile application;
  • features of the account opening process and the requirements for the client, including the list of necessary documents;
  • the amount of the initial deposit (some banks require the client to deposit a certain amount immediately as soon as the account is opened);
  • processing time of the application and conclusion of the contract.

Application submission

You can apply for a bank account in two ways: by making a written application to a bank office or by filling out an online form on the credit institution's website.

The latter option is the most convenient. In this case, you only need to fill in a small application form on the bank's website. Usually, it contains the following information:

  • full name of the applicant;
  • the status of the client (individual or organization);
  • selected account maintenance program;
  • contact details.

Reference! If you submit a paper application, it must be filled in according to the sample approved by the bank (if available).

Required documents

In Canada, the obligatory condition for opening an account is that the applicant meets the rules set out in the Banks Act as well as in the Access to Banking Services Regulations. The following documents may be useful to the client:

  • passport of a Canadian citizen;
  • driver's license;
  • certificate of citizenship of Canada or a certificate of naturalization;
  • Canada Permanent Resident Card (or IMM 1000 and IMM 1442 forms);
  • a certificate of birth issued in that country;
  • a card containing a social security number;
  • the province's health insurance card;
  • other types of documents.

Reference! Each bank establishes its own list of documents that customers must submit when applying for a bank account.

What are the reasons for refusal from the bank side to open an account?

In some cases, the bank may refuse to open an account. Rejection of the application can occur in the following situations:

  • if there is a suspicion that the customer intends to open an account for fraudulent manipulation and illegal transactions;
  • in the applicant's record, there is information that during 7 years (before the application) he carried out fraudulent actions against other banks and financial services providers;
  • it is discovered that the applicant intentionally submitted false information when applying for the opening of an account;
  • the bank believes that opening an account for a particular client may lead to a violation of the interests of other recipients of financial services;
  • if the client refused to consent to the processing of the documents submitted to the bank and identity verification;
  • an incomplete list of documents was handed over.

Important! If rejected, the applicant should analyze the reason for rejecting the application, correct the mistake and try to reopen the account after some time.

Can a bankrupt open a bank account?

Even a person who is bankrupt can open a bank account. However, the following important condition must be met for the application to be approved - there must not be any evidence that the client has committed fraudulent manipulation or engaged in any other illegal activity in the past.

Rights of the bank during account opening

The bank where the user's personal account is opened has the right to perform the following types of operations:

  1. Asking the account holder for Social Insurance Number (SIN) information is a mandatory requirement under the Canada Income Tax Act. It must be observed when opening a deposit account. The bank must report to the state on the interest income received by the client.
  2. Verification through the credit bureau of the data submitted by the applicant - this operation can be carried out only with the consent of the client. The need for such verification is related to determining the conditions for opening an account, setting withdrawal limits, and other types of transactions.
  3. Banks are empowered to block funds detonated by cheque. Due to this procedure, time is given to redeem the cheque. Such a scheme reliably protects credit institutions and their customers from the actions of cheaters.

How to close a bank account?

For some reason, the client may decide to close the account at the bank (due to transfer to another credit institution, due to changes in rates and terms of service, etc.). In this case, the account owner must first withdraw all the money from his or her account, and then prepare a corresponding application and take it to the bank.

Thus, a bank account is a convenient tool by which individuals and organizations can store, accumulate, use and manage their funds. You can open such an account in both national and foreign currency.

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