Online Guide for Newcomers to Prince Edward Island - Canada
It is important to open a bank account as soon as possible after you arrive in PEI. You might use your account to:
- deposit your financial assets in a secure place
- keep records of your income (money you receive) and expenses (money you spend)
- pay bills like rent, electricity, telephone, etc.
- receive direct payments from some employers or government services
- establish a financial history in Canada, which may help you borrow money or get a credit card in the future
Types of Financial Institutions
There are different types of financial institutions in PEI:
- credit unions
- online banks
You can get information about their services in person or online. Bank and Credit Union branches are usually open Monday to Friday from 9am to 5pm and are closed Saturday and Sunday. Most offer extended hours on certain days.
Financial institutions also have Automated Teller Machine (ATM) locations which operate 24 hours a day. ATMs are usually located at the entrance of your bank and other convenient locations in your city or town. To access the ATM services you need a debit card.
There are six main financial institutions that do banking activities and have many locations in PEI and all over Canada. They are sometimes called the 'Big Six': BMO Financial Group, CIBC, National Bank Financial Group, RBC Royal Bank, Scotiabank and TD Canada Trust.
Credit Unions are cooperative financial institutions owned and controlled by its members, also known as shareholders. Credit Unions offer the same financial services as a bank.
There are 15 Credit Unions locations in both rural and urban communities in PEI. The fee to become a Credit Union member is $5.
All major banks and credit unions also offer online banking. They operate secure websites which allow you to access your bank accounts and make transactions.
With online banks you pay lower or no fees for financial transactions, but you have to do your banking transactions on the Internet, at an ABM, or by telephone. Some of these institutions require you to have a checking account open in a regular bank before you can open an account with them. Examples of online banks would be President's Choice Financial, ING Direct, and Manulife Financial.
Types of Bank Accounts
If you are running a small business, you should set up a separate business account. This will help you keep your personal and business finances separate and make your bookkeeping easier.
Banks usually offer several varieties of each account type. The account varieties and associated monthly fees, transaction fees, and interest vary from institution to institution.
Most common account types are:
- savings - an account which earns you a small amount of interest
- chequing - an account used for frequent transactions (deposits and withdrawals), allows you to issue cheques
The decision on which type and variety of account you open should be based on your financial needs. It is important to ask the right questions to help you make that decision.
Documents Needed to Open a Bank Account
Generally, you need two pieces of identification to open a bank account, and one has to have your picture. The documents you take to the bank must be valid originals, not photocopies. You can use your:
- passport or permanent resident card, and
- Citizenship and Immigration Canada (CIC) document