Canada has one of the strongest and most reliable banking systems globally, with Canadian banks and financial institutions held in high regard around the world.

Before you decide on a branch and begin banking in Canada, you may want to take into consideration which branches are convenient to your home and place of work and what their opening hours are, as well as which financial products they offer that match your banking preferences. It is very likely that two original pieces of identification will be required to open an account.

Banking Glossary

• Account

A fund that a customer has entrusted to a bank and from which the customer can make withdrawals.

• Automated Teller Machine (ATM)

Self-service machine at a bank or other location that enables customers to perform basic banking activities. You need an ATM card or debit card and a PIN (Personal Identification Number). Earlier, known as an Automated Banking Machine (ABM).

• Bounced Cheque

Cheque that a bank returns to the issuer due to insufficient funds in the issuer’s account.

• Cheque

A written order directing a bank to pay money.

• Correspondent Bank

Bank that performs services for another bank which has no branch or physical presence in the relevant centre or jurisdiction. Functions include cheque clearing, cash management, transfer of funds and so on.

• Credit History

Records of a borrower’s debt payment that indicate the creditworthiness of the borrower. The credit history helps lenders in determining the borrower’s ability to repay debts in a timely manner.

• Electronic Funds Transfer (EFT)

Transfer of funds by electronic means rather than paper based methods. These include using computer systems, ATM, telephone, wire transfers, etc. The funds are transferred faster and are more secure.

• Interest Rate

Price lenders charge the borrowers for use of their money for a specified period of time. The rate charged is usually expressed as a percentage of the total amount borrowed.

• Line of Credit (LOC)

An agreement negotiated between a borrower and a lender establishing the maximum amount of money against which a borrower may draw. The agreement also sets out other conditions, for example, how and when the money is to be repaid.

• Liquid Assets

Cash, demand deposits with a bank or financial institution, short-term deposits and readily marketable investments including publicly traded stocks or bonds.

• Minimum Opening Deposit

Minimum amount of money needed to open and maintain an account. Accounts that fall below the minimum balance may be subject to service charges.

• Non-resident Account

An account owned by a person from outside the country in which the bank is chartered.

• Online Banking

A convenient and secure way of performing banking operations using a financial institutions secure website over the internet. This allows customers to do their banking outside bank hours and from anywhere on the Internet.

• Personal Identification Number (PIN)

A numeric identification code of usually four digits, which users create to access their account. PIN is required for use at ATM machines to verify the identity of the cardholder and to authorize the account transactions.

• Savings Account

A deposit account which bears interest without a stated maturity. Withdrawals and deposits can be made at any time.

• Service Charge

A fee established by the financial institutions for maintaining a particular service, like annual charges for a checking account, late payments of loans, returned cheque, and so on.

• Stop Payment

An order by the writer of a cheque to the bank not to honour the payment. The stop payment order directing has to be given before the cheque has been cashed and can be done by telephone or in writing.

• Telephone Banking

Service provided by the financial institution, which allows its clients to perform transactions over the telephone. Most telephone banking requires authentication and instructions are carried out by a physical person or via an interactive voice response (IVR) system.

• Term Deposit

Secure investments generally offering a higher rate of interest than a simple savings account, available in a number of currencies, a variety of term lengths, and several redemption options.

• Wire Transfer

An electronic transfer of funds from one entity to another across a network administered by hundreds of banks around the world.