Canadian banks and other establishments offer current and savings accounts for students and young people. Big banks such as Toronto Dominion and the Bank of Nova Scotia as well as small entities offer student savings accounts.
Features and Benefits
Students benefit from free-of-charge paperless recordkeeping, unlimited transactions, and no monthly fees. Special discounts and perks are offered to postsecondary students who are enrolled in recognized universities. Additional perks include overdraft protection, pre-authorized contributions and payments, direct deposits, and others. Students are allowed to manage their transfers, bill payments, withdrawals and deposits, and account inquiries.
Other benefits include reduced fees for pre-authorized payments, telephone banking, ATM transfers, and others. In some cases, banks also offer services at no added cost. Some banks also feature no fees and charges but a minimum balance is required.
Types of Products
Students can choose from different products such as savings and tax-free savings accounts. Funds in your TFSA can be used to make a down payment, go on vacation, pay your tuition costs, buy a car, or anything else. You are allowed to re-contribute the amount withdrawn. The main benefit of tax-free savings accounts is the fact that holders earn interest without paying tax on withdrawals made and investment income. Eligible applicants are of the age of majority who are Canadian citizens or residents.
Some financial institutions offer online tools to help customers to choose the right product. What you do is enter your usual monthly balance and number of transactions. Make sure you check the products on offer. Some banks no longer offer certain products and services, for example, account maintenance fee waivers, occasional overdraft protection, interest checking accounts, and others. Some financial institutions offer a choice between accounts with transaction fees and bank plans.
Depending on your financial institution, there are accounts that allow customers to earn interest. Banks also offer discount checking accounts that feature no monthly fees, a certain number of free transactions, free deposits, and more. When it comes to charges, financial institutions assess interim statement fees, withdrawal fees outside the U.S. and Canada, and fees for additional transactions. On the plus side, banks also offer overdraft protection to customers who experience cash shortages. Look for a product with interest free overdrafts. While criteria vary from bank to bank, you should qualify for interest free overdrafts if you are a postgraduate or graduate student and are studying full-time. Some financial institutions also serve customers who are on non-degree courses. Contact your bank to check if you qualify.
There are other benefits for holders, including assistance by finance advisors, free gifts, discounts on student-related products, and more. Banks offer perks and freebies such as cash, rail cards, cinema vouchers, CDs, and many others. While there are plenty of gifts and incentives, ask about the services offered. For example, do you qualify for a student credit card as well and are you entitled to a free debit card? Check whether your bank of choice has a branch close to where you live – whether your parents’ home or near your campus. You may want to ask what will happen to your account once you finish university. They may upgrade it to a standard account. Another option is to switch to a different product if you find a better deal.