Opening a Canadian Bank account

[wpsteel79]

I am moving to Canada in January 2010. Can somebody share their experiences of opening a Canadian bank account. I have both a UK HSBC and Citibank account What options are open to me?

 

[jes_ON]

moving from where? Citibank being a US-based account?

Honestly, I had better experiences opening a bank account in so-called third world countries (I'm from the US). I'm not in Toronto or Vancouver, tho, maybe I'm just in a banking backwater with 100,000 people

I have a Bank of America account, and chose Scotiabank in Canada because they have a reciprocal agreement where you can use an ATM card from one at the other without service charges. I had thought (hoped) that this would mean that it would be relatively easy to move money back and forth between my two accounts. WRONG. Had to make an appointment with the bank officer (there's only one), which took something like 4 weeks (don't do it February-April during "tax season"). Then it was the third degree. There's apparently no standardized process to follow, because they kept coming back and asking for more papers, IDs, etc. Then to make a deposit, they held my money for 3 weeks ("security" my arse).

What I should have done (instead of trying to deposit a check) was to withdraw cash from the ATM and deposit that. But would have had to go to the bank several times, because of ATM limits.

After providing all that paper work, you know what happens if I want a new product or service? Yup. They want all the same paperwork all over again. When I say "I already gave that to you" they say that they don't keep it, it all goes to the central office in Toronto. "Don't you keep copies or records or have electronic access?" No. But you already did these clearances. Sorry, have to do it again.

AFTER I got here, did find out that RBC is the only one (as far as I could find out) that makes it easy to move money between Canada and the US (because there is also an RBC in the USA). (They have a program that caters to Canadian snowbirds in the US). If I had known that before, I would have moved my account in the US to RBC there ... can't recommend it on first-hand experience, but you are supposed to be able to make electronic transfers between accounts... Now I have to go thru a 3rd party to make those transfers (forex). Scotiabank's idea of providing international transfers is to promote Western Union

There's a special, very hot place in the afterlife for American bankers, but Canadian banks make American banks look pretty good. The only reason they have such a good reputation internationally is that the system is too backwards, too ... what's the opposite of transparent, opaque? for anyone to know any better. (You wouldn't believe the stuff that still gets done on paper...). You know, if you don't keep mortality statistics, there is no epidemic...

Anyway - yes, perhaps I got the one worst bank in Canada, but after being here for almost 2 years I have no reason to believe the others are much better. Still, if I get PR and no longer have to worry about getting the boot, it will be worth the hassle of switching and finding out.

 

[Leon]

My experience, I started with an account at CIBC and later moved over to Presidents Choice. I would not recommend CIBC, they were always making some mistakes or trying to convince me of doing things that were no good for me and from other people, I heard they were known for that. I have also heard about people having problems with RBC but that depends on the branch. I've heard only good things about TD and BMO.

Presidents Choice I would recommend if you want free banking with higher interests and are prepared to do all your banking online or through the phone but not until after you have severed all ties to money kept in old country because transferring money to them is pretty well impossible. Any other bank should be able to handle international transfers. Even CIBC managed to do it.

I have never heard anything about Scotiabank until now and I have actually never heard anything about Citibank or HSBC.

 

[BCKev]

I expect that a Canadian bank will require you to be physically present in their bank in order to open an account. This is what I've seen when trying to get some banking business set up before my wife came to Canada.

I agree with that TD would be a good bank to deal with. Hate to tell you this, but the President's Choice banking is run by CIBC.

 

[toby]

Before anyone compares Canadian banks to banks in third-world countries, try Costa Rican banks. You'll be glad to bank in Canada!!!!

I like RBC. My experiene is that you must establish a relationship with a particular officer, and then many things are possible that otherwise would not be. Before opening the account, meet with him or her, and state what you want to do (make transfers in from a foreign bank, or whatever), before opening an account. If he or she says what you want is possible (explaining how to do it), the open the account. If not, go to the next bank on your list until you find one where they have a "can do" attitude.

From then on, if you have any problems you just email or call your personal problem solver at the bank. Of course, you need more than $55.34 in the account to get attention.

 

[Leon]

I agree with that TD would be a good bank to deal with. Hate to tell you this, but the President's Choice banking is run by CIBC.

I know but at least PC gives you a free account and way better interest rates. The lack of service also makes for less mistakes because you are doing all of your banking online and you get to use all of the CIBC ATM's for free Still, not recommended while you need to transfer money from old country.

 

[slavasz]

You already have UK HSBC account.
I think if it is Premium you can easily open the same type in HSBC Canada.
Or not?

 

[jes_ON]

Toby, glad to hear you recommend RBC. Once I know I'm here past the next few months, I'll make the switch.

And I agree with what you say, RE needing to "establish a relationship with a particular officer", that is the fact in my neck of the woods too, but it is the exact opposite of what I expect from a first-class bank. All customers deserve excellent customer service, period. There's a lot about BOA I dislike, but I do love the fact that I can walk in to any BOA branch where I have never been before and get excellent, on-the-spot service simply because I am a customer. It is NOT personal, it is professional.

No, I haven't banked in Costa Rica, but I have in a few countries in Asia (as well as Europe).

Yes, any bank with international services will do international transfers, and that's good if you want to move large sums of money on an infrequent basis and don't mind paying 20-50 dollars or more per transaction. But I don't want to spend a fortune or make appointments to see an officer every time I want to move small amounts of money. I want to do it myself, with minimal fees. Scotia is not the bank for that. Although, at least they do not charge me (at this time) for using Forex.

My experiene is that you must establish a relationship with a particular officer, and then many things are possible that otherwise would not be. Before opening the account, meet with him or her, and state what you want to do (make transfers in from a foreign bank, or whatever), before opening an account. If he or she says what you want is possible (explaining how to do it), the open the account. If not, go to the next bank on your list until you find one where they have a "can do" attitude.
Of course, you need more than $55.34 in the account to get attention.

 

[toby]

Jes, let me clarify a few things.

Once I established a relationship with "my" bank officer, she was my "go to" person from then on. When I moved across the country and wanted an introduction to a local bank officer, my "person" made the introduction. More and more banks want to know the client -- maybe it's part of the anti-money-laundering crusade. So, having one person who knows you well, even if you don't actually see him or her for years, is valuable. She also served me well when I lived in Costa Rica for 6 years. In Latim America you need a bank reference letter to open a loca account. SHe provided it, whereas who would have produced it had I not had such a relationship?

 

[jes_ON]

Toby, I completely understand what you are saying, it is not new to me, and I have banked in such a system before. Just not in an "industrialized" country . If you like it, if it works for you, terrific - you can have it. I don't, it doesn't work for me, that's all. If RBC can better meet my needs for transferring money between the Canada and USA, it will be a "better" bank for me.

About reference letters - I needed one from my auto insurance company in the US to get auto insurance here. I did not go to "my agent" (didn't have one) but called the company's customer service - no one I had ever met before - and they provided the letter. It took a telephone call, not an appointment where I have to take time off from work. If I needed a letter from BOA, I could get one, no big deal, just a telephone call. Any agent can vouch for me on the basis of good records. That's more reliable than a "personal" reference any day, in my book.

I don't like being treated as a presumed money launderer simply because I haven't lived here all my life. And yes, Canadian banks could EASILY verify my banking and credit history if they wanted to - I showed one banker how to do it, he was shocked (if you can access Equifax in Canada, it's the SAME database as the one in the US). Since I've been here, only one company -they REALLY wanted to sell me something - went the extra mile to check my US credit history. But generally, the banking system (as in rules & regulations) in Canada is not designed that way. I think it has more to do with Canadian privacy legislation - they CAN'T examine people's history the way they do with the US, so the "system" to prevent abuse (money laundering etc.) is handcuffed.

Alas, I understand that Canadians can be treated just as rudely by US banks; I've heard Canadians complain about how American banks are in the dark ages too - but they get "special" treatment because of all the "Canadian" fraud. Sometimes neighbors can be the worst of friends.

 

[slavasz]

I still don't understand why wouldn't anybody use HSBC?!
Actually this forum is sponsored by HSBC!
And if you have HSBC Premium in any other country you can open the same Premium account in Canada without any problem.
If you don't have Premier or any other account in HSBC for that matter you can open HSBC Passport with just CAD100 in it.
http://www.hsbc.ca/1/2/en/personal/immigration-canada/new-to-canada/financial-services-new
You just need to go to any HSBC office in your country and do it without being in Canada.
So, what's the deal?

 

[Leon]

I know one guy who was going to open an account as HSBC. He said he decided not to do it because in their small print it says that if there is a banking error and you lose some money, if you don't notice this within 30 days, it's irreversible. Since he travels a lot and has all kinds of money, this was important enough to him that he decided not to open an account there but this is the only negative thing I have ever heard about HSBC.

 

[toby]

I've had mixed experience with HSBC. In one country they are very good, in another country woefully bad. HSBC is determined to become a major bank in the world, but sometimes they are in too much of a hurry to do the job right. In Costa Rica, for example, they bought out Banamex, slapped on the HSBC nameplate, but didn't upgrade any of the antiquated Banamex systems, and didn't integrate the COsta Rica banks into the worldwide HSBC network. Result: HSBC Costa Rica remains a local bank, isolated from the other branches around the world.

Even the HSBC in the "good" country screwed up. They issued me a debit card, promising it would be good around the world. It was not. Either the account was inactive (lack of use for 6 months or more, which they never warned ne about) or I needed to fill the account by transferring into it from a savings account (unlike in Canada where the debit card can draw from any account with cash in it -- much more convenient), etc etc.

Result: I could not rely on the card while travelling, because I never knew what new unexpected problem would leave me without cash at a critical time in a foreign country. I went back to using my fail-safe Canadian debit card.

What's the point? HBC talks a good game, but delivery of those promised services can be faulty. SOme day HSBC will be a major banking force; just not yet.

 

[slavasz]

Thanks guys for the feed back on HSBC.

 

[jes_ON]

What's the deal? Never heard of HSBC before, and there is no branch in my town.

I still don't understand why wouldn't anybody use HSBC?!
Actually this forum is sponsored by HSBC!
And if you have HSBC Premium in any other country you can open the same Premium account in Canada without any problem.
If you don't have Premier or any other account in HSBC for that matter you can open HSBC Passport with just CAD100 in it.
http://www.hsbc.ca/1/2/en/personal/immigration-canada/new-to-canada/financial-services-new
You just need to go to any HSBC office in your country and do it without being in Canada.
So, what's the deal?