This post is sponsored by Scotiabank. All views and opinions expressed represent mine and are based on my own research of the subject matter.
You've got your pens, notebooks, textbooks, and laptop all ready and now you need to open a student bank account – where do you even start? There are 4 fairly simple steps you can follow to open this account, starting with choosing the bank you prefer and ending with filling an application.
There's a lot to consider when weighing your options, but once you've made that call, it is pretty easy to communicate with the bank and open your new account. To make things a little easier, we've created this step-by-step guide to help you get that student bank account up and running. Then you can focus on more pressing matters like ordering that pizza for your group study session.
Key Takeaways
- The 4 steps for opening a student account include choosing a bank, choosing an account, gathering documents, and filling out the application.
- Your student account gives you access to convenient tools like a debit card and Interac e-Transfer.
- If you bundle your student account with other financial products and services, you can save money and enjoy more convenience.
The 4 steps to open a student bank account
There are 4 main steps you'll need to take when opening your student bank account: selecting your preferred bank, deciding on the type of account you want, gathering up the necessary documents, and filling out the application itself, either in-person or online.
Here's a bit more information on each of these.
1. Select a bank
The most obvious choices will be "The Big 5" banks, which is what people often call the 5 largest banks in Canada. These are:
- Scotiabank,
- RBC,
- TD,
- BMO, and
- CIBC.
You can also consider going with an online bank, such as Simplii or Tangerine, but not all of these types of banks may offer a student account.
When making your choice, there are a few things you should consider. What are the options for contacting customer service? Are the branches and/or branded ATMs in locations that are convenient for you? Would you feel that your money was safe and secure with this bank?
It's also not recommended that you choose a bank only because it's the bank that your friends, parents, or family members use. Do some research for yourself and choose the bank that feels right for you.
2. Select an account type
Once you've settled on a bank, it's time to decide whether you need a savings account or a chequing account. Each one has a specific purpose, so choosing the type that best suits your needs is important.
A savings account will be best if you simply need a spot to store your money. It can sit in this account until you need it, earning interest all the while. Therefore, it's important to compare interest rates when choosing a savings account.
On the other hand, a chequing account is designed for more frequent access to your money, so you can spend it as needed. Depending on how frequently you think you'll be spending from this account, you'll want to choose one with the right amount of transactions included at no extra cost.
As an example, some accounts come with unlimited debit transactions1 and Interac e-Transfer transactions with no monthly account fee, while other options only include a limited number of free transactions per month.
3. Gather documents
Opening a student bank account will require that you prove your identity and your status as a student. Certain things will depend on whether you're a Canadian or international student, but in general, these are the documents you should have on hand when preparing to open your account:
- passport,
- student ID,
- study permit,
- temporary permit,
- driver's license,
- Canadian government ID card,
- letter of acceptance from your school, and
- traveller's cheques.
Even if the application doesn't require information from one of these documents, it's better to have it on hand, just in case.
4. Go to the branch or fill out the online application
Most banks provide the option to open an account online, and many people prefer this option while others still prefer to complete the task at a branch location. This way, if you have any questions or concerns, there are tellers and employees nearby to help you out. If you do decide to apply in-branch, it's recommended that you call to make an appointment ahead of time (or book one online).
Still, it's hard to ignore the convenience of applying on your own, from the comfort of your own home.
Whichever route you choose, have your documents and paperwork with you and the application process should be fairly straightforward.
How to choose the right account
One of the steps listed above is selecting the specific account you want, but this can be easier said than done – you'll need to consider factors like branch locations and easy access to ATMs, as well the features you feel are most important.
These are examples of the questions you should ask yourself before committing to any one student account:
- How many transactions – including Interac e-Transfers – do you think you'll need? There's a wide variety of transaction limits among accounts, so look for one that suits your needs.
- Will you need to use ATMs frequently? If so, look for an account that doesn't charge for either affiliated or non-affiliated ATM usage.
- Are you planning for long or short-term savings? Either one of these means you'll want to consider an account with high interest rates.
- Do you think you'll need overdraft protection? You may not know the answer to this, but if you're at all worried about it, look for an account that includes this feature either for free or at a low monthly cost.
- What happens when you're no longer a student? Some student accounts will automatically switch you over to a regular account once you've graduated while some will simply close the account. Be sure to check these details on any accounts on your shortlist.
- Are there any other perks you think you'd appreciate? Consider any welcome bonuses, free features, or other advantages you'd like to take advantage of.
The pros and cons of student accounts
To put student accounts in general into perspective, here's a list of the common pros and cons associated with them:
Student chequing accounts
| Pros | Cons |
|---|---|
|
|
Skyrocket your value by bundling student services together
Since you're already opening a bank account, this is also a good time to review the other products and services offered by your chosen bank – it's very possible that a bank account isn't the only financial product you'll need. You may also require:
- a credit card,
- a line of credit,
- an investment account, or
- something else entirely.
If you do need more, consider bundling your products and services as you'll save time and likely money this way. For example, Scotiabank offers a great banking bundle worth a ton in welcome bonuses and savings:
- Grab up to $50 in bonus Scene+ point value with the Scotiabank Scene+ Visa or other eligible credit card.
- Next, earn up to 7.05%3 on your deposits for 3 months with the Scotiabank MomentumPLUS Savings Account and get an additional 1,250 Scene+ points ($12.50 value).
- Get 5,000 Bonus Scene+ points ($50 value) for bundling all 3 Scotiabank products and completing certain qualifying transactions.
So what comes next?
Once you've opened your first student bank account, you'll be ready to do business. Here are a few tips and details you'll need to know as you progress through your education and your life.
You'll need to choose a PIN – personal identification number – to use with the debit card accompanying your account. These cards can be used at ATMs if you need to access cash, and most retailers allow you to pay for your purchases directly with the card at the checkout. This makes shopping and spending very easy, so keep track of your purchases and avoid overdraft fees.
Interac e-Transfer is another convenient tool you'll have access to. Instead of using your debit card, you can log into online banking and send money electronically. This makes paying family and friends easy, buying used items from Kijiji or Facebook Marketplace, etc. Some retailers, tradespeople, and service providers also accept Interac e-Transfer as payment.
However you decide to use your student account and the money held there, most student accounts will change as you age and your needs change.
Will you open a student account?
Opening a student bank account is both simple and rewarding. If you're planning to enter the world of academia, or even if you're currently enrolled, opening a student account can be a wise and very helpful decision.
Will you open a student bank account? Or do you have one already? What do you think of it?
Feel free to share your thoughts in the comments section below.
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FAQ
Do I need to open a student bank account?
No, you don't need to open a student bank account, but there are many benefits to having one, such as $0 monthly fees. There are often welcome bonuses for new customers too.
What are the benefits of opening a student bank account?
A few of the benefits that come with these accounts include possibly receiving a welcome bonus, not having to pay a monthly fee at all, and enjoying the value provided when you bundle your services.
Who qualifies for a student banking account?
This can vary, but student accounts are typically open to Canadian citizens or permanent residents ages 13+. Some accept secondary students, but some are only open to those enrolled in some type of post-secondary education or training.
Can you tell me how to open a student bank account with Scotiabank?
You can apply for a Scotiabank student account either online or in person, at a branch location. If you decide to go to a branch, be sure to gather the required documents and bring them with you.
Can an international student open a bank account in Canada?
Yes, international students can open student accounts here as long as they have the required documentation ready. It may help to apply in person so you have bank employees to help walk you through the steps to open the account.
1 Additional fees apply for shared ABM services, cross-border debit transactions and other banking services not included in the Student Banking Advantage Plan account package.
2 Value of up to $360 in welcome bonuses and point value with the Scene+TM Student Banking Bundle includes $100 cash bonus and up to 13,250 in bonus Scene+ points (valued at up to $132.50) as follows:
- $100 cash offer for new Student Banking Advantage® Plan customers
- 5,000 Scene+ points ($50 value) for new Scotiabank® SceneTM Visa* Card customers
- 1,250 Scene+ points ($12.50 value) for new customers who combine the products above with a new MomentumPLUS Savings Account
- 5,000 Scene+ points ($50 value) when you bundle all 3 of the above accounts and complete certain qualifying transactions
Conditions apply. Please see Scotiabank® Scene+TM Bundle for Students Offer.
3 Includes Regular Interest Rate of 0.40% plus a Package Interest Rate Boost of 0.05% for Preferred Package holders, 90-Day Premium Period Interest Rate of 0.85% and a Welcome Bonus Interest Rate of 4.75% for 3 months. Regular Interest plus a Package Interest Rate Boost of 0.05% for Preferred Package holders (or 0.10% for Ultimate Package holders) is calculated daily, paid monthly. Premium Period Interest is earned when you choose a 90, 180, 270 and/or 360-day Premium Period. A longer Premium Period earns a higher Premium Period Interest Rate provided you don’t make any withdrawals within the Premium Period you select. Premium Period Interest is calculated daily, paid at the end of the applicable Premium Period. Welcome Bonus Interest is calculated daily and paid monthly for 90 days (3 months) on your first MomentumPLUS Savings Account opened. Interest rates are per annum and subject to change.
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