Banking in Canada

What is a Bank?

A bank is a financial institution where you can deposit your money.

http://www.careonecredit.com/knowledge/Article.aspx?article=204

Other Services of a Bank …

• Chequing/ savings accounts

• Electronic banking services

• Loans • Credit cards• Mortgages• Investments (and

advisors)

• Travel and other types of insurances

• Retirement savings plans

• Small business or corporate loans

• Student banking services

• Safe deposit boxes

and more …..

Why do we have Different Types of Banks in Canada?

Credit Unions

• Provincially regulated• Owned by members• Specific to a

geographic area or group of people

• Insured at provincial level

Chartered Banks

• Federally regulated• Much larger• Shareholders (they

want to make a profit!)

• National and international exposure

• Insured at a federal level

Banks You May Recognize … TheBig Five

And More …

• 20 domestic banks • 29 foreign bank

branches

What does branch mean?

A retail location where a

bank or credit union does

face to face business

So Why Do People Bank?

•Variety of services•Expertise•Need for credit•Convenience•Safety (????)

How is Your Money Safe?

Canada Deposit Insurance Corporation (CDIC)• a federal Crown

corporation created by Parliament.

• helps keep Canada’s financial system strong.

• insures Canadians’ savings in case their bank or other CDIC member institution fails or goes bankrupt.

• is NOT a bank.• is NOT a private

insurance company.• insure savings if they are

at one of the member institutions of the CDIC

• only certain types of savings are insured .

• limit of $100,000 per approved account type

What Do You Need to Do to Open A Bank Account?

Proper ID is essential!