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The Different Types of Bank Accounts: Which is Right for Overseas Pakistanis in Canada?

05 Jul 2023


One of the prime destinations for global expatriates and migrant workers, Canada hosts over 8.3 million diasporas. With a nominal Gross Domestic Product (GDP) of $1.99 trillion in 2021, the country offers progressive work opportunities and an idealistic work-life balance for foreigners. Like people from other countries, more than 300,000 Pakistani migrants live in Canada, most of whom work, earn, and send money to Pakistan from Canada after seeking a better opportunity to support their families financially back home.

 

But do you have any idea about whether it is essential to have a bank account in Canada as an overseas worker? And, what type of it is the right one for you? And what it takes to open a bank account in Canada?

 

Well, you wonder why you would need to open a bank account in the first place if you can manage your finances, including transferring money as and when required, without a bank account. 
 

Let’s delve deeper to get the answers to all of these questions and to know other associated details. 
 

What Is The Need To Open A Bank Account In Canada As An Overseas Pakistani?

Well, for the simple reason that in most developed countries, the trend of cashless payments is on the rise.

Employers in developed countries prefer for employees to have bank accounts for processing their payments. It is regardless of the type of work they do and the jobs they have.

In addition to that, having a bank account has the following few advantages.

Financial Management Becomes Easy

A bank account helps you manage your finances better than not having one.

You know fully what gets debited and what gets credited to your account, in the light of which you can manage your finance well.

Your Money Is Safe

A bank account helps you keep your money safe as well as accessible instantly through ATMs.

A Bank Account Is The Answer To Compulsive Buying Disorder

Think about it.

With money in your pocket and you in the market, resisting the temptation to spend on things least needed is hard. But you can resist it easily if you keep your money in the account because accessing it will still be tougher, of course, than taking it out of your pocket!

 

Are you interested in learning about how to move to Canada from Pakistan and get a good job there?

Click the link below:

Moving To Canada From Pakistan And Getting A Good Job There.

 

Now, let’s see the different types of bank accounts in Canada and see if they can be of help in a money transfer to Pakistan. 
 

Different Bank Account Types In Canada

Since overseas Pakistanis work in Canada to earn a living, they intend to save as much money as they can.

Considering this basic principle, here’s the list of 8 types of savings accounts in Canada that anyone can have on fulfilling the respective documentation requirements.

Basic Savings Account

It is similar to a checking account and offers a low-interest rate that is usually around 0.30%. But this account is best for keeping your money safe in addition to earning a small income as interest.

Youth Savings Account

It is offered to all Canadian residents under the age of 18. These accounts have a minimum fee and limitations, and given that these are meant to cater for the financial needs of youngsters, there is no requirement to keep a minimum balance.

High-Interest Savings Account

In these accounts, you can have an interest rate between 1.05% to 2.00%.

The interest rates depend on and vary from bank to bank and other financial institutions, including credit unions, etc.

Registered Savings Account

It is a typical savings account but is called so because it has to be registered with the Canada Revenue Agency (CRA) to qualify for tax benefits.

Registered Retirement Savings Plan (RRSP)

It is more of a savings plan created by the Canadian federal government to help its people save for retirement. Its basic advantage is that the tax is put off until your retirement.

Registered Education Savings Plan (RESP)

It is a special savings plan made by the Canadian government to help people save for their children’s education. Through Canada Education Savings Grant, the Canadian government matches 20% of any RESP contributions for up to $500 per child annually.

Registered Disability Savings Plan (RDSP)

Through this type of account which is registered with the Canadian government, you can contribute money to support someone with a disability. This type of account is also eligible for grants from the government.

Tax-Free Savings Account (TFSA)

It is a registered savings account used for savings and other financial gains that are tax-free. Any income or amount contributed to this account is typically tax-free even after being withdrawn.

 

These are the main types of savings accounts you can open in Canada as a Pakistani migrant to keep your money safe and have better financial management. If you are an overseas Pakistani worker in Canada looking to get more value for your hard-earned money, send money to Pakistan online via a trusted provider like ACE Money Transfer. 
 

Do You Need Any Of These Accounts To Send Money To Pakistan Online?

Well, that largely depends on your needs and requirements to transfer funds across borders. Nowadays, several online money transfer companies, including ACE Money Transfer, have marginalised dependence on banks to transfer funds, with immaculate service quality featuring speed, safety, low fee, and live and competitive currency exchange rates. 
 

Therefore, what is essential is to determine your needs for both opening a bank account and sending money to Pakistan from Canada before choosing the account type or approaching banks for the movement of funds. 
 

What Will It Take To Open A Bank Account In Canada?

Document requirements vary and depend on different banks, but the following documents are required anyway.

  • Valid passport
  • Immigration papers
  • Social Insurance Number (SIN)
  • Proof of address
  • Temporary residence permit
  • Study or work permit
  • Confirmation of permanent residence 
     

ACE Money Transfer – Helping You With Your Remittances In A Holistic Way

Regardless of the bank account type in Canada, your online money transfer to Pakistan from Canada from Canada will take just 7 seconds to complete with ACE Money Transfer which will offer you live exchange rates, 24/7 service access in over 100 countries, safety, and much more from just one window in exchange for a low fee. 
 

FAQs

What are the different types of bank accounts available for Overseas Pakistanis in Canada?

You can choose from various accounts, such as savings accounts, checking accounts, joint accounts, business accounts, and student accounts, among others.

 

Which bank account type is best for regular transactions like bill payments?

Checking accounts are typically best suited for regular transactions, as they offer unlimited transactions and easy access to funds.

 

Can Overseas Pakistanis open a bank account online in Canada?

Yes, many Canadian banks offer online account opening services. You will need to provide the necessary identification documents and meet other requirements set by the bank. 
 

Are there any benefits of opening a savings account in Canada for Overseas Pakistanis?

Yes, savings accounts can help you earn interest on your deposits, provide a safe place to store your money, and often come with added benefits like online banking and access to financial advisors. 
 

What are the requirements to open a bank account in Canada as an Overseas Pakistani?

You'll generally need a valid passport, proof of address, and a Social Insurance Number or Individual Tax Number. Requirements may vary between banks.

 

Resources

  • Canadian GDP

(GDP (current US$) - Canada | Data (worldbank.org)

  • Pakistani migrants in Canada

(Pakistani population in Canada | Find Easy)


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