The Canadian Banking System

Canada has one of the most reliable and robust banking systems in the world, with highly regarded Canadian banks and financial institutions around the world.

Before you start banking in Canada and choose your bank, you can consider the branches of the banks that best suit your home and workplace, hours of operation, financial products offered, etc. It is likely that two pieces of original identification are required to open an account.

Banking glossary

  • Credit History 

the payment of debts by a borrower, which indicates the creditworthiness of the borrower. A credit history helps lenders determine the ability of the borrower to repay debts within the set deadlines.

  • Check

Written order asking a bank to pay a sum of money.

  • NSF

Check returned by a bank to the issuer due to a lack of funds in the issuer’s account.

  • Account

An account contains funds entrusted to a bank by a customer. The client can access these funds by making withdrawals.

  • Savings

Account Interest-bearing deposit account with no fixed maturity date. You can make withdrawals and deposits at any time.

  • Non-resident

account An account held by a person not resident in the country where the bank is established.

  • Bank correspondent

A bank that provides services to another bank that does not have a branch or presence in the city or the relevant jurisdiction. Services rendered include check clearing, cash management, remittances, etc.

  • Term Deposit

Guaranteed investment generally offering a higher interest rate than a simple savings account, offered in multiple currencies, for different terms and according to various collection methods.

  • Minimum Deposit Minimum

amount of money required to open and maintain an account. Accounts payable under the minimum balance may be subject to a management fee.

  • Management

Fees charged by financial institutions for the provision of a particular service, such as annual fees charged for a chequing account, late repayment of loans, returned checks, etc.

  • Automated banking

machine Self-service machine located in a bank or other location that allows customers to perform basic banking. You must have an ATM or debit card as well as a personal identification number (PIN) to use such an ATM.

  • Liquidity

Includes cash and sight deposits made in a bank or financial institution as well as short-term deposits and easily tradable investments (exchange-traded stocks, bonds, etc.).

  • Line of Credit

Agreement negotiated between a borrower and a lender, establishing the maximum amount the borrower can draw. This agreement also defines other terms and conditions, such as the method and date of repayment of borrowed money.

  • Personal Identification Number (PIN)

Usually, a four-digit numeric identification code created by users to access their account. PINs are required by ATMs to verify the identity of the cardholder and to authorize transactions on the account.

  • Opposition to payment

Prohibition served by the drawer of a check to the bank to make payment. This order must be given, by telephone or in writing, before the check is cashed.

  • Online banking

convenient and safe Way to do their banking via the secure website of a financial institution. This method allows customers to operate outside of banks’ opening hours, regardless of where they are connected to the Internet.

  • Telephone Banking A

service provided by a financial institution that allows its customers to conduct telephone transactions. Most telephone banking services require user authentication and provide instructions through a person or an interactive voice response system (IVRS).

  • Interest rates

The prices charged by lenders to borrowers in exchange for the use of a certain sum of money for a specified period. The established rate is usually expressed as a percentage of the total amount borrowed.

  • Electronic Funds Transfer (EFT)

Transfer of funds by electronic means rather than by means of printed documents. This includes the use of computer systems, automated teller machines, telephone, telegraph transfers, etc. Funds are transferred faster and safer.

  • Telegraph

Transfer Electronic transfer of funds from one entity to another through a network administered by hundreds of banks worldwide.

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