Most people take having a bank account for granted.  But people who do not have access to basic banking services can fall prey to very expensive and inappropriate financial services, legal and illegal.  People with low incomes may pay huge commissions at payday loan companies and cheque cashing outlets.

We can help you get access to the banking services that are best for you and your income.  We will even go with you to the bank to get your bank account set up.

Bank accounts can make managing your money easier.  You can get your pay cheques deposited directly so you don’t have to wait in line at the bank.  You can also pay your rent and other bills with cheques or have the money transferred directly. 
A bank is a safe place to keep your money when you are not using it. A bank is a place to save money for the future.  Having an account is also a good reference - it gives you credibility as a citizen.  For example, many landlords want their tenants to have bank accounts and will not accept cash payments.

What identification do I need to open an account?

Once you needed to have photo ID and a deposit to open an account, but that has changed.  Now you still need some identification to open an account. Banks usually want two pieces of ID or one piece and a letter from a sponsor.  The complete list of acceptable ID and your rights when opening an account are at the Financial Consumer Agency of Canada:

http://www.fcac-acfc.gc.ca/eng/consumers/rights/bankingRights_e.asp?Item=Intro

 

Can a bank refuse to open an account for me?

There are some reasons why a bank can refuse to open an account for you. One reason is if they have reason to believe you will engage in illegal activity in the future.  For details go the Financial Consumer Agency of Canada website above.

I had a problem with one bank.  Can I open an account at another bank?

It all depends on the problem.  All banks share information with each other.  So it’s best to solve the problem with the original bank before you try to open an account with another one. 

I owe money to a bank.  Will they permit me to have an account?

Maybe.  If you owe the bank money they would obviously like it back.  They will likely ask you to repay them. Then they might open an account for you with some limitations if you cannot pay the whole amount right away.  In any case, a bank has to have a good reason to refuse to open an account for you. 

I owe money to the bank and I am on Social Assistance.  Can the bank take money out of my account?

This is a hard question to answer because there are different laws governing financial institutions.   On the one hand, social assistance payments in Ontario are completely protected and they cannot be garnished or taken away by creditors.  On the other hand, the Bank Act of Canada entitles banks to recover money owed to them.   Contact a community legal clinic to have this question answered for you.

How do I figure out what bank gives me the best deal?

First, you have to know how you will use your account. You need to have an idea about how many transactions you will make each month and what kind of transactions.  Then you can shop around and call or visit the different financial institutions such as banks and credit unions.  You can also go to the Financial Consumer Agency of Canada website and go through the comparisons between the different banks and their accounts.  Their website is http://www.fcac-acfc.gc.ca.

 ·If I have a problem with my bank, how do I complain?

First you should try to resolve the problem directly with your financial institution at the branch level.  Every federal financial institution is required by law to have a process for handling complaints, including staff dedicated to the job.  If you are not satisfied with your bank’s response then you can go to the Ombudsman for Banking Services and Investments at 1 888 451 4519 or http://www.obsi.ca/.