Interest in opening a non-resident bank account in Canada has started to surge. Canadian banks, seen as safer alternatives to their international peers, are an attractive choice for foreign non-resident banking clients looking to open an international bank account. But, why now?
Simply put, when unexpected shocks rock the global economy, people start to question the safety of their money — rightfully so. Recent history has proven that a bank is no longer the conservative pillar we used to trust our money with.
In order to stay ahead of the competition, the bank needs to take risks. Lots of risks. And if you don’t choose your bank carefully, you might find your savings are being used in ways that you wouldn’t approve of. From funding highly leveraged investments to financing loans to low-quality borrowers, financial institutions use your savings however they see fit.
It shouldn’t be a surprise that people seek safer banks during times of economic uncertainty. And one way they do this is by opening bank accounts in “safer” banking jurisdictions.
KEY TAKEAWAYS
- It is 100% possible for non-residents to open a Canadian bank account online
- The account opening process will vary from bank to bank
- Bank accounts in Canada are protected by deposit insurance, up to C$100,000
- Knowing which bank and banker to approach will increase your chances of getting your account open
- Understand the bank account opening requirements before applying
While we’ve received questions about several banking jurisdictions over the past few weeks, a growing interest in Canada has stood out.
Canada’s banking sector received a lot of positive attention after the 2008 financial crisis. Canadian financial institutions were, at that time, hailed as some of the safest and best-managed in the world.
Clearly, that positive reputation has carried forward. In the eyes of many, Canada is still seen as a safe banking alternative when compared to other developed countries.
That said, several variables will determine whether you can (and should) open a non-resident bank account in Canada.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
In this article, we’ll highlight these variables and give you the information you need to open a bank account in Canada.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Why Open a Non-Resident Bank Account in Canada?
- Is It Safe to Open a Bank Account in Canada as a Non-Resident?
- What Is the Best Bank in Canada to Open a Bank Account With as a Non-Resident?
- How to Unlock Banking Opportunities With a Canadian Bank Account?
- Frequently Asked Canadian Banking Questions
- Do You Want Help Opening Bank Accounts?
Why Open a Non-Resident Bank Account in Canada?
Let’s take a quick look at why Canadian banks have such a good reputation in the first place…
The 2008 Financial Crisis:
Canadian banks didn’t escape the pain of the 2008 financial crisis. They were hit with approximately $12 billion in subprime losses following the crisis.
Now, that’s nothing compared to the individual losses absorbed by most major banks in the US. But, keep in mind, the US banking sector is 10 times the size of Canada’s, US $1.4 trillion to US $100 billion respectively.
Still, even the biggest foreign financial institutions and the largest banks in Canada didn’t face the same systemic banking issues that shocked the US.
Most analysts attribute this to Canada’s regulatory framework. Others point to a more conservative Canadian “culture” as a leading driver of safety. We think it was likely a combination of both, along with some luck.
But what about the safety of bank accounts in Canada today?
Is It Safe to Open a Bank Account in Canada as a Non-Resident?
When it comes to banking, there are several factors that we consider to determine whether or not a jurisdiction is safe to bank in.
These factors include things like government finances, the central bank, the currency, deposit insurance, bank regulation, and many others.
When we publish our Banking Intelligence Reports (available to GlobalBanks IQ members), our analysts conduct an in-depth analysis of each factor, so you don’t have to.
Taking a bird’s-eye view, Canada is generally sound politically, economically, and socially.
But, there are a few areas of concern that shouldn’t be overlooked. For instance, Canadian gross debt to GDP currently sits at 85%. Increased government debt means less room to support a banking sector in crisis. And as the government continues to focus on the current health emergency, debt will certainly be on the rise.
Global rating agencies have already said that Canada’s debt could become an issue, sharing that it is already high compared to other AAA-rated jurisdictions. This could lead to a downgrade of Canada as a jurisdiction, which could have negative implications for Canada’s banks.
The Loonie is also worth considering before opening a Canadian non-resident bank account. Market volatility, and in particular decreased trade with the US, could drastically impact the value of CAD vs the USD. If your funds originate in USD and you hold deposits in CAD, you could see a sharp decrease in the value of your deposit in USD terms.
On a positive note, Canadian bank accounts are protected by deposit insurance, up to C$100,000. And while the country’s gross debt to GDP is high, the government still has room to step in if there was ever a systemic shock to the banking sector.
Generally speaking, Canada’s banking sector is sound, at least when it comes to financial instruments–risk-oriented investing is typically left to natural resource exploration, both domestically and abroad.
But again, whether a bank is safe or not also depends on the individual bank.
We’ve explained how to assess an individual bank’s financials in countless articles before. In this article, the focus is on how to open Canadian non-resident bank accounts.
Remember: If you’re a GlobalBanks IQ member, you have direct access to our team of analysts for real-time support so feel free to ask questions at any time.
What Is the Best Bank in Canada to Open a Bank Account With as a Non-Resident?
If you’ve spent any time researching how to open a Canadian bank account or whether or not a foreigner can open a bank account in Canada, you’ve probably come across several service providers saying it’s not possible to accomplish on your own. They’re lying.
These service providers are trying to convince you that you need their help to open a bank account as a non-resident.
Of course, like every other country, whether or not you are eligible for a bank account will also depend on your citizenship, residency, source of income, the documentation you have available, and several other variables.
In other words, if you have the right account opening strategies and banker contacts, know which financial institution (and branch) will open an account for your specific client type, and know the most common mistakes (and what not to do), you can open a Canadian non-resident bank account on your own.
Several specific programs are being offered by Canadian banks. Such programs allow non-residents to bank in Canada.
But with more than 85 financial institutions and over 6,000 branches in Canada, knowing which bank (and branch) to approach and which strategies to use can be a very daunting task for non-residents.
This is especially true if you decide to open an account on an upcoming visit to the country. You don’t want to waste your time and money by applying at the wrong bank or location.
We recommend opening a bank account with a bank in Canada that has non-resident programs. Alternatively, a bank that deals with international clients regularly is also good. This will ensure that your banker and the bank’s customer support staff are clear with your needs as a client. This type of bank will also be more likely to have bank accounts and services that cater to your needs as an international client.
How to Unlock Banking Opportunities With a Canadian Bank Account?
Having a personal account in Canada and establishing a banking relationship has other benefits. It can make business banking in Canada easier for you in the future. This is especially true if you’re looking to make frequent cross-border transactions and need to know how to transfer money from Canada to India, the United States, or other international banking hubs.
And you shouldn’t discount Canada as a destination for business bank accounts. Canadian business bank accounts can form an important part of your international banking and tax strategy. This is especially true if you operate an international business that receives payments from customers in different countries.
When you join GlobalBanks IQ, you receive actionable intelligence and strategies, tailored for specific client types and account opening in specific countries.
GlobalBanks IQ helps foreign non-residents, entrepreneurs, and businesses access the offshore banking world. We arm you with actionable banking intelligence, personal banking contacts, and a comprehensive bank database. This will give you the in-depth strategies and account-opening secrets that you need to unlock the offshore banking world.
Each month, we send an exclusive banking intelligence report to GlobalBanks IQ Members, compiling the latest account opening trends, banking hacks, and the opportunities we’ve spotted in one easy-to-read brief, filled with case studies, first-hand experiences, and actionable insights.
Frequently Asked Canadian Banking Questions
Below are three of the most common questions we receive from people exploring how to open a non-resident bank account in Canada. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can I Open a Bank Account in Canada if I Am Not a Resident?
Yes, you can open a bank account in Canada if you are not a resident as long meet the bank’s account opening requirements and have a suitable client profile. That said, not all banks in Canada accept non-residents. So, bank selection will be an important factor to consider when choosing where to open a bank account in Canada.
Can I Open a Bank Account Online From Outside Canada?
Yes, you can open a Canadian bank account online from outside Canada as long as you choose a bank that offers remote account opening. That said, while some banks may allow you to start the process of opening an account from outside of Canada, some banks will require an in-person visit to finalize the account opening process.
What Do I Need to Open Bank Accounts in Canada as a Foreign?
How you open bank accounts in Canada as a foreign will depend on your citizenship, residency, the type of account you want to open, and the financial institution you choose to open an account with. That said, generally speaking, all applicants will need to submit proof of identification, proof of income, proof of address, reference letters, and a qualifying deposit to open a bank account in Canada.
Do You Want Help Opening Bank Accounts?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open a bank account.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open a bank account.
To learn more about opening accounts with GlobalBanks IQ, just click here now. Or, contact us directly with any questions!
