Banking Understanding banking in Canada With a long history of working with newcomers to Canada, Royal Bank of Canada can help you get settled and become established financially Understanding banking in Canada 1 Moving to another country is an exciting beginning to a new stage in your life. At the same time, it can be challenging and somewhat overwhelming. Many newcomers have told us they are surprised by how different banking here is from their homeland — and they wish they’d had someone to help them learn what they needed to know. Welcome to banking in Canada Royal Bank of Canada wants to help you today, tomorrow and in the future. This guide tells you what you need to know to establish your finances in Canada, whether you have moved here already or are making plans from abroad. Once you are settled, it will help you chart a path towards achieving your hopes and dreams for the future, to make life even better for yourself and your family. This guidebook also provides sound advice on building wealth to realize important life goals, protecting the things that matter to you and developing a financial safety net. We’ve been helping newcomers to Canada for seven generations. Come into one of our branches or call us at 1-800-769-2511 for service in up to 180 languages. What you’ll find inside Welcome to banking in Canada n RBC ® : A history of helping newcomers 2 Part 1: Getting settled in Canada n First step: You need a bank account 5 n Accessing your money 7 n Sending and receiving money 10 n Understanding credit 11 Part 2: Building a foundation — financial security for today n Borrowing for your short-term goals 14 n Mortgages: Buying your home 16 n Borrowing for your business 17 n Protecting yourself and your family 18 Part 3: Planning for your future — financial security for tomorrow n Choosing your investments — RBC makes it easy 21 n Investment options to suit your needs 22 n Saving for retirement 23 n Saving for a child’s education 25 n How to invest with RBC 26 n Important banking and investment terms 27 2 Banking RBC: A history of helping newcomers For more than seven generations, Royal Bank of Canada has been supporting new immigrants, making it easier for newcomers to get settled, become established and succeed in Canada. During that time, we have developed a deep understanding of the needs and priorities of newcomers, and have introduced banking services in up to 180 languages to make newcomers feel at home. Today, we’re one of the country’s largest 1 , most reputable financial institutions, with many businesses other than banking. Our long history and experience around the globe mean you can feel confident turning to us as a financial partner that understands your individual needs. In April 2012, Global Finance magazine rated RBC as one of the top 10 “World’s Safest Banks.” n Our name. In Canada, you’ll find us under the name “RBC.” That’s the name we use to represent all our companies. Our banking business uses the name RBC Royal Bank ® , and almost all of our other businesses’ names start with RBC as well. n Convenient locations. We have the largest combined branch and ATM network in Canada. You’ll find branches and banking machines in communities across Canada, from large urban centres to small towns. There’s likely to be a branch close to where you live and work. n Trusted advisors. We have account managers, financial advisors, mortgage specialists and investment retirement planners. Many of our employees speak more than one language. n Strong international presence. With branches around the world and clients in more than 150 countries, RBC Wealth Management ® is one of the largest Canadian providers of international private banking services. n Products and services designed specifically for newcomers. We’ve created products and services like our RBC Welcome to Canada package 2 , RBC International Remittance ® services and secured credit cards to make it easier for you to bank with us. We speak your language If you need financial advice and wish to speak to someone in your language, we can help: n Call us at 1-800-769-2511 for service in up to 180 languages. Or call 1-888-769-2598 for dedicated service in Mandarin or Cantonese. n Our newcomer website has been designed with you in mind. This site is available in English (rbc.com/canada), French (rbc.com/francais/canada) and simplified Chinese (rbc.com/chinese/canada). n Visit maps.rbc.com to find a branch in your neighbourhood that provides service in the language of your choice. As a group, RBC employees speak dozens of different languages, and we staff our branches to meet the culture and language needs of the communities we serve. Understanding banking in Canada 3 RBC in your community RBC is committed to helping new Canadians get settled and established in their communities. We sponsor and contribute to a number of programs that focus on newcomers but ultimately benefit us all. Celebrating other cultures. RBC supports a wide range of multicultural activities within the community, from local events and festivals to business and cultural associations. Helping newcomers find work. We support a number of organizations that help immigrants find employment and success. These include the Immigrant Access Fund in Calgary, a not-for-profit group that provides micro loans to internationally trained newcomers so they can upgrade their accreditations and training, and the Toronto Region Immigrant Employment Council (TRIEC). In partnership with TRIEC, RBC sponsors the annual Immigrant Success Awards. Diversity in our workforce. We believe that a diverse workforce helps us better meet the needs of our clients. In the past 10 years, the percentage of visible minorities that have worked for us has more than doubled, to 26% as of October 31, 2008, from 12% in 1998. Members of visible minorities now fill 25% of all management positions within RBC Royal Bank. n Stability. Canadian banks are extremely secure. The World Economic Forum has rated the Canadian banking industry number one in the world for safety and soundness. 3 n Cost. Fees for banking products and services can vary. It’s important to understand what they cover so you pay the right amount for what you need. n Interest rates. Interest rates for different products are set by each bank, but they are all influenced by the rate set by the Bank of Canada, which is Canada’s central bank. What to expect Banking practices and laws are different around the world. Here are some key characteristics of Canadian banks that may be new to you: n Hours of operation. Branch hours vary, but with bank machines, online banking and telephone banking, you can bank whenever it’s convenient for you. n Other services. Banks are more than just a place to keep money. They also offer loans, safe deposit boxes and other financial products and services. n Staff. Bank staff are encouraged to interact with customers. 4 Banking Part 1: Getting settled in Canada Part of moving to a new country involves putting your finances in order. RBC advisors are here to help you get settled and give you the confidence and advice you need to start a successful and prosperous life in Canada. Understanding banking in Canada 5 While we offer many different accounts and options, there are two basic types of bank accounts: n Banking or transaction account. Your banking account will meet most of your everyday needs for depositing and withdrawing money, around the clock and around the world. This is the first account you’ll want to set up. n Savings account. You may also wish to open a savings account for extra cash that you won’t need for day-to-day expenses but that you would like to have readily accessible. How to open your account We make it easy to start banking in Canada. There are two ways to open an account. You can visit your local RBC branch, or you can open an account online. For newcomers already in Canada, it is best to open your account in person at a branch. If you are interested in opening an account online or before you arrive in Canada, visit www.rbc.com/canada These are the steps you need to follow to open your account at a branch: Step 1 Visit your local RBC branch An RBC advisor will help you through the account opening process. For your convenience, choose a branch that’s close to where you live or work. You can use our online branch locator (maps.rbc.com) to find a branch near you that provides service in your language, or call us at 1-800-769-2511 and we can help you make an appointment. Step 2 Present valid identification For regulatory and legislative reasons we are required to identify our clients and can accept only certain types of identification. Be sure to bring your passport and either your landing paper or Permanent Resident Card so we can open your account quickly on your first visit. Please refer to the box on page 6 for the full listing of acceptable identification you need to open an account. Step 3 Choose a banking package We offer many different types of banking accounts, each with its own features and benefits. Your RBC advisor can help you decide which account is right for you, based on your individual needs. First step: You need a bank account One of the first things you’ll want to do when you arrive in Canada is to set up a bank account to deposit the money you brought with you. Your money will be safe and you’ll have easy access to it. U.S. dollar accounts If you would like to hold funds in U.S. dollars, and you need to access those funds from Canada or the U.S., we have several different options to choose from. U.S. dollar accounts have different requirements and must be opened at an RBC branch in person. For more information, please go to www.rbcroyalbank.com/usbanking A safe place for your valuables A safe deposit box is a worry-free way to keep important documents and valuables secure yet accessible when you need them. Identification papers and jewelry are among the most common items people store in safe deposit boxes, which come in various sizes. Located inside the bank’s vault, a safe deposit box keeps your valuables in a secure environment, protecting them from risks like fire and theft. You can access the contents of a safe deposit box any time during banking hours. You can rent a safe deposit box at most RBC branches. 6 Banking What identification do you need to open a bank account? This table lists the most common pieces of identification accepted for opening a Canadian dollar account at a bank in Canada. You must bring two pieces of valid identification — one from List A and an additional item from either List A or List B. For a complete list, contact an RBC advisor or visit www.rbc.com/canada When selecting which pieces of identification to bring, please keep the following in mind: n The date on each document should be current. We cannot accept documents that are expired or have been cancelled. n The documents must be original. There should be no markings on the identification or any sign that the documents have been altered. n Your name must be the same on all pieces. If the names don’t match, you will also need to bring with you a certificate (either the original or a certified copy) showing the name change. List A (must have at least one) List B n Permanent Resident Card or Citizenship and Immigration Form IMM 1000 (dated prior to June 28, 2002) or IMM 1442 or IMM 5292 n Canadian or foreign passport n Driver’s licence issued in Canada n Social Insurance Number card issued by the Government of Canada n Employee identity card issued by a well-known employer 4 , bearing the individual’s photograph n Credit card issued by a member of the Canadian Payments Association in the name of, or bearing the name of, the individual and bearing the individual’s signature n Confirmation of identity by a current RBC client or an individual in good standing 4 n Canadian university or college student card with photo Understanding banking in Canada 7 Using your RBC Royal Bank Client Card When you open an RBC Royal Bank bank account, you’ll be given a Client Card for convenient and secure access to your money. Most Canadians regularly use their Client Card to access their money. You will be asked to choose a numeric, confidential Personal Identification Number (PIN) that acts as your “electronic signature” whenever you use your Client Card. Your Client Card, together with your PIN, gives you convenient and timely access to your money in a number of ways. You can use your card: n At any RBC Royal Bank branch in Canada n At any RBC Royal Bank automated teller machine (ATM) or other ATMs in Canada displaying the Interac ‡ logo n At more than 230,000 retailers in Canada that accept Interac Direct Payment — payment is made directly from your account n At ATMs outside of Canada that display the PLUS System ‡ symbol n At more than one million merchants in the U.S. that use the NYCE ‡ Network n Through RBC Royal Bank Online Banking and Telephone Banking services, to access account information 24 hours a day, seven days a week Accessing your money We know how important it is to have easy access to your money, especially in the early days of settling in. With your RBC Royal Bank Client Card and cheques, you will have plenty of options available to you. Protect your PIN Protect your Client Card and your Personal Identification Number (PIN) — they are as valuable as cash. n Choose your PIN carefully. Use numbers that you can easily remember but that will be hard for others to guess. n Keep your PIN secret. Never reveal it to anyone, including bank employees, law enforcement agencies, family and friends. n Memorize your PIN. We recommend that you never write down your PIN or store it electronically. n When you make a purchase, protect yourself from fraud by making sure you can see your Client Card at all times. Your card should be swiped only once per transaction. n Shield the keypad when entering your PIN to keep it confidential. n If you suspect that someone knows your PIN, immediately change it at an RBC Royal Bank branch or at select RBC Royal Bank ATMs. n Check your statements and balance regularly to verify all transactions. If you see any mistakes, visit your branch or call us immediately. If your Client Card is lost or stolen, visit your branch or call us immediately. Daily withdrawal limits You can access your money through the branch during regular business hours; however, to protect the money in your account, we set a daily dollar limit on the amount of money that you can withdraw with a Client Card using self- service channels. This daily limit includes withdrawals made through an ATM, online and at a store or other retailers. Your RBC advisor will tell you about your daily debit limits when you get your Client Card and PIN. 8 Banking Writing personal cheques Cheques are another convenient way to access your money. They are useful when cash or a credit card isn’t appropriate for giving money to a friend or relative, paying bills or paying your rent. Vendors who accept cheques may request certain information. Typically, they will want your phone number and photo identification, such as a passport or driver’s licence. You can order cheques online or at your branch. Many account packages include them for free, including the RBC Welcome to Canada package. Personal cheques, which have your name and possibly your address and phone number printed on them, can help you demonstrate that you have a permanent Canadian address, which can be important when you want to pay bills and set up utilities. Our online security guarantee We understand how important security and privacy are to you. To provide you with greater peace of mind, all RBC Online Banking clients are protected by the RBC Online Banking Security Guarantee. If an unauthorized transaction is conducted through your RBC Online Banking service, you’ll be reimbursed 100% for any resulting losses to those accounts. 8 You must fill out Payee — name of person or business that payment is being made to Numeric dollar amount Written-out dollar amount Payment description (optional) Your signature Date (day/month/year) l F l K l J l I l G l H General information Your name and address Cheque number Your branch’s address Your RBC Transit number Your RBC Account number l A l B l C l D l E What your personal cheques will look like l A l F l J l K l I l G l H l B l C l D l E Manage your account when you want with Online Banking One of the most convenient options available to you when you open your account is RBC Online Banking 5 . Through Online Banking, you will have everything you need to manage your banking and financial needs 24 hours a day, seven days a week from the convenience of your home, office or any other computer that has Internet access. With easy-to-use navigation, financial tools, calculators and comprehensive features, you have control over how and when you bank. You can save time by taking advantage of the many features offered through Online Banking: n View all of your account balances and transactions in one place n Access and print electronic statements n Transfer funds between your RBC Royal Bank accounts and to other RBC Royal Bank clients n Pay bills such as household utilities or credit cards n Transfer funds to anyone in Canada using Interac e-Transfer n Send money to family and friends overseas using the RBC International Remittance ® service Mobile Banking Enjoy the simplicity and convenience of everyday banking and investing on your Smartphone, anywhere you are, with the RBC Mobile 6 App. It’s safe, secure, and transactions are covered by the RBC Online Security Guarantee 7 . Note: All cheques must be written in blue or black ink. Understanding banking in Canada 9 Telephone Banking With RBC Telephone Banking 5 , all you need is a telephone to access your financial information and perform transactions. We offer our Telephone Banking service 24 hours a day, seven days a week from anywhere in Canada, the United States or overseas. Keeping track of your account Every month, you will receive your account statement in the mail. It is a record of all your transactions for the time period indicated. Be sure to check it against your own records for accuracy. If you prefer, you can choose to receive your statement electronically, through RBC Royal Bank Online Banking. Electronic statements are archived every month and are available for up to seven years for you to view, print or file through Online Banking. You can also view copies of your cheques electronically for up to 90 days. If you have questions about your account statement or need financial advice and wish to speak to someone in your language, we can help: n Call us at 1-800-769-2511 for service in up to 180 languages. Or call 1-888-769-2598 for dedicated service in Mandarin or Cantonese. Pay your bills automatically For bills that arrive regularly, such as utilities, phone or cable bills, you may want to arrange automatic withdrawals from your bank account. Receiving and paying bills has never been easier. With RBC Online Banking you can pay bills any time, without leaving home. You can schedule your bills to be paid regularly or post-date them to be paid at a later time. You can also receive and pay your bills through RBC ebills (a service provided by Canada Post ‡ ). This third-party service provider of RBC Royal Bank is accessed via Online Banking. If you have any questions, call one of our Online Banking specialists 24/7 at 1-800-769-2555. A note about holds When you deposit a cheque, a “hold” may be placed on your account while the money is transferred from the account of the person who wrote the cheque. This feature ensures that the person who wrote the cheque has enough money to cover it. When a hold is in effect, the funds will appear in your account but you will not have access to them. The length of the hold depends on the type of cheque. These hold periods are based on rules that are established by the Canadian federal government and the Canadian Payments Association, and are applied by all the banks in Canada. We apply the following rules on hold periods: n Up to five business days for cheques and other negotiable items written in Canadian or U.S. currency when the funds are from an account at a Canadian branch of any Canadian financial institution n Up to 15 business days for cheques and other negotiable items when the funds are from a U.S. bank account n Up to 25 business days for cheques and other negotiable items when the funds are from a bank account outside of Canada and the U.S. When the hold period expires, the hold will automatically be released, and you will have access to the funds. However, our release of funds to you does not mean that the cheque cannot be returned for another reason. [...]... moving costs, taxes, insurance, utilities and maintenance Find out everything you need to know about buying your first home at rbc.com/homeincanada Understanding banking in Canada 17 Borrowing for your business Businesses are dreams and ideas brought to life That’s why owning a business is more than a source of income — it’s also a source of pride Whatever your motivations for starting a business in Canada, ... details, including eligibility requirements RBC Direct Investing Inc.*, RBC Dominion Securities Inc.~ and Royal Bank of Canada are separate, affiliated corporate entities RBC Direct Investing Inc does not provide investment advice or recommendations regarding securities Investors are responsible for their own investment decisions RBC Direct Investing is a business name used by RBC Direct Investing Inc *Member–Canadian... contributions over many years in order to take maximum advantage of government grants Ask an RBC advisor to help you understand how the grant system works 26 Banking How to invest with RBC Investing with RBC is easy RBC Direct Investing™ If you are comfortable managing a portion or all of your investments, you can invest online or by phone through RBC Direct Investing Online Our online investing site gives you... experienced business individuals to immigrate to Canada, where they can play an important role in Canada s prosperous economy An advisor from RBC Wealth Management International can help them take advantage of this special government program Understanding banking in Canada 27 Important banking and investment terms Here is an explanation of some important terms you may encounter when considering your banking. .. the line of credit just once and never have to apply again You can then borrow at any time, just by writing a cheque, withdrawing money or transferring money from your line of credit to your chequing account You are charged interest on amounts owing from the day you withdraw money until you pay the loan back in full At minimum, you need to pay the interest every month Understanding banking in Canada. .. Telephone Banking are provided by Royal Bank of Canada 6 RBC Mobile is operated by Royal Bank of Canada, RBC Direct Investing Inc and RBC Dominion Securities Inc 7 For full details regarding the protections and limitations of the RBC Online Banking Security Guarantee, please see the Electronic Access Agreement This guarantee is given by Royal Bank of Canada in connection with its Online Banking service... $500 in annual contributions are available for qualifying families (based on family income) Compounding Investment income that is earned on previously earned investment income This “income on income” means growth in the income over time Also applies to certain types of loans, if you don’t meet minimum interest payments Coverage The amount of protection provided by an insurance policy Guaranteed Investment... can work together to put a plan in place Understanding banking in Canada 21 Choosing your investments — RBC makes it easy RBC has helped thousands of new Canadians invest for their future The advice and personalized service we provide can make investing a much easier process than you might think There are many different investments to choose from An RBC advisor will explain the features of each one to... Understanding banking in Canada 13 Part 2: Building a foundation — financial security for today What does it mean to be “financially secure”? For most of us, it means having some money put aside to see us through any difficult times, protecting our current wealth and assets and being able to purchase things that we want or need Being financially secure involves a lot more than just saving It also involves investing... Interest rates, market conditions, tax rulings and other investment factors are subject to rapid change Individuals should consult with their personal tax advisor, insurance advisor, accountant or legal professional before taking any action based upon the information contained in this guide Financial planning services and investment advice are provided by Royal Mutual Funds Inc Royal Mutual Funds Inc., . Banking Understanding banking in Canada With a long history of working with newcomers to Canada, Royal Bank of Canada can help you. become established financially Understanding banking in Canada 1 Moving to another country is an exciting beginning to a new stage in your life. At the same