Tài liệu UNDERSTANDING BANKING IN CANADA docx

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.. that use the NYCE‡ Netw

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

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.

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

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 largest1, 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 package2, 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

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

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

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

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

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

n Confirmation of identity by a current RBC client or an individual in good standing4

n Canadian university or college student card with photo

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

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)

Your RBC Account number

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 Banking5 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

Telephone Banking

With RBC Telephone Banking5

, 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

Sending and receiving money

You may wish to receive money from,

or send money to, relatives, friends or

business associates in Canada, back

home or in another country

As an RBC Royal Bank account holder, you have access

to a range of convenient payment services, which we

have listed below Just ask your RBC advisor or contact

your RBC branch to find out more

Send money online with

RBC International Remittance

If you have access to the Internet, this secure 24-hour

service allows you to send money to friends and family in

more than 120 countries, whenever it’s convenient for you,

for a small fee

As long as you have an RBC Royal Bank personal banking

account9, are enrolled in RBC Online Banking5 and have

the funds available in your account, you can send money

worldwide You need to have the Bank Identifier Code (BIC)

and the bank account number where the funds will be sent

With this cost-effective service, you can send up to $2,500

Canadian dollars each day.10 For more information, visit

www.rbcroyalbank.com/internationalremittance

Bank drafts

Bank drafts can be used to make a payment to a third

party in almost any currency They can be made out for

any amount

Wire payments

Wire payments can be sent almost anywhere in the world and in almost any currency You can arrange an outgoing wire payment at any branch We can also process incoming wire payments, if you’re receiving money from inside or outside of Canada

Foreign currency exchange

If you want to convert cash, drafts, money orders or wire transfers into another currency, our in-branch foreign-exchange services can assist you at very competitive rates

We can do the conversion and provide you with the product

or service best suited to your needs Please visit us at the location most convenient to you

Understanding credit

To borrow money in Canada, you first need

to establish a Canadian credit history —

proof to potential lenders that you can

be relied upon to pay your bills and make

repayments on time

A credit history is a list of facts, gathered from financial

institutions, retailers and other lenders, about how you

have handled debt in the past In Canada, there are three

central credit agencies that track this information and

develop a profile of your Canadian creditworthiness, called

your credit rating Whether you’re borrowing to buy a

house, purchase a car or set up a business, a good credit

rating is likely to make it easier and more affordable

How to establish a Canadian credit history

One of the best ways to establish a Canadian credit history

and build a good credit rating is to get a Canadian credit

card As you use your card and make regular payments, you

will create and build a credit history If you ever need more credit in the future, your good credit history and score will be beneficial A good credit will encourage potential lenders to look more favourably upon your request to borrow larger sums

Of course, credit cards have other advantages, as well They are safer than cash and can be a secure and convenient way to shop Some let you earn rewards points, and they are widely accepted at stores, restaurants and service providers across Canada and around the world They are also essential for certain services, such as setting up contracts for a mobile phone, renting a car or making online purchases

Even if you already have a credit card issued from another country, it is valuable to have a Canadian credit card for a few other reasons:

n You’ll avoid the exchange rates and currency conversion charges that may apply to non-Canadian credit cards (charges to convert Canadian dollar purchases to the currency of the country where the credit card was issued)

n You’ll find that Canadian-issued credit cards may

be accepted as a secondary form of Canadian

identification when you are applying for other

services, financial or otherwise

n Your credit history from a credit card issued in

another country is not considered when establishing

a credit history in Canada by any financial institution

A Canadian credit card is the easiest way to begin

establishing a good credit history in Canada

How to get an RBC Royal Bank credit card

RBC Royal Bank credit cards provide you with a safe

and convenient payment method that is accepted at

millions of locations worldwide They also include built

in Chip and PIN technology as well as Purchase Security

and Extended Warranty Protection for added security with

every purchase For those who are new to Canada and do

not have a Canadian credit history, we offer both a secured

and unsecured option for almost all of our RBC Royal Bank

credit cards

The RBC Royal Bank credit card —

no credit history required11

RBC Royal Bank offers a selection of unsecured RBC Royal

Bank credit cards for newcomers to Canada who have been

in the country for less than one year as a Permanent Resident

(form IMM5292) This card will provide you with up to $1,000

of credit (some conditions apply)11

Talk to your RBC Royal Bank advisor to find out more about your credit options

RBC Royal Bank secured credit card options

RBC has developed specific policies designed to help

newcomers establish credit in Canada If you are looking

to start building your Canadian credit history, you may

benefit from the secured RBC Royal Bank credit card

With this card, you decide how much credit you think

you’ll need and then deposit that amount as security

For example, a $1,000 security pledge would give you a

spending limit of $1,000 on your RBC Royal Bank credit

card The secured card must be applied for at an RBC Royal

Bank branch11 Talk to your RBC Royal Bank advisor to find

out more about your credit options

Good credit card practices

n Use your credit card only to make purchases you know you can afford to pay when the statement comes in

n Pay off your credit card balance in full each month

If you choose not to pay off your balance in full, try

to pay more than the minimum payment due

n Ensure that your payment is received by the bank

on or before the payment due date indicated on the statement

n Limit the number of credit cards you use so it’s easier to keep track of the money you owe

n Memorize and protect your PIN at all times

Your security pledge: it’s an investment

Your security pledge is placed in an RBC Guaranteed Investment Certificate (GIC), where it earns interest for you The amount deposited will grow while you build a credit history Once your credit rating is established, the GIC security will be released from your RBC Royal Bank credit account It can take up to 18 months to establish

a credit rating — that’s why it’s important to start the process now

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

or, perhaps, borrowing to reach your short-term goals, and it involves protecting your

belongings and your loved ones with an effective insurance strategy

Borrowing for your short-term goals

Sometimes your short-term goals can’t wait — the furnace needs repairing, for example,

or your old car has finally quit working and you need a new vehicle Other times, the item you want (such as a house) is just too large to save for and pay for all at once

In those situations, borrowing can be a smart solution

There are many different ways to borrow, including a

loan, line of credit or mortgage Each approach has its own

advantages When you decide to borrow, it’s best to review

your situation with an RBC advisor, who can help you find

the lowest-cost, most flexible solution for you Here’s a look

at the different kinds of credit you may want to consider

Loans

With a loan, you usually agree to pay back the money over

a predetermined length of time (typically one to five years)

If it’s a fixed-rate loan, the interest rate you pay and the

amount you pay weekly, biweekly or monthly stays the

same With a variable-rate loan, the amount you pay weekly,

biweekly or monthly stays the same while the interest rate

moves up and down with the bank’s prime rate.12

Line of credit

A line of credit lets you borrow money whenever you need

it You apply for 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