Banking Presentation Fact SheetMonday March 9th 2015: Thomas Lounge in Ryerson’s Student Centre

Banks:• For profit corporation• Federally regulated by the Bank Act• Owned by its shareholders, shares sold on the stock market• There is no membership requirement to open an account• There are both Canadian and foreign-owned banks operating in Canada

Banks of Canada that offer student discounted accounts: TD Bank CIBC BMO Scotiabank RBC

What is needed to make a bank account?1. Decide which bank is right for you2. Make an appointment go to the bank in person3. Review the account options4. Complete the papers needed to open an account

Credit Unions: Not for profit organization. Primary commitment is to serve their member’s financial needs. Provincially regulated so there are differences between provinces. Membership allows you to vote. You must buy a share and become a member first to open an account (Average of

$5-10 per share).

What is a credit score?A credit score is based on, among other things, a person's past credit history. It is a number between 300 and 850 - the higher the number, the more creditworthy the person is deemed to be. A credit score plays a large role in a lender's decision to extend credit and under what terms. For example, borrowers with a credit score that is under 600 will have a harder time receiving credit and will typically be charged a higher rate of interest.

What if I have an account and the bank makes a mistake on it?If you have a complaint about how the bank has handled transactions on your account, take these steps to resolve your complaint:

1. Speak to a customer service representative at your branch.2. Write a letter to the branch or area manager.

Financial Literacy Workshop

3. Write a letter to the bank’s internal Ombudsmen.4. Call the Ombudsman for Banking Services and Investments (OBSI), toll-free at 1-

888-451-4519.Managing Credit

Shop around for the lowest interest rate. Understand your agreement. Make sure you know the payment deadlines and the

penalties for late payments. Use only as much credit as you can afford to pay back Mark your payment deadlines on a calendar; pay your full balance by the due date

every month if you can. Do not miss payments. If you cannot pay the full amount ALWAYS make at least

the minimum payment Tell your creditor if you cannot make a payment on time. Do not treat credit like free money – it can be very expensive money. Figure out

the total price you are paying when you use credit. How much will it cost with interest?

The only way avoid paying interest is to pay the FULL balance owing before the payment date

If you do not pay the full balance by the payment date, you will be charged interest on the entire statement balance, not just the amount owed

Always pay your credit card balance on time, or the late payments will hurt your credit score

Student Lines of Credit Many banks offer student lines of credit to assist with funding post-secondary

education Alternative funding for those who can’t access OSAP Interest rates are typically much lower than credit cards Will need a co-signor for the loans (called a guarantor) typically a parent or family

member with proven sources of income Interest is not tax-deductible as with OSAP loans

The workshop will also cover: Chequing vs. Saving Account Bank Fees for Students The Cost of Credit Your Rights Alternative Financial Services Resources And More!