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Updated: September 23, 2021
What Are the Benefits of Opening a Senior Bank Account?
Canadian banking institutions offer a wide range of bank accounts to help consumers manage their money. Citizens above sixty years old qualify for a customized senior bank account with benefits and options.
Opening a Senior Bank Account
While some banks automatically start applying benefits when patrons turn sixty, others have kept them as an optional service that customers must request. Senior citizens can open an account in Canada if they fulfill the requirements of the ‘Access to Basic Banking Services Regulations’ under the Bank Act. Banks may require two identification documents, a photo, a signature, identity proofs, and similar documents. While age may also be verified for senior citizens through submitted documents, a citizen’s identity card is also a valid proof. Since 2013, many major banks stopped giving free service to seniors. Instead, they started providing an optional 25% waiver on the monthly fee for senior citizen accounts. Due to the growing population of senior citizens in Canada, banks don’t find it economically viable to continue the free senior bank account. However, senior bank account holders can ask for and take advantage of the opportunity whenever available. Information available online for senior bank account options is limited, so often a patron will need to meet with his or her bank’s employees before taking a final decision.
Benefits of a Senior Bank Account
Senior bank account options range from basic no-frill accounts with no monthly charges to customizable options for a fee. Some of the most sought-after services include no limit transactions; free customized cheques; no fee on money orders, drafts, and traveler’s cheques; and free paper statements. Service charges on many transactions—utility and mobile phone bills, rents, traveler’s cheques, and more—are reduced or totally avoided. The banks also provide higher interest on account balances and even have options that provide higher returns over specific amounts. This is also a way to curb unnecessary spending habits. Senior bank account services are a real boon to those over sixty.