With so many financial institutions claiming to offer the best services for your student lifestyle, it can be difficult to pinpoint what is truly best for you or how to properly manage the account.

Pre-authorized debits (PADs), pre-authorized contribution/credits (PACs)/direct deposits, credits, debits, overdraft protection, hold limits aka access to funds (ATF) etc. are some terms that can be intimidating at first but will inevitably pop up during your time as the owner of said bank account.

Through understanding these terms and how accounts generally run comes better preparation to ensure total awareness and control.

STUDENT BANKING OPTIONS

RBC

MONTHY FEE: FREE

UNLIMITED TRANSACTIONS: 25 debits/month. +1 for every direct payroll deposit (max. 9). 1.00/every additional transaction

INTERAC E-MAIL TRANSFERS? UNLIMITED

ADDITIONAL REWARDS/PERKS? FREE CREDIT CARD OR CREDIT CARD ANNUAL FEE REBATED

CIBC

MONTHY FEE: FREE

UNLIMITED TRANSACTIONS: UNLIMITED

INTERAC E-MAIL TRANSFERS? UNLIMITED

ADDITIONAL REWARDS/PERKS? FREE GLOBAL MONEY TRANSFERS (SEND MONEY OVERSEAS AT NO COST) *selected countries

TD

MONTHY FEE: FREE

UNLIMITED TRANSACTIONS: 25 debits/month. 1.25/every additional debit

INTERAC E-MAIL TRANSFERS? UNLIMITED

ADDITIONAL REWARDS/PERKS? ACCESS TO MYSPEND APP (TRACKS SPENDING HABITS)

TANGERINE

MONTHY FEE: FREE

UNLIMITED TRANSACTIONS: UNLIMITED

INTERAC E-MAIL TRANSFERS? $1/ Interac e-Transfer

ADDITIONAL REWARDS/PERKS? FIRST CHEQUEBOOK FREE (50 chqs.) AND INTEREST EARNED ON BALANCES ABOVE 0.00

SCOTIABANK

MONTHY FEE: FREE

UNLIMITED TRANSACTIONS: UNLIMITED

INTERAC E-MAIL TRANSFERS? 2 FREE PER MONTH. $1/every additional e-Transfer

ADDITIONAL REWARDS/PERKS? EARN SCENE POINTS REDEEMABLE FOR MOVIE TICKETS, FOOD, SPORTS GEAR AND MORE

Pre-authorized contribution/ credits (PACs)/direct deposits and credits

What could be considered terms with too many syllables is really just another way of expressing any money being deposited into your account.

Preauthorized Credits, also known as direct deposits are funds that have been acknowledged with the consent of a third party to be automatically deposited into your account on a continuous basis at a preset date/schedule.

The originating sources of these funds can range from government benefits to pay from your place of employment.

A credit on its own is just that, any money going into your account that is not automatically scheduled.

This could range from the $50 you deposited last week to the amount returned to your account after getting a refund for a recent purchase.

Pre-authorized debits and debits

Similar to PACs, preauthorized debits (PADs) are prearranged and scheduled times in which money is to be taken from your account.

Popular PADs could be monthly gym fees, cell phone/internet bills, reoccurring donations to charities etc.

It is important to note that any preauthorized debits would need your approval first and any payments coming out without any recognition should be reported to your bank immediately.

Debits are any transactions wherein money is withdrawn from your account at unset times.

These could include in-store and online card purchases, ATM withdrawals, Interac e-Transfers and/or cheques written to a person or place.

When bank accounts contain monthly transaction limits, they are almost always referring to the amount of times you can debit your account.

Overdraft protection

Overdraft protection is a product you can add on to your pre-existing chequing account that acts as a safety net in the case of instances such as unexpected emergencies or upcoming PADs.

They act as an extension to your account so when you are nearing a zero balance the protection will automatically kick in and allow debits to go through successfully.

For example, if you had $100 of overdraft protection with 3.26 in your bank account, you would still have a total of $103.26 to spend if need be and it is processed just like any other debit/purchase transaction.

Although this add-on is great for emergencies, the bank considers this a loan so any amounts used (whether $2 or $75.84) is still subject to interest rates which can add up overtime.

Hold limits/access to funds (ATF)

Every single bank account has a hold limit or access to funds limit and can vary greatly from one account to another. 

What this means is that anytime a personal cheque, a cheque that cannot be fully verified by the bank or one that is deposited to the ATM machine or through your phone may have portions held for security and protection reasons.

A hold limit or access to funds is the amount that your account allows you to have access to right away.

If your hold limit if $200 and you deposit a cheque for $500, you can use the $200 right away but it is important to note that this does not mean the cheque has been cleared.

For example, if the $500 cheque bounces, your account will be deducted the initial $500 deposit leaving you $200.00 less of your own money if the initial access amount was already spent.

A good bank will have the proper resources to answer any and all questions you may have when choosing your bank account or when addressing any inquiries or concerns to existing accounts and it is best to take advantage of these services!