If you have a question or complaint about your financial institution, first speak with someone at the institution. See if they can help. If not, get tips on “how to complain” by contacting the Canadian Bankers Association. [www.cba.ca or Dayplanner web site – Link #110]
Governments in Canada provide many products and services, including health care, education, roads, and defence.To provide these, governments collect taxes. Types of taxes include income tax, sales tax (for example, GST, PST, HST), property tax, and gasoline tax. Canadians often debate what governments need to provide and the taxes that should be paid. Make sure you pay the taxes you are required to pay and complete and send in your income tax forms on time—April 30th for most people.
When you write a cheque you are telling your financial institution to transfer a certain amount of money to someone else. Once the cheque is cashed, it takes about one day for the cheque to “clear”, that is, for the money to be transferred from your account to their account. Make sure you have enough money in your account to cover any cheques.
Some people may come to your home to ask for a donation or try to sell you a product or service (for example, grass-cutters or painters trying to get new business). Be cautious. If you don’t wish to do business at your door, thank them, say that you don’t conduct business at the door, and say goodbye.The best way to send a donation to an organization you want to support is by mail or in person at the office of the organization. It is best not to give cash to someone who comes to your door; it’s hard to verify who they are and the organization they represent.
If there is not enough money in your account to cover a cheque you write, the cheque can “bounce.” If this happens, the bank will notify you that the cheque is “NSF.” The bank will charge you a fee when the cheque bounces.The person you wrote the cheque to will still not have been paid, and may charge you an additional fee of their own. Having a cheque bounce can hurt your credit rating (see page 101).Try to avoid writing an NSF cheque.
Overdraft protection is a way of protecting yourself in case you write a cheque for more money than you have in your account.The bank will “clear” the cheque but charge you interest on any “overdraft” amount that results.The bank will set a limit on your overdraft protection based on your credit rating.
Some people will ask for a certified cheque to prove you have enough money to cover the cheque.To certify a cheque, write it in the normal way and take it to the bank.The bank takes the money from your account immediately and stamps the cheque as “certified.” There is usually a fee for this service.
Automatic Teller Machines (ATMs) or Automatic Banking Machines (ABMs) enable people to do “selfserve banking,” such as making deposits or withdrawing money using debit cards.You can also use an ATM to transfer money from one account to another.Try to use ATMs that belong to your own financial institution. When you use another financial institution’s ATM, you usually have to pay extra fees.
To use an ATM or ABM, you will need a card from your bank.This card is called a client card or debit card.You also need a Personal Identification Number (PIN) to use the card. Keep your PIN secret so that no one else can use it without your permission. Make sure your PIN is a number you can easily recall.Without a PIN, you will not be able to use an ATM machine.
This is a new saving and investing option that people living in Canada should consider.The money you save and invest can grow tax-free.The money you deposit to a TFSA is not tax deductible.You can invest the money you have in a TFSA in mutual funds, and other investments. Learn more at DayPlanner web site – Link #103 or www.tfsa.gc.ca