Dear friends,

I have some money (around 30000 CAD) in my account with TD bank and been asked a number of times by the bank to go for some saving plans, and that why I am keeping so big amount in the bank for nothing. Is it really a big amount ! Secondly, would it be ok to keep all of money in one bank. I mean if I tansfer all of my hard earned money to Canada while moving for goods, can it be questioned specially when claiming any benefits or submitting tax returns. Secondly, should I have multiple bank accounts for keeping my money or keeping in one bank is ok. Lastly, are the banks generally safe here and will not vanish or bank corrupt overnight !

Please advise. Thanks

Hasni:
In Canada it is a big money.
Anyways, all banks here are good and your money is in safehands.
Banks tellers always tell like this. Why park money without interest.
So best option is to put in GIC (Bonds) of the same bank. Just ask them if you can close the GIC anytime without penalty.
With such high money, you may get a credit card. Get it and build up your credit (Google to see what it means). When I was in Canada, ING bank, ICICI bank and all gave the best moneyfor fixed deposits. So try that route.

Why are you not interested in keeping that money in Pakistan banks under $ currency account? (which will be fully prepartriable).

Murali The Krishna

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I am a Gents and not a Ladies.

Bank accounts (chequing and savings) are insured by CDIC for up to 100k. That and the stability of most Canadian banks mean your money is safe. TD is one of the major banks and hence you are ok.

Whether or not 30k is a huge amount depends on the intent. You'll need a good amount of liquid cash during the initial settling period. From that perspective, 30k may not be a huge amount.

On the other hand, if you have a stable source of income, then there is no point in keeping 30k in a bank account as you are losing growth potential to inflation. Depending on your long term plans in Canada, you should research into various investment vehicles such as GIC (least risky with least returns), mutual fund accounts (via registered and non-registered accounts), and good old stocks.

If your objective is to purchase a home, you'll need cash for a certain % of down payment.

In any case, you'll have to evaluate your short term and long term plans and accordingly move the amount.

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Dimple2001

Thanks TK, in case I keep some of my money in Pakistan, say in dollar account,...what if I need to transfer that money to Canada. Don't you think I need to justify that amount. Why I am fearing this, because, I ave already declared all of my assets and liquid cash at the time of landing, plus I have also declared my annual income inthe benefits forms. Now my understanding is that if the money I keep in Pak is other than what I have already declared and has to be brought to Canada one day, I will have to justify that amount. Am I right ! Or we can transfer any time any amount to our account in Canada. Please clarify.

Thanks dimple2001, does CRA consider our big credit score while calculating our benefits, meaning seeing my high credit score, they change their mind of considering me as low income family and reduce or stop my benefits ! How like.y is this scenario !

Hasni,
In Canada, once you declare money, it is considered only for one year. Next year, the previous years money is only used to determine your benefits (CRA).

However, if you wish to get welfare (dole) from the govt., which is free money of around $ 1170 per month (which you can claim saying that you have no job), they will ask you how much liquid cash you have. You can have only around $ 3000 in Canadian bank accouts. If it is more, then you will not be eligible for welfare. The disadvantage of welfare is that you canot sponser your relatives / parents once you take welfare.

Once money is declared as tax is paid or is taxfree, from next year, you only pay tax on the interest. I am not sure of how Dollar currency account operates for Pakistani's and hence only an accountant can help you with that.

One more thing is that you may have put all your moeny to buy a house and have just $ 2999 in the bank. You are eligible to claim wefare from the Govt. of Canada since your on hand cash is less than $ 3000. That is the irony. You can also get food from food bank since your cash in the bank is very less. No one cares about the house you own.

All the very best.

Murali The Krishna

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I am a Gents and not a Ladies.

Got it TK, thanks for your time again. I have got two important questions connected to the same topic
1. I have heard that from jan1 onwards , if you wire anything above 10000 C$ from overseas to your account in Canada, you will have to justify that amount lest it would be taxable. Is it true ! Now as I am moving for goods in March, and need to transfer my money from Saudi to canada, would that be taxable. So far I have been doing the partial transfers, now how to transfer rest of the money. Please advise.
2. Coming March I have to submit my first tax return. And I will have to mention my world wide income also. Any idea min how much worldwide income per anum I should have to be able to become taxed. Let's say my net yearly income in year 2014 was 35000 C$. Thanks

As far as I know (SS can add / modify it) :

1. The first money that you bring may be tax free (this is amount incl. your settlement funds and your total savings). So this might be a one time amount (you canot split it). Next is that may be your savings (apart from settlement fund) may be your last years earnings. It can be only one of the 2 situations that I had mentioned. Please google for more info. or FH/SS will help you on this momentarily.

2. Around 15K $ will be untaxable ($8K for main applcant, $7 K for spouse and probably $ 2 K each for each child). Anything after that will be taxed and will reduce your benefits for the current year.

Hope this helps.

Murali The Krishna

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I am a Gents and not a Ladies.