This script discusses Most of us open a bank accounts account at some point in our lives. Learn the rights and related service charges, NSF cheques, responsibilities that come with having a bank errors, stolen PIN numbersaccount, and joint accountspractical tips to avoid problems.

==You have a written agreement with Understand your banklegal rights==People usually don’t think much about their relationship with the bank. But the important details are always set out in a written agreement. When you open a bank account, you must typically sign some forms. One form is usually a signature card, so that the bank has a record of your true signature. For a chequing account, you must sign a form to obtain personalized cheques. But at least one of the documents you sign has the details (that you agree to) on how the bank will operate your account.

==Different banks use different agreements=You have a written agreement with your bank===Most of People usually don’t think much about their relationship with the agreements have similar terms, but bank. But the only way to find important details are set out exactly what you’ve agreed to in a written agreement. When you open a bank account, you typically sign some forms. One form is usually a signature card, so the bank has a record of your true signature. For a chequing account, you must sign a form to get a copy obtain personalized cheques. At least one of the document from documents you sign has the details on how the bank will operate your bank and read itaccount.

{| class="wikitable"|align="left"|'''Tip'''Most bank account agreements have similar terms. But there are some differences. To find out exactly what you’ve agreed to, get a copy of the agreement from your bank and read it.|} ===Bank account service charges vary=Overdraft privileges==Overdraft privileges are not automatic'''Service charges''' vary between banks and accounts. If you have a personal chequing Depending on your account, you expect your bank to honour your may be charged for the cheques when you write them. But unless you’ve arranged and for overdraft privileges (where other services the bank will honour your cheque even provides. For example, if you don’t have enough money in '''overdraft''' your account to cover it) your agreement likely says (that is, withdraw more money than the bank must honour a cheque only if there’s enough money in your account. And if the bank lets holds), you go into may have to pay an overdraftfee, they can charge you plus interest at a rate they set. If you’ve arranged for overdraft privileges, make sure this is recorded in writing. If Or you may have to pay for goods or services and your bank doesn’t honour your cheque because a service charge every time you don’t have enough funds in your account, it could hurt your credit ratinguse an automated teller machine (ATM).

==Service charges==Service charges vary a lot between banks and accounts. Depending on your account, you may be charged for the cheques you write and for other services that the bank provides. For example, every time you go into overdraft, you may have to pay an overdraft fee, plus interest. Or you may have to pay a service charge every time you use a bank machine or ATM (automated teller machine). Often banks will have package deals with a set monthly charge for a certain number of transactions. They may also Many waive fees if you keep a minimum balance in your account. While your account agreement likely doesn’t say specifically what cost service charges are, it probably says that you agree to be bound by the bank's general schedule of rates and that the bank may debit your account for any charges that the bank sets from time to time.

When ====The bank must tell you the service charges when you open an account, banks must tell you what their ====Your account agreement likely doesn’t specify the service charges are. The charges are normally listed on their websites, too. So if you’re looking But it probably says you agree to open a the bank account, shop around to find the account option best for you. Most banks change their charges periodically's general schedule of rates, and if your agreement permits, this will be done without notice to you. Even if your agreement requires the bank to notify you about changes in debit your service account for any charges, the bank can generally do this by mailing a notice to your address, and they don’t need your consent sets from time to change these chargestime.

==NSF cheques==If someone pays And when you with a cheque written on another bank open an account, normally you take that cheque to your own the bank to cash or deposit it. Or must tell you deposit it using your phoneits service charges. Your bank will The charges are typically accept cheques from other bankslisted on its website, credit the money as well. If you’re looking to your open a bank account, and present the cheque to those other banks shop around for payment—or to be cleared. But sometimes a cheque bounces. That means it doesn’t clear because there’s not enough money in the best account, and it’s returned to option for your bank stamped ''NSF'' or ''Not Sufficient Funds''needs.

Your ====Changes to service charges====Banks change their service charges periodically. If your account agreement with your bank says that the bank permits, this can then debit your account for the amount of an NSF cheque—even if be done without notice to you have not withdrawn the money. That’s true even Even if your bank is slow and ignores agreement requires the normal rules about clearing cheques promptly. It’s possible for your bank's delay to cause a cheque not to clear: for example, there was enough money in the account to cover the cheque when it was written but your bank delays notify you about changes in presenting it to the other bank to be cleared. By the time your bank does thatservice charges, there’s no longer enough money in the account. Rarely, in that case, you may have a claim against your bank, but even this may be limited or denied by doesn’t need your agreement with the bankconsent to change its charges.

Banks ====Overdraft services can avoid unexpected charges====If you have their own policies on whether a personal chequing account, you can re-deposit an NSF expect your bank to honour your cheques when you write them. But unless you’ve arranged for '''overdraft protection''', your agreement likely says the bank must honour a cheque (and only if so, how many times)there’s enough money in your account.

==Online banking and electronic funds transfers==Online banking and electronic fund transfers (EFTs) are becoming much more common. EFTs are simpler than cheques because they fail immediately Overdraft protection means the bank will honour your cheque even if there’s not you don’t have enough money in an your accountto cover it. So some of the problems with cheques don’t arise. On the other hand, because this is a new area of banking, there Overdraft protection is not much case law on it yet, compared to case law on chequesautomatic.

{| class="wikitable"|align=Check "left"|'''Tip'''Overdraft protection helps not only with avoiding unexpected charges. If you pay for something and your bank statements carefullydoesn’t honour your cheque because there’s not enough money in your account, your [[Credit Reports (Script 249)|credit rating]] will suffer.|} ===If you deposit an NSF cheque to your account===The first that When someone pays you may learn of with a cheque returned NSF may be from , you deposit the cheque in your bank statementaccount. AlsoYour bank will typically credit the money to your account, and present the cheque to the cheque writer’s bank for payment. This process ideally ends with the cheque being “cleared”. But sometimes a cheque bounces. That means there’s not enough money in your agreement with the bank, you promise cheque writer’s account to be responsible for making sure that cover the statement cheque. The cheque is truereturned to your bank stamped '''NSF''' (standing for '''non-sufficient funds''').

==If a bank makes a mistake==Most account agreements make you responsible for cheques that don’t clear====You have a certain time to point out that mistake to Your account agreement likely says your bank can debit your account for the bank—normally 30 days from amount of the date the bank mails NSF cheque — even if you your statement or posts it online. If you don't point out the mistake, you’re considered to have agreed that not withdrawn the balance shown in money. That’s true even if your statement bank is correctslow and doesn’t clear the cheque promptly.

The only exceptions are if the (It’s possible your bank mistakenly puts 's delay contributed to a cheque not clearing. That is, there might have been enough money into your in the cheque writer’s account. Thento cover the cheque when it was written, but your bank’s delay in presenting the cheque to the 30-day rules does not apply. Another exception is if someone forges other bank meant that by the time your signature on your chequebank did so, there was no longer enough money in the account. The 30-day limit does not apply and In such a case, you should immediately notify the bank and make may have a claim for the lost moneyagainst your bank, but even this may be limited or denied by your account agreement. )

==If a mistake is made, Banks have their own policies on whether you must prove it==For this reason, always get a receipt for any deposit that can redeposit an NSF cheque (and if you makecan, and keep your cancelled cheques and bank statements for a reasonable time. If how many times you use a bank machine or ATM, keep the receipts from the machine to compare them with your account statements. This way, you’ll have a record of all the transactions in your account. Any deposits and transactions made at a bank machine on a weekend or holiday are processed on the branch’s next banking daycan redeposit it).

ATM receipts aren’t considered proof of actual deposits ====An alternative to your writing cheques==== An '''electronic funds transfer''' (EFT) is an alternative to writing a cheque. An EFT fails immediately if there’s not enough money in an account. But they are better than nothing. Only a bank teller receipt or copies of It removes the actual deposited cheques are accepted as evidence of uncertainty that comes after depositing a depositcheque.

===If someone uses your PIN or bank machine card===When you have a bank machine card and “personal personal identification number” or number (PIN), you’re responsible for all amounts withdrawn from your account through the authorized use of your card. So if If you lose your card or find out that someone has stolen your card or PIN, phone the bank immediately. Most agreements require you to phone within 24 hours.

You normally won’t be responsible for the unauthorized use of your card or PIN after you’ve told the bank about the loss or theft. But you must not have “knowingly contributed” to the unauthorized use, — for example, by lending your card to a friend to withdraw money. And you must have been careful to keep your PIN separate from your card.

For more information about bank cards, check script see our information on [[Buying Goods on Credit, Credit Cards and Credit Bureaus (Script 246247)|246credit cards (no. 247)]] on “Buying Goods on Credit, Credit Cards and Credit Bureaus.”

==Joint bank accounts==If you have sign up for a joint bank account with someone, depending on how the signature card is signed, you agree that the ===A '''joint bank can pay out funds on a cheque account''' allows two or withdrawal signed by any of more people, from the same account holders, to make withdrawals, deposits and payments, and conduct other transactions. This means that if the As a joint account is overdrawnholder, the bank can demand repayment of the full amount from anyone who has signed the signature card. If you end up paying more than your share of the overdraft, then it’s up to you, not the bank, access to get the difference from the other account holders.

==If you don’t use your You're also responsible for any transactions made by the other account== The federal ''[http://laws-loisholders.justice.gc.ca/eng/acts/B-1.01/index.html Bank Act]'' says that if you haven’t used your For example, let’s say the joint account is overdrawn — one of the account holders has written a cheque for 10 years or more, any money left than is in it must be transferred to the [http://wwwaccount.bankofcanada.ca/ Bank The bank can demand payment of the overdrawn amount from any of Canada]the joint account holders. For If you end up paying more information on thisthan your “share” of the overdraft, call 1.800.303.1282 and ask for “unclaimed balances” or click on “[http://www.bankofcanada.ca/unclaimed-balances/ Unclaimed Balances]” or email [mailto:ucbalances@bankofcanada.ca ucbalances@bankofcanada.ca]then it’s up to you, not the bank, to get the difference from the other account holders.

==Prevent problems== ===Check your bank account statements carefully===In your account agreement with the bank, you likely agreed to review all entries on your '''account statement''' and advise the bank of any errors. Reviewing your statements can also alert you to important information — the first you may learn of a cheque returned NSF (non-sufficient funds) may be from your bank statement.  ===Point out if the bank makes a mistake===You have a certain window of time to point out a mistake made by the bank — typically 30 days from the date of the account statement. If you don't point out a mistake, you’re considered to have agreed the information shown in your statement is correct. (There are some exceptions to this rule. For example, if someone forges your signature on your cheque. If this happens, you should immediately notify the bank and make a complaint against claim for the lost money.) ===Keep your receipts===If a mistake is made by the bank, you must prove it. For this reason, always get a receipt for any deposit you make, and keep your cancelled cheques and bank account statements for a reasonable time. If you use an automated teller machine (ATM), keep the receipts from the machine to compare them with your account statements. This way, you’ll have a record of all the transactions in your account. (Note that any deposits and transactions made at an ATM on a weekend or holiday are processed on the bank’s next business day.) ATM receipts aren’t considered proof of actual deposits to your account. But they are a starting point. Only a bank teller receipt or a copy of the actual deposited cheque is accepted as evidence of a deposit. ==Common questions== ===What happens if I don’t use my account?===Under the federal ''[https://www.canlii.org/en/ca/laws/stat/sc-1991-c-46/latest/sc-1991-c-46.html#sec438_smooth Bank Act]'', if a bank account has been inactive for 10 years and the owner can’t be contacted, any amount in the account is considered an “unclaimed balance”. Under the law, the bank must transfer the money to the [http://www.bankofcanada.ca/ Bank of Canada]. For more information on unclaimed balances, call 1-800-303-1282 or visit [http://www.bankofcanada.ca/unclaimed-balances/ bankofcanada.ca].  ===How do I complain about my bank?===First, discuss the problem with your bank’s branch manager.  If you’re not satisfied with the response, contact the bank’s head office. You can get a contact name and telephone number by calling the [http://www.osfi-bsif.gc.ca/Eng/Pages/default.aspx Office of the Superintendent of Financial Institutions] (OSFI) at 1.-800.-385.-8647. OSFI This office is the federal government agency that supervises and regulates oversees Canadian banks.  If you’re still dissatisfiednot satisfied, you can contact the [https://www.obsi.ca/ Ombudsman for Banking Services and Investments] at 1.-888.-451.-4519. Of course, if you have a legal problem, you may need to see a lawyer.

'''The above was last reviewed for legal accuracy by [http://creaseharman.com/r-bruce-e-hallsor/ Bruce Hallsor and edited by John BloisQC], Crease Harman.'''