Canadian Dollars: Cash vs Forex Card – Best Option for Immigrants

When immigrating to Canada, deciding whether to carry Canadian dollars in cash or use a forex card involves weighing various factors. Both have unique pros and cons that can influence your ultimate choice.

Cash

Pros:

Immediate Availability: Cash provides immediate access for small purchases, such as taxis or tips, without any delays. No Transaction Fees: Using cash incurs no transaction fees or currency conversion rates, making it a cost-effective solution.

Cons:

Security Risks: Carrying large amounts of cash increases the risk of theft or loss. Cash is more susceptible to robbery and loss compared to a security-enabled card. Limited Use: While cash can be used for small purchases, some transactions, especially for larger amounts, may require electronic payment methods. Currency Exchange: Converting cash at the airport or local exchanges might not offer the best exchange rate. You might end up paying higher rates.

Forex Card

Pros:

Safety: A forex card is generally safer than carrying cash. If lost, it can be blocked, and you can retrieve your funds if necessary. Convenience: Easier to use for online transactions and at point-of-sale terminals, enhancing your mobility and convenience. Preloaded Funds: Preloading the card with a specific amount helps you manage your budget and plan your spending. Competitive Rates: You may get better exchange rates when loading the card compared to cash exchange. Forex cards often offer competitive rates for international transactions.

Cons:

Fees: Some forex cards may have activation or maintenance fees, as well as additional charges for ATM withdrawals. Acceptance: While widely accepted, some smaller merchants might not accept cards, particularly in rural areas. Limited Usage in Certain Situations: Certain transactions, such as small vendors or tips, might still require cash for acceptance.

Conclusion

A balanced approach might be the best option. Consider carrying a small amount of cash for immediate needs and using a forex card for larger transactions and everyday purchases. This way, you can benefit from the safety and convenience of the card while having cash on hand for situations where electronic payment is not accepted.

For further assistance, here are some additional options:

Banker’s Draft: Consider getting a demand draft or bankers' draft from your bank and depositing it into a Canadian bank account after arriving in Canada. Wire Transfer: Land in Canada, open a bank account, and then get the funds wired into your account in Canada. ICICI Bank has branches in Canada. Bank Partnership: Some banks, like Scotia Bank, have partnerships with banks in India, such as Kotak, to assist in setting up an account. This process might take a couple of weeks. Pre-arranged Account: Open an account with Scotia with online banking before you arrive. Once the account is opened, you can get the funds transferred before or after landing.

Remember that Canadian Immigration authorities need to know about the source of your funds. It's essential to declare any funds you plan to bring into Canada, even if they are to follow later.

When choosing a forex card, consider reputable providers like HDFC, which offers good service and security.