If you are in Canada but does financial transactions in US dollars like for a business then you would need to open a US bank account.
Opening a USD account in Canada will give you full control of your money using the currency that will provide you the best exchange rates. The exchange rates fluctuate and with a US bank account, you gain leverage in between currencies regardless of whether you want to save and hold it off for paying bills or if you are using it for making purchases or receiving payments online.
The Edge of a US Bank Account in Canada
With a US dollar account, you gain the upper hand on your finances. This means that you can wait it out until you get the best exchange rates of value that you can use for travel or for emergency purposes.
With a US dollar account in Canada, you get to avoid the 2.5% per transaction fee charged whenever you make payments in US dollars.
In Canada, you will be given options to open both a US dollar savings and checking account. These two accounts have maintaining balances and with interest rates that range from 0.05% to 0.50%. You can issue cheques with both accounts.
Canadian banks offer US dollar accounts for free or for a low fee for existing clients with savings or checking accounts. On the average, opening a US dollar account would range from $1 to $10 but such fees can be waived depending on the bank with a minimum maintaining balance.
There are many Canadian banks that offer an option for accounts to be opened in USD currency. You can also opt for US banks in Canada that could open US accounts for Canadian residents.
Majority of US banks in Canada only allow Americans to open bank accounts in USD currency but if you already have an existing account with five major banks in Canada (savings or checking account) – National Bank of Canada, Bank of Montreal, TD, Royal Bank of Canada, CIBC, and Bank of Nova Scotia – then you can easily open a US dollar account by visiting the branch, phone, or online.
Here are the requirements or document needed when opening a US bank account in Canada:
- Social insurance number
- Valid bank account number
- Two valid identification documents such as driver’s license, passport, or permanent resident card.
- Proof of address
There are different types of US dollar accounts to choose from. One of the best banks that offer US dollar account is TD Canada Trust. You can choose between the Borderless Plan which has a free US dollar VISA card. You are also provided traveler cheques. There is however a charge of $1.25 for every transaction but this can be evaded by maintaining a balance of $1,500. Charges vary per bank.
If you are a new customer at these major banks, you would have to open a checking or savings account with them before you can apply for an account with a USD currency. Your US dollar account in Canada can be used for making online purchases, deposits, or paying bills in USD currency.