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The best accounts for Canadians to hold USD
Opening a US dollar account is a great way to manage your money in multiple currencies. You can spend in the US without hefty currency conversion charges, or send money to family and friends across the border.
Let’s take a look at some of the best USD accounts in Canada, including everything you need to know about fees, account options and spending abroad. We’ll also look at Wise – your digital transfer alternative. Send and receive CAD and USD in one international account.
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Benefits of a USD Account in Canada
There are many benefits to holding money in a USD bank account. You can:
- pay bills in the US
- avoid currency conversion charges when you spend in USD
- earn interest in multiple currencies
- receive your US salary straight into your account
- send money to family and friends in the US
Use your USD account to spend like a local when you buy online or in person. You can easily travel between the US and Canada or earn interest on your money.
Things to consider when choosing a USD account in Canada
It’s easy to open a USD account in Canada, but you’ll need to consider which account type best suits your purposes. There are many great options out there!
A savings account is a good choice if you want to save money, rather than make regular USD transactions – and you can earn interest on your funds. However, you may be unable to make cash withdrawals from your account.
You can make easy everyday payments with a US dollar chequing account at a major Canadian bank like BMO® or CIBC®.
Some of these accounts come with additional fees, however, such as a monthly charge. You may also need to maintain a minimum monthly balance.
Opening an online account is a flexible option. You can switch between different currencies and avoid currency conversion charges, but these providers may offer limited functionality.
Online USD accounts in Canada
There are lots of different USD accounts available for Canadians, including digital and online options.
Let’s take a look at some of the best USD accounts in Canada, including fees and exchange rate charges for international transactions.
| Provider | Simplii | Wise | Tangerine |
|---|---|---|---|
| Accounts available | Personal savings account – you can’t make cash deposits or withdrawals¹ | Personal and business accounts in over 40 currencies | Personal savings account² |
| Exchange rate | Rates set by Simplii®¹ | Mid-market exchange rate – no added markups or margins | Rates set by Tangerine®² |
| Currency conversion fee | No fees, but Simplii earns revenue from the spread or difference in market value vs. their price for the currency exchange³ | Starting at 0.33% | Tangerine sets its buy and sell rate for currency conversion – this may include a markup on the standard exchange rate² |
| Incoming transfer fees | N/A | Free, except for 6.11 USD for incoming USD wire transfers and 10 CAD for incoming CAD wire transfers | N/A |
| Outgoing transfer fees | Up to 10,000 CAD or equivalent: 30 USD per wire transfer 10,001 CAD to 50,000 CAD or equivalent: 50 USD per wire transfer More than 50,000 CAD or equivalent: 80 USD per wire transfer⁴ | Starting at 0.33% | Tangerine charges fair fees – these will be disclosed in advance⁵ |
| Countries covered | Simplii Global Money Transfer covers 130+ countries¹ | 160+ countries | Canada and the US² |
USD accounts at Canadian banks
Let’s take a look at a few other Canadian USD bank accounts, including RBC®, TD Bank®, CIBC and BMO.
| Provider | RBC US Personal Account | TD Borderless Plan | CIBC USA Smart Account | BMO U.S. Dollar Primary Chequing Account |
|---|---|---|---|---|
| Exchange rate | Rates set by RBC⁶ | Rates set by TD Bank⁷ | Rates set by CIBC⁸ | Mastercard® exchange rate + 2.5% markup for purchases¹⁰ |
| Incoming transfer fees | For a wire transfer from another bank (more than 50 USD): 17 USD¹¹ | 17.50 USD to receive wire transfers in USD¹² | 15 USD per wire transfer¹³ | 16 USD per wire transfer¹⁴ |
| Outgoing transfer fees | For RBC International Money Transfer: 1 USD to 1000 USD: 6 USD per transfer More than 1000 USD: 10 USD per transfer¹⁵ | Up to 25 USD for online global transfers¹² | 40 USD per outgoing international wire transfer⁸ | 40 USD per outgoing wire transfer You’ll also pay a service fee for BMO international money transfers¹⁴ |
| Free transactions/month | 6 debits per month¹⁶ | Unlimited transactions⁷ | Unlimited transactions⁹ | It can depend on your bank plan |
| Monthly or annual fees | 3 USD per month¹⁶ | 4.95 USD, waived if you maintain a minimum monthly balance of 3000 USD⁷ | No monthly fee⁹ | No monthly fee if you maintain a minimum monthly balance using a qualifying Bank Plan¹⁷ |
| Inactivity fee | 2 to 8 years: 20 USD Year 9: 40 USD¹⁵ | TD Bank doesn’t mention an inactivity fee | 2 to 4 years: 20 USD per year 5 to 8 years: 30 USD per year 9 years: 40 USD per year¹³ | After 2 years of dormancy: 20 USD After 5 years of dormancy: 30 USD¹⁴ |
| Account closing fees | 20 USD, waived if closed in person¹⁵ | 15 USD to close your account and transfer the balance to another bank¹² | CIBC doesn’t mention an account closing fee | Account closed within 14 days of opening: free Account closed after 14 days of opening: 20 USD¹⁴ |
How to use Wise to hold your money in US dollars
Get your Wise account in a few clicks 🚀
Wise is your international money transfer alternative. Send and receive your money in over 40 currencies across the world, including US dollars.
Whether you’re paying for your hotel or making a business expense, spend in USD at the mid-market exchange rate.
Many money transfer providers add a markup to the currency exchange rate, but not Wise. Wise uses the standard rate – and you won’t pay inactivity fees or monthly subscriptions for your account.
Wise offers you an international account to convert and hold, send or spend your money with freedom. You can access USD account details to receive and spend your money like a local in the US. Hold CAD and USD, convert currencies and make speedy# digital transfers in your online Wise account – all from just 0.33%* per cross-currency transaction.
You can even use your Wise card to spend in over 160 countries or switch between worldwide currencies with just the touch of a button.
# Transaction speed claimed depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactionsFinal thoughts
Using a USD bank account is a handy way to spend and save in US dollars. You can make purchases in local currency or earn interest on your funds.
There are a few great USD bank accounts in Canada, including saving and chequing accounts, to help you make the most of your US dollars.
To start spending in USD, CAD and more, open a Wise account today.
Sources
- Simplii
- Tangerine
- Simplii
- Simplii
- Tangerine
- RBC
- TD Bank
- CIBC
- CIBC
- BMO
- RBC
- TD Bank
- CIBC
- BMO
- RBC
- RBC
- BMO
Sources verified on 27 September 2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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