Can I deposit US Dollars in my Canadian bank account? Here’s a closer look

You can deposit US dollars in your Canadian bank account, but there are a few things to consider, including fees and exchange rates. We will take a look at everything you need to know, including how much it costs to deposit cash or online currency in your bank account.

We’ll also look at Wise – your international money transfer alternative you can use to hold up to 40 currencies in just one account, including CAD and USD.

We will be looking at:
Can I transfer USD to my Canadian account? Can I deposit USD in cash to my Canadian bank account? Avoid losing money during currency conversion with Wise

Can I transfer USD to my Canadian account?

Many banking providers will let you deposit US dollars in your Canadian bank account via bank transfer or online money transfer.

For example, you can receive a foreign currency wire transfer to your TD Bank® account. You can also use the TD Bank app to transfer USD to your CAD account.¹

However, you’ll need to think about how much your transaction will cost. When you deposit a foreign currency in your Canadian bank account, the bank automatically converts it into CAD.²

This may make your transaction pricier than expected. TD Bank uses a retail exchange rate, influenced by factors like:

• when you make your deposit
• your payment method
• how much you want to transfer
• the bank’s processing costs²

This isn’t exclusive to TD Bank, as most major Canadian banks set their exchange rates for foreign deposits.

RBC® also uses a retail exchange rate to cover transaction processing costs – and this rate can fluctuate depending on when you make your deposit. This means you may not know exactly how much your transfer will cost until you send it.³

Some banks may also add a currency conversion fee on top of exchange rate costs. Make sure to look into any currency conversion or foreign transaction charges before depositing US dollars in your Canadian account.

Can I deposit USD in cash to my Canadian bank account?

You can also deposit US dollars in cash to most Canadian bank accounts, but this may depend on your banking provider or credit union.

Some banks will let you deposit cash using an ATM, but at other institutions, you may need to visit your local branch to complete the transaction.

It’s easy to deposit cash via an ATM. Simply follow these steps:

Step 1. Locate a cash deposit ATM and insert your card as you would for a cash withdrawal
Step 2. Select “cash deposit” and the account you want to credit
Step 3. Put your cash into the deposit slot. Some banks may require you to fill out additional information or use an envelope, so make sure to read any instructions carefully
Step 4. Confirm your deposit amount and follow the on-screen prompts. You can also request a receipt as proof of the transaction⁴

This is a straightforward way to deposit cash in your account, but you may lose money to currency conversion fees, along with the exchange rate set by your bank.

Most banking providers don’t use the mid-market exchange rate to convert your money. Instead, they may add a markup to make profit, which can add a significant fee to your USD deposit.

Some banks also use different exchange rates for cash. For example, RBC’s cash exchange rate is less favourable than the non-cash rate, as cash transactions often require additional shipping and handling charges.³

Avoid losing money during currency conversion with Wise

Save money on all your international transactions with Wise!

Convert your money to CAD in just a few clicks – or open a USD account to send, spend and receive your money like a local.

Wise always uses the mid-market exchange rate for currency conversion. This is the exchange rate you might see on Google – and you’ll never pay a markup to convert your money. You’ll only pay for what you spend. Sounds fair, right?

Switch between CAD and USD without losing your money to excessive currency conversion fees and unfair exchange rates.

Wise uses transparent pay-as-you-go pricing, with minimal fees starting at just 0.33% per transfer. You can even work out exactly how much your payment will cost with Wise’s currency calculator. Whether you’re buying groceries in Canada or booking a flight in the US, Wise has got you covered.

Get your Wise account in a few clicks 🚀

Final thoughts on depositing USD to a Canadian bank account

Depositing US dollars in your Canadian bank account is an easy way to convert your money into CAD.

However, you’ll need to think about any currency conversion fees – and as we’ve explored, many banks add a hefty markup to foreign transactions.

A digital money transfer platform like Wise could be the solution! Hold 40 currencies at once, or convert your USD to CAD – all at the standard mid-market exchange rate.

To start exploring your international spending, check out Wise.

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Sources

1. TD Bank
2. TD Bank
3. RBC
4. Chase Bank
   Sources verified on 27 September 2024