Can I transfer US dollars to my Canadian dollar RBC account? Here's a closer look

Transferring money internationally has always included excessive fees and confusing exchange rates. However, with the right information and tools, you can seamlessly transfer USD to your RBC (Royal Bank of Canada) CAD account.

This article outlines the various methods of transferring money, emphasizing the key points you need to watch out for, and introduces Wise as a smart alternative for seamless and economical international money transfers.

We'll be looking at
How to Transfer USD to My Canadian Dollar Account at RBC? Transfer Methods Currency Conversion Costs How Can I Get More Value for My US Dollars?

How to Transfer USD to My Canadian Dollar Account at RBC?

Transferring USD to your RBC Canadian dollar account can be accomplished through direct deposits, bank transfers, or cheques. However, it's important to be aware of the potential loss of money during the currency conversion process.

Transfer Methods

1. Deposit (if in cash): You can physically deposit USD cash into your RBC account. While this might seem straightforward, keep in mind that RBC will convert your USD into CAD using their exchange rate, which is typically 2.5% over the exchange rate set by Visa International.¹
2. Bank Transfer: A wire transfer from a U.S. bank to your RBC account is another option. Similar to cash deposits, the funds will be converted at RBC’s exchange rate. Additionally, intermediary banks might be involved, increasing the cost.
3. Cheque: Depositing a USD cheque is possible, but this method is usually slower as the banks will take time to process and clear the check. Again, the conversion will occur at RBC’s exchange rate, leading to potential financial loss.

Currency Conversion Costs

Exchange Rate

As mentioned, RBC's exchange rate is about 2.5% over the exchange rate set by Visa International. This margin helps banks cover their costs and profit from currency conversion.

For example, if the mid-market exchange rate is 1 USD = 1.25 CAD, RBC’s rate might be closer to 1 USD = 1.22 CAD, meaning you’ll receive fewer Canadian dollars for your U.S. dollars.¹

Transfer Fees

Banks also charge fees for the transfer process. If intermediary banks are routing the funds to your RBC account, these banks may levy additional fees on top of RBC’s charges. When wiring the amount, you could be charged up to 17 CAD, which reduces the overall amount received in your Canadian dollar account.²

How Can I Get More Value for My US Dollars?

To maximize the value of your US dollars when transferring to your RBC Canadian dollar account, Wise provides an efficient and cost-effective alternative. With Wise, you can first add your money in US dollars to your Wise USD balance for free, via bank transfer.

You can then send it to your Canadian dollar account using the mid-market rate, free from hidden fees and inflated exchange rates.

What Is The Mid-Market Rate?: It is the midpoint between the buy and sell prices of two currencies used by banks when trading large amounts of money. It reflects real market conditions without any added margins by financial institutions. It is also the exchange rate you often see on Google.

By using this rate, Wise ensures you get the fairest possible value for your currency conversion.

Wise charges a minimal fee for cross-currency transfers, starting at just 0.33%^*. This is significantly lower than the fees charged by traditional banks, which can sometimes include hidden costs and intermediary fees. By keeping your costs transparent and lean, Wise helps you retain more of your money during the transfer.

Final Thoughts on Transferring USD to a Canadian Dollar Account at RBC

While certain methods such as deposits, bank transfers, and cheques are convenient, they often come with significant currency conversion costs and intermediary fees.

Using a service like Wise offers a transparent and cost-effective alternative. By taking advantage of the mid-market rate and minimal transfer fees, you can save a considerable amount of money, ensuring you get the fairest value for your US dollars.

Whether you're sending money for personal reasons or business transactions, Wise provides a smart, user-friendly, and economical solution for transferring USD to your RBC Canadian dollar account, helping you navigate the complexities of international money transfers with confidence and clarity.

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Sources:

1. RBC Personal Deposit Accounts
2. RBC Additional Account Services
   Sources verified on 17 September 2024