A closer look at National Bank of Canada’s USD Progress Account

The National Bank of Canada’s USD Progress Account® is a US dollar savings account aimed at Canadians who want to save and spend in USD.

In this guide we prepared for you, we'll take a look at everything you need to know about the National Bank USD account, including key features, fees and how much it costs to spend your money.

We’ll also look at Wise, your easy international alternative. Manage your money in US dollars besides other currencies. All from just one account!

We shall be looking at
An overview of the USD Progress Account at the National Bank of Canada NBC USD Progress Account fees Is it possible to make debit card transactions from the NBC USD Account? Say goodbye to high transaction fees with Wise

An overview of the USD Progress Account at the National Bank of Canada

You can use your National Bank of Canada USD Progress Account to save and withdraw money in US dollars. Make cheques in USD and earn interest on your funds with in-branch bill payments and withdrawals.¹

Key features of the National Bank USD Account include:

• an interest rate of up to 0.100% depending on your balance²
• online, mobile and telephone banking options
• deposits covered by the Canada Deposit Insurance Corporation® (CDIC)¹

You’ll need to maintain a minimum balance of 5000 USD to generate interest and you may also need to pay a fee for some transactions.¹

The National Bank USD Progress Account is a good choice if you regularly travel to the US. However, you can only open your account at a physical branch. This may be inconvenient if you don’t live near a National Bank location.¹

You may also need to visit a branch to make a withdrawal, a transfer, or a bill payment from your account.¹ You can’t use your USD Progress Account at an ATM/ABM and you can only use online banking to view your transaction history and activity.³

What are the fees associated with the NBC USD Progress Account?

There are some key fees and costs to consider before saving with your National Bank of Canada USD Progress Account.

You’ll need to head into your local National Bank branch to use your US dollar account for some transactions, such as withdrawals, transfers, and bill payments.

Let’s take a look at the fees associated with making transactions at a branch.

Service	Fee
Bill payment	2 USD per bill¹
Withdrawal for bill payment	Free¹
Withdrawal and transfers	Free¹
Bank drafts in foreign currencies	5000 USD or less: 9 USD per draft Over 5000 USD: 12.50 USD per draft¹

You can also make electronic transactions from your NBC USD Progress Account, such as inquiries into your account balance and transaction history.

Let’s take a look at how much it costs to make electronic transactions with the National Bank of Canada US Dollar Account, including international transfers and Interac® e-Transfers.

Service	Fee
International transfers	1.25 USD³
Debit for purchases	1.25 USD³
Sending money to another account	1.25 USD³
Sending money to another person	1.25 USD³
Electronic withdrawal of funds	1.25 USD³
Sending Interac e-Transfers	1.25 USD³
Cheques and pre-authorized debits	1.25 USD³
Pre-planned automatic transfers carried out by your bank at your request	1.50 USD³
Online statements	Free³
Paper statements by mail	2.50 USD per month per account¹

Is it possible to make debit card transactions from the NBC USD Account?

It’s not possible to make debit card transactions from your National Bank of Canada USD Account. Instead, you’ll need one of NBC’s Canadian dollar accounts to pay by card.

If you want to access funds in your National Bank USD Account, you’ll first need to request a transfer into your Canadian dollar account or your Natbank account. You can do this over the phone at 1-888-835-6281 or visit your local branch.⁴

The transfer process can be time-consuming, and you may end up spending more than expected to exchange your money from USD to CAD. It costs 1.25 USD to send money to another account and 1.25 USD to make an international transfer with National Bank.³

You may also lose money in the currency conversion process, as there’s a difference between how much the National Bank of Canada buys and sells currencies for. This creates a currency conversion spread, adding a markup to your transaction.

For example, as of 6 August 2024, the bank buys US dollars for 1.3495 CAD but sells them for 1.4215 CAD to make a profit margin.⁵ Some intermediary or recipient banks may charge a foreign transaction fee, too. All of these costs can really add up.

But don’t worry! There’s a transparent alternative solution for all your international spending needs.

Say goodbye to high transaction fees with Wise

Use your Wise account to hold money in CAD, USD, JPY and other local currencies – all in one digital account.

Whether you’re sending money to New York or paying for groceries in Tokyo, Wise has everything you need for seamless spending:

• Hold US dollars and over 40 other currencies in just a few clicks
• Avoid foreign transaction fees when you spend in a currency you’re holding
• Spend in over 150 countries with the Wise card
• Access advanced security features, including 2-factor authentication

It’s easy to sign up for a Wise account, with pay-as-you-go pricing and 2 free cash withdrawals every month.

Wise uses the mid-market exchange rate for all foreign transactions. This is the standard rate, with no added markups, hidden fees or currency conversion spreads.

At Wise, you’ll only pay for what you use. Move and spend your money in freedom – no minimum balances, no monthly fees, no nasty surprises!

Final thoughts on National Bank of Canada’s USD Progress Account

The National Bank USD Account is a common option for Canadians looking to save money in US dollars. You can make cheques, set up pre-authorized debits or pay your bills in USD.

However, you may need to visit a branch to access your funds – and you can’t use your debit card to make direct payments. You’ll also need to think about how much it costs to transfer US dollars into your Canadian dollar account.

To start spending, sending and receiving your money in multiple currencies at once, check out Wise.

About the author:
	Piyush is an expert in finance topics for the Canadian market, covering everything you need to live without borders. He creates high quality content to help you make the best cross-border decisions. You can read more useful articles on his author profile.

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Sources

1. National Bank of Canada : USD Bank Account
2. National Bank of Canada: Interest rates
3. National Bank of Canada : Fee Guide
4. National Bank of Canada : FAQ
5. National Bank of Canada : Exchange rates
   Sources verified on 29 August 2024