With a US dollar account in Canada, you can hold and use USD without converting it to CAD each time and losing money on the exchange. This makes it useful for cross-border banking needs like travel, business payments, investing and online shopping in US dollars, while also giving you more control over when you can convert currency.
This guide breaks down USD accounts available in Canada and what to know when sending money between Canada and the US.
5 cross-border debits/month
Free Interac e-Transfers
Hybrid Chequing and Savings Account
Cross-border banking means using banking services to manage money between two countries, typically Canada and the United States, since they share a border. It lets you hold or transfer money in multiple currencies, send or receive international payments and access your finances while abroad. Cross-border banking makes it easier, and often cheaper, to handle money internationally for travel, work, business or sending funds overseas.
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Yes, many Canadian banks offer US dollar accounts specifically designed to support cross-border banking needs. These accounts are mainly designed for holding, spending and exchanging USD, helping Canadians avoid frequent currency conversions when traveling, shopping or conducting business in the US.
However, they don’t have the same functionality as full US-based bank accounts. For example, they may not support ACH transfers (a common US payment system), won’t work with peer-to-peer transfer apps like Venmo or Zelle and can have limitations when setting up US-based subscriptions or billing that requires a local account.
As an alternative, some fintech platforms, like Wise, offer US account details, including a local routing and account number, to provide more flexibility for receiving or sending payments in USD.
Why open a US dollar account in Canada? There are plenty of reasons, such as:
In this guide, we’ve looked at US dollar accounts with Canadian banks, but another option is opening an account at a US bank. While the account-opening process is a little more complicated than opening an account with a Canadian bank, and you may need proof of a US address, non-US citizens can open accounts in the US.
A US bank account can be more useful if you regularly live, work or pay expenses in the US. It gives you better access to local payment systems, makes it easier to pay US bills and allows you to use services that require US bank details.
However, having a US account doesn’t automatically eliminate all fees, and it does not build a US credit history unless you also use credit products like loans or credit cards.
If you have a US dollar account in Canada, you may be able to send funds in USD directly, helping you avoid the cost of converting from CAD to USD. You can then send US dollars to the US in a few ways, such as sending a bank transfer, writing a USD cheque or even withdrawing US currency so you can send a cash transfer.
However, if you have Canadian dollars, there are several ways to send money to the US.
If you need to transfer money from Canada to the US, consider these four options:
Digital access
Cashback Offer
Multi-currency
There’s a lot to consider when choosing a cross-border banking account for USD, including:
While some US dollar accounts don’t have any monthly fees, many do. Check the monthly fee that applies and find out whether the fee will be waived if you meet a minimum balance requirement.
You’ll also need to check the fine print for details of any other fees that apply. These could include transaction fees, cheque fees, ATM withdrawal fees and more.
Check how you will be able to access the funds in your account. For example, can you write USD cheques? Is there a debit card attached to the account? Does the bank operate ATMs that allow you to withdraw US currency? How can you transfer money from your USD account to another account?
Make sure the account you choose offers easy and convenient access to your money.
It’s worth remembering that monthly transaction limits often apply to US dollar accounts. Check the terms and conditions to find out how many transactions you’re entitled to, and what transaction fees will apply if you exceed the limit.
Also check whether you get access to additional features like US cheques and bank drafts, and whether the account offers overdraft protection.
If you’re searching for a USD savings account, check the interest rate that applies to your balance. Is the interest tiered so that a higher rate applies to larger balances, or is it a flat rate for all accounts?
Foreign currency deposits are eligible for coverage from the Canada Deposit Insurance Corporation (CDIC). Check to make sure your bank is a CDIC member for extra peace of mind before opening an account.
Even with a USD account, converting between CAD and USD may still involve exchange rate spreads or fees, and banks set their own foreign exchange markup rather than using the mid-market rate. These rates can vary between institutions and may affect the overall amount you receive when converting currency.
Finally, compare any promotions or rewards that are offered with the account. For example, you may be able to access discounts on other products from the same bank, such as an annual fee rebate on an eligible credit card.
You can typically apply to open a cross-border banking account online, but some banks will require you to visit a branch to complete the signup process.
You’ll need to be the age of majority in your province or territory and provide:
You may also be asked to complete tax-related forms, such as a W-8BEN, to confirm you’re a non-US resident. This is used for tax reporting on any interest you earn.
You’ll need to provide two pieces of government-issued identification, such as a driver’s licence and a passport, to prove your identity. You may also be asked to provide proof of address, like a utility bill or bank statement.
Cross-border banking can make it easier to manage money between Canada and the US, whether you’re travelling, working, investing or sending payments in USD. A Canadian USD account offers a simple way to hold and use USD without converting it each time, while US bank accounts or fintech alternatives may provide better access to American payment systems and services. The best option depends on how often you need to move money across the border and how much flexibility you need.
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