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Is it better to get a U.S. dollar chequing account in Canada or just open a chequing account at an American bank?
Opening a U.S. dollar account at a Canadian bank is generally easier than opening one at a bank across the border. There are times, however, when it may be a better idea to open an account in the U.S.
For individuals who spend a considerable amount of time in the U.S., having a U.S.-based bank account may help establish a credit history, which may be necessary to qualify for loans and credit cards. Plus, having the convenience of visiting a U.S. bank branch for service and using a debit card to pay at stores and restaurants are additional advantages.
If you do open an account in the U.S. though, you may be subject to capital gains tax on both sides of the border, so consulting a tax professional with experience in cross-border clients is recommended.
What Canadian banks have U.S. dollar chequing accounts?
Most of the major banks in Canada offer U.S. dollar chequing accounts. We’ve reviewed a few of the best here. Additionally, banks like RBC, BMO, and EQ Bank offer a variety of bank account options tailored to Canadians who conduct business across the border and often have branch offices in the U.S. too.
When should you use a U.S. dollar chequing account?
Opening a U.S. dollar chequing account to keep your money in its original currency could save you a substantial amount of money. It is a good idea to use your U.S. dollar chequing account whenever you transact to and from U.S. dollars to avoid high foreign transaction fees, unpredictable exchange rates, and conversion fees.
Is opening a U.S. dollar chequing account worth it?
A U.S. dollar chequing account can be worth it for the following reasons:
- You live in Canada but get paid in U.S. dollars.
- Your often making purchases in U.S. dollars.
- Your looking for a better exchange rate and reduced conversion fees.
- Your travel to the U.S. or spend a significant amount of time there.
- You’re looking to make a big purchase in U.S. dollars.
- You need a convenient place to access and store your U.S. funds.
- You want to generate interest on your U.S. dollars.
As long as you’re using it and not paying very expensive fees for the privilege, a U.S. dollar account can make your cross-border financial life that much easier.
Can Canadians get a U.S. dollar bank account?
Yes. U.S. dollar bank accounts are provided to Canadian clients at Canadian banks and are for customers that often deal in U.S. dollars. If you want to open a regular bank account in the U.S., you have to have a U.S. address.
What is the best U.S. dollar bank account in Canada?
The EQ Bank U.S. Dollar Account is the best U.S. dollar account in Canada because it gives you a 3.00% annual percentage yield on your balance and carries no fees whatsoever. Plus, you can send U.S. dollars abroad through the EQ Bank app at an extra cost. The only drawback is you need an EQ Bank Savings Plus Account to open an EQ Bank U.S. Dollar Account.