If you’re looking for some of the best US Dollar accounts in Canada you’ve come to the right place. You might be wondering what the advantage of having a USD account in Canada is. Personally, I think there are many advantages as a Canadian to hold a USD savings account. Now that the borders have opened up again since the COVID pandemic, this is even more relevant again.
Table of Contents
The Best US Dollar Accounts in Canada
Here are the pros of having US Dollar Accounts in Canada.
- If you travel frequently to the United States or make US Dollar online purchases, you might be interested in having a US Dollar Account as a Canadian.
- If you have a US dollar credit card, having a US dollar account to pay bills is very helpful.
- If you invest in US Dollars in your RRSP for example, you also might be interested in having a US Dollar Account as a Canadian.
- I hate being at the whim of US Dollar to Canadian (and vice versa) currency conversion since it fluctuates daily. Since the US to Canadian exchange rate is terrible as it is, I would hate to pay more on top of the poor exchange rate from the foreign currency fees.
- Paypal fees when you exchange US Dollar to Canadian dollars are not ideal, for example. Using something like Transferwise Canada is an option, they use mid-market rates, but I wouldn’t want to be at the whim of the USD/CAD exchange rate.
- Alternately you could get a USD account and have Paypal transfer your money there.
Last updated: May 2023
You can earn interest on your US Dollar deposits too (which will of course earn you a small amount of passive income in Canada. The interest rates for US Dollar Accounts are completely variable, some are almost nothing and some are very high. There is a very high heterogeneity for US Dollar Accounts.
This post on the best US dollar accounts for Canadians is meant for Canadians who do not live in the United States and have Canadian bank accounts but want to hold US Dollars to avoid currency conversions.
This is best done for Canadians by having a US Dollar Accounts in Canada.
Alternatively, if you’re not interested in getting another bank account that is in US Dollars, you could get the No Fee Rogers Bank World Elite Mastercard that gives you 3% return on foreign transactions in US dollars which essentially negates the foreign transaction fee (as of February 2021). However, this involves USD to Canadian dollar conversions nonetheless.
Are US Dollars Covered Under CDIC?
As of April 30, 2020, the Government of Canada announced that all foreign currency deposits up to $100,000 CAD will be covered under CDIC (Canadian Deposit Insurance Corporation) from insolvency.
Any foreign currency deposit prior to April 30, 2020 used to not be covered. Here’s the information from the CDIC website.
If you have $80,000 USD in one account and $80,000 CAD in another account at the same bank though, you will be covered for $100,000 CAD. Probably best to keep your Canadian and US dollar accounts separate if you want more protection unless you are below $100,000 in deposits.
You don’t have to do anything special to get this coverage, it comes automatically.
For more information on what CDIC and CIPF covers, check out this post here.
Here are the Best USD Chequing Account and USD Savings Accounts in Canada:
EQ Bank US Dollar Account
As of June 2021 EQ Bank announced that they now have a US Dollar Account with a fantastic rate and they increased the rate in May 2023 to a super high 3.00% on your USD deposits.
- Monthly fee is $0 (Free)
- $0 minimum balance is required
- The interest rate is very high, 3.00%* as of writing (this is one of the highest in Canada)
- Deposits covered under CDIC
- You can exchange CAD to USD within EQ Bank and they will show you your exchange rate- EQ Bank states their exchange rate is one of the best in Canada
- You can transfer USD to any other US dollar account (in Canada) that is linked fo free
- It is a digital bank, so if you want to withdraw your US cash you have to link it to another US dollar account that has a physical branch
To open up a EQ Bank US Dollar Account you first have to have an EQ Bank Savings Plus Account.
TD US Dollar Account
I’ve had the TD US Dollar Borderless Plan account for a few years and it’s also great because we have a free TD US Dollar Visa and bill payments are a snap (and very easy, just a few clicks). This is a chequing account so there is more flexibility.
- The US Dollar Borderless account now has 0.00% interest offering. They have a US Dollar Daily Chequing Account offering 0.010% interest on deposits.
- The monthly fee is $4.95. However, this is waived if you have a minimum of $3000 USD in the account.
- It is paired with the TD US Dollar Visa and you get a rebate of $39 annually for this credit card
- Unlimited transactions
- Some branches can give you free US dollar personal cheques too
You don’t even need to have private banking to get the monthly fee waived.
This post may contain affiliate links. Please see genymoney.ca disclaimer for more information.
RBC US Account
This is otherwise known as the RBC US Dollar High Interest eSavings Account.
- The interest rate is 0.050%
- Zero monthly fee (free!)
- One monthly debit free (after this it is $3 per transaction)
- You can get free online transfers from this account to other RBC Royal Bank deposit accounts in your name
- Free mobile and online banking access
I have the RBC USD high interest e-savings account. This is my oldest US Dollar Account (probably have had it for over 10 years) and it’s been great, no hassles and I can easily see my balance when I log in to my RBC Banking portal.
The downside to the RBC US Account is that bill payments can be a bit tricky, I have a TD US Dollar Visa that I could not pay the bill through the US Dollar RBC Account.
I have to physically go to RBC to take out USD and then deposit it at TD Bank, and then pay my bill at TD.
You don’t have to have a chequing account with RBC to have a US Dollar account with RBC.
Tangerine US Account
This is known as the Tangerine US$ Savings Account. Here is a brief Tangerine US Savings Account review.
- The interest rate is 0.10% . As you can see so far, this is a higher rate for a USD account for Canadians.
- Even better, if you are a new Tangerine client, you can get 6.00% interest rate on your US Dollars for the first 5 months. This is very high and not offered anywhere else to my knowledge. Oftentimes, Tangerine has promotions of high interest rates for the first 5 months.
- The Tangerine US Account has a Zero monthly fee (it is free)
- There is zero minimum balance required
- Sign up for Tangerine Bank to get the 6.00% interest rate on your USD Savings for the first five months
Tangerine frequently has Tangerine promotions going on, like the current $400 cash back if you open up a chequing account.
Some important points to consider: To withdraw your US Dollars you would have to go to a Tangerine Cafe for this. Tangerine Cafes are located in certain major cities in Canada (Toronto, Vancouver, Calgary, Montreal).
Alternately, you can transfer your US Dollars to a US Dollar chequing account (like the RBC US Dollar eSavings or the TD Borderless Account) and then withdraw your money through the big bank branches and ATMs.
Related: Tangerine Bank Review
Hubert US Savings Account
Thanks to commenters below, I had a look at the Hubert US Savings Account. Hubert “HappySavings.ca” is a division of Sunova Credit Union and is based out of Manitoba.
Hubert is a 100% online bank. Interestingly, they use a Deposit Guarantee Corporation of Manitoba (DCGM) and even foreign currency deposits are covered. Yes, that means your US dollar deposits are covered, but not through CDIC (Canadian Deposit Insurance Corporation).
- It looks like you have to contribute a $5 share (it is a credit union) but they have the unique advantage of protecting your USD deposits
- Their US dollar savings account provides 0.25% interest
- Hubert Financial requires no minimum deposit
- You can link external US dollar accounts and do an electronic funds transfer at no cost (for example, you can link to a big bank like RBC when you want to withdraw your money)
- There is no monthly fee
This used to be the highest US dollar account rate out of the bunch, though admittedly, it’s not very high- EQ Bank beat them with the 3.00%.
BMO US Account
The BMO US Account is the BMO US Dollar Premium Savings Account.
- This US Account is free if you add it on top of your BMO chequing account. You have to have a BMO chequing account (don’t forget to sign up for the free Canadian bank promotion bonuses like $300 cash) attached to the BMO US Dollar Premium Savings Account.
- The interest rate is 0.050% (yes, you read this right, it’s not even 0.5%, it’s 0.05%!)
- There is zero minimum balance required
- Easily access to your US Dollars when you visit a BMO branch to get your US Dollars
This interest rate is very low, and obviously it is not ideal to be holding your US dollars in this account, but it is useful for transfers and withdrawal of US dollar cash if your main banking is with BMO.
CIBC US Account
This is also known as the CIBC US$ Personal Account.
- The CIBC US account has no monthly fee
- There is no minimum balance
- The interest rate is 0.050%
- The big downside with the CIBC US Account is that each transaction you make is $0.75, as there are no free transactions.
- You can write USD cheques and withdraw US money from any CIBC or CIBC US currency ATM in Canada
- They have a promotion right now for an additional 0.5% interest rate on deposits in your CIBC US$ Personal Account if you have a CIBC Bank USA Smart Account, however you need to live, work, or do business in the United States to get this account (basically need to have a US address)
Click here for more CIBC promotions.
The Best US Dollar Account in Canada is…?
To summarize, there are a number of US accounts for Canadians, as mentioned, these are:
- EQ Bank US Dollar Account
- TD US dollar Account
- RBC USD Account
- BMO US dollar Account
- CIBC US dollar account
- Tangerine US dollar account
- Hubert US Savings Account
So after all this pontification, what’s the best US Dollar Account in Canada? As you can see, the US Savings Account interest rates vary between the banks.
- If you want a high interest rate, I would go for the EQ Bank US Dollar Account (3.00% every day interest rate) or the Tangerine US Dollar Account (offered at 6.00% for the first 5 months)
- If you want flexibility I would go for the TD US Dollar Account, especially since the TD US Dollar Visa is free.
- If you want a bit of both with zero fees and some flexibility (for example, on debit per month), I would go for the RBC US Dollar Account.
Unfortunately, you have to have a RBC VIP Banking package to have the US Dollar RBC Credit card fee waived. The annual fee is $65 but you do earn RBC Points from it, unlike the TD US Dollar Visa.
You can better believe that when that day comes when the US dollar and Canadian dollar are at par or close to par, I will be loading up on US Dollars! The last time that happened was in 2010 though, lol.
Hope you found this US Dollar Accounts in Canada review helpful.
If you’re instead interested in earning Canadian new chequing account bonuses like a free iPad or $300 cash, check out this post!
You might also be interested in:
- Best High Interest Savings Joint Bank Accounts in Canada
- How to write a cheque in Canada
- HISA vs GIC?
- RBC Bank Signature Black review
Which US Dollar accounts in Canada do you have?
Do you also pair it with a US dollar credit card?
GYM is a 30 something millennial interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for blog updates, a free dividend yield spreadsheet, and the free Young Money Bootcamp eCourse.