The best accounts for Canadians to hold USD in 2024

Piyush Singh

27.09.24

4 minute read

Opening a US dollar account is a great way to manage your money in multiple currencies. You can spend in the US without hefty currency conversion charges, or send money to family and friends across the border.

Let’s take a look at some of the best USD accounts in Canada, including everything you need to know about fees, account options and spending abroad. We’ll also look at Wise – your digital transfer alternative. Send and receive CAD and USD in one international account.

We'll be looking at:
Benefits of a USD Account in Canada Things to consider when choosing a USD account in Canada Online USD accounts in Canada USD accounts at Canadian banks How to use Wise to hold your money in US dollars

Benefits of a USD Account in Canada

There are many benefits to holding money in a USD bank account. You can:

pay bills in the US
avoid currency conversion charges when you spend in USD
earn interest in multiple currencies
receive your US salary straight into your account
send money to family and friends in the US

Use your USD account to spend like a local when you buy online or in person. You can easily travel between the US and Canada or earn interest on your money.

Things to consider when choosing a USD account in Canada

It’s easy to open a USD account in Canada, but you’ll need to consider which account type best suits your purposes. There are many great options out there!

A savings account is a good choice if you want to save money, rather than make regular USD transactions – and you can earn interest on your funds. However, you may be unable to make cash withdrawals from your account.

You can make easy everyday payments with a US dollar chequing account at a major Canadian bank like BMO® or CIBC®.

Some of these accounts come with additional fees, however, such as a monthly charge. You may also need to maintain a minimum monthly balance.

Opening an online account is a flexible option. You can switch between different currencies and avoid currency conversion charges, but these providers may offer limited functionality.

Online USD accounts in Canada

There are lots of different USD accounts available for Canadians, including digital and online options.

Let’s take a look at some of the best USD accounts in Canada, including fees and exchange rate charges for international transactions.

Provider	Simplii	Wise	Tangerine
Accounts available	Personal savings account – you can’t make cash deposits or withdrawals¹	Personal and business accounts in over 40 currencies	Personal savings account²
Exchange rate	Rates set by Simplii®¹	Mid-market exchange rate – no added markups or margins	Rates set by Tangerine®²
Currency conversion fee	No fees, but Simplii earns revenue from the spread or difference in market value vs. their price for the currency exchange³	Starting at 0.33%	Tangerine sets its buy and sell rate for currency conversion – this may include a markup on the standard exchange rate²
Incoming transfer fees	N/A	Free, except for 6.11 USD for incoming USD wire transfers and 10 CAD for incoming CAD wire transfers	N/A
Outgoing transfer fees	Up to 10,000 CAD or equivalent: 30 USD per wire transfer 10,001 CAD to 50,000 CAD or equivalent: 50 USD per wire transfer More than 50,000 CAD or equivalent: 80 USD per wire transfer⁴	Starting at 0.33%	Tangerine charges fair fees – these will be disclosed in advance⁵
Countries covered	Simplii Global Money Transfer covers 130+ countries¹	160+ countries	Canada and the US²

USD accounts at Canadian banks

Let’s take a look at a few other Canadian USD bank accounts, including RBC®, TD Bank®, CIBC and BMO.

Provider	RBC US Personal Account	TD Borderless Plan	CIBC USA Smart Account	BMO U.S. Dollar Primary Chequing Account
Exchange rate	Rates set by RBC⁶	Rates set by TD Bank⁷	Rates set by CIBC⁸	Mastercard® exchange rate + 2.5% markup for purchases¹⁰
Incoming transfer fees	For a wire transfer from another bank (more than 50 USD): 17 USD¹¹	17.50 USD to receive wire transfers in USD¹²	15 USD per wire transfer¹³	16 USD per wire transfer¹⁴
Outgoing transfer fees	For RBC International Money Transfer: 1 USD to 1000 USD: 6 USD per transfer More than 1000 USD: 10 USD per transfer¹⁵	Up to 25 USD for online global transfers¹²	40 USD per outgoing international wire transfer⁸	40 USD per outgoing wire transfer You’ll also pay a service fee for BMO international money transfers¹⁴
Free transactions/month	6 debits per month¹⁶	Unlimited transactions⁷	Unlimited transactions⁹	It can depend on your bank plan
Monthly or annual fees	3 USD per month¹⁶	4.95 USD, waived if you maintain a minimum monthly balance of 3000 USD⁷	No monthly fee⁹	No monthly fee if you maintain a minimum monthly balance using a qualifying Bank Plan¹⁷
Inactivity fee	2 to 8 years: 20 USD Year 9: 40 USD¹⁵	TD Bank doesn’t mention an inactivity fee	2 to 4 years: 20 USD per year 5 to 8 years: 30 USD per year 9 years: 40 USD per year¹³	After 2 years of dormancy: 20 USD After 5 years of dormancy: 30 USD¹⁴
Account closing fees	20 USD, waived if closed in person¹⁵	15 USD to close your account and transfer the balance to another bank¹²	CIBC doesn’t mention an account closing fee	Account closed within 14 days of opening: free Account closed after 14 days of opening: 20 USD¹⁴

How to use Wise to hold your money in US dollars

Get your Wise account in a few clicks 🚀

Wise is your international money transfer alternative. Send and receive your money in over 40 currencies across the world, including US dollars.

Whether you’re paying for your hotel or making a business expense, spend in USD at the mid-market exchange rate.

Many money transfer providers add a markup to the currency exchange rate, but not Wise. Wise uses the standard rate – and you won’t pay inactivity fees or monthly subscriptions for your account.

Wise offers you an international account to convert and hold, send or spend your money with freedom. Hold CAD and USD, convert currencies and make speedy^# digital transfers in your online Wise account – all from just 0.33%* per transaction.

You can even use your Wise card to spend in over 160 countries or switch between worldwide currencies with just the touch of a button.

^# Transaction speed claimed depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions

Final thoughts

Using a USD bank account is a handy way to spend and save in US dollars. You can make purchases in local currency or earn interest on your funds.

There are a few great USD bank accounts in Canada, including saving and chequing accounts, to help you make the most of your US dollars.

To start spending in USD, CAD and more, open a Wise account today.

Sources

Sources verified on 27 September 2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.