How To Open A Bank Account In Canada From The US

Eligibility Criteria

Determining who is eligible for Canadian bank account creation begins with residency and identification status. Canadian chartered banks typically allow the following groups to apply:

• Canadian citizens and permanent residents
• Temporary residents: holders of work permits or study permits with valid expiry dates
• Non-residents: U.S. citizens or residents without Canadian status, provided they satisfy bank-specific requirements
• Corporate entities: U.S. businesses registering a Canadian subsidiary or branch

Banks verify eligibility through government-issued identification and, for non-residents, confirmation of U.S. domicile. Some institutions (e.g., RBC, TD, BMO, CIBC) offer dedicated cross-border banking products that streamline the process for U.S. customers. RBC Cross-Border Banking TD Cross-Border Banking

Required Documents

Compile the required documents for Canadian bank account opening. While requirements vary slightly by bank, you will generally need:

• Primary government ID: valid, unexpired passport or state-issued driver’s license
• Secondary ID: another original document showing name and date of birth (e.g., birth certificate, Social Security card)
• Proof of address: U.S. utility bill, lease agreement, or bank statement dated within the last three months
• Immigration documentation (for non-residents): study permit, work permit, permanent residency card or visa
• Reference letter (some banks): from your U.S. bank confirming account history

“You must provide original ID, not photocopies. (1) Provide two documents from a reliable source: one document indicating your name and address; the other document indicating your name and date of birth.” Government of Canada Guidance

Methods to Open

U.S. applicants can open Canadian bank account online from US through several channels:

• Digital banking platforms
  • Wise Borderless: apply fully online with passport and proof of U.S. address, then fund via ACH or wire. Wise Borderless
  • Neobanks (Revolut, Wise): instant account setup with mobile app, near-mid-market rates, no monthly fees under certain thresholds.
• Cross-border banking products
  • RBC Bank: U.S.-based bank designed for Canadians and U.S. residents; provides unlimited instant CAD⇄USD transfers 24/7. RBC Bank USA
  • TD Cross-Border Banking: open Canadian account online, then visit a U.S. branch for ID verification; manage both currencies in one portal. TD Cross-Border Banking
• In-branch application during Canada visit
  • Schedule appointment at a local branch; present originals of all documents; accounts activated within 1–2 business days.

Best Banks for US Customers

Evaluating the best Canadian banks for US residents involves fees, ease of access, cross-border features and digital capabilities. Top contenders include:

• Royal Bank of Canada (RBC)
  U.S.-based RBC Bank branch offers U.S. checking with free CAD⇄USD transfers and 50,000+ no-fee ATMs. RBC Cross-Border Banking
• Toronto-Dominion Bank (TD)
  TD Complete and Beyond Checking accounts in the U.S. linked to Canadian TD accounts; TD Global Transfer for low-cost moves up to US$6,500/day. TD Cross-Border Banking
• Bank of Montreal (BMO)
  BMO Harris in U.S. connects to BMO Canada; online setup with U.S. SSN and passport; no monthly fee for first year. BMO Harris
• Canadian Imperial Bank of Commerce (CIBC)
  CIBC U.S. cross-border checking and savings integrated via mobile app; no-fee transfers for under US$10,000. CIBC Personal Banking
• Scotiabank
  Global ATM Alliance for surcharge-free withdrawals; each Interac e-Transfer costs CAD 1.00. Scotiabank Global ATM Alliance

Account Types & Features

• Chequing (Checking) Accounts: Unlimited transactions, debit card access, bill payment; ideal for everyday use.
• Savings Accounts: Tiered interest rates; some require Canadian Social Insurance Number (SIN) for interest-bearing plans.
• Multi-currency Accounts: Hold both CAD and USD; convert at competitive interbank rates; avoid repeated FX fees.
• Credit Cards: U.S.-domiciled cards with no foreign transaction fees; Canadian-issued cards accept U.S. billing address.

Fees & Charges

Understanding Canadian bank fees for US customers prevents surprises:

• Monthly maintenance: US$0–US$15 for cross-border plans (often waived with minimum balance)
• Foreign currency conversion: 0.5–2.5% markup on interbank rate
• ATM withdrawals: surcharge-free within global alliances; US$2–3 outside network
• Interac e-Transfer: CAD 1.00 per transfer. Interac e-Transfer Fees
• Wire transfers: CAD 15–30 landing fee; plus currency conversion charges

Accessing Your Account

To access Canadian account from US, rely on:

• Online and mobile banking: apps like RBC Mobile, TD EasyWeb handle transfers, bill payments and FX
• ATM networks: Global ATM Alliance to withdraw USD or CAD with reduced fees
• Partner branches: TD Bank USA and BMO Harris offer branch access under home-country branding
• Telephone banking: toll-free numbers for account inquiries and transfers

Link U.S. and Canadian accounts via pre-authorized debits or Visa Direct to move funds in real time.

Tax Implications

U.S. taxpayers must consider US taxes on Canadian income and reporting obligations:

• Income reporting: interest earned in Canadian accounts is taxable on Form 1040, Schedule B.
• FBAR (FinCEN Form 114): “A U.S. person…must file an FBAR to report: a financial interest in or signature or other authority over at least one financial account located outside the United States if the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.” FinCEN FBAR
• FATCA (Form 8938): thresholds start at $200,000 for unmarried individuals; married filing jointly thresholds double. IRS FATCA Form 8938
• Foreign tax credits: use Form 1116 to offset Canadian withholding taxes on interest.
• Reporting deadlines: FBAR due April 15 with automatic extension to October 15; Form 8938 filed with tax return.

Currency Conversion Strategies

Securing the best currency exchange Canada US rates enhances value:

• Mid-market rate providers: Wise, Revolut, OFX apply low-margin mark-ups (0.2–0.5%) against the true interbank midpoint. Wise on Mid-Market Rates
• Forward contracts: lock future rates when moving large sums; offered by OFX and major banks with hedging products.
• Rate alerts: set notifications when USD→CAD hits target thresholds.
• Batch conversions: consolidate multiple small transfers into one larger transaction to reduce fixed fees.
• Holding multi-currency balances: convert to CAD when rates are favorable and spend directly.

Step-by-Step Guide

1. Choose your bank based on cross-border offerings and fee structures.
2. Gather documents: passport, proof of U.S. address, secondary ID, immigration papers.
3. Apply online or schedule in-branch appointment if visiting Canada.
4. Complete verification: upload or present originals; undergo Identity Assurance Program checks.
5. Fund account: ACH from U.S. bank, wire transfer, or debit card funding.
6. Enable cross-border services: link U.S. and Canadian accounts, enroll in FX and transfer portals.
7. Monitor accounts: use mobile apps, set balance and rate alerts.
8. File tax forms: report Canadian interest on U.S. tax return, submit FBAR and Form 8938 if thresholds met.

Next Steps

Armed with clarity on eligibility, documentation, fees and tax obligations, U.S. residents can confidently secure a Canadian bank account. Linking cross-border services delivers seamless access to CAD and USD, optimizing costs through strategic currency conversions. Regularly reviewing account terms and monitoring FX movements ensures maximum value over time.