When you’ve been gathering factors solely in Canada, the attract of US bank cards has most likely piqued your curiosity. The colourful American bank card market is filled with high-value presents, and certainly a lot of them are accessible to us Canadians if we put within the work.
Opening a checking account within the US is a vital first step of your US bank card journey. Let’s check out a few of the finest US financial institution accounts accessible to Canadians, whereas contemplating the distinctive challenges that we face in enjoying the sport from north of the border.
Canadian Financial institution Companions within the US
To pay your US bank card invoice, you want a US greenback account at a US-based establishment.
Now, Canada’s Massive 5 banks – BMO, CIBC, RBC, Scotiabank, and TD – all provide Canadian-domiciled US greenback accounts. Nonetheless, you typically can’t pay your US payments from these accounts for 2 causes.
First, you possibly can’t make a “push” cost, as a invoice cost initiated by the financial institution. For essentially the most half, Canadian banks and invoice cost providers don’t have US bank card issuers, or every other US billers, listed as payees.
Second, you possibly can’t make a “pull” cost, as in a pre-authorized cost initiated by your US bank card issuer. The Canadian and US banking methods use totally different codecs for routing numbers to facilitate inter-bank funds, and one received’t work with the opposite. US bank card issuers are solely capable of pull from US routing numbers.
You may also pay cross-border payments with a financial institution draft, however that methodology is prohibitively costly, sluggish, and at a poor change fee.
As a substitute, it’s essential to open a US-domiciled account, purchase and switch US foreign money at a suitable fee, and make US-dollar funds to US payees from there.
Fortunately, most of Canada’s main banks have counterparts over the border. When you already financial institution with considered one of them right here, it’s straightforward to open an account with their American companion establishment. You possibly can apply as a Canadian, and also you don’t want any US identification to be eligible.
These American divisions are focused at Canadians who break up time in each nations, have just lately moved south, or in any other case have robust connections on either side of the border. In any occasion, assuming you solely use the account as a staging space for invoice funds and don’t want intensive US banking options, any of those fundamental checking accounts will get the job accomplished.
TD Financial institution
TD Canada Belief is partnered with TD Financial institution within the US. Their fundamental account, TD Comfort Checking, is free for anybody 23 or youthful, or free with a minimal steadiness of $100.
This account consists of limitless on a regular basis transactions, with a $15 charge for incoming wire transfers. The wire switch charge for the preliminary deposit is waived in case you fund the US account from considered one of your Canadian TD accounts.
Canadian purchasers can open an account through the use of TD’s Cross-Border Banking providers. You may also see the steadiness of your US-domiciled accounts in your Canadian profile on-line, however you have to log into the US web site to pay payments and consider or change account particulars. It’s straightforward to maneuver US foreign money on-line between your individual TD accounts on both facet of the border, though the switch could take 1–2 days.
When you’ve got hassle with TD’s on-line software, strive opening a US-based account at a TD Canada Belief department. As soon as your account is open, you possibly can name the Cross-Border Banking cellphone line to finish the preliminary funding out of your Canadian-based US-dollar TD Borderless Plan, and arrange on-line entry earlier than your debit card arrives.
In some circumstances, TD typically freezes your account as a safety measure in case you attempt to replace your handle inside 30 days of opening. To keep away from this, you possibly can initially use a Canadian handle, and replace it to your American handle on-line a month later.
RBC Financial institution
RBC Royal Financial institution is partnered with RBC Financial institution (also called RBC Georgia) within the US. Their fundamental account, RBC Direct Checking, has an annual charge of $39.50 (USD), masking 10 outgoing transactions (invoice funds) per thirty days. Every incoming wire switch prices $15 (USD).
You possibly can waive the charge for the primary 12 months by opening an RBC Financial institution bank card, such because the RBC Financial institution Visa Signature Black card. Notice that whereas this card makes no-fee keeper as your oldest US bank card, it additionally counts towards Chase’s “5/24 Rule” (the place Chase received’t approve you for brand new bank cards in case you’ve opened 5 or extra private bank cards previously 24 months) with out many advantages.
Canadians can open an RBC Checking account on-line. When you begin together with your Canadian handle, you possibly can change it instantly to your US one. You possibly can hyperlink your Canadian- and US-domiciled accounts on-line, and immediately switch funds forwards and backwards.
CIBC US
CIBC is partnered with CIBC US. They provide a free checking account, nevertheless it’s solely accessible when you have a US driver’s license, job, and social safety quantity.
As a substitute, cross-border candidates can open a CIBC Financial institution USA Good Account on-line, with verification by cellphone. There’s no month-to-month charge, and the account consists of free invoice funds and free incoming wire transfers.
On-line transfers between your linked Canadian and US accounts are rapid. Additionally, you possibly can create the account together with your US handle. No want to start out together with your Canadian one and replace later.
BMO Harris
The Financial institution of Montreal is partnered with BMO Harris within the US. Their fundamental account, the BMO Harris Good Benefit Account, has no month-to-month charge (in case you select paperless statements) and no minimal steadiness. It consists of limitless free invoice funds and incoming wire transfers.
Canadians can open an account over the cellphone. When you’re arrange, you possibly can simply change to a US handle on-line. You possibly can then seamlessly ship cash over the border out of your Canadian login, often by the following enterprise day.
The account requires a minimal opening deposit of $25. This preliminary deposit is accomplished by cash order. BMO Harris sends you a package deal, and also you full and return it by mail.
Scotiabank
Scotiabank doesn’t provide retail banking within the US. Boo, Scotiabank! When you primarily use them on your Canadian banking, I’d look to open an account with one other financial institution right here as you put together on your US transition.
Selecting Your First US Financial institution Account
Every account has its strengths, however there’s not one which unquestionably stands above the remainder. So what options ought to we search for when selecting a US checking account?
Probably, in case you’re eager to get your first US bank card shortly, you must stick together with your main Canadian financial institution and use their US companion. When you’re arrange, you possibly can change to a unique one at any time.
RBC and CIBC are usually the quickest banks to connect a US handle. It’s vital to replace your handle as quickly as doable, so you need to use the financial institution to confirm your identification whenever you start making use of for US bank cards.
Additionally, RBC and CIBC provide instantaneous cross-border cash transfers. This may be crucial in case your US-based account is working low and also you’re scrambling to keep away from lacking a cost deadline.
However, banks usually give poor charges on overseas foreign money conversions. Chances are you’ll favor to purchase US {dollars} from different on-line providers at a greater fee than what the financial institution presents. This is able to negate any good thing about the seamless integration at RBC and CIBC.
Relying in your funding methodology on your US checking account, it’s possible you’ll obtain cash both as a home or worldwide switch. Home transfers often use a US routing quantity and are included without cost with fundamental financial institution accounts as an on a regular basis transaction, akin to a cheque deposit.
Nonetheless, incoming worldwide wire transfers usually incur a charge. That is the place CIBC and BMO shine in case you anticipate to obtain US funds this fashion. When sending cash from Canada to TD Financial institution within the US, watch out to keep away from utilizing platforms that ask for a SWIFT code.
Day-to-day banking options, resembling free ATM withdrawals and cheques, aren’t actually that vital to contemplate. There are different handy methods to get money whereas travelling, and it’s finest not to decide on a US checking account only for this – all you want is a no-frills invoice cost car.
In case you do want a characteristic like Zelle (principally the US model of Interac e-Switch), the scales tip in favour of TD or BMO. They each provide extra complete US banking choices, whereas RBC or CIBC are principally aimed toward cross-border Canadians.
Lastly, you may additionally worth customer support at any time when overseas change is concerned. The extra transferring components there are in a system, the extra possible one thing will go fallacious. Few issues are scarier than cash in limbo.
There are a lot of experiences that TD’s groups, each at Cross-Border Banking and at TD Financial institution within the US, are extremely competent and environment friendly at addressing any issues you would possibly encounter.
Nonetheless, for the long-term and on steadiness, BMO Harris would possibly simply be essentially the most enticing choice, with no month-to-month charges, no minimal steadiness, no incoming wire charges, and ease of use. The one disadvantage is that it’s not the quickest to arrange.
Different US Banks
When you’ve obtained a little bit of US presence, it’s time to contemplate branching out to different establishments. You realize, those that People truly use.
Chase
One of the vital widespread and profitable bank card issuers within the US, the Chase ecosystem can nonetheless be slightly delicate for Canadians to navigate.
Earlier than approving a brand new shopper for premium playing cards, Chase likes to see accountable credit score historical past. Whereas the factors aren’t exact, it’s typically suggested to have at the very least a 12 months on file with one other issuer, at the very least two bank cards, and a wholesome report of compensation on a card with a $10,000 restrict.
Nonetheless, as a result of their 5/24 Rule, opening new bank cards at any monetary establishment makes it quickly more durable to open Chase playing cards. However as Canadians, we have to begin at different issuers to construct our US credit score historical past. We don’t have the posh of beginning younger with Chase pupil playing cards to simply set up ourselves as purchasers.
As a substitute, we will construct a relationship with Chase by opening a checking account. In your subsequent journey to the US, you are able to do this at a department together with your Canadian passport – no ITIN crucial! There may be some proof to recommend that this will assist with finally getting accepted for his or her premium bank cards.
The identical precept might apply to any US bank card issuer that you simply’re concerned about: see in case you can open a checking account to strengthen your relationship.
US Financial institution Accounts with Welcome Bonuses
The US banking business is extremely aggressive. It’s nowhere close to as monopolized or centralized as our monetary methods in Canada.
As a substitute, there are a whole lot of establishments throughout the nation, starting from regional credit score unions to banks like Chase that function on a nationwide scale.
Happily for shoppers, American banks of all sizes and shapes are sometimes providing giant money bonuses on new checking accounts. The perks are nearly as advanced because the banking system itself, with all kinds of eligibility and qualification necessities.
As you delve deeper into the US rewards scene, you would possibly wish to discover any fascinating alternatives accessible to you, relying in your location, identification paperwork, and US greenback money circulation.
Conclusion
A US checking account is important for Canadians with US bank cards, however not all cross-border banking preparations are created equal.
It’s straightforward sufficient to get began with any of them, however there’s extra to contemplate than merely defaulting to the American companion of your Canadian financial institution.
Over time, as your technique develops, you possibly can even look to develop your rewards ambitions to different American banks as nicely.
