A guide on how to legitimately open a US Bank account as a Foreigner (Canadians can use this method, or this method without having to leave Canada).
Click here for opening a US-Dollar Account at a Canadian Bank.
This is a guide for a real US Bank account, not a Canadian Bank Account in US Dollars or an expensive real US Bank account through a Canadian bank. A real US Bank Account will let you transfer US$ freely to/from Paypal, write cheques to Americans that won't be on hold for forever, accept USPS Domestic money orders and save you greatly on other currency conversion fees. All for no monthly fees!
Why I, a Canadian, Setup a US Bank Account
Having all of my Google Adsense Earnings in US Dollars, I figured that I should start banking with a US Bank account. I do have some US Dollar Transactions, like my Telcan Toll Free Number and my DealExtreme purchases. I also buy and sell items on Paypal, and I hate having Paypal's currency exchange fees when I buy, or transfer funds to my Canadian bank account. I'd rather keep it in US Currency than get dinged on the exchange only to get dinged again when I need to buy something with a credit card in US$.
So, I set out to get an American Bank Account in the US. The US Banking Industry is far more competitive than the Canadian banking industry. I was able to get a free checking/chequing account with a free order of cheques and a US$ Debit Visa card with no monthly fees, unlimited transactions and with no minimum balance requirements. My main requirement is to make sure I do at least 1 debit or credit transaction every six months. Good luck trying to find this kind of offer in Canada.
So how do I get a US Personal Bank Account as a Canadian?
You MUST apply in person. This is probably the hardest part. You should be able to get most any chequing/checking account that a regular US Citizen/resident can get, but many banks aren't really aware of how to sign up a Canadian. For this reason, I suggest going to a bank in a major border town if possible, since they've likely done this before. Also, you should call beforehand and even ask to speak to the branch manager(s) to determine their familiarity with foreigner bank accounts, and perhaps ask them to do a bit of research with their own information systems, since it should be possible with any of the major US Banks.
I originally wanted to go with Bank of America due to their nationwide presence, but I ended up near a National City one day and got everything set up in less than 30 minutes.
What documentation do I need to bring?
I believe what is required is a proof of citizenship (I used my Canadian Passport), and another piece of government issued ID (I used my driver's license). I'll update this list when I can find the list of acceptable ID again.
Also, make sure you bring some US$ cash, as there is usually a small account opening minimum deposit. Mine was US$50, Bank of America's is US$25.
Who did I go through?
I started my account with National City, a regional bank based in Cleveland Ohio. I was lucky in that the branch manager that I spoke with was knowledgeable with setting up accounts for Canadians, so he knew which forms to have me fill out etc. etc. Their Free Checking Account had the features that I needed, had no monthly fees and was okay with only periodic activity. If they are in your area of interest, I'd recommend them based on my experiences so far.
Which Bank Should I try to get an account with?
The US Retail Banking industry is very fractioned. In other words, companies with a big presence in one part of the country may be non-existant and unknown in another. There are lots of regional and local banks, as well as national banks. So, do your research online to find accounts that meet your needs, but first take a look at the branch locator, since it may not do you much good if it is hundreds of miles from where you will be (say, you shop in Buffalo, but winter in Florida). Bank of America has a presence in both Buffalo and in Seattle Washington, for those Toronto and Vancouver people visiting this site.
How do I get money in my account?
The obvious: Deposit US Cash into the account. Beware that Canadian cash isn't as well-accepted in the US. My branch said that their's did not handle foreign currency bills/coins. If you deposit a cheque from another country, even if it is in US Dollars, a long hold will probably be placed on the funds, in my case, 45 days. Wire transfers are expensive in North America and subject to problems.
Quite possibly the best method that I've found, though I have yet to try, is to use XEtrade. They will allow you to transfer money to them from your Canadian account, exchange it at a good rate, and then transfer it to the US account as an e-cheque. XETrade is run by Xe.net , a currency conversion rate site that I've used for a decade now to monitor exchange rates.
Potential Problems
I may never have online access to my account, I'm not super sure why. As well, when I tried calling their telephone service, the first prompt was for my social security number (which I obviously did not have), and the system would not process without one. The branch manager that set up my account asked that I call him back in a few days to see what might be necessary to have these set up. He also stated that I might end up having to call the branch itself for updates as required, which I would be okay with. I think it either has to do with laws that have changed limiting foreigner's control over accounts (like the Patriot Act requiring account openings to be done in person), or just their system's dependency on SSNs as a unique identifier (which is a terrible practice really).
US Debit Card System Compared to Canadian Interac:
The US Debit card systems is different than Interac. The US system runs over the existing Visa/Mastercard system with a Visa/Mastercard card and the money is indeed directly taken out of one's chequing account upon purchase. I also believe if you try to make a purchase over your balance, the transaction probably will go through and you will be charged a (very large NSF-esque) overdraft fee, instead of having the transaction declined. I believe my US "Debit" Visa card will work like any other Visa card in Canada, but I haven't tried that yet.
To open a USA bank account
All you have to do is go to a local Canadian RBC Branch and ask to open a US access account. Which is an account in a U.S RBC branch. If you have a Canadian account with RBC you can transfer money between the two account for free. Some of the repersentives do not Know that this is possible so if they say it is not avialible ask for the manager. This is not just a US dollar account it is a US banch account giving you the same banking as if you where a US resident.
About setting up a US account for Canadians
The Royal bank of canada has affilite banks in the US and you can open on from your local branh in Canada it is called a US access account.
Harris Bank
Harris Bank allows you to now open an account online if you are Canadian and you can fund it through your visa or MasterCard. Saves the trouble of having to cross the boarder.
Limitations
Just did that. But:
1. While you can originally fund a new account with a $100 credit card payment, after that you're only not-in-person deposit options are mailed-in cheques or wire transfers
2. Worse (for me anyways), you can't pay bills online (thorugh CheckFree) without a SSN.
boh.com (editor: Bank of Hawaii for Canadians)
I've had a checking a/c with them for years; opened with a local address, while I was on vacation, with my passport ID.
The thing I like is the american "Bill Pay" system. Although it is not cheap at 6 bucks a month, YOU can enter the details of ANY payee you want, and a snailmail paper check is sent to them.
Quite unlike my CIBC that has only its OWN short list of possible payees to pick from!
Cheers
Christian
USD accounts. Bank & CC.
Just a couple of comments about my experiences.
Many years ago (20+?) my wife and I obtained a USA sin number. At the time you could have a non-work number with no hassles, so we did.
A couple of years ago, in Niagara Falls we dropped into a KEY Bank, 800 Main St., and opened a no-fee chequing account, with debit/credit card (works at Tim Horton & NoFrills, - easy pay, very small charge, 9c). No big deal, no tricky questions, it was simple and quick, seems like they do it all the time. We can top up the account whenever we cross the Niagara Frontier, or mail a USD cheque.
Because we have a US SIN number we can check the balance on line and make US payments. Any US trip purchases are through this account (the store always asks if it is debit or credit - same card!)
Prior to this we were ripped off by the Can. Visa cards 2.5% +++$.
It is true that KeyBank has spotty presence in some states (not much out west, but well represented in Florida) but this has not been a problem for us as all all take the debit card - groceries etc.
Anyway that is our story.
Rob.
netspend.com and USD prepaid cards.
Thanks for the site, Dan!
A somewhat new option, not too well known, is the prepaid credit cards. Lots of variations. Not that flexible; read the pros n cons carefully. That can be applied online; can't remember if I had to fax a passport page for ID. Otherwise you do it all online.
I have the "all access" netspend card above. Use online like any VISA card. Make DARN sure you don't go over your PREPAID limit!
The one nice thing with it, is that there is ALSO some sort of a virtual US BANK account behind it, at "MetaBank", and I can add that bank to my Cdn as well as US Paypal a/c's. If I understand correctly every single customer uses the same "routing and bank account number", with just your name being different; so be sure you have the exact SAME spelling of your name with both PP and Netspend.
So I can actually transfer funds back AS WELL AS forth between the virtual US bank account at MetaBank, AND my US Netspend VISA card, AND my USD OR CDN pp a/c!!!
I'm still "verifying" with PP, but it seems like I can have both the US Netspend Prepaid VISA, and the MetaBank Bank a/c at the same time on my Cdn PP a/c!
Cheers
Christian
Thank you for this blog
Thank you for this blog article.
I tried opening a bank account, and they asked for a permanent US address. Did you have to supply this?
Also what do you think about etrade banking?
I personally was asked to
I personally was asked to give one, but they made it seem like it was more in case they needed to contact me while I was down there. I never get mailings there.
US Citizen in Canada wants to set up US account
Hey I am a Us citizen Duel Citizen actually and I wish to set up a US account in US I am travelling to Orlando soon..JUst wondering if anyone can tip me off on a ffree account I can set up.I have A ss #
SunTrust US Bank in Florida
Just research banks in the area and see what their account offerings are. Just a cursory Google search shows that National City, Wachovia and SunTrust are options that exist in Orlando.
SunTrust seems to have a decent free checking account that includes a free order of checks. I'd try to go with them if I can based on that.
Banking Privileges for a Retired Canadian using a US Bank
I have set up an account at a US Bank. My wife and I will be spending some part of the year in the Southern States and want to bank there. Since I will be buying property down there, I will need to pay some recurring bills and when I am in Canada it would be lovely to be able to pay these bills on-line, but they seem unwilling to give me either a proper credit card OR on line bill pay privileges without a US Social Security Number. Does anybody have any idea how to get around this issue.
Many thanks.
Nordstrom's Visa for Canadians
I'm not sure why they're not allowing you to do on-line bill pay, maybe you can deal with another bank instead for that.
As for getting a true US Credit Card, you can apply for a store Visa credit card through Nordstrom's completely online as a Canadian. I haven't done it myself, but it apparently is possible. You can apply for a Target Red Visa in-store as well. Keep in mind that these store cards have sky-high interest rates, and you'll still have to pay the bill somehow, perhaps by mailing in cheques from your account, or figuring out a way to get on-line bill payment.
Best Advice for Canadians who want to Bank in the U.S.
Hi Dan
I never leave comments online but thought I would share my recommendations as a Canadian who frequents the United States often. I did tons of research after being charged ridiculous fees using my Canadian credit card in the United States (Beware: Canadian credit cards have horrible exchange rates. Guaranteed to rip you off in the conversion process).
Here is my advice for a Canadian who wants a U.S. bank account should do the following and go to:
http://www.rbcbankusa.com (click bottom right corner) OR visit your RBC Royal Bank location OR call 1-800-ROYAL 53
You must complete an application at your local branch. If you do not have an RBC Royal Bank account you will need to open one. RBC is the only financial institution that allows you to link both your Canadian and American accounts and view them online simultaneously. You can make instant transfers between your Canadian and American accounts at the current exchange rate.
The bonus to the American RBC account is that you can use your debit card like a visa. Just be careful not to go into overdraft. It may take a few days before the purchase is charged to your account. Always be sure to leave yourself a cushion or apply for overdraft protection. I learned this the hard way with paying $211 USD in overdraft fees for 4 purchases I made that totaled less than $10.
Hope this helps any Canadians looking for a way to bank in the United States!
It is easy for Canadians to open a bank account in the USA
Accepting payments from Americans is expensive and slow. PayPal charges us around 7% and maybe more if a customer pays by credit card. MoneyGram charged my American customer $25.00 to send $400.00 me then they ripped me off for about 10% on the currency exchange rate. American cheques take forever to clear. Bank drafts cost my customers too much. Email money transfers don't work from the USA to Canada.
I wanted a US$ account in a bank that was located in the USA, that I could access from Canada and make FREE transfers between that US account and my US$ account here in Edmonton. I searched for days to find a way, it looked like I would have to go to the States to open an account.
The solution I found does everything I asked for, it is easy and free.
Go to your local Canadian RBC, they will open a "RBC Access USA checking account" for you in one of their American locations. Their US bank is called RBC Bank USA. My RBC US$ account in Edmonton is linked to the account in the USA, I can now transfer funds back and forth for free. My customers can now pay me by sending an on-line payment from their US bank to my US bank account for free.
Moss
ATM Alliance
You could have also opened up a Bank of America account and then used your debit cheque card at ScotiaBank ATMs to withdraw the money at a usually superb exchange rate.
ITIN in lieu of SSN
If one is not eligible for a US Social Security Number (SSN), one may be eligible for a US Internal Revenue Service (IRS) Individial Taxpayer Identification Number (ITIN). You may want to see if using an IRS assigned ITIN when asked for a SSN will allow you access to your US bank's online banking website. If you are eligible for a SSN, that is preferable, but the ITIN probably serves the needed identification number requirements for a US bank account. It is possible that when you set up your US bank account that you at the same time applied for and were assigned an ITIN. For more information check out the web page addresses below.
http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html
and
http://www.irs.gov/businesses/small/international/article/0,,id=96690,00.html
canadian currency acct. in us banks
Are there any us banks that have a canadian currency acct. my brother lives and works in the us and recieved a large inheritance in canadian funds from his canadian parents but doesnt want to lose on the exchange rate at this time .
Canadian Dollar Bank Accounts in the USA
dan, thanks for the
dan, thanks for the advice....I deal with the BMO. they are saying that my brother can open a checking account as long as its interest free?....yet they are telling me that he can have term investment products . The investments are subject to a with-holding tax, but they cant tell me exactly what that ammount would be. The amount of inheritence is between 85,000 - 100,000. Would you know what the with-holding tax would be? .....also is he taxed by the u.s. or canadian or both gvnmts.
I'd imagine they want you to
I honestly can't help you too much with the withholding taxes (which would only be on EARNINGS, not on the principal). I'd imagine you can either get it all back by filing a Canadian Revenue Agency form, or claim it against your US taxes, but sorry, I can't be of too much help on that. Try to get more info from the bank, or talk to a CPA that does international stuff maybe?
I have a company set in
I have a company set in Delaware to get my US sales easier and I could be able to open a US dollar account in HSBC in Canada for this US company. But problem is depositing a US cheque is taking almost 30 days to cash in. I am trying to find a way to smoth this transaction, any ideas. I am a Canadian Citizen and I do not have a US social security number. But I do have a Employer Identification Number (EIN) for my company.
Sorry, I can't say that I'm
RBC Centura may be able to help you open up a US-based bank account in Canada (RBC bought out a Florida bank some years ago, and has things somewhat integrated).
My experiences opening up a US Account
I tried to open up a US account through a canadian bank. I thought I might have some luck with BMO due to their ownership of Harris, no such luck.
See post at for BMOs response:
I'm not going to be headed down to the States anytime soon, so it looks like I might be stuck with the RBC option.
Opening a US account
I have a US checking account with CompassBank, and it was very easy to open it from home. I should mention that I don't live in the US nor have a SSN. All I had to do was contact the International Department through email, and they sent me the application documents. I signed everything, sent a photocopy of my passport, and the next day my account was activated.
I believe the branches along the border are the most agreeable to opening non-resident accounts, so you might wanna contact one of those. Also, it might make it easier if you already have an account with a bank that is part of a parent banking system to which the bank you want to apply to is also a part of (BBVA, Citi, HSBC).
I'd say don't worry about
Scotia Bank Buys Out Canadian Operations of E-Trade
Having said that, if it is a significant amount of money you have in there (especially in terms of the GICs and such) that would exceed the CDIC limits, I _would_ recommend keeping them diversified between institutions. Not that getting paid out would take that long, but having stuff available for emergencies is always a good idea.
E*Trade Canada broker question
I have cash, stocks, mutual funds and GIC's in E*Trade Canada. If anything happens to them, what would happen to my funds?
Would you suggest I open a TD Waterhouse account and put half of it with them?
Thanks.
FDIC Insurance
As I understand it, FDIC insurance is on the total amount of funds you have at a bank and the bank itself. So, in the event of a bank failure, you should have the same rights as any American Resident-Citizen. Not that I'm guaranteeing anything to you or anyone, consult the FDIC and the bank for official advice :)
There could be delays however in terms of getting your money from the FDIC due to the postal system (written sworn statements may be required) and since wiring your insured funds is an option, it may not be available to you since you might not have any accounts at other US Banks. Likely, they can cut you a check, but that'll add more delays.
From http://www.fdic.gov/consumers/banking/facts/index.html :
Who does the FDIC insure? Any person or entity can have FDIC insurance on a deposit. A depositor does not have to be a citizen, or even a resident of the United States. FDIC insurance only protects depositors, although some depositors may also be creditors or shareholders of an insured bank.
Canadians with money in American Bank Accounts - FDIC
Question: Are Canadian with money in American Bank Accounts covered by FDIC insurance?
getting the best exchange when buying a house in USA
We are buying a house in the USA and we will need to transfer money from our Canadian Account to pay for the new house in Nevada. What is the best way to get the best rate of exchange for this LARGE sum of Canadian money?
Currency Exchange
Well, firstly, I have no direct experience with this, but here it goes.
Call all of the banks (and even credit unions) that you can, tell them how much you are converting, likely they should be able to transfer you to some type of specialist that can give you different rates. Be sure to get contact names and phone numbers for each specialist that you speak with.
Likely, a bank that you do not have an account with will want "locally certifiable" funds, which would be like a certified cheque, or perhaps a bank draft.
Also, look up in your yellow pages for currency exchangers. It is hard to say what might be in your area, but Custom House is a fairly large one.
Also, online companies, like XEtrade, can do these kinds of transactions for you. Basically, they electronically deduct funds from your account like an electronic cheque, and then do an electronic cheque back to another account. They can also send you bank drafts, but they _can_ get held up clearing. For this, you'll probably need to set up a US$ bank account at a Canadian bank.
Finally, if say, Custom House or XEtrade (not Etrade) give you the best rates, see if a local bank (remember when I said to keep phone numbers and names?) will agree to match it.
If you read the fine print,
If you read the fine print, you will see that XEtrade just uses Custom House under the hood. The two are essentially the same service (although Custom House offers more than what XEtrade does). There are two other companies that offer a similar service: https://peerfx.com/ and http://fxglobaltransfer.oanda.com/
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