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.
depositing since Vancouver, BC to Seattle Wa
Hi,
I just wanna know how one of my friends can deposit me if She lives in Downtown Vancouver, BC and I have an account in US Bank.
I am setting up an internet
I am setting up an internet based business with a product that is manufactured in the United States and is going to be sold within the United States. I am a Canadian Citizen and was wondering what I would need to do in regards to Income Tax filings (do i need to file in both Canada and in the US), US Bank Accounts, and if it would be easier to have a business office physically located in the United States. Any help would be appreciated.
Thanks,
Mark
TD Bank
I cab't belive that this forum only talks about RBC.
TD bank in the USA is far bigger than RBC and has allowed sinple tranfers between US dollar Canadian acoounts at TD Canada Trust and TD bank in USA for years. I have had accounts in both countires (& credit cards) for years. Works great.
BMO vs TD Bank
I am a TD Client that swith over to BMO's Harris account due to this issue. TD may be integrating itself with it's US counterpart but its not working and with not the same service level. BMO's US Bank takes it to another level and I am satisfied with the service and support. Not to say that RBS has a US ban and they too work fine. I am not sure about the fees and ease of service but it does the job.
TD Bank USA - International US Dollar Transfers
Care to elaborate? I thought it was difficult to do transfers between the US and Canadian operations of TD Bank. Did you have a US Account with TD Waterhouse bank from back in the day? (As in, 5+ years ago?).
$US Account Set up
Hi Dan,
Re: Setting up a US account at a US bank in person
Harris Bank of Chicago accounts can be opened by Canadians via Internet. A representative will then contact you by phone and conduct an interview or you can download the forms and mail them in with a copy of your driver's license or passport.
Initial money can be deposited by credit card I believe.
Other US banks are similar.
Many at http://dripinvesting.org are opening US accounts this way.
OB
Harris Banking Accounts for Canadians
Hi OB, Nice to see some of the DRIP crowd here. My GE shares have been doing me well ;)
I've written an article on the subject here: Open up a Harris Bank US Bank Account without Leaving Canada. Soon enough I'll write a DRIP article too it's too bad my Scotia share shot up so much by the time I got it all registered with the transfer agent.
Like everyone said before, RBC is the best choice.
1. Go to RBC bank in canada to open a checking account, then ask them to open a US account with the bank in the US that they own
2. once it done, you can transfer money back and forth like you wish, at the end you have 2 bank account: 1 Canadian and 1 US. They are link together, so when you go to the canadian RBC online access you see the US one.
More Detail: http://www.rbcbankusa.com/access/cid-220351.html#
Thanks for this information
Very interesting article :D
Like everyone said before,
Like everyone said before, RBC is the best choice.
1. Go to RBC bank in canada to open a checking account, then ask them to open a US account with the bank in the US that they own
2. once it done, you can transfer money back and forth like you wish, at the end you have 2 bank account: 1 Canadian and 1 US. They are link together, so when you go to the canadian RBC online access you see the US one.
More Detail: http://www.rbcbankusa.com/access/cid-220351.html#
US bank
I am so confused. I read some of your postings and was hoping you could provide some advise.
I am a Cdn living in Toronto. I use to live in Atlanta and still have storage and a car that i have left in Atlanta. I need to make montly payments in US dollars. I work in Canada and get paid in Cdn dollars. Every month I send Wachovia a bank draft from BMO to transfer into my account so that i can make these payments.
any suggestions on how i can make my life easier? or what would be a cheaper option?
BMO Transfers
I worked in the U.S. for a period of time and regularly transferred funds from my BMO account to my U.S. bank account without paying any fees. I gave BMO the account details for my U.S. account and they set up what was called (if I recall correctly) a pre-note account. Once it was set up, all I had to do was call BMO to ask that they transfer funds to the pre-note account (I could not do the transfer online). It would take a couple of days for the funds to appear in my U.S. account, but I paid no bank charges for the transfer and making a call is far easier than buying a bank draft.
US Bank Accounts
Can I assume you can't pay these with a US$ Credit Card?
I'd get an account through RBC. They bought a US Bank, and I believe you can do transfers between the two accounts. You'll have to pay a monthly fee unless you have enough funds in the account.
You could also just have a regular US bank account and set up something with XEtrade to do your exchange and transfers from your Canadian account to your US account. The exchange rate is probably better, but you'll have to travel to the US to open an account and will have to wait a couple days for XEtrade to execute each trade.
US free chequing account at KEY Bank
I opened this account in 2008 in Buffalo, people there are used to open accounts for Canadian Citizens, the problem I haven't had online access until nov 2009 when Keybank Compliance deparment send me a letter because my account was not with a SSN number or ITIN number and It was asking me to fill out a form indicating I am a foreigner with a foreign tax number... well I stated I am canadian and I gave them my SIN number, after two weeks they send the form to my branch at buffalo and they input the SIN on their systems, then I was able to create my online account by phone validating my sin number and all other information however you can avoid all the hassle signing up with Bank of America they already now about the compliance of all account holders have to have ITIN, SIN or whatever tax number they hold ( Canadian SIN for example) then they don't have problems to give you online access to your account.
FOLLOWUP AND QUESTION ON US BANKS (for Canadians)
You mentioned you'd prefer US Bank but as I noticed the lower min initial amount, I also noticed that US Bank has a MONTHLY FEE unless you keep a min of $300 in the account...kind of defeats the purpose for those Canadians who just want to have a USD credit card and pay it in full for those purchases made overseas/US or on a cruise.
The average Canadian Joe is better off using cash or paying BMO's annual fee of $25 for the convenience, depending upon how much you use the card (ie. conversion charges vs how many times you're paying your US bill). If you are charged $12 canadian for 1 years worth of credit cards vs $25 USD annual fee, you are better off NOT having the credit card.
BMO US$ CC with no fee
BMO has a US$ credit card with no annual fee.
Not anymore.
Not anymore.
USD Bank Accounts in Canada
Cheapest is ICICI bank (Indian bank) that has pretty much zero fees, no min deposit and basic identification. I walked into the one in Surrey and walked out with a USD account. No BS royal bank runaround. There are plenty of 'foreign' banks in Vancouver/Canada where you can open a USD account such as any Chinese bank, any Tawainese bank, State Bank of India or ICICI, HSBC (considered 'offshore'), Japanese banks, German banks, ect.
Best option is to self-incorporate in Delaware, and get a US account, or offshore (Seychelles IBC or Belize IBC) for $900USD, then it comes with business Latvian and Cyprus USD bank accounts that are 100% protected from tax. Simply google Seychelles IBC and solve all your tax and money problems or look here http://www.freedomoffshore.com/Seychellesibc.html (run by a VIP member of Talkgold forums)
U.S. Bank Account in Turks & Caicos
Hi,
I'm canadian and I will work and live in turks & caicos.
I'm trying for 2 days to open a U.S. Account, but I don't know which option to choose.
The 1st is: opening a US account with my current bank=CIBC and then, while I'm there: I open an account with some local bank
OR
I switch bank, open a U.S. account at Scotiabank, which is in Turks & Caicos as well and open a U.S. Account while I'm there and transfer funds from one to the other without fees.
Any help with this one??
I Have a company in Wy and I'm Canadian
Hello,
I am Canadian and am trying since 2 days to open a U.S. bank account for my company. I introduced myself in person at the RBC Bank in my town and they told me that it is impossible to open a bank account in Canada for an American company and they have never seen that.
I have an ESN number for this company.
Do you have any suggestions?
Thank you
US Company, Canadian Account
Hi, chances are the RBC in your town has never done such a thing before, and therefore thinks it cannot be done. The bank technically can do so, but you'll probably have to deal with one of the "commercial services branches" of the bank. So give them a call if you can, or call the RBC main phone number at 1800 ROYAL-11
just walk into HSBC and open
just walk into HSBC and open a USD account, and use it for your business I don't see why not. or http://www.icicibank.ca/faqs/businessbanking/accountOpeningBus.htm#3 has branches all over Canada and you can open for a business located outside the country.
The Bank of Cyprus has a Canadian branch in Toronto, and there is no restrictions on who can open an account. Since you're already incorporated/have ESN, you can get an international USD account pretty much instantly in the branch, or mail/email them scanned copies of ID.
http://www.bankofcyprus.ca/proserv_cyprus.htm
http://www.bankofcyprus.com/main/main.aspx?id=588
or
Bank of Cyprus: Be careful
Keep in mind that the Bank of Cyprus is NOT a CDIC member. A "Representative Office" essentially opens up an actual Cypriot account. I just hope Cyprus doesn't have the same problems that its Greek "parent" has if you open an account with them.
Having said that, their ID requirements and such are likely far less onerous, but don't go complaining to any Canadian banking official if anything goes bad, they won't be able to help you much.
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 $100 credit card payment, after that you're only not-in-person deposit options are mailed-in cheques or wire transfers
2. Worse (for me anyways), you can't pay bills online (thorugh CheckFree) without a SSN.
In many cases you can use the
In many cases you can use the bank's transfer code to electronically pay your bills. Many DRIP Investors are buying US DRIPs this way with Harris.
OB
boh.com (editor: Bank of Hawaii for Canadians)
I've had a checking a/c with them for years; opened with a local address, while I was on vacation, with my passport ID.
The thing I like is the american "Bill Pay" system. Although it is not cheap at 6 bucks a month, YOU can enter the details of ANY payee you want, and a snailmail paper check is sent to them.
Quite unlike my CIBC that has only its OWN short list of possible payees to pick from!
Cheers
Christian
USD accounts. Bank & CC.
Just a couple of comments about my experiences.
Many years ago (20+?) my wife and I obtained a USA sin number. At the time you could have a non-work number with no hassles, so we did.
A couple of years ago, in Niagara Falls we dropped into a KEY Bank, 800 Main St., and opened a no-fee chequing account, with debit/credit card (works at Tim Horton & NoFrills, - easy pay, very small charge, 9c). No big deal, no tricky questions, it was simple and quick, seems like they do it all the time. We can top up the account whenever we cross the Niagara Frontier, or mail a USD cheque.
Because we have a US SIN number we can check the balance on line and make US payments. Any US trip purchases are through this account (the store always asks if it is debit or credit - same card!)
Prior to this we were ripped off by the Can. Visa cards 2.5% +++$.
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.
Without SSN
You can get an Individual Tax Identification Number (ITIN) with Internal Revenue Service (IRS)
O
Individual Tax Identification Numbers and Taxes
The problem with this is that I believe it obligates you to fill out a US Tax return every year. I'd rather find a bank that'll open up an account without such a requirement.
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.
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