In case you’ve been amassing factors solely in Canada, the attract of US bank cards has in all probability piqued your curiosity. The colourful American bank card market is stuffed with high-value presents, and certainly lots 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 among the greatest US financial institution accounts obtainable to Canadians, whereas contemplating the distinctive challenges that we face in taking part in 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 Large 5 banks – BMO, CIBC, RBC, Scotiabank, and TD – all provide Canadian-domiciled US greenback accounts. Nonetheless, you usually can’t pay your US payments from these accounts for 2 causes.

First, you may’t make a “push” fee, as a invoice fee initiated by the financial institution. For essentially the most half, Canadian banks and invoice fee companies don’t have US bank card issuers, or every other US billers, listed as payees. 

Second, you may’t make a “pull” fee, as in a pre-authorized fee 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 as well pay cross-border payments with a financial institution draft, however that methodology is prohibitively costly, gradual, and at a poor alternate charge.

As a substitute, it’s essential to open a US-domiciled account, purchase and switch US forex at an appropriate charge, and make US-dollar funds to US payees from there.

Fortunately, most of Canada’s main banks have counterparts over the border. In case you already financial institution with one in every of them right here, it’s straightforward to open an account with their American companion establishment. You may apply as a Canadian, and also you don’t want any US identification to be eligible.

These American divisions are focused at Canadians who cut up time in each international locations, have not too long ago 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 executed.

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 contains limitless on a regular basis transactions, with a $15 price for incoming wire transfers. The wire switch price for the preliminary deposit is waived if you happen to fund the US account from one in every of your Canadian TD accounts.

Canadian shoppers can open an account through the use of TD’s Cross-Border Banking companies. You may as well see the steadiness of your US-domiciled accounts in your Canadian profile on-line, however you should log into the US web site to pay payments and look at or change account particulars. It’s straightforward to maneuver US forex on-line between your personal TD accounts on both facet of the border, though the switch could take 1–2 days.

When you have 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 may 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 instances, TD generally freezes your account as a safety measure if you happen to attempt to replace your tackle inside 30 days of opening. To keep away from this, you may initially use a Canadian tackle, and replace it to your American tackle on-line a month later.

RBC Financial institution

RBC Royal Financial institution is partnered with RBC Financial institution (also referred to as RBC Georgia) within the US. Their fundamental account, RBC Direct Checking, has an annual price of $39.50 (USD), masking 10 outgoing transactions (invoice funds) monthly. Every incoming wire switch prices $15 (USD).

You may waive the price for the primary 12 months by opening an RBC Financial institution bank card, such because the RBC Financial institution Visa Signature Black card. Observe that whereas this card makes an excellent 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 if you happen to’ve opened 5 or extra private bank cards up to now 24 months) with out many advantages.

Canadians can open an RBC Checking account on-line. In case you begin along with your Canadian tackle, you may change it instantly to your US one. You may 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 obtainable in case 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 price, and the account contains free invoice funds and free incoming wire transfers.

On-line transfers between your linked Canadian and US accounts are fast. Additionally, you may create the account along with your US tackle. No want to start out along 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 price (if you happen to select paperless statements) and no minimal steadiness. It contains limitless free invoice funds and incoming wire transfers.

Canadians can open an account over the cellphone. When you’re arrange, you may simply change to a US tackle on-line. You may then seamlessly ship cash over the border out of your Canadian login, normally 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! In case you primarily use them in your Canadian banking, I’d look to open an account with one other financial institution right here as you put together in 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 remaining. So what options ought to we search for when selecting a US checking account?

Probably, if you happen to’re eager to get your first US bank card rapidly, you must stick along with your major Canadian financial institution and use their US companion. When you’re arrange, you may swap to a unique one at any time.

RBC and CIBC are usually the quickest banks to connect a US tackle. It’s necessary to replace your tackle as quickly as attainable, 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 operating low and also you’re scrambling to keep away from lacking a fee deadline.

Alternatively, banks typically give poor charges on international forex conversions. You might desire to purchase US {dollars} from different on-line companies at a greater charge than what the financial institution presents. This could negate any advantage of the seamless integration at RBC and CIBC.

Relying in your funding methodology in your US checking account, chances are you’ll obtain cash both as a home or worldwide switch. Home transfers normally use a US routing quantity and are included without spending a dime with fundamental financial institution accounts as an on a regular basis transaction, akin to a cheque deposit.

Nonetheless, incoming worldwide wire transfers typically incur a price. That is the place CIBC and BMO shine if you happen to anticipate to obtain US funds this manner. 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, akin to free ATM withdrawals and cheques, aren’t actually that necessary to contemplate. There are different handy methods to get money whereas travelling, and it’s greatest not to decide on a US checking account only for this – all you want is a no-frills invoice fee automobile.

In case you do want a characteristic like Zelle (mainly 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 largely geared toward cross-border Canadians.

Lastly, you may additionally worth customer support at any time when international alternate is concerned. The extra shifting components there are in a system, the extra possible one thing will go flawed. Few issues are scarier than cash in limbo.

There are lots of stories 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 may encounter.

Nonetheless, for the long-term and on steadiness, BMO Harris may simply be essentially the most engaging possibility, 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 received a little bit of US presence, it’s time to contemplate branching out to different establishments. , those that People really use.

Chase

Probably the most widespread and profitable bank card issuers within the US, the Chase ecosystem can nonetheless be a little bit delicate for Canadians to navigate.

Earlier than approving a brand new consumer for premium playing cards, Chase likes to see accountable credit score historical past. Whereas the standards aren’t exact, it’s usually suggested to have not less than a 12 months on file with one other issuer, not less than two bank cards, and a wholesome document of reimbursement on a card with a $10,000 restrict.

Nonetheless, attributable to their 5/24 Rule, opening new bank cards at any monetary establishment makes it quickly tougher 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 luxurious of beginning younger with Chase scholar playing cards to simply set up ourselves as shoppers.

As a substitute, we are able to 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 along with your Canadian passport – no ITIN vital! There may be some proof to recommend that this will assist with finally getting authorized for his or her premium bank cards.

The identical precept might apply to any US bank card issuer that you just’re eager about: see if you happen to 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 bunch 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 styles are sometimes providing massive money bonuses on new checking accounts. The perks are virtually as complicated because the banking system itself, with all kinds of eligibility and qualification necessities.

As you delve deeper into the US rewards scene, you may need to discover any attention-grabbing alternatives obtainable to you, relying in your location, identification paperwork, and US greenback money circulate.

Conclusion

A US checking account is critical 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 may even look to increase your rewards ambitions to different American banks as nicely.