Best US Dollar Account in Canada [2024]

Whether you’re a frequent cross border traveler, a freelancer getting paid in USD, or simply someone who loves to shop with US based online stores, having a USD account can be a smart move. Using a US dollar account to receive, hold and spend dollars can cut the costs of currency exchange and make your foreign currency spending more convenient.

All the major Canadian banks offer some sort of US dollar account. However, they tend to have high fees or restrictive minimum balance requirements, making them cumbersome, slow, and, most of all, expensive. Specialist online providers like Wise can be a good alternative.

In this article, we'll cover what you need to know about opening a USD account, including the best USD account in Canada, the costs involved, and how to open one.

Let's get started.

Quick summary: USD currency account

What is a US Dollar account? 

A US Dollar (USD) account makes it easy to hold, receive, and send USD and cuts the costs of switching between USD and CAD currencies. Beneficial for both individuals and businesses, a US Dollar account can save you time and money, cutting the costs of currency exchange. Here’s how it could be benefit you:

Individuals:

• Great for frequent travelers to the US, allowing easy spending and withdrawals in USD

• Convenient for those with recurring USD payments, like a mortgage or tuition fees

• Useful for online shoppers making purchases at US based e-commerce stores

Businesses:

• Simplifies transactions with US-based clients, suppliers or contractors

• Allows you to collect payments from PSPs like Stripe and marketplaces like Amazon and hold your US balance

• Reduces currency conversion costs and the exchange rate risk by allowing you to hold USD directly

Can I open a USD account in Canada?

Yes. You can open a USD account in Canada at many Canadian banks, or opt for an online specialist provider instead. Traditional banks offer both checking and savings accounts, and plans designed for frequent cross border commuters and people getting paid in USD. However, these accounts typically come with high fees - which can only be lowered or waived if you hold a significant USD balance in your account, or sign up to other products from the same provider.

If you’re looking for a more flexible account option, without high fees or restrictive minimum balance requirements, a specialist online account may suit you better. We’ll walk through a few top picks, later.

Is it worth opening a USD account in Canada?

Both individuals and businesses which deal with US dollars often can benefit from getting a USD account:

• As an individual, a USD account can make it easier to pay when you travel or shop with US retailers. You won’t need to convert currency every time you head to the US - just hold funds in your account for whenever you need them.

• As a business, a USD account can also help, by making it easier to pay and get paid in USD. Being able to hold a USD balance can also mitigate the risks of currency fluctuations. If the exchange rate is poor, you won’t be forced to switch your USD balance to CAD immediately, and can ride out the dip to exchange when things look better.

Best USD accounts in Canada

The best USD account for you will depend on how you’ll use the account, and whether you’re a personal or business customer. Here are a few options to consider:

*Information correct at time of writing: 23rd May 2024.

Wise USD account

Wise is a great account choice for people who want the flexibility of a multi-currency account which also allows you to easily hold, send and spend USD.

Wise accounts for both personal and business customers can handle 50+ currencies, and include local bank account details for 10 different currencies including USD. That means you can pay and get paid from around the world, with the real mid-market exchange rate and low, transparent fees every time.

Wise accounts also come with a linked international debit card allowing you to spend in 150+ countries. If you deal with USD often - but also like to travel elsewhere, or shop online with international retailers based around the world, this could be the perfect account for you.

Fees: No fee to open a personal account, 42 CAD one-off fee to open a business account. No monthly fee for either personal or business accounts

Currency conversion: Hold and convert 40+ currencies with the mid-market exchange rate

Receiving payments: Receive USD payments for free with local account details, including an ACH and Wire routing number, account number and SWIFT/BIC Code. Local payments (non-Swift) are free but USD wire payments come with a fixed 6.11 USD fee per payment.

Other notable features: Receive payments like a local from 30 countries, send money to 160+ countries, spend with your linked debit card in 150+ countries.

TD Bank USD account

TD has a huge presence in the US, and offers a couple of great plans for people who want to hold, receive, exchange and spend US dollars.

The key USD accounts offered are the US Daily Interest Chequing Account and the Borderless plan. These will probably suit different customers - the chequing account option has no monthly fee, but there are charges for all transactions. If you make regular transactions, the chances are that the borderless option would work better, as this comes with a monthly fee - but many transaction fees are then waived.

Fees do apply for some important foreign currency transactions - including a charge of the equivalent of 25 CAD for online transfers in a foreign currency, and a receiving fee of 17.50 USD for any incoming USD wires. If you set up international transfers in a branch, the transfer fees are even higher - and in all cases you’re likely to face a marked up exchange rate.

Fees: Borderless plan - 4.95 USD/month - many transactions are then free; USD Current Account - no monthly fee, but transaction fees apply

Currency conversion: Exchange rates are likely to include a markup - although preferential rates are available on USD conversions

Receiving payments: Receive USD payments using your ABA routing number and account number. A receiving fee of 17.50 USD applies for any incoming USD wires.

Other notable features: Some perks include annual fee waiver on the TD Bank US credit card, free chequing services depending on your account type, and the option to waive monthly fees or transaction charges by holding a minimum balance

EQ Bank USD account

Digital bank EQ offers a USD account which comes with a relatively high interest rate on your balance, and no monthly fees.

This account doesn’t come with a debit card, which may mean it’s not the right option if you travel to the US regularly and want to spend and make withdrawals from your account on the move. However, you can use the account to hold your USD balance and watch it grow, before easily transferring to a linked USD account which has a debit card for day to day spending.

EQ has partnered with Wise to offer low cost international transfers with low, transparent fees and great exchange rates. Considering there’s no monthly fee and accounts can be opened online, this can be a good low-hassle option if you want to earn interest on your USD balance.

Fees: No monthly fee

Currency conversion: EQ boasts having some of the best currency conversion rates in Canada - and international transfers are powered by Wise which is known for low fees and market beating exchange rates

Receiving payments: Receive USD payments with your ABA routing number and account number. Incoming transfers are received via their partnership with Wise, meaning there are no fees to receive non-Swift local USD payments.

Other notable features: Good interest rate on your USD balance; no debit card available

RBC USD account

As another major player in Canada, it’s no surprise that RBC has a strong USD account offering. We’ve chosen to profile the US personal account here, offered for frequent US travelers - although there is also a USD savings account you may like to look at too.

Alternatively, as RBC has a presence south of the border, you may also be able to open a USD account directly with a US branch of RBC. Account options differ between the two - in Canada you’ll be looking for a US personal account, whereas the products on offer from the US side of the RBC operation are likely to be cross-border solutions for people working and traveling frequently in both the US and Canada. It’s worth checking both out as the features and fees vary somewhat.

Fees: 3 USD a month - this gets you 6 free transactions, transactions are 1.25 USD after that

Currency conversion: Currency conversion likely to include a markup

Receiving payments: Incoming US wire payments from another RBC Royal Bank account in Canada are for free, as well as payments from another financial institution worldwide with a transaction amount that’s less than 50 USD. Payments that are above $50 have a 17 USD fee.

Other notable features: No minimum balance; 45CAD or more to send an outgoing international wire, 17 USD to receive one

Scotiabank USD account

Scotiabank’s US dollar interest account may be a good choice if you’re looking to save in USD and don’t need to make frequent transactions. We’ve featured it here because it has a low monthly fee of just 1 USD, which can be waived with a minimum balance of just 200 USD.

You’ll be able to make a couple of transactions a month with no fee, with a low cost of 1.25 USD per transaction after that. There are also free USD bank drafts available through this account. The interest rates which apply get better the more you hold in your account - making this an attractive option for people with higher amounts of savings.

Fees: 1 USD/month, waived with a 200 USD balance. Fee includes 2 transactions per month - above this there’s a charge of 1.25 USD per transaction

Currency conversion: Exchange rates are likely to include a markup

Receiving payments: Receive USD payments using an ABA routing number, and account number. A 15 USD fee applies for incoming wire transfers.

Other notable features: The more you save, the higher the interest rates applied

How to open a USD account in Canada

Opening a USD account in Canada can vary based on your chosen provider, and banks and online alternatives will have slightly different procedures.

Here are the basic steps you usually need to take to open a US account in Canada:

• Research and select a provider that best meets your needs

• Register for your account by signing up online or visiting a branch

• Provide your personal details like your name, address and contact information

• Submit the required document to verify your identity. This might include a:

• Government-issued photo ID

• Proof of address, such as a utility bill or bank statement

• Business registration documents if you’re opening a business account

• Deposit funds into your new USD account and you’re ready to start using it

To open a USD bank account in Canada you’ll usually need to provide two documents from a reliable source - one document must include your name and address, and the other document must contain your name and date of birth.

Documents usually accepted by banks include:

• A passport

• Government issued ID documents

• Government issued tax or benefit statements

• Canadian public utility bills

• Bank account or credit card statements

How to use a USD account in Canada

A USD account in Canada offers flexibility and convenience for managing US dollars, especially if you frequently hop over the border or you have a business that deals with US dollars. Here are just some of the ways you can utilize your USD account effectively:

• Receive payments: Accept payments in USD from US clients or employers

• Spend in USD: Use your account to make purchases directly in USD while avoiding conversion fees

• Hold and exchange currencies: Hold USD in your account and exchange it to CAD or other currencies when needed

• Transfer funds: Easily transfer funds between your USD account and other accounts

• Save on fees: Minimize currency conversion fees and benefit from favorable exchange rates by holding USD

How does a USD account work?

A USD account lets you hold, exchange, spend, and receive US dollars. Depending on your chosen account and provider, you may also receive local USD account details, like the Wise account.

You can then provide these details to receive payments directly in USD, use it for transactions or withdrawals, hold your USD balance to avoid conversion fees or convert it back to CAD and withdraw the money to your regular bank account. Some USD accounts will also offer a linked debit card for easy spending when you’re in the US.

USD account details 

Some providers, like Wise, offer local account details, like routing and account numbers, allowing you to receive and hold US dollars. This is useful for those who regularly make transactions in USD, helping avoid currency conversion fees and making managing USD payments and receipts easier.

To get these details with Wise, log into your account, tap ‘Open’, and then ‘Balance’. Choose USD from the list of currencies to open your USD balance and receive your local account details.

Unfortunately, information on USD account details for TD Bank, EQ Bank, RBC, and Scotiabank are not provided on their official websites. You can contact these providers directly to learn more about their account details.

How to receive USD payments in Canada

Receiving USD payments in Canada is straightforward thanks to multi-currency accounts like Wise. These accounts provide local USD account details, making it easy to receive payments from the US.

Here’s a step-by-step guide on how to receive payments from the US in Canada, using Wise as an example:

1. Register online by signing up online or via the Wise app.

2. Verify your identity by providing photo ID, proof of address, and/or a picture of you holding your ID.

3. Get local USD account details, including a routing and account number, by selecting ‘open a balance’ and selecting USD.

4. Tap ‘get account details’ and copy the account information.

5. Share these account details to the person making a payment .

6. Receive payment. The sender transfers the USD amount to your account using the details you provided.

7. Once the payment has been received, you can access your funds. Hold them in USD, convert them to CAD or use them for other transactions as needed.

USD account with debit card

If you are looking to hold USD and spend directly from your USD balance, consider opening accounts with Wise or TD Bank. Both providers offer debit cards linked to your USD account, allowing you to spend in USD without any conversion fees.

• Wise Account & card: Hold USD along with 40+ other currencies and spend any currency you hold with the linked Wise debit card in 150+ countries. If you don't have currency you need, take advantage of automatic conversion at the mid-market rate with low fees from 0.35%.

• TD Bank Account & Card: Every TD Checking Account comes with a free visa debit card that allows you to spend directly from your account balance.

Conclusion: Best US Dollar account in Canada

Opening a USD account in Canada can be handy for a range of individuals and businesses. Basically, anyone who frequently needs to receive, send or spend USD could cut their costs by picking the right USD account according to their personal situation. You’ll be able to transact internationally more conveniently, and won’t have to switch funds from CAD to USD every time you need them - just keep a balance in your USD account for whenever you travel or have to send a payment.

Use this guide and our top USD account picks as a starting point to see which fits your needs best.

US Dollar account FAQs

Can I open a Wise USD account in Canada?

Yes. You can open a Wise account in Canada, and get USD account details with your Wise account to receive USD payments like a local.

Can I open a USD account in Canada?

Yes. You can open a USD account easily in Canada with a major Canadian bank or an online specialist provider.

How does it cost to open a USD account?

Accounts are often free to open but may come with annual or monthly fees which you can only waive by holding a minimum balance requirement. For a more flexible option, look at online services which often have no minimum balance and lower transaction fees.