Who offers USD accounts
Many banks and some credit unions do. Among the profiles in our directory, EQ Bank and Servus list USD accounts on their own sites; check each institution’s current product page.
Deposit insurance
| Where the account is | Protection |
|---|---|
| CDIC member in Canada | Eligible foreign-currency deposits covered since April 30, 2020, combined with CAD deposits in the same category ($100,000) |
| Ontario credit union | FSRA insurance covers Canadian-currency deposits only |
| Quebec caisse (AMF) | Foreign-currency deposits payable in Quebec covered within the $100,000 category limit |
| US bank | FDIC, $250,000 per depositor, per insured bank, per ownership category |
Reporting thresholds
- Canadian residents — Form T1135: required if the total cost of specified foreign property, including funds in foreign bank accounts, was more than $100,000 CAD at any time in the year. A USD account at a Canadian bank is not foreign property for this purpose; a US bank account is.
- US persons — FBAR: required if accounts outside the US total more than US$10,000 at any time in the calendar year, including Canadian accounts. Due April 15 with an automatic extension to October 15.
- Tax residency self-certification: Canadian institutions ask for it at account opening under the FATCA and CRS rules in Parts XVIII and XIX of the Income Tax Act.
The cross-border banking explainer walks through situations — snowbird, US person in Canada, moving south — and checks both thresholds.
Compare the exchange rate you get with the mid-market rate. The spread is the real cost of converting.
Do I actually need a USD account?
It helps most when US dollars come in and go out without needing to be Canadian dollars in between. Every conversion has a cost built into the exchange rate, so skipping round trips is where the saving comes from.
| Your situation | A USD account usually… | Why |
|---|---|---|
| You’re paid in US dollars and spend some of it in the US | Helps | You avoid converting to CAD and back again. |
| You winter in the US every year | Often helps | You can convert when you choose, not at every purchase. |
| You receive US-dollar cheques | May help | Ask how the bank treats US-dollar cheques — see below. |
| You take one short US trip a year | Rarely matters | There may be too little money moving to justify another account. |
| You never touch US dollars | Doesn’t help | It’s just another account to watch. |
What does converting money really cost?
FCAC’s 2026 review of banking fees says banks show the exchange rate they apply but don’t list the markup as a separate cost. You can estimate it by comparing the rate you got with the mid-market rate (the midpoint between wholesale buy and sell rates). Transfer fees are charged separately from the markup, so compare both.
The mid-market rate is 1.40 Canadian dollars per US dollar. Your bank sells you US$1,000 at 1.43. You pay $1,430 instead of $1,400, so $30 is the markup. Convert the same money back at a rate below 1.40 and you pay a markup again. A USD account lets you skip the second trip when you’ll spend the money in US dollars anyway.
What happens when I use my Canadian debit card in the US?
FCAC says the payment network (Visa, Mastercard or Interac) converts the currency, and your bank’s cross-border debit fee is then calculated on the Canadian-dollar amount after conversion. The exchange rate isn’t disclosed separately at the time, and the fee also applies to refunds. So if you buy something and return it, you can pay the fee on both. Check your bank’s fee schedule, or compare accounts in the true-cost finder.
How long will a US-dollar cheque be held?
Usually longer than a Canadian cheque. The federal maximum hold periods apply only to Canadian-dollar cheques drawn on a branch in Canada. FCAC says cheques drawn on institutions outside Canada may take longer to clear and banks often hold them for 30 days. If the cheque doesn’t clear, the bank takes the money back and may ask for a bank draft or another secured payment instead.
How is the interest and currency gain taxed?
- Interest: the CRA says to report foreign interest in Canadian dollars, generally using the Bank of Canada exchange rate on the day the amount arises. An average rate may be allowed in some cases.
- Currency gains: the CRA treats foreign exchange gains or losses on capital transactions as capital gains or losses. For individuals, the Income Tax Act takes $200 off the year’s net gain, and if the net is $200 or less there is nothing to report.
You buy US$5,000 at 1.35 (C$6,750) and later convert it all back at 1.40 (C$7,000). If that’s your only currency gain or loss this year, your net gain is $250. After the $200 reduction, $50 is treated as a capital gain. Rules can differ for business or trading activity, so confirm your situation with the CRA or a tax professional.
Does my USD balance push me over the CDIC limit?
It can. Eligible foreign-currency deposits at a CDIC member are covered together with your Canadian-dollar deposits in the same category, up to $100,000 including interest.
You have C$70,000 in savings and US$40,000 in a USD account, both in your own name at one CDIC member. At an illustrative rate of 1.40, the US dollars are worth about C$56,000. Your own-name total is about C$126,000 — over the limit. Moving some of it to another member, or into a TFSA, can keep it all covered. See the deposit insurance calculator.
What to ask the bank about a USD account
- What exchange rate do you use for transfers between my CAD and USD accounts, and how does it compare with the mid-market rate?
- Does the USD account have a monthly fee or transaction limits?
- Can I get a USD debit card, or only transfers and cheques?
- How long will you hold a US-dollar cheque?
- Does the USD account pay interest, and is it promotional?
- Is the institution a CDIC member or provincially insured? Ontario credit union insurance covers Canadian-dollar deposits only.
Frequently asked questions
Are USD deposits CDIC insured?
Yes, eligible foreign-currency deposits at CDIC members have been covered since April 30, 2020, within the same $100,000 category limit as your Canadian-dollar deposits.
Do I report a USD account at a Canadian bank on T1135?
A USD account held at a Canadian institution in Canada is generally not specified foreign property; a US bank account is. Confirm your situation with the CRA or a tax professional.
How long does a bank hold a US-dollar cheque in Canada?
The federal maximum hold periods don’t apply to cheques in foreign currency or drawn outside Canada. FCAC says banks often hold foreign cheques for 30 days. Ask your bank.
Do I pay tax when I convert US dollars back to Canadian dollars?
Possibly. The CRA treats foreign exchange gains on capital transactions as capital gains. For individuals, the first $200 of net gain in a year is not taxed.
How do I know what my bank charges to convert currency?
FCAC says the markup isn’t shown separately. Compare the rate you got with the mid-market rate to estimate it.
Educational information only, not financial, legal or tax advice. CanadianBanks.ca is independent and is not affiliated with, endorsed by or paid by any institution listed. Confirm details with the institution and the official sources linked on each page before you act. Read the full disclaimer.