This post covers the best US dollar savings accounts for Canadians. If you’re looking for the best way to save your US dollars, you have come to the right place!
There are several reasons why you may want to save some of your funds in USD. For one, the US dollar is the most widely used currency in international transactions. This means that when you are traveling or making purchases from another country, chances are good that the US dollar will be accepted.
Additionally, the US dollar is a stable currency, meaning it does not fluctuate as much as other currencies. Whatever your reasons may be, there are several benefits of having a US dollar savings account as a Canadian.
However, with the availability of several US dollar savings accounts out there, it can be tricky to know which one is right for you and your financial needs.
In this article, I will be going over some of the best US dollar savings accounts in Canada with competitive interest and low currency conversion fees.
What is a US Dollar Savings Account?
A US dollar savings account is an account that allows you to save money in US dollars. With these accounts, you can save and earn interest in US dollars even while in Canada.
The US dollar savings account is ideal if you make frequent travels to the US or need to save money in a more stable currency to fund some of your financial goals.
Usually, you’ll have to deposit USD into the account – with the funds coming from some of your US dollar earnings. From there, the bank will hold onto your money and may use it to finance their own USD-denominated transactions.
Alternatively, some banks will convert your Canadian dollar funds to US dollar using their current exchange rate. This can be a good option if you think the Canadian dollar will decline in value relative to the US dollar.
8 Best USD Accounts in Canada For Savings
There is a wide range of US dollar savings accounts in Canada. However, some are obviously better than others, so how do you choose the best option?
To help you decide which one is right for you, here is a ranking of some of the top US dollar savings account options for Canadians:
1. EQ Bank US Dollar Account
- Interest rate: 2.00%
- Monthly fees: None
- Minimum balance: None
To help you save money in the US currency, EQ Bank offers a US dollar savings account that allows you to earn an interest rate of up to 2.00%.
The EQ Bank US Dollar Account is similar to a regular savings account but with a currency denominated in US dollars, which can help to maximize your savings.
Opening your US dollar account with EQ Bank is easy. You can open a free saving account directly from the comfort of your home/office.
After that, you can fund it with any amount of your choice. Once you fund the EQ Bank US dollar account, you can start enjoying the best interest rate on USD accounts in Canada with no extra charge on transactions.
Key Features:
- High savings rate
- Easy to open
- Low conversion rate
- No monthly charges
- High savings interest rate
Learn more: EQ Bank USD Account review.
2. ICICI Bank US$ HiSAVE Savings Account
- Interest rate: 1.00%
- Monthly fees: None
- Minimum balance: None
The ICICI Bank US$ HiSAVE Savings Account provides you with a convenient and hassle-free way to earn competitive interest on your USD savings.
The account pays an attractive interest rate on your balance and allows you to add up to three of your accounts from other banks and manage them all from one place.
Also, there are no monthly fees or minimum balance required to get started, and it takes just a few minutes. You can earn an interest rate of 1.00% on your US dollar savings with the ICICI bank US$ account.
Key Features:
- No monthly fees
- Competitive interest rate
- No minimum balance requirement
- Add up to three accounts from other banks
3. Hubert US Savings Account
The Hubert US Savings Account offers a flexible and convenient way to save in US dollars while earning a high-interest rate on your savings.
With the Hubert US Savings Account, you can earn 0.25% interest. The account also has no monthly fee and minimum balance requirement.
Not only that, you can link another US dollar account to your Hubert US Savings Account. You can also make free electronic funds transfers.
Additionally, your money is safe in the account because the account is insured by the Deposit Guarantee Corporation of Manitoba (DCGM).
Key Features:
- No monthly fees
- Competitive interest rate
- No minimum balance requirement
- Add other US dollar accounts
Related: Hubert Financial Review
4. Manulife Bank US Dollar Advantage Account
- Interest rate: 0.20%
- Monthly fees: None
- Minimum balance: None
Next on this list of the best USD savings accounts in Canada is the Manulife Bank USD Advantage Account. It offers you a way to earn high interest on your US Dollar deposits.
You can earn an interest rate of 0.20% with no monthly fees, low currency exchange fees and no hidden costs.
This account also allows you to easily transfer funds between your linked Canadian and US dollar accounts for free. To add funds to your Manulife Bank USD Advantage Account, you can either transfer from other Canadian banks or send a US dollar cheque by mail.
Key Features:
- Low exchange rates
- No minimum balance requirement
- No monthly fees
5. CWB US Dollar Savings Account
The CWB US Dollar Savings Account gives you a unique opportunity to earn high interest on your US dollar deposits.
This account lets you transfer freely between Canadian and US dollars. It has no monthly fees or minimum balance requirement.
Also, the CWB US Dollar Savings Account offers an interest rate of 0.80% which is calculated based on closing balances and paid monthly.
Key Features:
- No monthly fee
- No minimum balance requirement
- Transfers between CWB accounts are free
- Competitive interest rates
6. Tangerine US Dollar Savings Account
The Tangerine US Dollar Savings Account is a great way to quickly earn high interest in U.S. dollars with no monthly fees.
With the Tangerine US Dollar Savings Account, you can earn an annualized 0.10% interest rate on your money.
Also, you can fund your Tangerine US Dollar Savings Account free by transferring funds from your Tangerine chequing or savings account.
Key Features:
- No minimum balance requirement
- Low exchange rates
- No monthly or annual fees
- Competitive promotional interest rate
RELATED: Tangerine Savings Account Review
7. Simplii Financial USD Savings Account
The Simplii Financial USD Savings Account has a 2.50% interest rate and is suitable for international money transfers.
You can make transactions from this account to more than 100 countries at no cost. The account has no monthly fees or minimum balance requirement. So, you can exchange your Canadian dollars for US dollars with low conversion exchange rates.
Key Features:
- No monthly fees
- Free international transactions
- No minimum balance requirement
- Competitive conversion rate
- Bank drafts
8. BMO US Dollar Premium Rate Savings Account
The BMO US Dollar Premium Rate Savings Account is a flexible savings account that helps you save in US dollars while earning interest on your deposits.
With the BMO US Dollar Premium Rate Savings Account, you can earn interest of 0.05% on your savings and avoid costly currency exchange fees and monthly fees.
Key Features:
- No minimum balance requirement
- Competitive conversion rate
- No monthly fees
Pros and Cons of a US Dollars Savings Account
A US dollar saving Account is an easy way to save money for short and long-term goals, like a vacation or buying a new car.
However, while it offers a cost-effective way to save in US dollars, it has its pros and cons you need to be aware of.
Here are some of the pros and cons of this savings account to help you decide if it’s right for you:
Pros
Provides a Convenient Way to Save US Dollars
One of the advantages of a US dollars account is that it provides a convenient way for you to save in US dollars, which is the currency of the world’s largest economy.
If you frequently travel or shop in the US, this can be very useful as it saves you from the hassle of exchanging your CAD for US dollars and the associated costs.
Make USD Transactions
If you’re a Canadian that regularly makes transactions in US dollars, a US dollar savings account can be an easy and low-cost way to make transactions in US dollars.
Competitive Interest Rates
One of the biggest advantages of a US dollar savings account is that it comes with a competitive interest rate.
This means that your money will grow over time and you will be able to earn more money. This can be especially beneficial if you are saving for a large purchase or for retirement.
Help Diversify Your Portfolio
Diversifying your portfolio is important because it helps reduce the risk of losing money due to a sudden change in the market.
You can use your US dollar savings account to buy US funds or assets, which will help you to protect yourself against market volatility.
Cons
Currency Fluctuations
Since the value of the US dollar fluctuates regularly against the Canadian dollar, if the value drops between the time you deposit money into your savings account and when you withdraw it later, your savings will be affected.
Limited Flexibility
When compared with other savings accounts, US dollar savings accounts tend to have limited flexibility in terms of withdrawals, deposits and transfers. Be sure you understand these limits before opening an account.
Things to Look Out For in a US Dollars Savings Account
If you’re looking to save your money in US dollars, there are a few things to look out for before picking an account.
Here are some things to look for when deciding on a US dollar savings account:
Interest Rate
Interest rates determine how much money you earn on your savings. An account with a higher interest rate earns you more money, while an account with a lower interest rate earns you less money.
If you want to earn as much money as possible on your savings, it’s best to look for a US dollar savings account with a high-interest rate.
Easy Access to Your Funds
Some accounts require you to give notice before you can withdraw funds, while others limit the number of withdrawals you can make each month.
So, when choosing a US dollar savings account, look for one that grants you easy access to your funds. After all, you wouldn’t want to be stuck in a situation where you have an emergency and can’t withdraw the money you need.
Monthly Fees
Another important thing to look out for when choosing a US dollar savings account is low or no fees.
While many banks offer no-monthly fees on their USD account offerings, there could be some transaction charges. Make sure you understand all the fees and charges before deciding on a bank.
Minimum Balance Requirement
Even though there is no minimum deposit required to open most US dollar savings account, some banks may charge a monthly fee if you keep your balance below a certain amount.
Transaction Fees
Some accounts charge transaction fees every time you make a transfer, so consider how often you’ll need to access your money before you open an account.
Choose a US dollar savings account that doesn’t charge transaction fees for transferring money in or out of the account.
Best USD Accounts in Canada FAQs
A USD saving account is very important and worth it if you have expenses in US dollars or travel a lot. It can also be valuable if you’re saving for a long-term financial goal and want to keep your funds in a strong currency.
Yes. The majority of Canadian banks offer a US dollar account. So you can easily open a US dollar account with any of them that has the features you are looking for.
Final Thoughts
There are many options out there that allow you to save US dollars in Canada. With so many financial institutions and types of dollar accounts in Canada, it can be overwhelming to find the best account for you.
Obviously, each of the banks listed above has its advantages and disadvantages, but overall the list might be a great place for you to start your research.
However, the choice of which account is best for you will come down to your individual needs. It’s important to first understand your needs and goals, and then match up with the account that meets them.
But if you have further questions please let me know in the comments section below!
