Banks have regulations that they must follow, including rules regarding the opening of an account by a foreigner. This can be done, but requires some additional documentation, courtesy of the Internal Revenue Service and federal regulations. Depending on the services offered by the bank, it may also be possible to open an account in Canadian currency or simply to continue banking operations at a Canadian bank using debit cards and ATMs. Can Canadian open bank account in USA?
IRS and international forms
For Canadian citizens to open a US bank account in the United States, only two IDs are needed. You don’t need a US mailing address to open a bank account. When a U.S. citizen or legal resident enters the bank to open an account, they will need to bring a photo ID and social security number with them. The bank does not try to create inconvenience; enforces federal law. All US account holders are subject to these rules for bank and brokerage accounts. If you are a foreigner and do not have a social security number, you still need to provide proof of identity and sign a tax declaration known as Form W-9.
Reasons why Canadians may want to open a US bank account
There are several reasons why Canadians may want to open a US bank account:
- You work in the United States. If you’re a Canadian working on a US visa, having a bank account will save you a lot of time and trouble by depositing checks into your US account.
- You own a company in the US If you already own a company in the US or are considering opening it, having a US bank account can be beneficial. You’ll be able to open a company account, which can provide many benefits of easier invoicing, faster payments and lower fees.
- You own a property in the United States. If you own a property in the United States or plan to buy a property, opening a bank account in the United States allows you to apply for a bank loan. Paying off your mortgage will also be less stressful.
- You often travel to the USA. If you regularly travel to the States, having an account with a US financial institution makes your life much easier. You’ll have easier access to your money when you need it, and you won’t have to worry about converting currencies from Canadian dollars to US dollars and returning back, or paying transaction fees (which may increase over time).
Using a Canadian account
A useful alternative if you’re just looking for banking convenience would be to open an account in Canada, apply for a debit card, and use the card while in the US to make payments, withdrawals from ATMs and deposits. The bank will change all deposits made in US dollars to Canadian funds to your account and allow you to withdraw dollars during your stay in the US. Larger banks, such as the Royal Bank of Canada, also have branches in major US cities.
Canadians with a US bank account can avoid costly exchange rates and will not have to deal with the problems of converting money from US dollars to Canadian dollars. Just remember that regardless of which bank you choose, find out what are the requirements and options to find the best bank for you.
