U.S. citizen moving to Canada needs bank account

August 21, 2013 1:21 PM

What's the easiest, best, and cheapest way for a U.S. citizen moving to Toronto to get a Canadian bank account? Ideally before I arrive, if that is possible.

I will be moving to Toronto in October. I will be flying in to look for apartments for several days starting 2 September. I have plans to view apartments the afternoon of the next day, and want to be able to pay a rent deposit then, which would be much easier with a Canadian bank account. A real estate agent said we could wire the funds to his firm and they would write a check, but I would definitely feel more comfortable dealing with a bank, which would also allow me to rent a place found on viewit.ca or otherwise independently of the rental agent.

Here are some of the options I've considered and my assessment:

• RBC allowed me to fill out their application online, had account packages with no monthly minimums or fees, and allowed me to choose U.S. passport and driving license as my two forms of identification. But after completing the application they say I need to make an appointment at a branch to finish.
• HSBC will let me open an account as a U.S. account-holder for about ten years, but the account will have a $25/month fee or a $25,000 minimum to waive that. Ouch. And once I go through the process I may find that I have to show up in person. They say they will transfer my credit history. Does that mean anything in practice? I'm betting it's not worth $300/year.
• Involves a lengthy process with certificates of identity from both my current banker and lawyer and lots of time-consuming mailing: BMO
• Can't open an account at the following with my U.S. address: Meridian Credit Union, Scotiabank, TD
• Need to show up in person: President's Choice, CIBC, National Bank
• Need a SIN (which I probably won't have until October or November): ING

So is my best option to get that appointment and show up at the RBC branch in two weeks, and then try to wire in the money right away? Or does something else make more sense?

posted by grouse to Work & Money (24 answers total)

If you have an existing US bank account, you can just use an ATM to withdraw the cash in Canada, can't you? It would seem to be cheaper and easier than wiring the money.

You seem to have exhausted all of the avenues for opening up an account at RBC, TD or CIBC etc before the fact.

Some American banks may have branches in Canada. Bank of America seems to have a branch in Toronto.
posted by KokuRyu at 1:27 PM on August 21, 2013

Response by poster: Due to daily ATM withdrawal limits, I'm not sure I will be able to easily get two months rent in CAD that way, but I'll look into it more.
posted by grouse at 1:35 PM on August 21, 2013

Withdraw the funds in person in Seattle, in CAD, then carry it up with you. Exchange rates are usually pretty good that way. You might have to make a request in advance or go to a particular branch if it's a large amount of money, but they should be pretty ok with CAD here I assume.
posted by jacalata at 1:37 PM on August 21, 2013

Double-check TD. They rolled out a cross-border banking service this year that is not familiar to many local branches. I use it myself, but am in the opposite situation as you - I'm a Canadian who recently moved to the US.

Their 24/7 Support line is the best way to get information: 1-877-700-2913
posted by kitkatcathy at 1:38 PM on August 21, 2013 [1 favorite]

If your U.S. bank is sufficiently large, and with enough lead time, they may be able to order Canadian cash for you ahead of time. There are probably fees associated with this, and it would involve carrying a large amount of cash, which might make one uneasy; but it's an option.
posted by Johnny Assay at 1:38 PM on August 21, 2013

Japan and Canada have almost no banking interoperability traditionally. So what I always did was buy a whack of travellers cheques, which I would then cash in Japan. I have carried the equivalent of $9999.99 in cash to Japan, too.
posted by KokuRyu at 1:40 PM on August 21, 2013

Would you consider paying with traveller's cheques? Or with a certified USD check from your US bank?

Unfortunately one of the side effects of the anti-money laundering terrorist funding provisions put into effect after 9/11 is that it is a real pain to get large sums of money out of the USA. Normal cheques can take weeks and weeks to clear from the other side of the border, regardless of bank, because of the government red tape involved.

Bank of America seems to have a branch in Toronto.

If you mean the one formerly at 200 Front St West, it closed during the mortgage crisis. They don't have any branches in Toronto any more (as a BAC customer myself, I've been motivated to find one). BAC has a deal with ScotiaBank; you can withdraw cash from BAC accounts at ScotiaBank ATMs without incurring any fees (subject to your daily ATM withdraw limit and the bank's exchange rate).
posted by ceribus peribus at 1:42 PM on August 21, 2013 [1 favorite]

TD has branches in some US cities now (Washington DC, NYC....?). Is it an option for you to go in person to an American TD branch? Assuming you haven't tried that already, it's possible it could help.

Transferring your credit history may not be worth $300 per year, but it's not nothing. Most Canadian landlords require a credit check (caveat: I've never rented in Toronto), and your US credit history does not mean anything in Canada. Especially if you hope to rent from a larger property management company, this could be a problem. You also may not be able to get a credit card in Canada right away without a history--this may or may not be a problem for you.

On preview, are you sure you would need two months' rent? Again, I haven't rented in Toronto, but in other parts of Canada a deposit is usually 1.5 months' rent or less. (First month plus half a month security deposit.)

Also, was about to suggest that you could just carry the cash up and deposit it when you open a bank account on the 2nd if you don't want to give your deposit in cash, but realized that September 2nd is Labour Day. So you could still carry cash up, but your first day in Toronto will be a bank holiday. Welcome to Canada!
posted by snorkmaiden at 1:42 PM on August 21, 2013

For your deposit and for first/last month's rent, you can purchase a money order (for a fee) from a Canada Post outlet using your US debit card, or even cash (Canada Post will take your US cash according to their website.)

Canada Post's money orders are available in amounts up to $999.99, so you may have to purchase a few, and pay a fee for each one. You do have to show photo ID when purchasing. Apparently they are $7 each? Sounds about right. I've purchased them before.
posted by Ouisch at 2:02 PM on August 21, 2013 [2 favorites]

TD has branches in some US cities now (Washington DC, NYC....?). Is it an option for you to go in person to an American TD branch? Assuming you haven't tried that already, it's possible it could help.

I think this might do it- I was able to withdraw funds from a TD account I opened in the US at a TD ATM in Canada, and as far as I can tell, there was no extra fee.
posted by ThePinkSuperhero at 2:09 PM on August 21, 2013

TD has branches in some US cities now...
I was very excited about this when I was in New York, but it operates as a separate company from it's Canadian counterpart. Accounts are not combined and have the same issues with cross-border access that other banks have.

Seconding the money order idea, but I believe Canada Post will not accept credit payment for them; you would have to pay in cash (either currency). [You can pay for a money order with a debit card, but that wouldn't be possible without a Canadian bank account; US debit/check cards are processed here as if they were credit, so the post office wouldn't be allowed to let you buy money orders that way.]
posted by ceribus peribus at 2:11 PM on August 21, 2013 [3 favorites]

I don't think if you took cash it would have to be in Canadian dollars, I would think any branch in Toronto would happily take US cash and deposit it into your new account for you. You could also get money orders from the US post office and take those with you but they wouldn't be much safer than cash.
posted by SpaceWarp13 at 2:12 PM on August 21, 2013

I was able to withdraw funds from a TD account I opened in the US at a TD ATM in Canada, and as far as I can tell, there was no extra fee.

I just want to clarify that this is completely correct, but it's only an ATM fee arrangement between the two TDs, similar to the deal between BAC and ScotiaBank. (I'm sure Chase has an ATM deal with someone else; maybe with RBC?). The account with the American TD wouldn't be part of the Canadian banking system, so you wouldn't be able to do things like pay your landlord by having him swipe that debit card.

Maybe a few days of withdrawing cash (certain ATMs in the financial district will give out 50s and 100s) are all you need, though.
posted by ceribus peribus at 2:34 PM on August 21, 2013

Due to daily ATM withdrawal limits, I'm not sure I will be able to easily get two months rent in CAD that way, but I'll look into it more.

Just so we're clear, it's illegal for a landlord to require two months' rent. If you're not moving until October, you could presumably just pay the rent deposit in September, and make arrangements to pay them the rent for October 1.

But nthing the easiest way would be to withdraw Canadian cash in-person. Shouldn't be impossible if you do it at the teller.
posted by Lemurrhea at 2:34 PM on August 21, 2013 [1 favorite]

For those suggesting TD, the bank has no presence outside of the northeastern seaboard. For New England-ish areas, it's pretty great, but won't work in the rest of the US. That's likely why it won't work for the OP.
posted by bonehead at 2:40 PM on August 21, 2013

Oh good point, I forgot that US debit cards are processed as credit cards, and you can't buy the money orders with credit. But US cash is still an option if you hoard it for a while before going.
posted by Ouisch at 2:41 PM on August 21, 2013

Most US ATM cards however, will work in Canada just fine, even converting automatically. Can you go to you bank and get your daily limits raised? I've done this with my (Canadian) banks in the past, even up to $5k/day when I was traveling. They don't like doing it, and will make you sign all kinds of paperwork absolving them of liability, but it might be a short-term solution to access cash.
posted by bonehead at 2:43 PM on August 21, 2013 [2 favorites]

Speaking of credit cards: you should get your physical US credit cards upgraded/reissued to the kind with chips on them, if you haven't already. About 1-2 years ago stores in Toronto started refusing non-chipped cards (although they still work in ATMs).
Sorry for monopolizing; I'm done now.
posted by ceribus peribus at 2:52 PM on August 21, 2013

If you do open and maintain a Canadian bank account, be sure to look into the IRS' FBAR requirements. If you don't file FBARs, you could face serious penalties.
posted by lex mercatoria at 4:19 PM on August 21, 2013

HSBC will let me open an account as a U.S. account-holder for about ten years, but the account will have a $25/month fee or a $25,000 minimum to waive that. Ouch.

Can you do this, and then once you've moved to Canada either switch to a better (Canadian!) kind of account or a whole different bank? Then you would only have to pay the fee for a few months, and you'd have a bank account set up when you move which might come in handy for other stuff.
posted by grapesaresour at 4:23 PM on August 21, 2013

Best answer: As far as RBC's "appointment at the branch" - you may want to just consider this option. The appointment is super brief, and they will be able to assist you with a draft in the correct amount if you find a place. You should have a backup (i.e. accessible cash - from one or more US accounts/credit cards that can be withdrawn).

You will find, though, that at places like RBC if your credit history is not transferred it will be virtually impossible for you to get any credit card without (a) a reasonably high, secure income source, or (b) a deposit in the size of your small credit limit (ex. $1000). Your American cards will work for the most necessary things in Canada, like plane tickets, but you will be incurring exchange fees in several directions if you're not careful (both in purchasing things and paying them off).

If you're viewing apartments on the 2nd, they will still be checking your references etc. the next day anyways and won't take a deposit from you until they've offered you the place and you've signed an agreement (nor should you be giving such a deposit).

As far as the SIN, which is sort of an aside - if you have your visa in your passport already (e.g. you have PR status, your work visa is already running), you can get a SIN very easily by going to a Service Center with that document.

I am not sure if this is the case in Canada but overseas I have opened accounts with no fixed address by using the bank's address itself - with the assistance of customer service. The advice you get online may be different from the advice you get over the phone, and I have had numerous Canadian bank fees temporarily waived (ex. 6 months) or adjusted by negotiating over the phone.
posted by skermunkil at 5:00 PM on August 21, 2013

You know, you could always just call up one of the Canadian banks and ask for help (personal banking). I like RBC, myself. They have excellent customer service.
posted by KokuRyu at 5:53 PM on August 21, 2013

I was very excited about this when I was in New York, but it operates as a separate company from it's Canadian counterpart.

As other posters have indicated, this is no longer the case. You do have to have separate American and Canadian accounts, but you can set them up on either side of the border.

However, the fact remains that they are along the Eastern seaboard (from Maine to Florida) and Texas and it looks like you are not. Might be worth calling them though at the number someone listed above to ask if there is any way they can help.
posted by scrute at 3:03 PM on August 22, 2013

Response by poster: I found the email address for the manager of the RBC branch near my future workplace. A branch employee set me up with an appointment by email and suggested either cash or traveler's cheques for immediate access to funds. Now I just have to figure out the cheapest way to do this, which I'm guessing will be ATM withdrawals in Canada.

Thanks for the money order idea. That makes a good backup plan should I fail to get a bank account somehow.

I would love to get U.S. credit and debit cards with an EMV chip in it, but it is still hard to find a EMV card with no annual fee and a good foreign exchange rate. On my previous two visits to Toronto my magnetic stripe card was accepted everywhere I tried (restaurants, stores, taxis), but sometimes I had to remind a clerk that they would need to swipe instead of inserting the card.

I know that it's relatively easy to get a USD-denominated account in Canada, but it certainly is not easy to get a CAD-denominated account in the U.S. Besides potential regulatory reasons, demand is going to be a lot lower.
posted by grouse at 10:40 AM on August 23, 2013