Where to Park $USD in Canada post Covid | General financial discussion | Discussion forum

If one has a Scotia iTRADE account, DYN6001 and DYN5001, the US$ Scotiabank Investment Savings accounts (Series A), yield 0.40%.

Preferred share ETF's are really not a suitable alternative to a savings account for parking money. There is not certainty what one will receive when one tries to sell the ETF units later.

Over the past year, the US$ ZUP has traded as low as US$17.00 and as high as US$25.19.

CIB483 is actually a money market fund and not a bank deposit packaged to look like mutual fund units. It's the Class A units of the CIBC U.S. Dollar Money Market Fund.

Latest yield info on CIBC's site is for the seven days ending July 21, a month old. The current yield then was just 0.10% per annum.

If one is with TD Direct Investing, something like TDB8152, TD Investment Savings Account (US$), would give 0.25%.

F series units are usually only available through a dealer that charges the investor separately.

The F series units do not come with the customary ¼% per annum trailer to the dealer that the A series units come with.

Norman1 said
CIB483 is actually a money market fund and not a bank deposit packaged to look like mutual fund units. It's the Class A units of the CIBC U.S. Dollar Money Market Fund.

Yes. That is why I took the time to explain it was a money market fund in my post and how they are denominated. The OP didn't say he wasn't interested in money market funds.

Norman1 said
Latest yield info on CIBC's site is for the seven days ending July 21, a month old. The current yield then was just 0.10% per annum.

If one is with TD Direct Investing, something like TDB8152, TD Investment Savings Account (US$), would give 0.25%.  

lol.. I assume you know the return information for such a short period for a money market fund is irrelevant and incomparable to TDB8152. I also use TDB8152. I will bet you that the return for CIB483 as a money market fund will beat the bank set rate of TDB8152 on an ANNUAL basis which is of course the only benchmark that matters (and would be more relevant to the OP and his ongoing needs)

I also use TDB8152 for parking USD
Tangerine had some promos, where they paid the same rate on the USD account-- but they are now down to 0.2%
For the most part, not terribly significant

1.4% sounds attractive. However, its parent company reminded me some of my past personal (painful) experience with identity theft. It was nightmare. I would pass.

I'm sure OP has looked into this but I'm just wondering what the rates are if you keep the money in the US in a US bank.
It always seems that the Americans get much better deals on, say, credit cards and coupons, so maybe there would be some promo offers worth following up?
One would want to look carefully at their deposit insurance system.

FDIC coverage is on the products, not the account holder. This is from their Your Insured Deposits brochure:

What is the FDIC?
The FDIC—short for the Federal Deposit Insurance Corporation—is an independent agency of the United States government. The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails.

Any person or entity can have FDIC insurance coverage in an insured bank. A person does not have to be a U.S. citizen or resident to have his or her deposits insured by the FDIC.

FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC began operations in 1934, no depositor has ever lost a penny of FDIC-insured deposits.

We found earlier that there's no US taxes on bank deposit interest paid to non-resident aliens of the US.

When I lived in the US as a student for several years, I too ran into that issue with the withholding tax, but, being a student, my bank account wasn't that flush and the interest was minuscule so I didn't do anything about it.
However, I recall that they told me there was a certain form that could be filled out to avoid the withholding tax for a foreigner. Because the major local industry was the universities, this bank branch had a special department for foreigners, so they were up to date on such matters.
I never bothered with the form, but I think the code number on it started with letter "W". I believe the concept was that if you would be reporting the income for tax in Canada, you didn't have to have it withheld in the US. I don't know if this still applies but might be worth looking into for the funds you keep in the US.