Short-term USD savings | GIC discussions | Discussion forum

I don't really know, but nobody else has responded.

I would think that as a non-resident you might be best to open a USD account with one of the Big Banks (RBC etc) as they are more used to dealing with international banking. Then, once you get an address here, consider your options and move it somewhere else.

I hope too that you are aware of any complications due to US mortgage interest deductibility. There is or used to be some requirements that you had to continue to own a home somewhere in order not to get stung with paying it back. Be careful of this if it applies to you.

Hubert (MB credit union) posts its exchange rates prominently on its website, for reference. They are generally a pretty good financial institution to deal with and offer more than most for USD HISA, but it is still very low.

You may get short term rate specials at some of the Big Banks from time to time. I doubt the credit unions will deal with out of country. I never heard of anyone not charging a mark-up for exchange.

Perhaps Peter will have some ideas...

Tangerine is owned by ScotiaBank. I don't know if they accept out of country applications or not. For almost everyone on this site, that is not a question we have to deal with.
They are also going to ask if you are a resident of Canada; I don't know what happens if you say "no".
And they will want to know about your employment.

I hope you have a Cdn Social Insurance Number. That will be essential.

I'm afraid there is nothing very surprising in your report.
Service quality at Tangerine has been declining steadily for a few years now, and you simply can't depend on verbal statements. TWICE in the last year, their CSRs have been unable to even quote accurately my monthly interest deposits!
It's probably also true that a situation like yours is not one they commonly deal with. Sometimes people seem to make up answers that seem good to them when they don't really know and they know they won't be held accountable. They say what they think you want to hear as their job is to get people to sign up. The person you spoke to succeeded in their job.

You were wise to keep your Big Bank account open. Even with poor rates, it should be relatively easy to at least get your money moved here, which is the first step.

There could be a long hold period on deposits from foreign bank. A Cdn bank where you are already known is your best bet for the transfer IMO, even though it will likely mean a low rate.
There are other threads on the subject of hold periods. Forum member Norman1 is an expert on this subject and could point you in the right direction.
Peter, the moderator, is an expert on international exchange rates.

I have never intentionally used the notification system here, except to say that I sometimes get notifications that I didn't intentionally sign up for. I'm not sure what went wrong.

If one prefers not to use wire transfer to move the US$ to Canada, there can be an advantage in obtaining a US$ cheque or US$ cashier's cheque that's drawn on a financial institution in Canada instead of one drawn on a US financial institution.

This is from RBC Royal Bank's Hold Policy Guide:

Hold Timelines

The length of the hold period can vary depending on the location of the issuing financial institution. In general, the period of time required to verify if there are sufficient funds available in the account at the other financial institution is:

• Four (4) business days after the day of the deposit if the cheque or other negotiable item is deposited in person with an employee at one of our branches or points of service and is in Canadian dollars, drawn on a Canadian branch of a Canadian financial institution;
• Five (5) business days after the day of deposit if the cheque or other negotiable item is deposited in any other manner, such as at an Automated Teller Machine (ATM) or using our Mobile Cheque Deposit service, and is in Canadian dollars, drawn on a Canadian branch of a Canadian financial institution;
• Five (5) business days after the day of deposit if the cheque or other negotiable item is in U.S. dollars and drawn on a Canadian branch of a Canadian financial institution;
• Fifteen (15) business days after the first business day of deposit if the cheque or other negotiable item is drawn on a U.S. bank and is deposited at a Canadian branch of a Canadian financial institution;
• Twenty-five (25) business days after the first business day of deposit if the cheque or other negotiable item is drawn on a foreign bank other than a U.S. bank and is deposited at a Canadian branch of a Canadian financial institution.

…

I suspect that is because US$ items drawn on a Canadian financial institution can be cleared in Canada through Payment Canada's US Dollar Bulk Exchange System. Otherwise, the US$ item would have to be sent to a US financial institution to be cleared in the US.

bird said

I guess I will have to follow the route described: transfer first to the existing long-term account unless Tangerine makes an offer and accepts a check drawn on a US bank sent by mail. They told me before it was possible, but after reading your replies and quotes, not sure it was another "misleading" statement...

I suspect Tangerine still accepts US$ cheques drawn on a US bank. I mailed in such a US$ cheque years ago for deposit to my C$ Tangerine savings account. The US$ cheque was accepted.

Looked like a mistake was made initially. It was handled as a C$ cheque deposit; the credited amount in C$ was same as the amount of the US$ cheque. A few days later the transaction was reversed and the cheque deposited with a higher C$ amount that included foreign exchange.

I think it is only the US$ cheque for the first external linked bank account, that needs to be drawn on a Canadian financial institution.

The Bank of Canada exchange rates are not necessarily rates that actual currencies are exchanged at. They are for statistical and analytical purposes.

One source of real exchange rates is VISA Currency Exchange Calculator. That gives the rate one would have on charges to a VISA card.

For December 20, US$1 charge would be $1.3139686030 on a C$ VISA card. Going the other way, C$1 charge would be $0.7630494582 on a US$ VISA card, implying US$1 = C$1.310531.