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High interest rate savings account in US dollars?
November 30, 2018
5:44 pm
blahuenga
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Hi

I have some US dollars which is a significant percentage of my savings. I don't wish to convert them to CAD for various reasons.

Within the US, I saw that around 2% rates are being offered on savings. I'm wondering what the best solution for Canadians is. My current account is basically offering close to 0%. I understand that I'm unable to get a US bank account due to not being a resident and due to not having the SSN.

CIBC US Bank offers 2.16% on USD savings accounts while offering 0% for the one that I'm able to open from Canada (which is nevertheless useful).

November 30, 2018
6:11 pm
blahuenga
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Oh, and one thing I found (which may or may not work for me) is a 1 year USD GIC at Tangerine @ 3% which is way ahead of everyone else. The problem for me is that it's a non-redeemable GIC and I may need the money ASAP as frankly it's for medical emergency purposes so that sadly may not work for me.

November 30, 2018
9:00 pm
mixedpuppy
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With HSBC it may be possible to get accounts in the US and it's pretty seamless. I say "may" because it may require a certain amount of deposits to get into their global system, not sure, been a long time. They currently offer 2% on USD savings in the US. I don't know what the tax implications are for you, whether you'd have to start filing US taxes. If you convert to CAD, use something like ca.ofx.com to reduce the cost of conversion.

November 30, 2018
9:05 pm
Koogie
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If you require quick access, best to stick with a HISA.

All the discount stock brokerages have their own versions. TDB8152 is paying 1.45% for instance. The other big banks are about the same.

November 30, 2018
10:20 pm
blahuenga
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Koogie said
If you require quick access, best to stick with a HISA.

All the discount stock brokerages have their own versions. TDB8152 is paying 1.45% for instance. The other big banks are about the same.  

Where would I find these rates to compare, and how do I access these?

November 30, 2018
10:21 pm
blahuenga
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mixedpuppy said
With HSBC it may be possible to get accounts in the US and it's pretty seamless. I say "may" because it may require a certain amount of deposits to get into their global system, not sure, been a long time. They currently offer 2% on USD savings in the US. I don't know what the tax implications are for you, whether you'd have to start filing US taxes. If you convert to CAD, use something like ca.ofx.com to reduce the cost of conversion.  

The thing is, I had no problem getting a CIBC US Account but it's the one offered to Canadians, not the one offered to Americans. I should try and call them and see if they will give me the 2% rate one since I already have an account with them.

December 1, 2018
5:58 am
mixedpuppy
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blahuenga said

The thing is, I had no problem getting a CIBC US Account but it's the one offered to Canadians, not the one offered to Americans. I should try and call them and see if they will give me the 2% rate one since I already have an account with them.  

You don't want a US$ account in Canada, you want a US$ account in the US. It requires a bank that will setup accounts for people in other countries. HSBC offered me this in their global banking program years ago. They have a different website/portal you go into for global banking than for your Canadian based accounts. However, I am a US citizen, so that may have removed limits they have.

https://www.us.hsbc.com/international-banking/

December 1, 2018
6:23 am
Koogie
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blahuenga said
Where would I find these rates to compare, and how do I access these?  

Ask and ye shall receive.... sf-wink

https://www.finiki.org/wiki/High-interest_savings_account#Fund-based_investment_savings_accounts

You will find the rates move in lock step with each other (with a lag of a week or two when there is a change). They are fixed rate deposit accounts that trade as mutual funds through your banks discount broker. The unit value is fixed so you don't have to worry about it going up and down. They just trade as mutual funds for the banks convenience.

You probably know this but note that no USD accounts are CDIC insured.

Saying that though, these things are rock solid (well, as solid at the Big 5). I've used them for years.

December 1, 2018
10:04 am
Nehpets
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Koogie said
You probably know this but note that no USD accounts are CDIC insured.
 

However, $USD deposits in Manitoba are covered under the DGCM (See HERE)

Stephen

December 1, 2018
11:50 am
blahuenga
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mixedpuppy said

You don't want a US$ account in Canada, you want a US$ account in the US. It requires a bank that will setup accounts for people in other countries. HSBC offered me this in their global banking program years ago. They have a different website/portal you go into for global banking than for your Canadian based accounts. However, I am a US citizen, so that may have removed limits they have.

https://www.us.hsbc.com/international-banking/  

Yep, you have an SSN and I do not. That seems to be a requirement to open an account at most US banks.

Koogie said

Ask and ye shall receive.... sf-wink

https://www.finiki.org/wiki/High-interest_savings_account#Fund-based_investment_savings_accounts

You will find the rates move in lock step with each other (with a lag of a week or two when there is a change). They are fixed rate deposit accounts that trade as mutual funds through your banks discount broker. The unit value is fixed so you don't have to worry about it going up and down. They just trade as mutual funds for the banks convenience.

You probably know this but note that no USD accounts are CDIC insured.

Saying that though, these things are rock solid (well, as solid at the Big 5). I've used them for years.  

That's part of why I was wondering if any Canadians have been opening a US Bank account in the US somehow with a good savings rate as their deposit insurance would indeed cover it in addition to the higher rates over there.

December 1, 2018
11:55 am
blahuenga
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Does anyone know much about KEB Hana Bank operating in Canada? I know it's a big bank in Korea, but here it must be fairly new.

My whole search started while seeing a branch here in Vancouver advertising 2.2% USD savings account return rate. The question is how reliable this bank is, etc - doesn't really inspire that much confidence.

December 1, 2018
8:29 pm
implode
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blahuenga said
Does anyone know much about KEB Hana Bank operating in Canada? I know it's a big bank in Korea, but here it must be fairly new.

My whole search started while seeing a branch here in Vancouver advertising 2.2% USD savings account return rate. The question is how reliable this bank is, etc - doesn't really inspire that much confidence.  

I don't think they are that new. I used KEB to convert some Won currency before I visited South Korea. This was back in 2011. And even then, I knew KEB was around before then.

http://bankchart.ca/catalogue/.....anks/id/43

Korea Exchange Bank originally came to Canada in 1981, offering a full range of financial services to Korean businesses and immigrants. Since then, the Bank has evolved and expanded its focus to serve all Canadians. In 2015, after a successful merger with the Hana Financial Group, the Bank changed its name to KEB Hana Bank Canada. KEB Hana Bank is the largest domestic bank in Korea, but it also boasts an extensive overseas network with more than 1200 offices in 25 countries. Its 11 branches in Canada serve the Toronto, Calgary, Vancouver, Burnaby, Coquitlam, and Richmond communities.

https://www.richmond-news.com/standout/the-keb-hana-bank-canada-advantage-1.2341473

December 1, 2018
10:08 pm
Loonie
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Nehpets said

However, $USD deposits in Manitoba are covered under the DGCM (See HERE)

Stephen  

I think you meant to say "in Manitoba credit unions".

December 2, 2018
8:00 am
Nehpets
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Loonie said
I think you meant to say "in Manitoba credit unions".  

Yes and thank you for clarifying my written misimpression, Loonie! sf-embarassed

Stephen

December 2, 2018
2:03 pm
mixedpuppy
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blahuenga said

Yep, you have an SSN and I do not. That seems to be a requirement to open an account at most US banks.

That may be the case, but some banks actually will work with Canadians. Bank of America is one (at least a few years ago when they had a branch in Blaine WA), but no interest. On the link I provided, HSBC specifically says "or when you simply need a bank account in a different country". For 2% on USD, it may be worth giving them a call.

December 2, 2018
3:58 pm
Loonie
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I had bank accounts in New England for abut 15 years, and not having a US SSN was never an issue. I closed them in about 2001.

Basically, because of people moving around the world, international students, people and their spouses being temporarily posted in the US, etc., they have to provide for people who don't yet or never will have US SSNs. But it's likely that only the larger banks that have an international division will do this. Americans can sometimes be appallingly ignorant of their neighbours. And, even if a smaller bank did do it, I wouldn't trust them. US banks are not like Cdn ones. Go with the largest and strongest, preferably one you are familiar with and is used to Canadians.

December 2, 2018
4:28 pm
Top It Up
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Loonie said
Americans can sometimes be appallingly ignorant of their neighbours. 

A fairly damning statement given that Canada is a pretty small player on the world stage, in just about every regard.

Closer to home - Canada is a member of the Commonwealth of countries yet, with the exception of the reigning Queen, Britain pays zero regard/respect to those of us in the colonies.

December 5, 2018
2:56 pm
blahuenga
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Called CIBC US bank and they said requirements for that 2.16% savings account are

1. Residential US address
2. State ID like driver's license
3. US SSN number

Is anyone aware of US banks which don't require this stuff, or is this the new police state post 9/11 law now?

December 5, 2018
3:21 pm
Loonie
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Top It Up said

Loonie said
Americans can sometimes be appallingly ignorant of their neighbours. 

A fairly damning statement given that Canada is a pretty small player on the world stage, in just about every regard.

Closer to home - Canada is a member of the Commonwealth of countries yet, with the exception of the reigning Queen, Britain pays zero regard/respect to those of us in the colonies.  

Would you care too to attempt to deny that we're neighbours to the US? - which is what I said.

December 5, 2018
5:35 pm
Top It Up
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Other than border communities, Americans have little need to know much about Canadians given Canada's almost non-existent presence in the world-order. You're assigning some kind of high ranking to Canada where none exists.

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