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How do US Savings Account work?
April 21, 2017
9:27 am
christinad
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I'm a bit confused how US Savings account work. I assume the exchange rate is converted when you transfer the money into the US savings account at that days exchange. Are you charged an additional fee like when you exchange money at the bank on top of the exchange?

April 21, 2017
10:24 am
rhvic
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I have only used the $US accounts to move money between $US accounts at various institutions. I have not converted them to $CAD or vice versa. But I presume that where you can do that, 'the house always wins' - that is, the institution will charge you the higher rate for the exchange. There is always a spread of a few percentage points between buying and selling currencies.

April 21, 2017
10:27 am
Cranston
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Exchange rate is when you buy and is the current rate of the hour. There is no additional fee at BMO so they tell me. Ie not like the 2 - 2.5% fee that credit cards charge on top of the exchange rate.
Ie. I buy online using BMO into a US$ account. I then remove some of the cash at no cost and put any surplus into a credit union as it is not insured by CDIC but is insured at a credit union. Don't expect a good interest rate though, for a US$ account.

There is one way around the extra fee on a credit card as you can get an Amazon Visa cash back card that avoids the fee. And also the "what was" Sears Mastercard which is now a BNS Master card but they are taking that savings away in June 2017.

April 21, 2017
11:56 pm
moneyhelp
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christinad said
I'm a bit confused how US Savings account work. I assume the exchange rate is converted when you transfer the money into the US savings account at that days exchange. Are you charged an additional fee like when you exchange money at the bank on top of the exchange?  

Just as @rhvic points out, your US funds will not be converted to CAD currency as long as its parked inside the US account regardless of which FI you're with and regardless when using EFT to transfer between two different FI with US accounts.

Best and cheapest way to convert the USD funds into CAD (or vice versa) is by doing a Norbert's Gambit through a brokerage.

April 22, 2017
11:02 am
SavingIsGood
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US$ account is US$ account. For example at Hubert you cannot transfer from your CAD to US$ and vice versa.
Interest rate is low and I personally do not see a point of having US$ account unless you need a prof where money comes from (withdrawal from FI).
To shop in US$ I use US$ credit card. Then buy US$ at exchange office (Yonge street) and pay a bill on due date.
If anybody has better way to get US$ cheaper, please share.

February 22, 2020
4:46 am
moneyhelp
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SavingIsGood said
Then buy US$ at exchange office (Yonge street)  

What is the name of the company at this exchange office? I've read two different posts from different threads about this and googled "exchange office Yonge street" but the only thing that keeps coming up is knightsbridge.

Link? Name? please and thank you

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