Can a Canadian Citizen Open a US Bank Account?

A Canadian citizen can open a bank account in the United States, an arrangement that offers several practical benefits. Many individuals pursue this option to facilitate cross-border transactions, such as receiving payments in U.S. dollars for work or investments, managing expenses during frequent travel to the U.S., or holding U.S. dollar savings. Having a U.S. bank account can simplify financial operations for those with connections to both countries, providing direct access to U.S. currency and banking services.

Eligibility and Required Documentation

Opening a U.S. bank account as a Canadian citizen involves gathering documents and fulfilling identification requirements. You will need to provide a valid Canadian passport and a second form of photo identification, such as a Canadian driver’s license. Proof of your Canadian address, like a utility bill or bank statement, is also required. Some U.S. banks may also ask for a U.S. mailing address, such as a friend’s address, a property you own, or a mail forwarding service.

A U.S. Tax Identification Number (TIN) is a crucial element for many U.S. financial institutions. While a Social Security Number (SSN) is issued to U.S. citizens and authorized workers, Canadian citizens who do not have an SSN but need to interact with the U.S. tax system will require an Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit tax processing number issued by the Internal Revenue Service (IRS) for tax reporting purposes only; it does not grant work authorization or provide Social Security benefits.

To obtain an ITIN, you must complete and submit IRS Form W-7, “Application for IRS Individual Taxpayer Identification Number.” This form requires personal details such as your name, address, date of birth, citizenship, and reason for applying. Along with Form W-7, you must provide original or certified copies of supporting documents that prove your identity and foreign status.

A valid passport is often preferred as it proves both identity and foreign status. Other accepted documents include a national identification card, foreign driver’s license, or a visa, with at least one displaying a photo.

Most first-time ITIN applicants also need to attach a U.S. federal tax return (e.g., Form 1040) with their Form W-7, as ITINs are primarily issued for tax filing purposes. The application package, including Form W-7 and supporting documents, can be mailed to the IRS, or processed through an IRS-authorized Acceptance Agent, which can help certify documents and ensure accuracy. Processing times for an ITIN application can range from 6 to 11 weeks.

Selecting a US Bank and Account

Common account types include checking accounts, which are suitable for everyday transactions, bill payments, and debit card use, and savings accounts, designed for earning interest on deposited funds.

Many major Canadian banks, such as RBC, TD Bank, CIBC, and BMO, have U.S. subsidiaries or cross-border banking services specifically tailored for Canadian clients. These institutions often simplify the account opening process for existing Canadian customers and may offer benefits like instant transfers between Canadian and U.S. accounts. Consider whether an online-only bank or a traditional brick-and-mortar institution best suits your preferences for accessibility and service.

Evaluate account fees, such as monthly maintenance fees, transaction limits, and minimum balance requirements, as these can vary widely between banks and account types. Some accounts may waive monthly fees if a certain minimum balance is maintained or if direct deposits are made. Accessibility to funds through ATM networks and the availability of robust online and mobile banking features are also important considerations, especially for managing your account from Canada. Some banks allow non-residents to open accounts remotely, while others may require an in-person visit to a U.S. branch.

Opening the Account

Account opening methods can vary, with options including in-person visits to a U.S. branch or, for some institutions, online or remote application processes. The specific method available may depend on the bank and your individual circumstances as a non-resident.

For in-person account opening, you will present your prepared identification and documentation to a bank representative. This will include your Canadian passport, secondary ID, proof of Canadian address, and your U.S. Tax Identification Number (if required by the bank). The bank will provide application forms for you to complete and sign, along with various agreements related to the account terms and conditions. It is advisable to call ahead and schedule an appointment, bringing your initial deposit with you.

For online or remote account opening, the process involves submitting scanned copies of your documents through a secure portal. Identity verification procedures may include video calls or other digital methods to confirm your identity. Upon approval, your account will be activated, and you will receive a debit card and checks by mail to your designated U.S. address.

Managing Your US Bank Account

Transferring funds between your U.S. and Canadian accounts can be done through various methods. Traditional wire transfers are an option, though they involve fees ranging from $15 to $50 for international transfers. Online money transfer services, such as Wise (formerly TransferWise), Remitly, or Paysend, often provide more cost-effective and sometimes faster alternatives. Many Canadian banks with U.S. cross-border services, like RBC, TD, CIBC, and BMO, offer seamless, often instant, and sometimes free transfers between linked Canadian and U.S. accounts within their own banking systems.

Regarding tax reporting, Canadian citizens with U.S. bank accounts have responsibilities in both countries. In the U.S., the Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions, including U.S. banks, to report information about accounts held by U.S. taxpayers to the IRS. While interest income earned by non-resident aliens on U.S. bank deposits is not subject to U.S. withholding tax, U.S. banks may report this interest to the IRS on Form 1042-S. To ensure proper tax treatment, you may need to provide the U.S. bank with a Form W-8BEN to certify your non-resident alien status.

In Canada, you are obligated to report your worldwide income, which includes any interest earned on your U.S. bank account, on your Canadian income tax return. Additionally, if the total cost amount of your specified foreign property, which includes funds in foreign bank accounts, exceeds CAD$100,000 at any point during the year, you must file Form T1135 with the Canada Revenue Agency (CRA). This form is a legal requirement for tax compliance in Canada, and failure to file or incomplete disclosure can result in penalties. The deadline for filing Form T1135 is April 30, aligning with the income tax return deadline.