By Keph Senett on October 3, 2022
Estimated reading time: 4 minutes

Why you need a USD savings account

By Keph Senett on October 3, 2022
Estimated reading time: 4 minutes

If you make any transactions in U.S. dollars—from shopping to selling to sending—having a bank account just for this purpose could save you a lot in fees.

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It may have never occurred to you to consider opening a U.S. dollar savings account, but after reading this, that might change. In an increasingly connected world, this type of account offers many benefits to Canadians. Read on to see if a USD savings account might be a smart money move for you.

What is a USD savings account?

You probably have at least one regular savings account designed to help you put away funds where you stash your extra Canadian dollars. A USD savings account offers the same features, but it holds—yes, that’s right—American dollars. Like other savings accounts, it’s not meant for daily banking and it may not even be accessible by ATM, but having one at the ready can offer many benefits.

Take, for example, the EQ Bank US Dollar Account. With this type of account, depositing or transferring Canadian dollars is quick and easy. And because you control if and when a conversion takes place, you can make the move when rates are favourable by simply moving money from your Canadian bank account into your U.S. currency one. EQ Bank offers competitive exchange rates and gives you 1.40% interest (at the time this article was written). And, as with other EQ Bank accounts, your funds are eligible for protection from the Canada Deposit Insurance Corporation (CDIC), up to CAD$100,000 per insured category, per depositor.

What are the benefits of a USD savings account?

Even if you live in Canada and get paid in Canadian dollars, there are times when having a USD savings account can come in handy—and save you money.

Save when you travel to the United States

With two-thirds of Canadians living within 100 kilometres of the U.S. border, international crossings are commonplace—and you’ll need U.S. dollars when you visit. If you have a USD savings account, you can earn interest on your USD until you’re ready to travel.

Keep more of your profits

If you’re one of the many Canadians running a side hustle that involves selling to American customers, you’ll definitely want to consider a USD savings account. You can download a void cheque to have money direct-deposited in your EQ Bank US Dollar Account.

Transfer money between family and friends

With a USD savings account, you can often send or receive U.S. funds directly and skip having to pay foreign exchange fees.

Make the exchange rate work for you

Unless you have a USD savings account, you’re at the mercy of ongoing fluctuations in the exchange rate between Canadian and U.S. dollars. The ability to hold U.S. dollars gives you the power to exchange only when it most benefits you. Plus, you’ll be diversifying your currency holdings.

Why should you consider a USD account at EQ Bank?

When you use a USD savings account from EQ Bank, you’ll save money and make money while enjoying fast and convenient access when and where you need it.

Money-saving features with an EQ Bank US Dollar Account include:

No monthly fees: You can deposit your money for free, and there are no monthly fees.
Competitive exchange rates: Many banks charge high conversion fees when you change your money, but not EQ Bank. Convert your money knowing you’re getting one of the best rates in the Canadian banking market.

Make money on your deposits:

Healthy interest rates: Many U.S. dollar accounts offer subpar interest rates, but with a competitive 1.40% interest rate (at the time this article was written), EQ Bank makes your U.S. dollars work for you.

Your money—fast, easy and secure. EQ Bank moves your money via Wise, a secure worldwide transfer provider. That means you can quickly and easily send your U.S. dollars to a recipient’s USD account—in 80 countries. Plus, just like with your Canadian bank accounts, your U.S. dollar deposits are protected by CDIC, up to CAD$100,000 per deposit category, per depositor.

Watch: Why you need a USD account

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