A US dollar business savings account can help grow your surplus USD funds when you don’t need the cash for everyday business needs.
The best USD business savings accounts do not have a monthly fee, and you can access your money easily when required.
For your excess cash denominated in Canadian dollars, these business savings accounts are worth checking out.
Key Takeaways
- The best business US dollar savings accounts in Canada are Scotiabank Business Investment Account, BMO Business Premium Rate Savings Account and Canadian Western Bank USD Business Savings Account.
- Interest rates offered are up to 3.55%. Depending on the account, they come with free transfers and withdrawals, have no monthly fees, and require no minimum balance.
- Consider interest rate, maintenance fees, free transactions, the minimum opening deposit and minimum balance when choosing the best US dollar business savings account.
Best Business US Dollar Savings Accounts
| Account Name | Interest Rate | Monthly Fee | Minimum Balance (to earn interest) |
| Scotiabank Business Investment Account | 0%-3.55% | $0 | $25,000 |
| BMO Business Premium Rate Savings Account | 1.90%-2.95% | $0 | N/A |
| Canadian Western Bank USD Business Savings Account | 1.00% | $0 | N/A |
| Tangerine Business US Dollar Savings Account | 1.60% | $0 | N/A |
| Manulife US$ Business Savings Account | 0.20% | $0 | N/A |
| ICICI Bank US Dollar Business Savings Account | 0.25% | $0 | N/A |
Here are 6 Canadian banks that offer a no-fee USD business savings account and pay reasonable interest rates.
1. Scotiabank Business Investment Account
The Scotiabank Business Investment Account offers a tiered interest rate on account balances between $25,000 and $50 million.
- Less than $25,000: 0.00%
- $25,000 – $1,999,999: 3.25%
- $2,000,000 – $7,499,999: 3.55%
- $7,500,000 – $24,999,999: 3.55%
- $25,000,000 – $50,000,000: 3.55%
There is no monthly fee, and you can access your funds anytime.
Note: Transaction fees apply, including $5 per cheque issued. Account balances below $25,000 do not earn interest.
You can also read our review of Scotiabank Personal Chequing Accounts.
2. BMO Business Premium Rate Savings Account
This account earns a tiered interest on U.S. dollar account balances up to $50 million as follows:
- Up to $59,999: 1.90%
- $60,000 – $500,000: 2.20%
- $500,000.01 – $5 million: 2.60%
- $5,000,000.01 up to $50 million: 2.95%
There is no monthly fee and no minimum balance.
Note: Transaction fees apply, including $1.25 per branch deposit and pre-authorized credit or EFT, $5 per branch withdrawal, and $5 for bill payments.
3. Canadian Western Bank USD Business Savings Account
The Canadian Western Bank (CWB) is based out of Edmonton, Alberta, and is a federally regulated financial institution.
They offer a US dollar business savings account that pays a 1.000% interest rate on your entire balance.
The account has no monthly fees, and you get four free monthly transfers to a CWB business account.
Note: Withdrawals cost $5 USD each.
4. Tangerine Business US Dollar Savings Account
Tangerine is the direct banking arm of Scotiabank. They offer a variety of fee-free personal and business accounts and credit cards.
Tangerine’s US dollar savings account pays 1.60% interest on your entire balance, which is one of the best flat rates you will find.
There is no monthly fee and no minimum balance.
Note: You will need to have an existing Tangerine Business Savings account and a US-dollar business chequing account at another bank before you can open a US-dollar savings account.
For an in-depth review of Tangerine’s financial products, click here.
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5. Manulife US$ Business Savings Account
Manulife Bank was Canada’s first branchless bank. It is a subsidiary of The Manufacturer’s Life Insurance Company.
Their US$ business advantage account offers 0.20% interest on your entire balance.
Deposits, transfers, and withdrawals are free, and you can access your account via online banking or telephone. Cheques can also be mailed in.
Note: You must have a US dollar chequing account at another bank before you can open this account.
6. ICICI Bank US Dollar Business Savings Account
ICICI’s US dollar business savings account offers a 0.25% interest rate.
There’s no minimum balance or monthly fee, and you can link your account with up to 3 other business chequing accounts.
ICICI Bank is a subsidiary of ICICI Bank Limited.
Note: Some transaction fees may apply, e.g. in-branch withdrawals cost $5 per transaction. Learn more about the bank in this ICICI Bank Canada review.
What Is a US Dollar Business Savings Account?
If your business has surplus US dollar funds and you don’t need the money for your general expenses, you could deposit them in a US dollar business savings account. This will enable you to earn interest on your dollars.
If you store your USD cash reserves in the savings account, you can use your money when needed, perhaps for unexpected expenses or tax payments.
It’s important to know that CDIC does not currently protect US-dollar accounts or any other foreign currency deposit. However, business savings accounts with Canadian dollars are protected up to $100,000.
How Does a US Dollar Business Savings Account Work?
A US dollar business savings account is similar to any other savings account. However, it is specifically for business use instead of personal use, and it is only used for saving US dollars.
Once you open the account and deposit US dollars, you earn interest if you meet any minimum balance requirements.
The savings account may be free, or you may have to pay a monthly fee. All banks have different rules, so it depends.
There may also be minimum deposits, transaction fees and transaction limits to be aware of.
How to Apply for a US Dollar Business Savings Account
Applying for a US dollar business savings account is straightforward, but all banks have slightly different processes and requirements.
Start by looking around and comparing the different bank accounts available. You can begin by using the bank accounts we review in this guide. Look at the features and decide if the account suits your needs.
Once you have chosen an account that meets your needs, you can normally apply online. However, some banks may require you to visit your nearest branch in person.
You will need to provide information about yourself and your business. This may include ID like a driver’s licence, the business name and address, and more.
Once the application is complete, you should be able to use your new business account shortly afterwards.
What To Look For in a USD Business Savings Account
There are several factors to consider when choosing a suitable business savings account.
Interest Rate
Generally, you want to get the highest interest rate possible. However, interest rates can vary significantly on foreign deposits across banks, so you want to shop around to compare what’s available.
Maintenance Fees
The best USD business bank accounts do not have monthly maintenance fees. However, if you do have to pay, look for an account with the lowest fees.
Free Transactions
Are you able to make free deposits, withdrawals, and transfers? Ideally, you don’t want to pay for these, but some accounts have costs for certain transactions.
Access to Cash
How easy is it to access your cash? Are there any limits on withdrawals or transfers? Of course, the easier it is to access your money, the better.
Minimum Opening Deposit
Some banks may specify a minimum opening deposit, the amount you need to deposit to open the account. This may or may not be a concern, depending on how much you have available to deposit.
Minimum Balance
Some USD business bank accounts state a minimum balance you need to maintain to earn interest. If there is a minimum balance requirement, ensure it is an amount you can maintain.
Ease of Opening an Account
If you want to open an account online without visiting a bank, check that this is an option.
CDIC does not currently protect US-dollar accounts or any other foreign currency deposit. Business savings accounts with Canadian dollars are protected up to $100,000.
Pros and Cons of a US Dollar Business Savings Account
There are several pros and cons of US dollar business savings accounts in Canada to consider before opening one.
Pros:
- US dollar business savings accounts are typically easy to open if you meet the requirements.
- They provide an easy way to earn interest on your USD, so you can put it to good use.
- Your USD funds will be accessible when you need them, so the money is liquid.
- These accounts have a very low risk because they are provided by large banks.
Cons:
- The interest you can earn on your deposits is usually quite low compared to other, more risky investments.
- Some USD business savings accounts come with additional fees.
- Some accounts may impose restrictions like minimum balance requirements, which might not be convenient.
Final Thoughts
When I first considered opening a US Dollar Savings Account for my business, I was quite surprised at the paucity of options and the very low-interest rates.
Prepare yourself for many paperwork submissions and phone calls when opening this business account.
Compared to your money just sitting idle in an interest-free chequing account, the extra hassle is worth it.
You can also choose to invest your funds using Guaranteed Investment Certificates.
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