Tangerine US Dollar Account Review

Tangerine’s US Dollar Savings Account can be used to hold and grow your US dollar funds pending when you need it.

Like the other savings and chequing products offered by the bank, you do not pay monthly account fees and there are no minimums to watch out for.

While the savings interest rate you earn is only 0.10%, it beats what is being offered by several big banks as of this writing.

This Tangerine US Dollar Account review covers its benefits, pros, cons, and alternatives.

TL;DR: Tangerine’s US Dollar Savings personal account pays a regular 0.1% interest. While this rate is higher than RBC and BMO USD accounts, you can earn significantly more with the recently introduced EQ Bank US Dollar Account.

Tangerine US Dollar Savings Account

You can open a personal or business USD account at Tangerine and earn a “decent” rate on your money.

Features of the personal USD account include:

  • No minimum account balance
  • No monthly account fee
  • An interest rate of 0.10%
  • Easy access to USD GICs
  • Eligible for CDIC protection

Brand new Tangerine clients can earn a 2.10% promotional rate for 5 months (offer available until August 31, 2021), when they meet the eligibility requirements.

After the promotional period ends, the interest falls to 0.10%.

If you are planning on opening a Business Tangerine US Dollar Savings Account, there are a few extra steps you need to take.

You must have a USD business chequing account at another financial institution so you can easily transfer funds between this account and the one you open with Tangerine. You are also required to first open a Tangerine Business CAD Savings Account.

The business USD account offers a higher interest rate of 0.20%.

Related: Best Tangerine Credit Cards.

Pros and Cons of Tangerine USD Savings Account

Pros

When you open your first savings account, you earn an excellent 2.10% savings rate for 5 months, after which the rate becomes 0.10%.

There is no minimum monthly balance required to keep the account fee-free, and you can transfer USD between your linked bank accounts free of charge.

If you do not plan on using your USD funds anytime soon, you can also open a Tangerine USD GIC account if the rates are better.

When the GIC matures, it is paid back into your USD savings account.

Cons

The regular 0.10% is significantly lower than what you earn from Tangerine’s online bank competitors like EQ Bank, ICICI, and Canadian Western Bank.

It took me more than 3 months to open a Tangerine USD business account. The paperwork required was not straightforward and responses from the bank were particularly slow.

Lastly, you cannot make bill payments or send Interac e-Transfer directly from your USD account.

Related: Tangerine Savings vs EQ Bank Savings Plus Account.

Tangerine vs. EQ Bank US Dollar Accounts

EQ Bank’s new U.S. Dollar Account offers the best savings rate for USD funds at 1%. This is 10x what you earn with a Tangerine US Dollar Account.

The main features of the EQ Bank US Dollar Savings Account are:

  • No monthly account fees
  • Non-promotional 1.00% interest rate on every dollar
  • Free USD transfers between linked USD accounts in Canada
  • Free CAD transfers from your EQ Bank Canadian dollar account to your USD account
  • Access to cheaper international money transfers using Wise
  • CDIC protection

Before you can open an EQ Bank USD Account, you must first open a free EQ Bank Savings Plus account. This account is denominated in Canadian dollars and offers a high-interest rate of 1.25%.

Tangerine USD Account vs. Alternatives

The table below compares Tangerine’s USD offering with that of RBC, BMO, and EQ Bank.

FeaturesTangerine US Dollars Savings AccountEQ Bank US Dollar Savings AccountRBC US High Interest Savings AccountBMO USD Premium Rate Savings Account
Interest rate0.10%1.00%0.05%0.05%
Monthly fee$0$0$0$0 (included with other bank plans)
Minimum balance requirement$0$0$0$0
Free transfers to linked accountsYesYesYesBased on transactions included with bank plan
Free Interac e-TransfersNoNoNoNo
Free debit paymentsN/AN/A1 per monthly cycleN/A
Physical branchesNoNoYesYes

Frequently Asked Questions

How do I get my US Dollar funds from Tangerine?

You can transfer your USD funds to a USD chequing account at another financial institution and withdraw your money that way.

Can I send money through Interac e-Transfer from Tangerine Savings?

No, you need to open a Tangerine Chequing account if you want to send email money transfers or pay bills.

What types of savings accounts does Tangerine offer?

Tangerine Bank has a general savings, TFSA, RRSP, US$, RRIF, and Children’s Savings accounts.

Related: Best Business USD Business Accounts.

Tangerine US Dollar Account Review
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Summary

The Tangerine US Dollar Account pays a competitive savings rate on your USD funds. This review covers its pros, cons, and alternatives like EQ Bank.

Best Banking Offers this month

1.25% interest on every dollar.

Up to 125x interest more than other banks.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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