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
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.
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.
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
Tangerine USD Account vs. Alternatives
The table below compares Tangerine’s USD offering with that of RBC, BMO, and EQ Bank.
|Features||Tangerine US Dollars Savings Account||EQ Bank US Dollar Savings Account||RBC US High Interest Savings Account||BMO USD Premium Rate Savings Account|
|Monthly fee||$0||$0||$0||$0 (included with other bank plans)|
|Minimum balance requirement||$0||$0||$0||$0|
|Free transfers to linked accounts||Yes||Yes||Yes||Based on transactions included with bank plan|
|Free Interac e-Transfers||No||No||No||No|
|Free debit payments||N/A||N/A||1 per monthly cycle||N/A|
Frequently Asked Questions
You can transfer your USD funds to a USD chequing account at another financial institution and withdraw your money that way.
No, you need to open a Tangerine Chequing account if you want to send email money transfers or pay bills.
Tangerine Bank has a general savings, TFSA, RRSP, US$, RRIF, and Children’s Savings accounts.
Related: Best Business USD Business Accounts.
Tangerine US Dollar Account Review
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.