As global economies fluctuate and the US dollar remains a benchmark currency, Canadians are increasingly interested in holding US dollars—especially in ways that earn attractive interest. Enter the USD high interest savings account (HISA): a specialized account offered by select Canadian banks and credit unions that lets you earn competitive interest on your US dollar holdings.
Whether you’re a cross-border shopper, an investor, or simply someone who wants to diversify their savings, understanding USD high interest savings accounts in Canada is essential. This guide covers everything you need to know: from the best accounts and rates to how they work, who should use them, and how to maximize your returns
What is a USD High Interest Savings Account?
A USD high interest savings account is a bank account denominated in US dollars, offered by Canadian financial institutions. Unlike regular savings accounts, these accounts allow you to:
- Hold funds in US dollars (no need to convert to CAD)
- Earn interest—often at higher rates than standard USD savings accounts
- Access your funds easily for travel, investments, or cross-border transactions
These accounts are ideal for Canadians who regularly deal with US dollars or want to hedge against currency fluctuations.
Why Hold US Dollars in Canada?
There are several compelling reasons to keep US dollars in a Canadian bank:
- Cross-border shopping or travel:Â Save on conversion fees and lock in favorable exchange rates.
- US investments:Â Hold dividends or proceeds in USD.
- Business needs:Â Pay US suppliers or receive US payments.
- Currency diversification:Â Hedge against CAD volatility.
According to a 2024 report by the Canadian Bankers Association, over 1.3 million Canadians hold some form of USD-denominated account, reflecting growing demand for cross-border financial flexibility.
How Do USD High Interest Savings Accounts Work?
USD HISAs function much like their CAD counterparts, but with a few key differences:
- Deposits and withdrawals are in US dollars—no automatic conversion.
- Interest is paid in USD, typically calculated daily and paid monthly.
- No debit cards or cheques—most are online or branch-access only.
- CDIC insurance:Â Many are eligible for Canadian Deposit Insurance Corporation (CDIC) coverage, but always confirm with your provider.
Fact: Not all Canadian banks offer USD HISAs, and those that do may have different requirements and features.
Top USD High Interest Savings Account Providers in Canada
Based on recent research and competitor analysis, here are the most popular and reputable providers for USD high interest savings accounts in Canada:
- EQ Bank
- Tangerine
- Scotiabank
- RBC Royal Bank
- TD Canada Trust
- CIBC
- HSBC Canada
- Motive Financial
- Oaken Financial
- Wealth One Bank of Canada
Each offers unique features, rates, and digital experiences. Let’s compare what sets them apart.
Key Features to Compare
When choosing a USD HISA, consider the following factors:
- Interest rate:Â The higher, the better. Rates can vary significantly.
- Minimum balance requirements:Â Some accounts require a minimum deposit to earn interest.
- Fees:Â Watch for monthly fees, withdrawal fees, or transfer charges.
- Deposit insurance:Â Is your money protected by CDIC or another insurer?
- Accessibility:Â Can you manage your account online? Are transfers to/from CAD accounts easy?
- Transfer options:Â How quickly can you move funds between USD and CAD?
- Customer support:Â Is help available when you need it?
Current Best Rates and Offers
Here’s a snapshot of the best advertised USD HISA rates in Canada as of May 2025 (for balances under $100,000):
| Bank/Provider | Interest Rate (USD) | Minimum Balance | CDIC Insured | Notable Features |
|---|---|---|---|---|
| EQ Bank | 4.00% | $0 | Yes | No monthly fees, easy online setup |
| Tangerine | 3.50% (promo) | $0 | Yes | New client bonus, mobile app |
| Scotiabank | 2.25% | $1,000 | Yes | Branch network, cross-border tools |
| RBC | 2.00% | $0 | Yes | Linked to RBC US accounts |
| TD | 1.75% | $0 | Yes | Strong US-Canada transfer support |
| CIBC | 1.50% | $0 | Yes | No monthly fees |
| Motive Financial | 3.00% | $0 | Yes | Online-only, high rates |
| Oaken Financial | 2.80% | $0 | Yes | No minimum, flexible transfers |
| HSBC Canada | 2.00% | $0 | Yes | Global banking options |
| Wealth One Bank | 2.50% | $0 | Yes | Focus on newcomers and businesses |
Note: Rates are subject to change and may depend on account balances or promotional periods. Always check the latest rates before applying.
Pros and Cons of USD High Interest Savings Accounts
Advantages
- Earn interest in USD:Â Grow your US dollar savings without currency risk.
- Flexible access:Â Withdraw or transfer funds as needed.
- No forced conversion:Â Keep your funds in USD for travel, shopping, or investing.
- Safe and insured:Â Most accounts are CDIC-insured up to $100,000 USD.
Disadvantages
- Lower rates than CAD HISAs:Â USD savings accounts often pay less than their CAD counterparts.
- Limited account features:Â Fewer perks than regular chequing accounts (e.g., no debit card).
- Potential fees:Â Some providers charge for transfers or withdrawals.
- Tax implications:Â Interest earned is taxable in Canada and must be reported in CAD.
How to Open a USD High Interest Savings Account
Opening a USD HISA is straightforward:
- Choose your provider:Â Compare rates, features, and fees.
- Apply online or in-branch:Â Most major banks offer online applications.
- Provide identification:Â Valid ID and proof of address are required.
- Fund your account:Â Transfer USD from another account or convert CAD.
- Start earning interest:Â Monitor your balance and interest payments.
Tip: If you regularly convert CAD to USD, watch for competitive exchange rates and low conversion fees.
Tax Considerations for USD Savings in Canada
Interest earned in a USD HISA is considered taxable income in Canada. Here’s what you need to know:
- Interest must be reported in CAD: Convert interest earned to Canadian dollars using the Bank of Canada’s annual average exchange rate.
- T5 tax slip:Â Your bank will issue a T5 slip for interest earned over $50.
- Foreign reporting:Â If your total foreign property (including USD accounts) exceeds CAD $100,000, you must file Form T1135 with CRA.
Fact: According to the Canada Revenue Agency, over 60,000 Canadians filed T1135 forms in 2024, up 12% from the previous year, reflecting a rise in foreign currency holdings.
Frequently Asked Questions
Who should open a USD high interest savings account?
Anyone who regularly deals with US dollars—travelers, cross-border shoppers, investors, or businesses—can benefit from a USD HISA.
Are USD HISAs insured in Canada?
Most are CDIC-insured up to $100,000 USD per account. Always verify with your provider.
Can I transfer money between my CAD and USD accounts?
Yes, but be aware of exchange rates and potential fees. Some banks offer preferential rates for clients.
Do USD HISAs have monthly fees?
Many are fee-free, but some may charge for certain transactions. Always read the account terms.