Is it a good way to open a USD account in Canada and transfer the money in USD?

[CanV]

Be careful wiring US finds into Canadian US account.

If you open a US account from any Canadian bank what may happen is that you may have to pay for conversion twice. Once the money is sent into Canada it will be converted to Canadian dollars and then back into US dollars. This is known to happen from time to time. The safest bet when wiring money would be to open a US bank account with physical location in USA. TD, Royal Bank and BMO offer this service.

When you open a US dollar account in Canada, you can transfer the funds in US dollars, dollar by dollar. They dont exchange it to CAD and back to USD. Who does that?

 

[slowokan]

Yes, david1697. The rate is still higher than I find here in Turkey. I mean it might be much more reasonable than the banks, but as for exchange offices, it isn't better than them, at least for the exchange offices in Turkey.

 

[lawrence2007]

Hi guys.

I've searched the forum, but couldn't find anything about the method, I wonder. Here is the thing;

I will be landing in Edmonton in April. I asked RBC and they said I am able to open an account before landing in Canada. What I am thinking to do is, I will open a USD account at RBC. I will transfer all my USD from my account at a Turkish bank to the USD account at RBC. Then when I get to Canada, I will withdraw as much as I need and exchange the USD to CAD at a exchange office to get better rates.

I think only expense will be the wiring fees. No high exchange rates from banks, which are 0.02 or more shorter than the real rates most of the time.

What do you think about this method? Am I missing something?

It seems to me that you are working with the following assumption: “The rate being charged by your bank in Turkey for converting from USD to CAD is worse than the rate you will be charged by a Canadian bank/foreign exchange office.”

To some extent you are correct in your assumption that foreign exchange office rates are better than bank rates. However, given that a large sum is involved you could check the rates at Edmonton based foreign exchange offices by calling them up. Also be sure to ask about any flat fees that they charge for each conversion transaction.

I am not sure if you are aware of this but if you are converting a large amount (typically CAD25,000-50,000) you have some leverage with the bank. Instead of the rack rate, the branch will provide you with a special rate which should cover some of the 0.02 difference from real rate you are worrying about. So it will make sense to discuss/negotiate with your bank before withdrawing the money for conversion at an exchange office as it might save you some hassle.

I am not clear how you will open your account with RBC prior to your arrival in Canada. Does RBC have an office in Turkey who will handle your paper work?

If your bank in Turkey allows online transfers, you can also do the fund transfer after coming to Canada once your Canadian account is opened.

I suggest you also explore HSBC Premier/Advance option as it allows you to make free global transfers between your accounts in Turkey and Canada. Obviously this will save the wire/transfer charges. Also HSBC offers better conversion rates to its Premier/Advance customers. The downside is that HSBC does not have a lot of branches and Premier/Advance accounts have high minimum deposit requirements. Nevertheless, it is something worth exploring.

You should be aware that money in the bank does not count towards the requirement to show proof of funds at the time landing. For that you will need to show cash/demand draft/travellers cheques etc of the prescribed amount at the time of landing.

I hope this helps.

 

[slowokan]

Thanks for the detailed comment and advice, lawrence2007..

You are right, I can negotiate with my bank when converting that much money. But I will do the same with my exchange office, as well, like I always do whenever I exchange over 5,000 USD. And I think the exchange office will offer better discounts. I don't know, I should ask my bank and see. Good advice..

I messaged with a staff member of RBC online through their chat service. As he advised me, a newcomer could open an account before landing in Canada. He's given me the link, but I still haven't call them at the number on that page. Here is the link to the page;

http://www.rbc.com/canada/banking-packages/index.html?_ga=1.154926456.1357910528.1422641338

Yes, you are right. I can do my money transfer after landing. However, what I will do is I will transfer some amount, say a few thousand, via online banking, just to see it all works nice and smooth.

And I will take additional 10,000 CAD in cash with me before getting in Canada. Just for initial spending for the first few months.

HSBC doesn't have a good reputation in Turkey. In the past my family experienced some bad things with them. They are not definitely in my list. Citibank was one of my favorite, but they stopped personal banking.

 

[slowokan]

And another thing I want to know... Does anyone of you know what the time limit for transferring our wealth (all accounts, etc.) to Canada is?

Let's say I cross the border today and become a resident. When I transfer my 200,000 CAD, they will not ask for any tax, because I made all that wealth before becoming PR. What if I transfer my account 1 year after? Is there a time limit for transferring our wealth?

 

[david1697]

Yes, david1697. The rate is still higher than I find here in Turkey. I mean it might be much more reasonable than the banks, but as for exchange offices, it isn't better than them, at least for the exchange offices in Turkey.

You have awesome rates then. Good luck!

 

[lawrence2007]

@Slowwokan

When you file your first income tax return, you disclose your assets (over CAD100,000) outside Canada prior to becoming PR. This disclosure lets you transfer your prior savings to Canada at any time without paying any taxes. Whatever you transfer before filing your first return is also tax free by default.

By the way, the RBC link (www.rbc.com/canada/banking-packages/index.html?_ga=1.154926456.1357910528.1422641338) eventually leads to two options:

1) Open an account online if you have an account at another Canadian bank
2) Open an account by visiting a RBC branch

So effectively, you cannot open an account in RBC prior to coming here.

 

[slowokan]

Thanks for that so valuable info, lawrence2007. Really appreciated!!!

As for the RBC link, I know it requires with both options that you should be physically there to open an account. But as I said, the guy on the chat service told me we could open by sending them the scanned copies of our passport and COPR. After I quit chatting with him, I checked the link and I saw what you tell.

So, I will call them at the number on the page. I am waiting for my throat to get better, as I've been having a soar throat and my voice could hardly be heard. I don't think they will understand me with my voice at the moment.

 

[david1697]

I think you can begin the process of RBC account opening from overseas. They will take all your info, MAY even accept deposits (not sure, check on it), and they will ask you to walk into branch and present your ID once you are in Canada before they fully activate your account and let you use it.

 

[slowokan]

I think you can begin the process of RBC account opening from overseas. They will take all your info, MAY even accept deposits (not sure, check on it), and they will ask you to walk into branch and present your ID once you are in Canada before they fully activate your account and let you use it.

I will learn when I ask them on the phone. All I need to do is to overcome this sore throat, so I can speak in the phone clearly..

Thank you very much for your care, david1697..

 

[erdebeere]

Hey Everybody, today it seems CAD is gaining some recently lost value over USD. Does anyone have any idea until April? Thanks a lot. If you know a more related topic please tell me.

 

[next2015]

Hey Everybody, today it seems CAD is gaining some recently lost value over USD. Does anyone have any idea until April? Thanks a lot. If you know a more related topic please tell me.

Getting forecasts going that far is quite difficult in today's markets. One unreliable source has forecasts indicating a $1.29 value per USD in April then it will drop slightly staying within the $1.2 range. What I am seeing though is CAD will close today at a slightly lower value than it is at this point in time.

 

[slowokan]

I have one more question. I can open another thread for that, but as I've met some experienced people under this thread, I preferred to ask it here. Here is my question;

A friend of mine, who has been living in Canada for 5 years, advised me to open a student account. By this way, I will be able to be exempt from any fees while transferring my money from Turkey to Canada.

Aren't the newcomers accounts at banks free of fee? Or are there some hidden fees, that they don't tell us whilst opening the account?

 

[lawrence2007]

For opening student account, you will need to show a student id to demonstrate your eligibility. Also, I am not sure if they waive the charges for receiving international transfers into your account for students.

Most banks in Canada charge a fixed monthly fee for maintaining your bank account. Like RBC charges a minimum of $15/month for its Signature Rewards Package. At the same time, it gives a credit card without annual fee with this package. So there is some benefit for paying the fee .

All banks have their newcomer package which allow new immigrants to open bank accounts without paying any monthly fees for first six months. I am not sure if they will make international transfer-ins free during this six month period.

When I came, I brought my funds in the form of a bank draft so I don’t have a personal experience to share on fund transfer/charges. I hope someone else has who can guide you exactly.

 

[slowokan]

For opening student account, you will need to show a student id to demonstrate your eligibility. Also, I am not sure if they waive the charges for receiving international transfers into your account for students.

Most banks in Canada charge a fixed monthly fee for maintaining your bank account. Like RBC charges a minimum of $15/month for its Signature Rewards Package. At the same time, it gives a credit card without annual fee with this package. So there is some benefit for paying the fee .

All banks have their newcomer package which allow new immigrants to open bank accounts without paying any monthly fees for first six months. I am not sure if they will make international transfer-ins free during this six month period.

When I came, I brought my funds in the form of a bank draft so I don't have a personal experience to share on fund transfer/charges. I hope someone else has who can guide you exactly.

Actually, nowadays I am preparing to apply to master programs at some universities. I might get a student ID soon. At least a confirmation letter from schools. I mean I could have a chance to arrange the required document.

As for the bank draft, could you explain it to me a little, please, how it works? I decided to open a CAD account in Turkey. So, I will have all my money in CAD in Turkey. What I want is to transfer all of it to Canada sooner or later.