Top 5 Highest-Interest USD Savings Accounts in Canada
Comparing interest rates can be daunting. There are so many saving account alternatives in Canada that it's hard to evaluate them, especially if you want a specific type.
To help you find the perfect savings account, we've compiled a list of Canada's best high-interest savings accounts for your US dollars. Check it out!
What Is Interest Rate?
In addition to the security of your money, savings account in the bank can earn you interest—the bank's reward for saving your money with the bank.
The bank sets an interest rate (a small percentage) over a while, typically either monthly, quarterly, or annually, and then adds that amount to the principal in your savings account.
What Is a High-Interest Savings Account?
While many savings accounts have minimal or normal interest rates, one type of savings account—the HISA or high-interest savings account—pays higher interest than other accounts.
For example, some standard savings accounts may offer interest rates of 0.2%-0.3%, while HISA can offer an interest rate of 0.5%-3.25%. This depends on the bank, credit union, or financial institution providing these accounts.
High-interest savings accounts also have prerequisites, like an initial deposit, a minimum amount for maintaining a balance, and possible account fees.
Canadian banks and financial institutions thus offer HISA for anyone willing to have something more than regular savings account with high-interest rates.
Why Open a High-Interest US Dollar Savings Account?
USD savings account interest rates are generally subpar compared to the regular accounts and HISA interest rates. The question is, is it a smart choice to get a high-interest USD savings account?
A separate high-interest savings account for US dollars is generally a good idea. Although it might not be intended for daily use and can't access at an ATM, it can be handy in facilitating international transactions.
Many reasons also suggest having one is very beneficial; for instance, it compounds over a long period. When you think of it in the long run, say 10-20 years, this 1%-2% interest rate can be very beneficial for:
- Travel and vacation in the US (easy transaction without unnecessary fees).
- Sending funds to families and friends living in the US.
- Diversifying your currency holdings.
- Currency exchange
- Getting interested paid in USD and more!
The Best 5 Banks with High-Interest USD Savings Accounts
In no particular order, here are five high-interest USD savings accounts in Canada:
ICICI Bank USD HiSAVE Savings Account
ICICI Bank Canada is a subsidiary of ICICI Bank Limited with headquarters in India. ICICI Bank Limited has branches in the US, UK, Singapore, China, and Germany.
The ICICI Bank USD HiSAVE savings account offers to its holders:
- Annual interest earnings of 0.45% to 1% interest rates.
- No monthly fees
- $50 minimum maintaining balance
- Guaranteed long-term security
- Link up to three existing accounts of other banks
- Money transfers for free
EQ Bank US Dollar Account
EQ Bank is the trade name of Equitable Bank, a member of the CDIC (Canadia Deposit Insurance Corporation). The EQ bank is Canada's challenger's bank, the first to introduce digital banking in Canada.
EQ Bank USD savings account is new, but you must have CAD savings plus account to open one. International transfer of USD is usually via Wise money transfer. Any EQ bank USD savings account holder can have the following:
- 2% interest with no monthly payments
- Zero minimum balance
- No monthly account balance
- Free USD and CAD deposits
Tangerine US Dollar Savings Account
Tangerine is one of the Canadian midsize retail banks. With the Tangerine USD savings account, there are no unfair fees or service charges.
The interest rates are reasonable compared to other big banks providing USD savings accounts. A Tangerine USD savings account holder can:
- Earn a 0.10% interest rate
- No minimum balance
- No Monthly fees
- Great exchange rates in transferring either USD out or CAD in
- Transfer of funds between linked accounts to another bank or financial institution
Manulife Bank US Dollar Advantage Account
Manulife Bankis a subsidiary of the Manufactures life insurance company and was the first branchless (online-only) bank in Canada. Customers make transactions only via web interface and mobile app.
Its USD Advantage is for funds that aren't needed immediately. There are also no debit cards with the USD Advantage account to deposit or withdraw funds, only USD transfers between linked bank accounts.
Customers of Manulife Bank with the USD Advantage account can enjoy its:
- 0.20% interest rate
- No minimum balance
- No monthly account fees
- Free withdrawal for linked bank accounts
RBC US Dollar High-Interest eSavings Accounts
Royal Bank of Canada, commonly known as RBC, is a global financial institution. RBC is one of Canada's biggest banks, and in terms of market capitalization, it's one of the largest in the world.
RBC has two main USD savings accounts, RBC US personal and RBC US high interest. The latter has higher USD interest rates. Account holders of RBC USD High-Interest eSavings get to have:
- 0.350% interest rate
- High interest on every US dollar
- No monthly fees
- Free once-per-month transactions
- Free electronic self-serve transfers
- Include monthly debits (once per month cycle)
The Bottom Line
In conclusion, the five accounts are all great choices. Depending on your needs and preferences, one might be better than the others.
And when it comes to currency exchange and sending money to the US, RemitBee is still a more popular choice than traditional banks because of its better exchange rate.
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