When migrating to the USA, some Canadians are often concerned about their funds and
bank accounts. Financial management can be nerve-racking in the course of an international
move. You might also be required to make payments in both Canada and the USA, and be paid
in the United States or even send the money back home. The good news is that there is no
difficult way around the transfer of your bank accounts as long as it is planned appropriately.
The cross-border banking systems and intelligent money transfer apps can assist you in
managing your money without issues.
Keep Your Canadian Bank Account Open
Too many people close their Canadian accounts prematurely. This can lead to trouble when you
are required to pay some money on bills, taxes or loans in Canada. You should leave your Canadian
account open for a minimum of a few months after you move. The majority of the Canadian
banks allow you to have accounts with them if you live in the USA. This simplifies how
the rest of the financial liabilities in Canada are handled.
Open a US Bank Account Before or After Moving
A US bank account will be needed to receive your salary, pay rent and manage day-to-day expenses
in the USA. Some banks allow opening up even before you have moved in, whereas with some
banks, you have to consider being in the USA. American-based banking products are also available
through major Canadian banks, such as RBC, TD, and BMO, as they offer cross-border banking
services in the US, making it easier to open an account. This is a time-saving measure that can
help relieve stress once you arrive in the USA.
Use Cross-Border Banking Services
Some of the Canadian banks have collaborations with US banks. Such as in the case of TD
Bank in Canada which links to TD Bank in the USA. RBC and BMO also offer cross-border services.
These accounts allow easy movement of funds between the USA and Canada; that is, they have
lower fees to make international transfers, unlike other accounts. This is among the most
effective strategies to use when managing finances around a move.
Money Transfers and Currency Exchange
When you have to transfer money between the USA and Canada, one of the things that you need
to consider is the exchange rates and the fees. When you make international transfers, banks
tend to charge higher fees. Better exchange rates might be found with an online money transfer
service. There can be faster and cheaper cross-border banking.
Update Automatic Payments and Deposits
Before you leave Canada, write down the list of all the automatic deductions you have had by
linking your account to them in Canada. This can be in the form of phone bills, subscriptions
and insurance payments. When possible, update them to your new US account. In addition, when
your employer or a pension plan is making a direct payment to a Canadian account, have it made
to an account in the US. By forgetting this step, payments are likely to be forgotten or delayed.
Taxes and Financial Records
Moving, you will have to file tax in Canada or the USA, depending on your case. Retaining
your Canadian bank account can make this simple over a short period of time. There will
be some who want to maintain accounts in both countries in the long run with respect to tax
and income issues. You should maintain good records of the transfers and balances, as you
will probably need them to report later on taxes.
Ask Your Bank for Support
Banks understand that plenty of individuals travel between Canada and the USA. Most also
have special teams to assist with cross-border moves. They will be able to explain the most
appropriate account options, transfer methods and rules in the best manner possible. Prior
to your departure, you should visit your bank and request information about cross-border
banking initiatives. This step in itself can help your financial move go a lot more easily.
Final Thought
Closing bank accounts in Canada, opening them in the USA may seem to be hard, but the
planning makes it simple and easier by contect the right movers who are transatlas. They are the
best movers in town who can make your account opening and closing much easier. However, keep
your Canadian account open for at least several months, and then open an account in the US as
soon as possible in order to use cross-border banking services to easily transfer funds. Remember
to update automated payments and keep good records in terms of taxes. Your bank should
be able to support your move to the USA by allowing your hard-earned money to be easily
accessible, yet at the same time secure and risk-free.
FAQs
Do I have to close my Canadian bank accounts when I move to the USA?
No, it will be better to keep it open during a few months of coping with the bills, paying the taxes,
and finishing the rest of the payments.
Am I able to open an account in a bank that is based in the United States since I live in Canada?
Some banks, such as the RBC, TD and BMO, enable you to open accounts before you go
outside the country.
What is the least expensive method of moving money between the USA and Canada?
The cheapest are usually the cross-border banking services; however, online transfer services
can also have good rates.
Do I have to keep both Canadian and US accounts now that I have moved?
It is not necessary to hold on to both long-term, but it is helpful to hold both together initially in
case of taxes and remaining bills.