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my US resident friend is moving to canada permanently
he just wants some advise on the best way to convert his USD (around 10K) to canadian
or what to do with all his USD saving - convert all of it / invest some?
appreciate all advise and help - thanks
Some advice here from experience:
Do not exchange it at a US bank! The exchange rate that they offer is much worse than what you can get up here in Canada. Or at least it was the last time that I checked into it.
If he is going to be making periodic trips to the US, it may make sense to keep at least some of it for then. The TD has a Borderless Account that is very good if you need to deposit US dollars, and you can exchange to and from Canadian any time online. This is very nice in that you get a quote, and can decide if you want to change it then, or wait for a better rate later, all in the comfort of your own home. It sure beats trundling off to the bank you you just have to take any quote that you are given at the time.
Oh, I almost forgot. Make certain that he realizes that he will have to purchase medical insurance for the first three months that he is here (http://www.health.gov.on.ca/en/publi...aiting_pd.aspx). There is a waiting period before he is covered, which most don't realize.
He may want to keep his US account and credit cards for a while. It can be tricky to get credit cards when you move to a new country (it was difficult for me, even with a very good job when I moved to the US originally). So he may want to keep those active for a while.
Thanks
So u suggest he open a TD account in the US first then just wait for email quote.
Can he also convert his USD online anytime
How is the TD rates compare to other branches
To which province is he moving? He can likely expect to be looking at paying a health premium fee based on income in some provinces once he meets the minimum residency requirements. In British Columbia, one has to pay for their health card but not in Ontario.
If your friend is planning on moving $10k directly into a bank account, the bank can ask about its origin (there's an anti-money laundering law requiring amounts of $10K or more to be explained). Or, if your friend plans to carry the cash (entire amount over the border on his person or stock certificates or other financial instruments of $ value), he has to declare it $10K or more to Canada Customs! Or face some face time and fees with the border officials to keep the cash with him.
If your friend keeps US $ bank accounts in the US or Canada, he is considered a US person for tax purposes (banks have to identify such accountholders due to US government wanting to know who has US $ accounts worldwide). He'd have to deal with a US income tax return for his US income (interest, employment or pension) and a Canadian tax return (covering provincial and federal taxes and credits-must file personal returns by April 30) for his Cdn income streams. Both governments want worldwide income reported. Canadian tax return will allow for US pension income tax credit if taxpayer has paid US taxes on US pension income on IRS return (must be filed by April 15 or thereabouts)-there's a tax treaty.
In Quebec, residents file two tax returns-one to the Quebec government (provincial) and one to the Canadian government (federal).
Driver's licences-your friend if he drives may have to apply for a provincial driver's license within 6 or so days of moving into Canada. He'll have to look up the relevant Ministry of Transportation site for his destination province (or territory if heading up North) to see what the requirements and fees are. If he intends to bring a US car over, he will have to see about using a service that can arrange the relevant changes to make the car acceptable to Transport Canada vehicle standards. If there is any kind of recall affliated with his car, he won't likely be able to bring the car over until the recall item is replaced. There was a recent story in the Hamilton area about someone with a US car that cannot be on the road until an airbag issue (on recall) is handled, the part is not available and there's a long wait time to get the car eventually repaired.
my friend will marry his gf here in BC and have no intention on returning to US -not US citizen.
He needs the funds for rent, food etc
He just wants to get the most out of his USD
He is aware of all the Canada immigration law, all he wants is some great advise about his USD
we had/have a USD account with RBC. we put any of Mr P's USD cheques into that account and when we felt the exchange rate was favourable, we transferred it into our CDND account.
Currency exchanges generally have better rates than the banks/credit unions in my experience.
Again, i appreciate all the help/exchange idea/expert advice
I read from a different sites/forum and got a idea what others are doing:
- open a RBC or TB bank acount (Borderless account)
- apply for no-transaction fee credit card - Discover itŪ Miles – Unlimited 1.5x Rewards Card (Best No Annual Fee International Credit Card)
- My friend can use the card here in canada and use online banking to pay for the card
- He can also transfer/convert a little bit to CAD just in case he needs actual cash
I'm just wondering, if there is any hidden (transaction) fee that i'm not aware of, and it ended up costing more (wasted fee) in the long run (others (from diff site/forum) had recommended it with almost the same situation as my friend)
USD account is not CDIC insured in Canada. CAD $ account will be CDIC insured upto $ 100,000.
Also USD savings account gets very little interest or Almost no interest in Canada. A Canadian Savings account can easily get 2 % to 3 % interest in Canada.
just ask him to open a Savings account and Chequing account with Tangerine, EQ bank or PC Financial. He can get 2 % to 3 % interest there.
Convert all the USD to CAD, if he has NO intention of going back to US. Use transfer services like Transferwise which don't take much in exchange rates. Whate ever little he will lose in exchange rate he will make it in Interest paid on the CAD $ account and its CDIC insured.
If its USD account Tangerine only pays 0.15 % interest.
Now if he is planning to go back and forth, CAD and USD accounts make sense. Otherwise just have a CAD account with a higher interest, CDIC protection etc.
Get a no foreign exchange fee Credit Card if you want, for the occasional travel to US.
Don't play these games of USD or CAD account, if his move to Canada is permanent. Plus we are only talking about $ 10 K, not a big amount. At the most he will lose 1.5 % in exchange rate, when he converts, if he goes through the right exchange guys.
He will recover that by having a CAD Savings account with 2 % to 3 % interest rate. USD account will pay next to nothing interest in Canada.
Less hassle, more peace of mind and no shenanigans for a few pennies. Canadian account, Canadian currency, Canadian Credit card, Canadian girl friend .
just go the route with the best exchange rate, there isn't much more you can do.
Thanks, will probably go with last few advises on opening a Canadian account and convert all his USD to CAD
again, i appreciate all the help