If your business earns revenue in US dollars — from US clients, cross-border sales, or USD-denominated contracts — holding that revenue in a dedicated USD business savings account avoids a costly and unnecessary round-trip through foreign exchange. Every time you receive USD and immediately convert to CAD, then convert back to USD when paying a US supplier, you pay the bank’s FX spread twice. At 1.50–2.50% per conversion, the cost on a $500,000 annual USD flow can exceed $25,000.
A USD business savings account solves this by letting you hold US dollars in Canada, earning interest, until you actually need the funds — either to pay US suppliers directly, or to convert to CAD at a time and rate of your choosing. The account is held at a Canadian institution, covered by CDIC, and does not require a US entity or US tax number.
The challenge is that USD interest rates at Canadian banks range from negligible (0.10% at several Big 5 banks) to meaningfully competitive (1.50–2.00% at EQ Bank). Choosing the wrong institution can cost a business more in foregone interest than its total banking fees combined.
USD Business Savings Account Rates 2026
| Institution | USD Interest Rate | Monthly Fee | Min. Balance | CDIC Covered |
|---|---|---|---|---|
| EQ Bank | 1.00–2.00% | $0 | $0 | Yes |
| RBC | 0.25–0.75% | $0 | $0 | Yes |
| CIBC | 0.25–0.75% | $0 | $0 | Yes |
| TD Bank | 0.10–0.50% | $0–$5 | $0 | Yes |
| BMO | 0.10–0.50% | $0 | $0 | Yes |
| Scotiabank | 0.10–0.30% | $0 | $0 | Yes |
Rates as of April 2026. USD savings rates are set independently of CAD rates and generally trail the US federal funds rate environment. Verify posted rates directly before opening an account, as institutions adjust USD rates more frequently than CAD rates.
What USD Interest Actually Earns
The gap between EQ Bank and the Big 5 is significant at any USD balance. At 1.50% versus 0.25%, a business holding US$100,000 earns US$1,500 per year versus US$250. At US$500,000, that gap is US$6,250 annually — material enough to justify the administrative overhead of holding USD at a separate institution from your primary business bank.
| USD Balance | EQ Bank (~1.50%) | RBC/CIBC (~0.50%) | TD/BMO (~0.25%) |
|---|---|---|---|
| US$10,000 | US$150 | US$50 | US$25 |
| US$50,000 | US$750 | US$250 | US$125 |
| US$100,000 | US$1,500 | US$500 | US$250 |
| US$500,000 | US$7,500 | US$2,500 | US$1,250 |
Annual interest at mid-range posted rates. Rates change without notice.
Account Reviews
EQ Bank — Best USD Rate for Businesses
EQ Bank offers the highest readily available USD savings rate for Canadian businesses, paying 1.00–2.00% on USD deposits with no monthly fee and no minimum balance. For businesses whose primary objective is maximizing yield on USD cash reserves — rather than cross-border operational infrastructure — EQ Bank is the clear choice.
The account is opened and managed entirely online or through the EQ Bank app. Incoming USD wire transfers are supported. The limitation is that EQ Bank does not offer a USD chequing account, USD cheque writing, or a USD debit card, which makes it a savings-only vehicle rather than an operational USD account. Businesses that need to make frequent USD payments directly from a Canadian account will still need a USD chequing account at one of the Big 5.
The practical setup for many businesses: receive USD wires into a RBC or TD USD chequing account, then sweep excess USD into EQ Bank’s USD savings account to earn the higher interest rate.
RBC — Best for Cross-Border Operations
RBC offers 0.25–0.75% on USD business savings — below EQ Bank’s rate but ahead of TD and BMO — alongside the most complete cross-border business banking package in Canada. Through its acquisition of City National Bank in the US, RBC offers clients linked Canadian and US accounts that can transfer funds same-day. For businesses with genuine US operations, this infrastructure is difficult to replicate elsewhere.
RBC’s USD business suite includes: USD savings accounts, USD chequing accounts, USD cheque writing and deposits, USD wire transfers, a US Dollar Visa credit card, and USD GICs. The breadth of the USD product set is stronger than any other Canadian bank. For businesses that need to do more than just hold USD — issue USD cheques, pay US employees, or operate a US bank account linked to their Canadian account — RBC is the most capable institution.
TD Bank — Best for Eastern US Corridor Businesses
TD has the deepest US retail banking presence of any Canadian bank, operating TD Bank as a full-service US bank with approximately 1,100 branches concentrated along the eastern seaboard from Maine to Florida. For Canadian businesses with US clients, suppliers, or offices in the eastern US, TD’s cross-border banking package — which links Canadian and US accounts with same-day transfers — is the most operationally seamless option for that geography.
TD’s USD savings rate (0.10–0.50%) is among the lower end of the Big 5, making it a weaker choice for businesses simply parking large USD balances. The value is in the operational integration: a Canadian business can open a TD Bank US account (subject to TD’s US account opening requirements) and move CAD and USD between Canadian and US accounts inside a single TD online banking relationship.
CIBC — Competitive Rate with Solid USD Infrastructure
CIBC offers 0.25–0.75% on USD business savings, matching RBC on rate and providing a full USD business account set including chequing, wire transfers, and USD GICs. CIBC does not have a direct US retail branch network (unlike RBC and TD), making it less suited for businesses needing US-domiciled accounts. Within Canada, however, CIBC’s USD business banking is well-built and the posted rate is competitive among the Big 5.
BMO — BMO Harris Integration for Midwest Businesses
BMO acquired BMO Harris Bank (formerly Harris Bank) years ago, creating a US retail banking presence concentrated in the US Midwest — Illinois, Wisconsin, Indiana, and neighbouring states. For Canadian businesses with US operations or suppliers in the Midwest, BMO’s cross-border banking package offers similar account-linking functionality to RBC and TD. BMO’s posted USD savings rate (0.10–0.50%) is lower than CIBC and RBC, reducing its appeal for pure USD savings. The BMO Harris integration adds value primarily for businesses with a geographic need for it.
Scotiabank — Limited USD Advantage
Scotiabank pays 0.10–0.30% on USD business savings and does not have a direct US retail banking presence. Its cross-border capabilities are limited compared to RBC, TD, and BMO. For Canadian businesses operating exclusively in Canada but receiving USD from US clients, Scotiabank provides a functional USD account but offers no meaningful rate or operational advantage over RBC or CIBC. Most businesses are better served by one of the other institutions for USD-specific needs.
FX Conversion Costs: The Often-Overlooked Cost
Many Canadian businesses focus on USD savings rates while underestimating the cost of CAD-to-USD conversions. If your business earns in CAD and regularly converts to USD — or receives USD and regularly converts to CAD — the FX spread on those conversions can easily exceed the interest earned on the USD savings account.
Canadian banks charge a retail FX spread of 1.50–2.50% on foreign exchange conversions for amounts under $10,000. For larger amounts, the rate is negotiable through the bank’s FX desk, typically reaching 0.30–1.00% for $50,000+ transactions. Dedicated FX services price consistently below the bank’s FX desk for most transaction sizes.
| Provider | CAD ↔ USD Spread | Min. Transaction | Best For |
|---|---|---|---|
| Wise Business | 0.40–0.60% | $0 | Everyday conversions, invoicing in USD |
| OFX | 0.20–0.80% | $1,000 | Transfers over $10,000 |
| Knightsbridge FX | 0.20–0.50% | $10,000 | Large conversions ($50K+) |
| Bank FX desk (negotiated) | 0.30–1.00% | $50,000+ | High-volume bank clients |
| Bank retail rate | 1.50–2.50% | None | Small amounts only |
What the Spread Costs on a $100,000 Conversion
Assume USD/CAD mid-market rate of 1.3700. You are converting US$100,000 to CAD.
| Provider | Effective Rate | You Receive (CAD) | FX Cost |
|---|---|---|---|
| OFX (0.40% spread) | 1.3645 | $136,450 | $548 |
| Wise (0.50% spread) | 1.3632 | $136,320 | $685 |
| Bank FX desk (0.75%) | 1.3597 | $135,973 | $1,028 |
| Bank retail (2.00%) | 1.3426 | $134,260 | $2,740 |
At $100,000, the difference between using Wise and the bank’s retail rate is $2,055 on a single transaction. For businesses making multiple conversions per year, a dedicated FX service is not optional — it is a straightforward cost-reduction decision.
Wise Business: The Practical USD Management Tool
Wise Business (formerly TransferWise) is worth addressing separately because it functions differently from both a bank account and a traditional FX broker. Wise Business provides a multi-currency account with a real Canadian business address and account number, a US routing number and account number (for receiving USD ACH), UK sort code, and equivalent local banking details for dozens of other currencies.
This means a Canadian business can receive USD from US clients via ACH into a Wise Business account as if it were a US bank account — without a US entity, without a US EIN, and with no FX conversion. The USD sits in the Wise account and can be held, paid out to US suppliers via ACH, or converted to CAD at Wise’s mid-market rate plus 0.40–0.60%. For businesses receiving small to medium USD volumes ($5,000–$200,000 annually), Wise Business often replaces the need for both a USD account at a Canadian bank and a separate FX service.
The limitation is that Wise is not a bank — USD balances held with Wise are not CDIC insured. For large USD reserves (over $100,000), a CDIC-insured USD account at a Canadian bank is the more appropriate vehicle.
Canadian USD Account vs US Bank Account
Many cross-border businesses eventually face the question of whether to open a US-domiciled bank account in addition to their Canadian USD account. The two are not mutually exclusive and serve different operational purposes.
| Scenario | Recommended Structure | Reason |
|---|---|---|
| Receiving USD from US clients | Canadian USD account or Wise Business | Avoids FX; CDIC insured |
| Paying US suppliers via ACH | US bank account (TD Bank US, BMO Harris) | ACH is a US-only rail; USD wires from Canada are more expensive |
| Holding large USD reserves (>$100K) | Canadian USD savings at EQ Bank | Higher rate; CDIC insured |
| Paying US employees or contractors | US bank account or Wise Business | ACH payroll is cheaper and faster from a US account |
| Small USD volumes (<$5K/year) | Convert as needed via Wise | Lowest cost; no account overhead |
| Full US operations (office, staff) | US entity + US bank account | Full US banking infrastructure |
The cleanest setup for a business with meaningful USD flow: a USD chequing account at RBC or TD for incoming USD wires and outgoing USD payments, excess USD swept to EQ Bank for the higher interest rate, and Wise Business for any USD invoicing received via US ACH.
Cross-Border Banking Packages
RBC, TD, and BMO each offer structured cross-border banking programs that link Canadian accounts with US-domiciled accounts, allowing same-day transfers without going through the SWIFT wire network. These programs are meaningful for businesses that need genuine US banking capabilities — ACH payments, US checks, US debit cards — rather than simply holding USD in Canada.
RBC Cross-Border Banking links Canadian RBC accounts with City National (US) accounts. City National was acquired by RBC in 2015 and operates primarily in California, New York, and Nashville. Transfers between linked accounts are same-day and do not incur a wire fee. City National caters to a higher-end client profile and is most relevant for Canadian businesses with US West Coast operations.
TD Cross-Border Banking links Canadian TD accounts with TD Bank US accounts. TD Bank US operates approximately 1,100 branches along the US eastern seaboard, making it the strongest US retail network of the three. Same-day CAD-to-USD or USD-to-CAD transfers between linked accounts are a genuine operational advantage for businesses paying US east coast suppliers or employees.
BMO Cross-Border Banking links Canadian BMO accounts with BMO Harris accounts in the US Midwest. The network is smaller than TD’s US presence but well-suited for Canadian businesses trading with Illinois, Wisconsin, and neighbouring states.
CDIC Coverage for USD Business Deposits
USD deposits at Canadian CDIC member institutions are insured under a separate deposit category — foreign currency deposits — with coverage up to $100,000 (calculated in CAD at the exchange rate on the date of failure). This coverage is completely independent of CAD deposit coverage.
| Deposit Category | Coverage | Notes |
|---|---|---|
| CAD business deposits | Up to $100,000 | Standard deposit category |
| USD business deposits | Up to $100,000 (CAD equivalent) | Foreign currency category — separate from CAD |
| USD GICs (business) | Combined with USD savings (same foreign currency category) | Same $100,000 ceiling |
| Personal USD deposits (same bank) | Up to $100,000 (CAD equivalent) | Separate from business deposits |
| USD at a US bank | Not CDIC | Covered by FDIC (US$250,000) |
For businesses with USD reserves approaching $100,000 at a single institution, splitting deposits between two CDIC members — for example, EQ Bank and RBC — fully insures up to $200,000 in USD deposits. US-held USD balances have higher coverage through FDIC (US$250,000), which is an argument for large USD reserves being held partially in a US account.
USD GICs: Locking In When Rates Are High
If your business has a USD cash reserve that will not be needed for 1–5 years, a USD GIC offers a higher fixed rate than a USD savings account, with full CDIC insurance for terms up to five years. USD GIC rates at major Canadian institutions have ranged from 2.00–4.50% in the current rate environment, meaningfully above USD savings account rates.
The trade-off is liquidity. Non-redeemable USD GICs cannot be accessed before maturity without a penalty. For a portion of USD reserves tied to a specific future event — a large US supplier payment due in 18 months, for example — matching the GIC term to the known commitment is a straightforward way to earn a materially higher rate without additional risk.
How to Open a USD Business Savings Account
Opening a USD business savings account requires business documentation beyond what a personal account requires. Most institutions ask for:
- Business registration documents (certificate of incorporation, partnership agreement, or sole proprietor registration)
- Business number (CRA Business Number)
- Articles of incorporation (for corporations)
- Two pieces of government-issued ID for each signing officer
- Proof of business address
Online institutions like EQ Bank have streamlined the business account opening process — most applications can be completed online in 30–45 minutes. Big 5 banks typically require an in-branch appointment for business accounts, which adds time but allows you to discuss USD-specific features with a business banking advisor.