Banking in Canada as an American: FATCA and CDIC

Good news first: Canadian banks are used to Americans. You will get asked about your citizenship, and your account will be reported to the IRS, but nobody is going to turn you away for having a US passport.

The short version

Canada and the US have a FATCA agreement in force since June 27, 2014. Canadian banks ask new customers whether they're US citizens and collect your Social Security number, and the Canada Revenue Agency (CRA) passes the account details to the IRS [1].
You can open a Canadian account with a foreign passport and a second piece of ID, even before you have a job here [2].
The "big five" (RBC, TD, Scotiabank, BMO and CIBC) all run newcomer packages, and several have US-dollar accounts and cross-border options.
CDIC insures eligible deposits, including US-dollar deposits, up to CAD 100,000 (about USD 71,500 in late 2026) per insured category [3][4].
Uncle Sam still wants an FBAR once your foreign accounts top USD 10,000 combined at any point in the year, and possibly Form 8938 [5].

USD conversions use the Bank of Canada rate of 1.3989 CAD per USD (November 5, 2026) [8].

FATCA in Canada: what the bank asks and why

In Canada, FATCA lives in Part XVIII of the Income Tax Act. Instead of reporting straight to the IRS, Canadian banks report to the CRA, which hands the data to the US under the Canada–US tax treaty [1].

When you open an account, expect a self-certification form asking two things: are you a resident of a country other than Canada for tax purposes, and are you a US citizen? The CRA's own explainer is blunt about why the second question matters: the US "treats all U.S. citizens as U.S. residents" for tax purposes, wherever they live [1]. Dual citizens get the same question. Having a Canadian passport too doesn't take you off the list.

What gets reported, according to the CRA [1]:

your name, address and US taxpayer identification number (your SSN)
the account number and balance
certain payments into the account, like interest

The bank is also required to check that your answers are reasonable against what's in its files. A US birthplace on your passport, a US mailing address or a US phone number will flag the account for a closer look. Don't fudge it. The CRA notes there's a penalty for failing to give a required taxpayer number [1], and a bad self-certification can freeze an account just when rent is due.

Once you have a Social Insurance Number (SIN), the bank will want that too. You'll typically end up giving both numbers.

What to bring to the branch

The Financial Consumer Agency of Canada (FCAC) sets the ground rules on identification. You need original documents, not copies, and either [2]:

Two pieces of ID from the approved list: one with your name and address, one with your name and date of birth. A foreign passport is on that list, as are Canadian government ID, recent utility bills and bank or credit card statements.
One piece of ID plus someone who vouches for you, such as a customer in good standing at that bank.

FCAC also says you can open an account if you aren't a Canadian citizen, or even if you live outside Canada, though you may need to show up at a branch in person [2]. A bank can refuse for specific reasons like suspected fraud, but if it does, it has to tell you in writing and explain how to complain [2].

In practice, Americans in Toronto bring:

Document	Why
US passport	Primary ID; name and date of birth
Work permit, study permit or PR confirmation	Shows your status; newcomer packages are usually tied to it
Proof of Toronto address	A lease, utility bill or Canadian phone bill
Social Security number	For the FATCA self-certification [1]
SIN, once issued	Needed for interest-bearing accounts and tax slips

No Toronto address yet? Ask the branch what it'll accept. Some will open the account and let you update the address later.

The big five and newcomer packages

Back home you might bank with a regional bank or a credit union and never think about it. Canada is far more concentrated. Five banks dominate everyday banking:

RBC Royal Bank
TD Canada Trust
Scotiabank
BMO Bank of Montreal
CIBC

You'll find all five on practically every major intersection downtown and in neighborhoods like the Annex, Leslieville and North York. National Bank, Tangerine (owned by Scotiabank), Simplii (owned by CIBC), EQ Bank and credit unions are also options, especially if you want lower fees.

Each of the big five sells a "newcomer" package for recent permanent residents, workers and students. The details change often, so check the bank's newcomer page before you go, but expect some mix of:

waived monthly fees on a checking ("chequing" in Canadian bank-speak) account for a set period
a credit card with no Canadian credit history required
a safe deposit box or bonus offer

Fair warning on sticker shock: Canadian checking accounts often carry a monthly fee unless you keep a minimum balance. If you're used to free checking stateside, read the fine print.

Your US credit score does not follow you north. A newcomer credit card, used lightly and paid in full, is the usual first step to a Canadian score. Our guide to building Canadian credit goes deeper.

Interac e-Transfer: Canada's Venmo

Canadians don't really use Venmo or Zelle. They use Interac e-Transfer, which is built into every major bank's app. You send money to someone's email address or cell phone number, and they accept it into their own Canadian bank account [6].

A few things to know:

Autodeposit lets the money land automatically, without a security question. Turn it on once your account is open [6].
Limits are set by each bank; Interac says consumer limits are typically CAD 2,000 to 3,000 (about USD 1,400 to 2,100 in 2026) per transfer [6].
Once it's deposited, it's gone. You can't cancel after the recipient accepts, so only send money to people you know [6]. Rental scams in Toronto often ask for an e-Transfer deposit before you've seen the apartment.

Landlords, roommates, your kid's hockey coach and the guy selling a used couch online will all ask for an e-Transfer. Set it up in week one.

US dollars and cross-border banking

Most Americans keep at least one US bank account open for Social Security, a 401(k), US credit cards and Amazon orders shipped to a relative's address. The question is how to move money between the two systems without bleeding fees.

USD accounts in Canada

All five big banks offer US-dollar accounts that live inside your Canadian banking profile. They're handy for holding a US paycheck or paying US bills, and CDIC covers foreign-currency deposits at member banks since April 30, 2020, converted to Canadian dollars if the bank ever fails [4]. A USD account at a Canadian bank is still a Canadian account, though, so it counts toward your FBAR.

US accounts from Canadian banks

Two of the big five own US banks. TD owns TD Bank in the eastern US, and RBC runs RBC Bank, operated by RBC Bank (Georgia), N.A. RBC says Canadian residents 18 and over can open RBC Bank accounts online with a Canadian address, the deposits are FDIC-insured, and transfers between linked RBC accounts in Canada and the US are free and instant [7]. BMO also has a large US arm. These setups are popular with Canadians who winter in Florida, and they work just as well for Americans going the other way.

Other options

Method	Good for	Watch out for
Wire from your US bank	Big one-off transfers, like a home down payment	Fees on both ends plus the bank's exchange markup
Licensed online money-transfer services	Regular transfers	Compare the total cost, not just the headline fee
Cross-border bank pairs (RBC, TD)	Frequent back-and-forth	Exchange spread still applies when you convert
US debit card at a Canadian ATM	Your first few weeks	ATM and foreign fees; pick a no-fee card

If you're bringing serious money, compare the rate you're offered with the Bank of Canada's daily rate. A small spread on a big number adds up fast.

Deposit insurance: CDIC vs FDIC

CDIC is Canada's FDIC. It insures eligible deposits up to CAD 100,000 per category, including principal and interest [3]. Eligible deposits include savings and checking accounts in Canadian or foreign currency, GICs (Canada's CDs) and other term deposits [3].

The categories matter. Deposits in your own name, joint deposits, an RRSP, a TFSA, an FHSA and several others are each insured separately [3]. That's lower than the FDIC's USD 250,000 per depositor, per bank, per ownership category, so spread out larger balances.

CDIC doesn't cover stocks, bonds, mutual funds, ETFs or crypto [3]. And a heads-up for Americans: TFSAs and FHSAs come with US tax headaches, and Canadian mutual funds and ETFs are usually PFICs under US rules. A US expat tax preparer can check your situation before you open one.

What you still owe the IRS

Your Canadian accounts don't stay off Uncle Sam's radar just because the bank already reports them:

Report	Threshold	Deadline
FBAR (FinCEN Form 114)	Foreign accounts over USD 10,000 combined at any time in the calendar year [5]	April 15, automatic extension to October 15 [5]
Form 8938, living abroad	Single: over USD 200,000 at year end or USD 300,000 at any time. Married filing jointly: USD 400,000 or USD 600,000 [5]	With your federal return

The FBAR goes through FinCEN's BSA E-Filing System, not with your 1040 [5]. Interest from Canadian accounts is taxable on your US return, and the treaty and foreign tax credit usually keep you from paying twice.

Your first-month banking checklist

Open the account in week one. You'll need it for your paycheck, rent and e-Transfers.
Bring your passport, permit, SSN and proof of address.
Answer the FATCA form honestly, including your US citizenship.
Add your SIN to the account once it arrives.
Ask for the newcomer credit card and set it to autopay in full.
Turn on Interac Autodeposit.
Decide how dollars will move: a USD account, a cross-border bank pair or a transfer service.
Start your FBAR list with each account's highest balance.

Want to compare notes on which branches handle American paperwork well? Ask in our community group for Americans in Canada.

Banking in Canada as an American: the FATCA form, the big five and your US dollars