Best Banks For Snowbirds: Travel With Peace Of Mind

what banks are good for snowbird travelers

If you're a snowbird, you may want to consider opening a US bank account to save on conversion costs and fees. While it's not necessary, as there are now several ways for Canadians to handle their finances and make payments in US currency without a US-based bank account, it can be beneficial if you're spending several months in the US each year. Several banks offer US dollar bank accounts, including Royal Bank of Canada, TD Bank, and BMO. These accounts can provide easy access to US funds and reduce fees associated with making bank withdrawals in the US.

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Fee-free ATM access and waived currency-conversion charges

When it comes to fee-free ATM access and waived currency-conversion charges, there are a few options available for snowbirds.

Firstly, it is worth noting that most Canadian financial institutions offer US bank accounts and credit cards, which can be beneficial for snowbirds who travel frequently to the US. By having a US bank account, snowbirds can avoid the conversion costs and fees associated with using their Canadian debit and credit cards in the US.

One option for fee-free ATM access is to open a US bank account with a bank that has branches in both Canada and the US, such as RBC or Desjardins. RBC's Snowbird Package, for example, offers a US bank account with RBC Centura, which has branches in the US Southeast, including Florida. This package includes a bank card that can be used for fee-free withdrawals at US ATMs, although it does come with a $25 monthly fee, waived if you keep more than $2500 in the account.

Another option is to choose a bank that offers waived currency-conversion charges. For example, the BMO Harris Smart Advantage Account offers unlimited transactions and has over 40,000 ATMs globally where you can withdraw funds at no charge. Similarly, TD Bank offers the US Dollar Visa Card, which has no foreign transaction fees when paired with a TD US Daily Interest Chequing Account.

Additionally, some banks offer accounts with no monthly fees and the ability to earn interest on deposits, such as the CIBC US Personal Account, which also allows for US cash withdrawals from any CIBC ATM or physical branch in Canada.

Finally, for those seeking a completely fee-free and convenient option, the Home Trust Preferred Visa credit card is ideal for snowbirds as it has no foreign transaction fees and no annual fee.

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US-based accounts for frequent travellers to the US

If you're a frequent traveller to the US, it's important to choose a bank account that minimises fees and provides easy access to your funds. Here are some US-based accounts that are well-suited for frequent travellers:

Royal Bank of Canada (RBC)

RBC offers a Snowbird Package for Canadian snowbirds, which includes a bank account at RBC Centura, with branches in the US Southeast, including Florida. The package costs $25 (USD) per month, but the fee is waived if you maintain a balance of over $2,500. It includes a chequing account and a bank card for ATM withdrawals, as well as travel insurance, access to mortgages, and preferential exchange rates.

Caisses Desjardins

For Quebec residents, Caisses Desjardins offers an account at Desjardins Federal Savings Bank for those who winter in Florida, with services available in French and English.

TD Canada Trust

TD Canada Trust offers a Borderless Plan that provides preferred exchange rates when buying or selling US dollars, as well as unlimited no-fee cheques, bill payments, transfers, and withdrawals. The fee is $4.95 (USD) per month, waived if you maintain a balance of over $3,000 or if you have the premium Select Service package.

Bank of Montreal (BMO)

BMO offers the Enhanced Plan for $15 (CAD) per month, or $4 if you're over 60. This includes up to 70 transactions for a Canadian account and a linked US-dollar account, as well as fee waivers for up to two withdrawals per month from ATMs in the US. It also includes a US-dollar MasterCard and free money orders and traveller's cheques.

Charles Schwab

Charles Schwab offers the High Yield Investor Checking account, which has no monthly service charge, minimum opening balance, or account minimums. It provides unlimited ATM fee rebates worldwide and no foreign transaction fees. To open this account, you must also open a brokerage account with Charles Schwab, but there are no maintenance fees for this.

Capital One

Capital One 360 Checking has no monthly service fee, minimum opening deposit, or account balance requirements. It offers no foreign transaction fees and a range of overdraft protection options. While it doesn't reimburse out-of-network ATM fees, it provides access to over 70,000 free ATMs worldwide.

Ally Bank

Ally Bank offers savings and checking accounts with no monthly service charge or account minimums. It charges a standard foreign transaction fee of up to 1% for currency conversion and international transactions, and reimburses ATM fees up to $10 per statement cycle.

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No foreign transaction fee credit cards

One option for Canadian snowbirds is the Home Trust Preferred Visa Card, which has no foreign transaction fees and no annual fee. This card uses the exchange rate set by Visa International and offers 1% cashback rewards on all eligible purchases. However, it is not available in Quebec.

Another option is to go with a US-based bank that offers credit cards with no foreign transaction fees. This can be more challenging since most US banks cannot access your Canadian credit history and may require a US address. But it can be a good choice if you want a card with no annual fees and rewards programs. Just be aware that transferring money between your Canadian and US bank accounts may be difficult and costly.

Alternatively, some Canadian banks have expanded into the US and now offer US credit cards and bank accounts to Canadians through their US affiliates. This option gives you the benefits of a US-based bank account, such as the ability to make bill payments and transfer money in the US, as well as link your Canadian and US bank accounts for easier money transfers. RBC and Desjardins, for example, offer US bank accounts that can be set up at their branches in Canada.

Overall, no foreign transaction fee credit cards can help snowbirds save money and provide added convenience when travelling or making purchases in foreign currencies.

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US dollar bank accounts

While it is not necessary to open a US bank account as a snowbird, it can be beneficial. It can save you from the hassle of carrying large amounts of cash or travellers' cheques, and you can avoid the fees associated with using your Canadian debit and credit cards in the US.

  • Royal Bank of Canada (RBC)
  • Desjardins Federal Savings Bank
  • TD Bank
  • BMO
  • CIBC

Royal Bank of Canada (RBC)

RBC offers two US-based accounts for frequent travellers to the US. The RBC Personal US Bank Account charges a $2 monthly fee, which is waived if you keep more than $2500 in the account. It includes 6 debits per month (with a $1.25 charge for each additional debit) and no minimum balance requirements.

The RBC US High-Interest eSavings Account has no monthly fees, and you can earn up to 0.05% interest on your balance. This account comes with one free transaction per month, with a $3 fee for each additional transaction.

Desjardins Federal Savings Bank

Desjardins Bank is a subsidiary of the Desjardins Group, a Quebec financial institution that was the first to open in Florida. It offers services in French and English, catering to the many Quebeckers who spend their winters in Florida.

TD Bank

TD Bank offers the US Daily Interest Chequing Account, with no monthly fee and interest paid on balances of $1000 or more. There is also the TD Borderless Plan, which offers preferred exchange rates and unlimited no-fee cheques, bill payments, transfers, and withdrawals. The fee for this plan is $4.95 per month, waived if you maintain a minimum balance of $3000 or have the premium Select Service package.

BMO

BMO offers the BMO US Dollar Chequing Account, with no monthly fees if you maintain a minimum monthly balance with a qualifying Bank Plan, as well as unlimited transactions on BMO platforms and one free non-BMO ATM withdrawal per month.

The BMO Harris Smart Advantage Account has no monthly fees if you opt for paperless statements and unlimited transactions, with access to over 40,000 ATMs worldwide.

CIBC

CIBC offers the US Personal Account, with no monthly fees and the ability to earn 0.05% interest on every dollar deposited without minimum balance requirements. You can write cheques in US funds and withdraw cash from any CIBC ATM or physical branch in Canada, with a $0.75 fee per transaction.

Advantages of US Dollar Bank Accounts for Snowbirds

US bank accounts offer several advantages for snowbirds, including:

  • Control over your money and when you exchange currency
  • The ability to keep money in your US account for future purchases
  • The option to wait for a better exchange rate before converting currency
  • Access to a US debit card for easier transactions
  • The ability to convert currency online
  • The potential to earn interest on your account balance
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Cross-border banking

Types of Cross-Border Banking Services

There are several cross-border banking services available to snowbirds, including:

  • US Dollar Bank Accounts
  • No Foreign Transaction Fee Credit Cards
  • US Dollar Credit Cards

US Dollar Bank Accounts

Canadian banks typically offer US dollar bank accounts, which allow funds to be deposited and saved in US funds to avoid foreign exchange costs. Canadians may also be able to open US dollar accounts with American divisions of their Canadian banks. These accounts allow consumers to make transfers to and from Canadian bank accounts and come with flexible options for obtaining cash and making payments in the US, such as ATM cash withdrawals and writing and depositing US cheques.

No Foreign Transaction Fee Credit Cards

These credit cards can save consumers between 2.5% to 5% in transaction fees when making purchases in American currency, as they do not charge foreign transaction fees like Canadian credit cards do.

US Dollar Credit Cards

US dollar credit cards can also save consumers money on foreign transaction fees and currency exchange costs. While many US dollar cards don't offer loyalty plans, this is beginning to change, and it's worth shopping around for a card that offers the most benefits.

Frequently asked questions

A snowbird is a Canadian who spends a good part of the winter in the southern US to escape the harsh Canadian winters.

Some good banks for snowbirds include RBC, TD Bank, BMO, CIBC, and Desjardins.

Some advantages of US bank accounts for snowbirds include:

- Control over your money

- The ability to decide when and how to exchange currency

- No need to transfer money back to a Canadian account

- The ability to wait for a better exchange rate before converting currency

- A US debit card for easier transactions

- The option to convert currency online

- The opportunity to earn interest on the account balance

Some disadvantages of US bank accounts for snowbirds include:

- Monthly banking fees

- Minimum balance requirements to waive fees

- Limited transactions included in the plan

- Difficulty writing cheques in US funds

- Inability to deposit and withdraw funds from US ABMs

- Lack of access to online banking

Some alternatives to opening a US bank account as a snowbird include:

- Using a Canadian credit card with no foreign transaction fees

- Using a Canadian bank that offers US dollar bank accounts

- Using a foreign currency exchange company for large or regular currency conversions

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