Choose the best US business bank account for your business

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If you are a Canadian resident and have financial ties or interests in the United States, having a US bank account can be highly beneficial. Whether you frequently travel to the US, have investments there, or need a convenient way to manage your cross-border finances, having a US bank account can provide you with easy access to US banking services and better flexibility in managing your funds.

In this article, we will explore some of the best US bank accounts available in Canada. We will discuss the key features, benefits, and considerations of each bank account, so you can make an informed decision on which one best suits your needs.

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Considerations when Choosing a US Bank Account

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When selecting a US bank account in Canada, it is important to consider a few key factors:

1. Fee Structure: Assess the fees associated with various transactions, such as wire transfers, ATM withdrawals, and foreign currency conversions. Look for an account that offers low or no fees for these services.
2. Access to ATMs: Consider the availability of ATMs in the US, as well as any associated fees for ATM withdrawals. Choose a bank with a large network of ATMs to ensure easy access to your funds.
3. Account domicile: The location of your business bank account can affect your access to local payment rails and financial services. It is essential to understand the difference between a US-domiciled bank account and a USD account.
4. Customer Support: Evaluate the level of customer support provided by the bank. Look for an institution that offers dedicated support for cross-border banking needs and can assist you with any issues that may arise.

Understand the difference between US-domiciled bank accounts

A USD account is registered or "domiciled" in Canada, which means it cannot use the American ACH network. Instead, transfers in a USD account are usually wire transfers, which can result in fees for both the sender and receiver. Moreover, using a USD account for payouts from revenue channels such as Stripe, Shopify, or Amazon can mean longer payment timelines and even FX fees.

On the other hand, a US-domiciled bank account is a real American bank account that is FDIC insured and has access to the American payments network. This means that a US bank account enables you to operate your business as an American entity without setting up a foreign business. With a US bank account, you can get a routing and account number that can be hooked up to your American revenue channels, enabling you to get paid faster and even saving up to 5% of your USD revenue.

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The best US bank account for growth focused Canadian companies

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If you are a Canadian small business, startup, brand, sole proprietor, or agency looking for a US business banking solution, Loop's US Business Account is an excellent fit for your business.

Loop's US bank account enables Canadian businesses to access the American financial system for free, eliminating wire fees and avoiding unnecessary currency conversions. Plus, there are no monthly account fees, and the account comes with unlimited freedom with no restrictions on the number of transactions, wires, transfers, or withdrawals you can make.

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Why Choose Loop's No-Fee US Business Account?

Loop's US bank account enables Canadian small businesses, startups, brands, sole proprietors and agencies to access the American financial system for free. This allows them to establish a presence in the US easily.

1. Connect an American bank account to US channels like Stripe, Amazon, or Shopify to get paid faster.
2. American clients can pay you faster through direct ACH transfers.
3. Make faster payments to suppliers and contractors based in the US
4. Eliminate wire fees and avoid unnecessary currency conversions

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Plus, there's other perks:

• Cost-Efficiency: Say goodbye to monthly account fees. Loop's business account is entirely free, ensuring that your money stays where it belongs - in your business.
• Unlimited Freedom: With Loop, there are no restrictions on the number of transactions, wires, transfers, or withdrawals you can make. This unparalleled flexibility guarantees that arbitrary limits never hinder your business operations.
• Global Access: Loop's strategically domiciled accounts enable you to tap into local payment rails worldwide, making international transactions a breeze. Get British and European bank accounts too.
• Competitive FX Rates: Save on costly FX conversion fees with Loop's competitive foreign exchange rates, maximizing your revenue from international clients.
• Grow your credit limit: Loop grants corporate credit based on sales and business performance. By receiving direct payouts into your Loop account, you can enhance your credit standing and increase your limit. Other virtual accounts like Wise Business Accounts may provide US bank accounts, but these accounts will not help your business enhance its credit profile over time.
• Digital first: access a platform that's user-friendly, simple and streamlined. Eliminate cheque deposits, wire fees and visiting branches to perform simple transactions.

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How to evaluate other business bank accounts in Canada

Choosing between US business accounts in Canada for small business owners and at the enterprise level, is fairly simple. Just keep the following considerations top of mind:

• Monthly costs
• Transactional fees
• FX rate used by the financial institution
• Where is the account domiciled
• Support
• Usability
• Consolidation

Monthly costs and transactional fees

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Monthly Fees: Determine if there are monthly fees associated with the account. Many traditional banks charge monthly fees for their business accounts.

Add-On Fees: Investigate potential add-on fees for services like wire transfers, currency conversions, and penalties for exceeding account limits or incoming payments (debits). You can request a complete pricing structure from the financial institution, and keep in mind - if the pricing schedule is long, complicated and hard to read, that's an immediate red flag.

Pricing for business chequing accounts should be honest, simple and transparent.

Foreign exchange

A USD account with a traditional bank such as the RBC Digital Choice Business Account will use the foreign exchange rate (FX rate) from RBC to convert balances, and you're guaranteed to lose revenue to RBC's very high FX rates. You can compare FX rates here between providers.

When deciding where to open a US bank account, think about the FX rate used by the financial institution. High FX rates can lead to significant cash losses over time.

Where is the account domiciled?

Consider if the USD business account is domiciled in Canada or the United States. A U.S.-domiciled account offers easier access to local U.S. payment networks (ACH), reducing the need for costly cross-border transactions. It also means faster payment times and easier integration with other American entities like Stripe.com, Amazon.com etc.

Support

If you have problems with your US bank account, check how much help the bank can provide. Do you need to visit a branch every time you're looking to make a payment? Can you get a prompt response from the company if you have questions? Don't choose an institution that won't help you when you need to make quick financial choices for your business.

Usability

Cross-border transactions shouldn't be complicated or time-intensive. Choose a bank with a platform that's user-friendly, digital first and enables you to perform transactions in minimal time. Choosing a platform that's buggy, time-consuming to use or very complicated will result in a lot of wasted time and frustration in the future.

Consolidation of platforms

Managing a global business of any size shouldn't require multiple logins. Choose a banking platform that does more than banking. Consider platforms that easily offer credit, working capital, billing, FX, payments and more. Consolidating all your financial services into one platform will save time in teh future from streamlined financial management and quick reconciliation.

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Other accounts by traditional providers

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1. HSBC Bank USA

HSBC Bank USA offers a range of US bank accounts designed specifically for Canadian residents. Their Premier Checking account provides several perks, such as free ATM withdrawals worldwide, waived foreign transaction fees, and access to HSBC's Premier Relationship Managers who can assist with your US banking needs. Additionally, they offer competitive interest rates on their Premier Checking and Advance Checking accounts.

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2. TD Bank Cross Border Banking

TD Bank Cross Border Banking allows Canadian residents to easily manage their US and Canadian accounts from a single platform. With this account, you can transfer funds between your TD Bank US and Canadian accounts without any transaction fees. They also offer a variety of account types, including Checking, Savings, and Money Market accounts, to fit your specific requirements.

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3. BMO Harris Premier Account

BMO Harris Premier Account is another excellent option for Canadians looking to open a US bank account. This account provides unlimited transactions, free online banking, and access to a large network of ATMs in the US. Additionally, BMO Harris offers competitive interest rates on their Premier Account, making it a great choice for those looking to earn more on their deposits.

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4. RBC Bank USA

RBC Bank USA offers a wide range of US bank accounts tailored to meet the needs of Canadian residents. The RBC Bank U.S. Checking account allows you to easily transfer funds between your Canadian and US accounts, offers free access to thousands of ATMs in the US, and provides a suite of online banking services to simplify your cross-border banking experience.

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5. Scotiabank US Dollar Account

Scotiabank's US Dollar Account offers Canadians the convenience of holding US funds and conducting transactions in US dollars. With this account, you can easily transfer funds between your Canadian and US accounts, as well as take advantage of Scotiabank's online and mobile banking platforms. This account provides the flexibility and ease of managing your cross-border finances, with no monthly fee if you maintain the minimum balance required.

In conclusion, opening a US bank account in Canada can provide you with numerous advantages in managing your finances. By carefully considering the features, benefits, and considerations discussed in this article, you can select the best US bank account to meet your needs and enjoy a seamless cross-border banking experience.

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In conclusion, opening a US bank account in Canada can provide you with numerous advantages in managing your finances. By carefully considering the features, benefits, and considerations discussed in this article, you can select the best US bank account to meet your needs and enjoy a seamless cross-border banking experience.

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