Yes, a Canadian can open a US bank account. Federal law does not bar foreign nationals from holding deposit accounts at American banks, and hundreds of thousands of Canadians already do. What the law does require is that the bank verify who you are before opening the account, which in practice means bringing a valid Canadian passport, a second piece of ID, proof of your Canadian address, and completing IRS Form W-8BEN to certify your foreign status.
What US Law Actually Requires
Section 326 of the USA PATRIOT Act obliges every U.S. bank to run a Customer Identification Program. Under the implementing regulation, the bank has to collect four things from anyone opening an account: your name, date of birth, address, and an identification number.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements For non-U.S. persons, that identification number can be a passport number and country of issuance, an alien identification card number, or a taxpayer identification number. You do not need a Social Security Number to meet this federal requirement.
Beyond those minimums, each bank sets its own policies. Some limit which account types non-residents can open. Some insist you appear in person rather than apply online. Those are business decisions, not legal barriers. If one bank turns you down, another may take you.
Documents to Bring
- Valid Canadian passport. The single most important document. It proves your identity, legal name, and foreign status in one step, and the passport number satisfies the CIP identification-number requirement.1eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements
- Secondary photo ID. Most banks want a second piece of identification, typically a provincial driver’s license. This is a bank policy, not a federal rule.
- Proof of address. A recent utility bill, bank statement, or lease showing your Canadian residential address, usually issued within the last 90 days. Your Canadian address is fine; federal law does not require a U.S. street address.
- Form W-8BEN. The IRS form certifying your foreign status for tax purposes. Most banks hand this to you during the application.
Do You Need an ITIN?
An Individual Taxpayer Identification Number is not strictly required by federal regulation, since a passport number already qualifies as an identification number under the CIP rules. In practice, some banks ask for either an SSN or an ITIN as part of their internal compliance policies, particularly for interest-bearing accounts. If your chosen bank requires one, you file IRS Form W-7 along with your original passport or a certified copy from the issuing agency.2Internal Revenue Service. Instructions for Form W-7 A certified copy means one stamped by the passport-issuing government. The IRS does not accept notarized copies.3Internal Revenue Service. ITIN Supporting Documents
Allow at least seven weeks for the IRS to process an ITIN application, and nine to eleven weeks if you file between January 15 and April 30 or from outside the United States.4Internal Revenue Service. Form W-7 Application for IRS Individual Taxpayer Identification Number If your bank wants an ITIN, apply well before you plan to open the account.
How to Open the Account
In Person at a US Branch
Walking into a U.S. branch is the most straightforward path. You hand over your original documents, the officer verifies them, you sign the signature card, and you leave with an active account. For Canadians near the border, this is often a day trip. Bring your passport, secondary ID, address proof, and enough money for the opening deposit.
Cross-Border Programs from Canadian Banks
Several major Canadian banks operate U.S. subsidiaries that make this considerably easier. TD Bank runs TD Bank, N.A. across the eastern United States, and its cross-border banking program lets existing TD customers in Canada open U.S. accounts with streamlined identity verification because the parent bank already has your information on file.5TD Bank. Cross-Border Banking RBC operates RBC Bank specifically for Canadians who live, travel, or work in the United States. BMO runs a U.S. banking subsidiary as well. These programs often let you start the application from Canada, sometimes entirely online, and they simplify moving money between your two accounts.
If you already bank with TD, RBC, or BMO in Canada, ask about their U.S. account options before shopping elsewhere. It’s usually the fastest route.
Funding and Monthly Fees
After approval, you need to deposit funds to activate the account. Most people wire money from their Canadian bank or bring a certified check. International wire transfers into the U.S. usually carry fees on both ends, so ask both banks about their charges before initiating one. Cross-border customers often have access to cheaper transfer methods between paired accounts.
Basic checking accounts commonly charge a monthly maintenance fee in the range of $6 to $15, and the fee is usually waived if you maintain a minimum balance. At U.S. Bank, for example, the $12 monthly fee on its Smartly Checking account is waived with an average balance of $1,500 or more.6US Bank. Consumer Pricing Information Thresholds vary, so compare fee schedules before choosing.
Your Deposits Are FDIC Insured
Money in a U.S. bank gets the same federal insurance as an American depositor’s. The FDIC covers deposits regardless of the account holder’s citizenship or residency status, up to $250,000 per depositor, per insured bank, for each ownership category.7Federal Deposit Insurance Corporation. Deposit Insurance At A Glance If the bank fails, your covered deposits are protected dollar for dollar. This applies to checking accounts, savings accounts, certificates of deposit, and money market deposit accounts at FDIC-insured institutions.
Tax on the Interest and the W-8BEN
Here’s where most Canadians get bad information. The standard 30% withholding tax on U.S.-source income paid to non-resident aliens does not apply to ordinary bank deposit interest. Federal law specifically exempts interest on deposits with U.S. banks from that tax, so long as the interest isn’t connected to a U.S. trade or business.8Office of the Law Revision Counsel. 26 US Code 871 – Tax on Nonresident Alien Individuals The exemption sits in the tax code itself and does not depend on the U.S.-Canada tax treaty.
The bank only knows to apply that exemption if you tell them you’re a non-resident alien. That is the job of IRS Form W-8BEN. On the form, you certify under penalty of perjury that you are not a U.S. citizen or resident alien, and you supply your name, Canadian address, and Canadian tax identification number (your Social Insurance Number).9Internal Revenue Service. Instructions for Form W-8BEN Without a valid W-8BEN on file, the bank may apply backup withholding at 24% on your interest. Filing the form correctly prevents that.
Keeping the Form Current
A W-8BEN is valid from the date you sign it through December 31 of the third calendar year afterward. A form signed any time during 2026 stays valid through December 31, 2029.9Internal Revenue Service. Instructions for Form W-8BEN If your circumstances change before then (you move, change your name, or become a U.S. resident), notify the bank within 30 days and submit a new form. Let it expire without renewing and the bank must begin withholding until a new form is on file.
Do You Need to File a US Tax Return?
Usually no. Because bank deposit interest is exempt from U.S. tax for non-resident aliens, earning it alone does not trigger a requirement to file Form 1040-NR.10Internal Revenue Service. Instructions for Form 1040-NR The exception is if backup withholding was applied because you didn’t have a valid W-8BEN on file. Then you’d file 1040-NR to claim a refund.
You Still Owe Canadian Tax on the Interest
Even though the U.S. exempts the interest, Canada does not. The Canada Revenue Agency requires you to report worldwide income, including interest earned in U.S. accounts, on your Canadian return. The CRA will likely already know about the account: under FATCA and Part XVIII of the Canadian Income Tax Act, U.S. financial institutions report account information to the IRS, which shares it with the CRA.11Canada Revenue Agency. Enhanced Financial Account Information Reporting Part XVIII Skipping the reporting doesn’t save money; it creates an audit risk with a government that already has the numbers.
Time in the US Is a Separate Question
Opening a U.S. bank account does not make you a U.S. tax resident. Spending too many days on American soil can. The IRS uses a formula called the substantial presence test, which counts your days in the country over a three-year window. You’re treated as a U.S. tax resident if you were physically present in the United States for at least 31 days during the current year and a weighted total of at least 183 days across the current year and the two preceding years.12Internal Revenue Service. Topic No. 851, Resident and Nonresident Aliens The formula counts all your days in the current year, one-third of your days the year before, and one-sixth two years back. A Canadian who spends about five months in the U.S. each winter can hit the threshold surprisingly fast once prior years are factored in.
Canadians who trip the test but were present fewer than 183 days in the current year can claim a closer connection to Canada by filing IRS Form 8840. To qualify, you must have kept a tax home in Canada for the entire year and must not have applied for a U.S. green card.13Internal Revenue Service. Closer Connection Exception to the Substantial Presence Test The form must be filed by the due date for Form 1040-NR, including extensions. Miss the deadline and you lose the exception and may be treated as a U.S. tax resident for the entire year.14Internal Revenue Service. Closer Connection Exception Statement for Aliens If you spend more than about four months a year in the United States, talk to a cross-border tax professional about whether you need to file it.