You can deposit Canadian cash in a US bank if you hold an account at a full-service branch that handles foreign currency. The teller converts the bills to US dollars at the bank’s buy rate and credits your account, usually within a business day or two. You’ll receive less than the mid-market rate because the bank builds a markup into the conversion, and some banks add a flat fee.
Online-only banks and smaller credit unions generally can’t process foreign paper money. Call the branch before you go.
Which Banks Will Take Canadian Bills
Large national and regional banks are the most likely to handle Canadian paper because they have the vault space, secure transport, and processing systems to move foreign bills to a central facility. Full-service branches in major metro areas and near the Canadian border handle these transactions most routinely. Smaller satellite offices often send customers to a larger regional branch instead.
Not every location within the same bank offers the service, so a quick phone call to confirm saves a wasted trip. If your bank doesn’t accept foreign cash anywhere, a dedicated currency exchange storefront is the fallback.
One firm limit: banks that take foreign paper typically will not take foreign coins. US Bank, for example, states outright that it does not accept foreign coins. Leftover Canadian change is best spent in Canada.
What the Conversion Will Cost You
When you hand over Canadian dollars, the bank uses its own buy rate, which sits below the mid-market rate you see quoted on financial news sites. The gap is the spread, and it’s how the bank earns money on the trade. Bank of America discloses that its compensation comes from the difference between the price it pays to obtain foreign currency and the price at which it sells it. Spreads at major banks commonly run about two to five percent below the mid-market rate.
Some banks add a flat fee. Bank of America charges a $7.50 delivery fee on foreign currency orders under $1,000, though the policy for depositing currency can differ from the policy for ordering it. Other banks may deduct $5 to $15 per transaction from the converted amount. Ask the teller what rate and what fees apply before the deposit posts, so the final credit isn’t a surprise.
Dedicated currency exchange services often quote slightly better rates than banks. Airport kiosks tend to offer the worst rates you’ll find anywhere. On a large amount, checking a couple of options is worth the few minutes.
How the Deposit Works at the Teller
You have to do this in person. ATMs can’t read foreign bills, and mobile deposit only handles check images.
- Bring government-issued photo ID such as a driver’s license or US passport. Non-US residents can present a passport or other official document showing nationality or residence.
- Have an active account in good standing at that bank. Some banks will convert currency for non-account holders, but with tighter daily or monthly caps.
- Hand the bills to the teller, who counts them and enters the total into a conversion system that applies the current rate and any fees.
- Keep the receipt. It shows the Canadian amount, the exchange rate used, any fees, and the US dollar credit, which is your only proof of the rate you received.
When the Money Becomes Available
Regulation CC requires banks to make cash deposits available by the next business day, but the rule defines “cash” as United States coins and currency only. Foreign cash falls outside that definition, and foreign currency is also excluded from Regulation CC’s definition of a check.1eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC)
Because federal availability rules don’t reach foreign cash, each bank sets its own hold. In practice, expect one to three business days, with longer possible on large amounts or when the branch has to ship the bills to a central processing facility. Ask when the funds will clear at the time you deposit.
Reporting Rules for Large Deposits
Federal law requires banks to file a Currency Transaction Report on any cash transaction, including a deposit, that exceeds $10,000.2eCFR. 31 CFR 1010.311 – Filing Obligations for Reports of Transactions in Currency The rule applies to Canadian cash the same way it applies to US cash. Before the deposit is completed, the bank must verify and record your name, address, account number, and taxpayer identification number.3eCFR. 31 CFR 1010.312 – Identification Required
The report is routine anti-money-laundering compliance filed with the Financial Crimes Enforcement Network. It does not mean you’re under investigation. Expect the bank to ask where the funds came from, especially near the threshold.
Don’t Split the Deposit
Breaking a large cash amount into smaller deposits to stay under $10,000 is a federal crime called structuring, and it is illegal even when the underlying money is completely legitimate.4Office of the Law Revision Counsel. 31 USC 5324 – Structuring Transactions to Evade Reporting Requirement Prohibited Depositing $4,000 at three different branches on the same day to avoid the report can trigger a structuring investigation. If you have more than $10,000 in Canadian cash, deposit it in one transaction and let the bank file the paperwork.
If You Carried the Cash Across the Border
Anyone transporting more than $10,000 in currency or monetary instruments into the United States must file FinCEN Form 105 with US Customs and Border Protection.5Office of the Law Revision Counsel. 31 USC 5316 – Reports on Exporting and Importing Monetary Instruments The threshold covers the total value of everything you’re carrying, so Canadian and US bills combine toward it.
You can file Form 105 electronically through the FinCEN website before you travel or hand a paper copy to a CBP officer at the port of entry.6FinCEN.gov. FinCEN Form 105 Report of International Transportation of Currency or Monetary Instruments Failure to report carries three consequences:
- Seizure of all currency and monetary instruments you’re carrying.
- Civil penalties of up to $500,000.
- Criminal penalties of up to 10 years in prison.
These apply whether or not the money was legally earned.7USAGov. How Much Money Can You Bring Into and Out of the U.S.? Filing is free. There is no upside to skipping it.
Taxes on the Exchange Gain
Converting Canadian dollars to US dollars can create a taxable gain if the Canadian currency rose in value between when you got it and when you deposited it. For personal transactions such as exchanging leftover travel money, federal law excludes a foreign currency gain of $200 or less from income.8Office of the Law Revision Counsel. 26 USC 988 – Treatment of Certain Foreign Currency Transactions
If your gain exceeds $200, the entire gain becomes taxable as ordinary income, not just the amount above the threshold. Say you acquired C$5,000 when the rate was 0.72 USD per CAD and deposited it when the rate was 0.78. Your gain is roughly $300 in US dollar terms, and because that clears $200, the full $300 is taxable. Losses on personal foreign currency transactions are not deductible.8Office of the Law Revision Counsel. 26 USC 988 – Treatment of Certain Foreign Currency Transactions
Business-related foreign currency transactions, such as payments from a Canadian client, don’t get the personal exception, and gains and losses are ordinary regardless of size. Keep a record of when you obtained the Canadian cash and what the exchange rate was at that time so you can calculate any gain accurately at deposit.