I would disagree about using your Canadian bank card. For example, TD Canada Trust now charges a 3.5% fee for using for using your Visa debit card for non-CAD purchases or non-CAD cash withdrawals at TD ATMs in the U.S.. You are much better off converting your CAD at your local forex counter in Canada and depositing it in either your TD Canada Trust USD account or in your TD Bank U.S. account and withdrawing that using your bank card. Granted, if you are only talking small amounts, 3.5% is not that much, but money is money, and I personally would rather pay the ~0.5% fee that the forex counter charges rather than paying TD 3.5%.Honestly, that just sounds like an attempt to get you to pay more fees; banks will ALWAYS do that, I didn't just make up my account name.
If all you need is cash, use your Canadian bank card. There is no advantage to having a US$ bank account unless you have a source of US$ income, you are trying to time the exchange market (a fool's game), or you want to employ dollar cost averaging for a longer range savings plan which is probably more complex than you need. This is especially true if you are with a Canadian bank with US presence in your area. TD has branches throughout FL and taking money out is just as easy as in Canada, with no additional fees after exchange. Scotia and Royal both have a significant US presence, but I do not know where their affiliate branches are located.
A Visa card is not going to help you pay your relative in cash.
To be clear, this is not an additional 3.5%, this is the same (or similar) fee that you pay when you take out dollars over the counter at the bank, or from most forex counters. Generally the fee, which is hidden in the rate spread, at forex counters is similar or higher. I just checked the current counter rate at TD and it is roughly 2.6% this afternoon (I have seen the spot rate spread over 3%). So yes, using your bank card in the US is going to cost about 1% more than getting cash at the bank today. But then what price for convenience and peace of mind not carrying a ton of money that you exchanged in Canada.I would disagree about using your Canadian bank card. For example, TD Canada Trust now charges a 3.5% fee for using for using your Visa debit card for non-CAD purchases or non-CAD cash withdrawals at TD ATMs in the U.S.. You are much better off converting your CAD at your local forex counter in Canada and depositing it in either your TD Canada Trust USD account or in your TD Bank U.S. account and withdrawing that using your bank card. Granted, if you are only talking small amounts, 3.5% is not that much, but money is money, and I personally would rather pay the ~0.5% fee that the forex counter charges rather than paying TD 3.5%.
It is mostly additional if you exchange at a forex counter (and by counter, I mean a third-party f/x counter, not the banks'). I can usually get USD at 0.5% over the mid-market rate. A savings of 3% vs. using your bank card.To be clear, this is not an additional 3.5%, this is the same (or similar) fee that you pay when you take out dollars over the counter at the bank, or from most forex counters. Generally the fee, which is hidden in the rate spread, at forex counters is similar or higher. I just checked the current counter rate at TD and it is roughly 2.6% this afternoon (I have seen the spot rate spread over 3%). So yes, using your bank card in the US is going to cost about 1% more than getting cash at the bank today. But then what price for convenience and peace of mind not carrying a ton of money that you exchanged in Canada.
Note that the wording on the TD disclosure is that they charge 3.5% for Visa branded bank cards after Visa converts, and they still add the 0.035 to the exchange rate on non-Visa branded bank cards (which is also 3.5%) just like they always have. There is a subtle difference because of when the fee is calculated, and it is in the bank's favor, but it is a very small fraction of a percentage.
I visit a couple. I think they are independent shops, but am not sure. On is called "Cité Forex" the other is just called "Bureau de change". I don't always get ~0.5% -- it's a crap shoot (it is usually higher than that), but I threw that number out because I did manage to get that rate a couple of times, so it shows that you could technically save ~3% by not using your bank card (granted, it's a little less convenient).What exchange are you using?
Checking the CALFOREX exchange here in Ottawa (best rated on Google, in the heart of downtown), their US rate is 1.366500 vs. a current market rate of 1.3323 which is 3.42% difference, and then they tack their fee on top of that. It would be great to find one that gives market rate plus 0.5%. I know you're not Ottawa, but hoping they might have a branch here too.
What exchange are you using?
Checking the CALFOREX exchange here in Ottawa (best rated on Google, in the heart of downtown), their US rate is 1.366500 vs. a current market rate of 1.3323 which is 3.42% difference, and then they tack their fee on top of that. It would be great to find one that gives market rate plus 0.5%. I know you're not Ottawa, but hoping they might have a branch here too.
Thanks,Ultimate Currency Exchange (near Lincoln Heights in Ottawa) is 1.3475. Better than the rate downtown. No fees on top of this rate 1.3475 is the rate all fees included. Another option anyway
They do online trading and have locations in Toronto for those interested.