Cdns demand cross-border banking services

Many Canadians are looking for cross-border banking solutions in North America.

Those who regularly shop, study or conduct business in the U.S. have been affected by the rising Loonie, and say a U.S.-dollar bank account would help them save.

Read: Reduce the cost of cross-border holiday shopping

There are also several differences between Canadian and U.S. banking, which make it more difficult to process payments and transactions. These include:

• Post-dated cheques aren’t recognized in the U.S., so if the recipient of the cheque deposits it early, it will clear immediately.
• The U.S. clearing system is a little slower, however, so the money may not be deducted from your clients’ accounts for up to 14 days.
• ATMs in America don’t allow customers to pay bills via the machine.
• In the U.S., all transactions may take a few days before they’re posted to your account. ATM and debit transactions take one-to-three days to process, while bill payments processed through merchants can take five-to-seven days. Often, restaurant tips and hotel deposits aren’t accurately reflected until the entire transaction clears.
• When making deposits and withdrawals at a bank branch, you fill out slips for transactions rather than using your debit card.

So, banks like TD are introducing new cross-border banking services that make it easier for Canadians to both open bank accounts down south and deal with their funds.

Read: Cross-border planning full of conflict

Using TD, people can also build U.S. credit history, apply for a U.S. mortgage, and easily transfer money from one country to the next without worrying about conversion rates and currency exchange service charges.

“Thousands of Canadians cross into the U.S. every day,” says Greg Quinn, vice president of TD Canada Trust. “These services help them leverage both U.S. and Canadian credit histories.”

Read: Ask clients about cross-border activities

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.