A Canadian can open a bank account in a U.S. bank but with some caveats.
As you know the banking system in the U.S. is completely different from the system in Canada, so many banks are local or regional.? The result is that transactions you may need to do with your bank in Canada, such as transferring funds from your U.S. account in Canada to your U.S. bank may encounter some unexpected obstacles.
We dealt with one bank in Florida that wanted to hold deposit from? my TD U.S. account check for thirty days before releasing funds!? Needless to say I canceled my account on the spot.
I then interviewed the manager at a couple of prospective banks in the area in which we live in FLorida to find out their procedure in dealing with deposits from Canadian U.S. accounts.
The bank at which we have been dealing for several years now, makes the funds available immediately on deposit.?
Another concern is to remain out of the IRS system legally.? This includes the number of days you remain in the U.S. but also involves unnecessary withholding requiring an IRS report.
When you open your account, choose a checking account that does not pay interest.? That way you can get free checking and there will be no withholding, keeping you out of the IRS system.? ?Nothing illegal in this process, just saving yourself the grief of having to file unnecessary income tax forms.
Your new bank may even offer you a credit card, which is a great way to establish credit in the U.S.? Once you establish credit, you can choose a rewards card that will pay up to 5% on your purchases.
We manage all our banking and credit card affairs online, even while we are in Canada,? a very important part of financial management because of the constant threat of identity theft.? If you decide to do U.S. banking and have a U.S. based credit card, you need to follow your affairs closely.