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Cheers or Geers
Wednesday February 22, 2012 10:33 AM
Jon Nadler

I need to open a savings account with our northern neighbors.

Across Lake Erie Canada is closer to me than Cleveland.

Not that I have the kind of money to do this, but can a US citizen open an account with a Canadian bank? Just curious.

I looked at their basic savings accounts, tfsa? its like double the us rate.

I'm pretty sure US citizens can open an account up here, just you'll probably need at least
3 pieces of ID nowadays. If anyone wants I can check into what current ID requirements
are, I think I needed 3 pieces last time I opened a regular bank account.

You can't open a TFSA (Tax Free Savings Account) as those are only for Canadian residents,
a non-Canadian would run into problems there as your home country's tax authorities would
not recognize it. (A TFSA is similar to what I've read a Roth-IRA is like but more flexible.)
When I opened my TFSA brokerage account I was required to fill out a W8 if I wanted to
trade any U.S. securities.

http://www.blog.businessready.ca/what-is-a-w8-ben/

First time I've ever had to fill that out when dealing with a Canadian Bank.

Some banks and credit unions seem to be offering higher than normal rates on TFSA
deposit accounts to promote them. I'm not sure how long that will last before things
get more normalized. These higher rates aren't an inherant part of the TFSA, just
the current promotional offer of some financial institutions.

I don't see why they would not let us, after all they could lend out against whatever money is invested into savings. Im honestly thinking aboot doing this.

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
See: http://www.irs.gov/businesses/small/art ... 49,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) - Filing Requirements
http://www.irs.gov/businesses/small/art ... 44,00.html

Copper Catcher wrote:If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
See: http://www.irs.gov/businesses/small/art ... 49,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) - Filing Requirements
http://www.irs.gov/businesses/small/art ... 44,00.html

how can they legally tax something on foreign soil? I would like to see what Canadian law says about me investing in their banks.

John_doe wrote:

Copper Catcher wrote:If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
See: http://www.irs.gov/businesses/small/art ... 49,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) - Filing Requirements
http://www.irs.gov/businesses/small/art ... 44,00.html

how can they legally tax something on foreign soil? I would like to see what canadian law says about me investing in their banks.

It's America, they charge you money if you revoke your citizenship

Neckro wrote:

John_doe wrote:

Copper Catcher wrote:If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).

The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
See: http://www.irs.gov/businesses/small/art ... 49,00.html

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) - Filing Requirements
http://www.irs.gov/businesses/small/art ... 44,00.html

how can they legally tax something on foreign soil? I would like to see what canadian law says about me investing in their banks.

It's America, they charge you money if you revoke your citizenship

charging and collecting are two far different things.

p.s. if i renounce my citizenship and decide to apply for citizenship for another country, once my citizenship is approved im not longer able to be prosecuted under united states law. also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis. the money I look to invest has already been taxed. if they choose to chase it down thats on their own time.

John_doe wrote:
I would like to see what Canadian law says about me investing in their banks.

Its pretty easy. Im sure a few of our banks are on the NYSE. There are 5 main ones. A strategy I like but havent implimented yet is every year or quarter (dependin on your income) purchase the bank with the highest yield. They are all similar and should balance out.

That will ensure you get the best bang for your buck and give you incoming cash for PMs

frugalcanuck wrote:

John_doe wrote:
I would like to see what Canadian law says about me investing in their banks.

Its pretty easy. Im sure a few of our banks are on the NYSE. There are 5 main ones. A strategy I like but havent implimented yet is every year or quarter (dependin on your income) purchase the bank with the highest yield. They are all similar and should balance out.

That will ensure you get the best bang for your buck and give you incoming cash for PMs

I was looking for high yield savings within Canadian borders. There havent been any rumors of easing have there?

John_doe wrote:also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis.

Sounds like a winning strategy.

stevkc wrote:

John_doe wrote:also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis.

Sounds like a winning strategy.

Investing in Canadian banks on a post tax basis does. I'm just saying if the IRS wants to go through all of that stuff they are more than welcome to. I'm not filling out the forms unless the Canadian government requires me to however.

there is no high yield savings that I know of. ING is at 1.5% for me at the moment.
Canadian bank stocks useually yeild between 4% - 5% the last few years.

John_doe wrote: p.s. if i renounce my citizenship and decide to apply for citizenship for another country, once my citizenship is approved im not longer able to be prosecuted under united states law. also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis. the money I look to invest has already been taxed. if they choose to chase it down thats on their own time.

You don't have enough money for them to give you any respect, and who would you point out the illegal activity to? The way the US is set up, the judge could agree with you up and down the line, and still convict you, and throw you in prison. No, being a citizen of another country would mean nothing, IMO.

John_doe wrote:p.s. if i renounce my citizenship and decide to apply for citizenship for another country, once my citizenship is approved im not longer able to be prosecuted under united states law. also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis. the money I look to invest has already been taxed. if they choose to chase it down thats on their own time.

Tell that one to all the Canadians being prosecuted under US law. There are even Canadians being prosecuted under US law for crimes that didnt take place in the US. And some people wonder why the US is bankrupt.

Mossy wrote:

John_doe wrote: p.s. if i renounce my citizenship and decide to apply for citizenship for another country, once my citizenship is approved im not longer able to be prosecuted under united states law. also if they want to get real picky i can start pointing out some of the illegal things they do on a daily basis. the money I look to invest has already been taxed. if they choose to chase it down thats on their own time.

You don't have enough money for them to give you any respect, and who would you point out the illegal activity to? The way the US is set up, the judge could agree with you up and down the line, and still convict you, and throw you in prison. No, being a citizen of another country would mean nothing, IMO.

I'll invest as I see fit. If they want to try to send me tax forms on money they have already taxed, then more power to them. I'm just saying for a group of people that already have a bad image to keep trashing it goes a long way.


They can have all the fiat they want. Once they posses all of it it becomes worthless anyways right?

frugalcanuck wrote:there is no high yield savings that I know of. ING is at 1.5% for me at the moment.
Canadian bank stocks useually yeild between 4% - 5% the last few years.

1.5% is still higher than most in the states are offering. I will look into it.