Questions about USD savings accounts

[tdu]

My partner and I have a little extra cash around that we normally use for vacations come winter. Everywhere we travel we generally use USD.

Would it be a good use of this money to open a USD savings account while the exchange rate is so good? I don't know much about USD savings accounts, so I don't know if this is the best use for them or not. I just know the exchange rate seems to get better in the summer, then worse in the winter when we take vacation.

Thanks a lot.

[MoreMiles]

My partner and I have a little extra cash around that we normally use for vacations come winter. Everywhere we travel we generally use USD.

Would it be a good use of this money to open a USD savings account while the exchange rate is so good? I don't know much about USD savings accounts, so I don't know if this is the best use for them or not. I just know the exchange rate seems to get better in the summer, then worse in the winter when we take vacation.

Thanks a lot.

US savings are not covered by CDIC, use at your own risk.

[tdu]

I don't know what CDIC is?

I should have clarified, I am talking about an account like Royal's USD eSavings account.

Thanks

[tng11]

I don't know what CDIC is?

I should have clarified, I am talking about an account like Royal's USD eSavings account.

Thanks

CDIC (Canada Deposit Insurance Co.) is a crown corporation which insures your deposits up to $100,000 at a member institution. Most banks that deal with consumers are covered by CDIC. However, US deposits are not covered by this insurance.

Hence, that's why it's important to pick where you put your USD carefully. If you go with a bank like ICICI which is CDIC insured, they are still high risk, and if they collapse, you lose all your money despite the fact CAD deposits would be covered.

Just stick with the RBC USD eSavings, as I wouldn't risk putting it at a bank with a higher rate but also higher chance of default.

[tdu]

CDIC (Canada Deposit Insurance Co.) is a crown corporation which insures your deposits up to $100,000 at a member institution. Most banks that deal with consumers are covered by CDIC. However, US deposits are not covered by this insurance.

Hence, that's why it's important to pick where you put your USD carefully. If you go with a bank like ICICI which is CDIC insured, they are still high risk, and if they collapse, you lose all your money despite the fact CAD deposits would be covered.

Just stick with the RBC USD eSavings, as I wouldn't risk putting it at a bank with a higher rate but also higher chance of default.

Thanks for the info.

I am not looking to make a ton off it, it just seemed like a better place to be storing the money for vacations based on the way the $ has been rising and dipping from Summer to Winter the last couple of years.

[angel_wing0]

Thanks for the info.

I am not looking to make a ton off it, it just seemed like a better place to be storing the money for vacations.

well the USD savings account pay next to nothing interest (+ u get taxed on the interest) AND not cdic insured, so it's not much different than putting it under your bed imo.

[Value Hunter]

well the USD savings account pay next to nothing interest (+ u get taxed on the interest) AND not cdic insured, so it's not much different than putting it under your bed imo.

One of the reasons why I don't keep US money in the highest paying US interest account is because it isn't CDIC insured. I put it in TD because I figure they wouldn't risk their reputation even though ICICI has a higher interest rate for US accounts.

[Bugler]

What about keeping the money in the US $ portion of a brokerage account.. I understand those might be insured for up to a million dollars?

Someone please check.

[tdu]

I wasn't really planning on trying to make money off the account, or look for high interest. As I said, it's just spare vacation money we keep around, which we end up converting to USD in the winter when we travel. I noticed Royal (the bank I use) has a USD saving account so I was curious if it was a good idea in this case.

Maybe I'd be better to just buy some US case while the exchange is good, and keep that around for the winter?