US & Canada Bank Accounts/ CDs/ Credit Cards

ethannathan · Post by **ethannathan** » Tue Mar 17, 2009 7:36 pm

Nelsona and All,

I have a bank account and CD in a US bank. Now I am going to Canada on a temporary workpermit. I may stay for a couple of years. My question is.

Should I close the US bank accounts and move the funds to Canada? The CD rates in US bank seem to be better than the interest rate I can get in Canada.

While living in Canada, if I maintain my US bank account and CDs, what are the tax implications. Is it worth it?

I am also hearing that if I take more than $10k CAD to canada, I have to pay tax on it. -- Is this true?

I also have a US credit card (My first). I am planning to keep the card not use it while in Canada by paying the annual fee and apply for a new secure card in Canada. Is this the right way? I could not think of any other options.

Also, do you reccomend any good banks in Toronto?

Please let me know.

PS: I am an Indian citizen in US on a L1 and going to Canada on temporary work permit.

nelsona · Post by **nelsona** » Wed Mar 18, 2009 4:30 am

C'mon. The Cdn tax system is hardly differnt than US, There is no "wealth tax", so money you bring in the country is not taxed. INCOME is taxed, just like in US.

It doesn't matter if you keep all youraccounts in US. YOu are still taxable in US eherever you live, and also taxable in Canada wherever the income is generated.

As to your cresit cards, why carry a US one with a fee? Get one with no fee. And use it whenever you are in US.

And avoid a "secured" card in canada. Just get a regular credit card, anduse it when in canada.

All the banks are the same in Canada. Pick one near you apartment

Oh, and always make cureency exchanges at the Cdn bank and not a US one. US banks screw you on exchange rates.

ethannathan · Post by **ethannathan** » Wed Mar 18, 2009 9:12 am

Thanks Nelsona!

Any specific reason to avoid secure credit card in Canada? When I first entered US 6 years ago, no one was ready to give me a regular card, so I had to go for a secure card. I was under the impression that I may have to do the same thing in Canada?

nelsona · Post by **nelsona** » Wed Mar 18, 2009 10:09 am

Canada has never had the overwhelming credit default problem US has. It's getting there, but it should still not be required.

Do what you should hve done when you moved to US: you go to the bank, and tell them you will bring your business to them if they provide you what YOU want, and that will include a no-fee non-secure credit card.

If they don't want to, vote with your feet and go down the street.

ethannathan · Post by **ethannathan** » Wed Mar 18, 2009 10:34 am

Sounds good Nelsona!

Thanks for the advice.