Closing old account

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diane1
Posts: 16
Joined: Thu Jul 20, 2006 1:17 pm

Closing old account

Post by diane1 » Fri Jul 21, 2006 8:29 am

I have been in the US since 1998 and have no financial ties to Canada except a bank account that I have not used in years. In fact, I got a 'dormant account' letter a while back because it has not been used. Since the dollar is doing better, I figure its time to close the account and bring the money here. Is there any reason that I should maintain a Canadian account?

nelsona
Posts: 16546
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Jul 21, 2006 9:21 am

Opinion and General advcie:

I think all Cdns living in the US, whether or not they plan to return their should keep a Cdn bank account and a Cdn credit card. This has absolutely nothing to do with the CAD's strength.

Neither of these would have any implications on tax residency.

Although it would appear that you haven't had the need, many people have Cdn dollar transactions from time to time, and more simply visit family from time to time. having a Cdn dollar account is a place to save on all the US service charges for converting money and a way to pay any Cdn bills directly from your bank, saving time and postage and US foreign check fees.

Having a Cdn credit card allows you to pay for thing that are billed in Cdn dollars without the extra fees (some hidden some not) that your US credit card company charges on these 'foreign' transactions. The Cdn credit card would also keep your Cdn credit history ticking over.


You would have the credait card charges paid automatically with your Cdn bank account.

So, a no-fee credit card, and a checking account with no fees a nd a low minimum balance is a good thing.

Note: since you don't have a Cdn credit card, you probably can't get one at this stage, so I wouldn't fret this.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16546
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Fri Jul 21, 2006 9:23 am

... and if you have any Cdn income (you may have RRSP or pension coming to you at some point), the Cdn account will be the ideal repository.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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