High Interest Savings Accounts and FBAR reporting

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GDG
Posts: 5
Joined: Mon Dec 13, 2021 8:08 pm

High Interest Savings Accounts and FBAR reporting

Post by GDG »

Hi All,
My CIBC bank recommended a Renassinance High Interest Savings account for my US Dollar account with the bank. The interest is much better, 3.5%, then what the CIBC US Dollar account offers. Can anyone tell me if the IRS will consider this a money market fund and as a passive investment will require FBAR reporting? I'm concerned that the accounting fees incurred might be a significant headwind with this cash parking vehicle.
nelsona
Posts: 17806
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: High Interest Savings Accounts and FBAR reporting

Post by nelsona »

You are confusing FBAR with PFIC reporting. The account will need to be reported on FBAR along with all your other bank and investment accounts (assuming they total over US$10K).

As to whether it is a PFIC, it does not appear to be, since it is simply an interest bearing bank account. You are not investing in short-term interest notes.

Their use of the word "High" is of course laughable.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
GDG
Posts: 5
Joined: Mon Dec 13, 2021 8:08 pm

Re: High Interest Savings Accounts and FBAR reporting

Post by GDG »

Many thanks for the clarification!
Best regards!
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