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.
High Interest Savings Accounts and FBAR reporting
Moderator: Mark T Serbinski CA CPA
Re: High Interest Savings Accounts and FBAR reporting
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.
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: High Interest Savings Accounts and FBAR reporting
Many thanks for the clarification!
Best regards!
Best regards!