A cross-border savings idea
By Pam Dillon | July/August 2019
By some estimates, over a million Canadians aged 55 and older spend at least 31 days in the U.S. during the year, with a large number staying three to six months in sunny destinations such as Florida, Arizona, California and Texas. In Florida for instance, more than half a million Canadians own property. Are you one of these Snowbirds?
If so, you may have opened a U.S. dollar bank account and you may use a U.S. credit card, while south of the border, to insulate yourself against currency fluctuations. But what about when you move back and forth across borders? How do you move your money without losing large chunks of cash with each move?
To avoid high bank fees (upwards of five percent) when sending money from Canada, many Snowbirds are using TransferWise, which typically charges between 0.7 and 1.2 per cent. In the past year, over$7.5 million CAD has been sent through TransferWise by residents 55 years or older living in these Snowbird states. Here’s a look at the real difference this option makes:
When sending $5,000 CAD to the U.S., you pay $49.50 CAD in fees at 0.77 per cent with TransferWise.
With RBC, the same transaction would cost$112.14 for fees and exchange, with a Bank Rate Premium over Exchange Rate of 2.01 per cent. TransferWise is $62.64 cheaper.
With TD, the same transaction would cost $161.64 for fees and exchange, with a Bank Rate Premium over Exchange Rate of 2.70 per cent. TransferWise is$112.14 cheaper.
When sending $10,000 CAD to the U.S., you pay $97.82 CAD in fees at 0.77 per cent with TransferWise.
With RBC, the same transaction would cost$210.78 for fees and exchange with a Bank Rate Premium over Exchange Rate of 2.01 per cent. TransferWise is $112.96 cheaper.
With TD, the same transaction would cost $293.28 for fees and exchange with a Bank Rate Premium over Exchange Rate of 2.70 per cent. TransferWise is$195.46 cheaper. transferwise.com
NOTE TO READERS: THE VIEWS OF THE AUTHOR DO NOT NECESSARILY REFLECT THOSE OF COYLE MEDIA GROUP. THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE, OR A SOLICITATION TO BUY SERVICES. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.
