Yes, you can deposit Canadian cash in a US bank. Most major US banks will take Canadian paper bills at the teller counter, convert them to US dollars at the bank’s own buy rate, and credit your account for the converted amount. You’ll get less than the mid-market exchange rate you see quoted online because the bank builds a spread into the conversion, and some banks add a flat transaction fee on top.
Which Banks Will Take Canadian Bills
Large national and regional banks are the most likely to handle Canadian cash, because they have the vault space, secure transport, and processing systems to move foreign bills back into circulation. Full-service branches in major cities and near the Canadian border deal with these deposits most routinely. Smaller satellite offices, online-only banks, and most credit unions generally aren’t set up for it and will send you to a bigger branch.
Call the branch before you go. Not every location within the same bank offers the service, and showing up at the wrong one wastes the trip.
One limit worth knowing: banks that accept foreign currency typically accept paper bills only, not coins. US Bank, for example, explicitly states that foreign coins are not accepted. Leftover Canadian coins usually have to be spent in Canada or run through a coin-exchange kiosk that handles foreign denominations.
The Rate You’ll Actually Get
The bank converts your Canadian dollars using its “buy rate,” which sits below the mid-market rate quoted on financial news sites. That gap is the spread, and it’s how the bank earns money on the transaction. Bank of America discloses that its compensation comes from the difference between the price it pays to obtain foreign currency and the price at which it sells it. Spreads at major banks commonly run somewhere between two and five percent below the mid-market rate.
Some banks also charge a flat fee per transaction. Bank of America charges a $7.50 delivery fee on foreign currency orders under $1,000, though policies differ between ordering currency and depositing it. Other institutions may charge $5 to $15 per transaction, taken out of the converted amount before it hits your account. Ask the teller about the fee and the rate before you hand over the bills, so the credit doesn’t surprise you.
How the Deposit Works at the Teller
You have to do this in person. Standard ATMs can’t recognize foreign bills, and mobile deposit only handles check images. Bring the following:
- Valid government-issued photo ID, such as a driver’s license or US passport. Non-US residents can use a passport or other official document showing nationality or residence.
- An existing account in good standing at that bank. Some banks will convert currency for non-account holders too, but with tighter daily or monthly caps.
- The Canadian bills themselves, sorted and counted if possible.
The teller counts the bills and runs the amount through a conversion system that applies the bank’s current rate and any fee. You’ll get a receipt showing the original Canadian dollar amount, the exchange rate used, any fees deducted, and the final US dollar credit. Keep it. That receipt is your proof of what rate you received.
When the Money Becomes Available
Regulation CC requires banks to make cash deposits available by the next business day, but the rule defines “cash” as United States coins and currency only. Foreign cash falls outside that definition, and foreign currency is also excluded from the regulation’s definition of a check.1eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC)
So the bank sets its own hold. In practice, expect the converted funds within one to three business days. Larger amounts, or deposits at a branch that has to ship the bills to a central processing facility, can take longer. Ask the teller when you deposit.
If You’re Depositing More Than $10,000
Federal law requires banks to file a Currency Transaction Report for any cash transaction over $10,000, and Canadian cash counts as cash for this purpose.2eCFR. 31 CFR 1010.311 – Filing Obligations for Reports of Transactions in Currency Before completing the deposit, the bank has to verify and record your name, address, account number, and taxpayer identification number.3eCFR. 31 CFR 1010.312 – Identification Required The report goes to FinCEN as part of standard anti-money-laundering compliance. It’s routine and doesn’t mean you’re being investigated, though the bank may ask where the money came from.
Do not split the deposit to stay under $10,000. Breaking a large cash amount into smaller deposits specifically to avoid the reporting threshold is a federal crime called structuring, and it’s illegal even if the money itself is completely legitimate.4Office of the Law Revision Counsel. 31 USC 5324 – Structuring Transactions to Evade Reporting Requirement Prohibited If you have a large amount of Canadian cash, deposit it in a single transaction and let the bank file the paperwork.
Banks also have to file a Suspicious Activity Report for transactions of $5,000 or more if they suspect the funds are tied to illegal activity or the transaction has no apparent lawful purpose.5eCFR. 12 CFR 21.11 – Suspicious Activity Report A one-time deposit of legitimately earned Canadian cash isn’t likely to trigger one, but a pattern of foreign-currency deposits just under reporting thresholds will.
If You Carried the Cash Across the Border
Bringing the Canadian cash into the US triggers a separate obligation. Anyone transporting more than $10,000 in currency or monetary instruments across the US border must file FinCEN Form 105 with Customs and Border Protection.6Office of the Law Revision Counsel. 31 USC 5316 – Reports on Exporting and Importing Monetary Instruments The threshold applies to the combined value of everything you’re carrying, so a mix of Canadian and US bills gets added together.
You can file Form 105 electronically through the FinCEN website before your trip or hand a paper copy to a CBP officer on arrival.7FinCEN.gov. FinCEN Form 105 Report of International Transportation of Currency or Monetary Instruments Failing to report can lead to:
- Seizure of all currency and monetary instruments you’re carrying.
- Civil penalties up to $500,000.
- Criminal penalties up to 10 years of imprisonment.
These penalties apply whether or not the money is legally earned.8USAGov. How Much Money Can You Bring Into and Out of the U.S.? Filing the form is free, so there’s no upside to skipping it.
Tax on the Conversion
Converting Canadian dollars can create a taxable gain if the currency appreciated against the US dollar between the time you acquired it and the time you deposited it. For personal transactions, such as exchanging leftover travel money, federal tax law excludes the gain from income as long as it’s $200 or less.9Office of the Law Revision Counsel. 26 USC 988 – Treatment of Certain Foreign Currency Transactions
If the gain is more than $200, the whole gain is taxable as ordinary income, not just the amount above $200. Suppose you bought C$5,000 when the rate was 0.72 USD per CAD, then deposited it when the rate was 0.78 USD per CAD. Your gain would be roughly $300 in US dollar terms, and because that exceeds $200, you’d owe tax on the full $300. Losses on personal foreign currency transactions aren’t deductible.9Office of the Law Revision Counsel. 26 USC 988 – Treatment of Certain Foreign Currency Transactions
The $200 personal exclusion doesn’t apply to business-related currency, such as payment from a Canadian client, where gains and losses are ordinary income or loss regardless of size. Either way, keep a record of when you got the Canadian cash and what the exchange rate was at the time, so you can figure the gain accurately.