November 3 2007 by Ellen Roseman
This is the question to ask when converting Canadian dollars to U.S. dollars. Don’t assume you’re getting a good exchange rate because you’re a good customer of a bank or brokerage firm. There are always fees built in, so shop around.
When I wrote about this topic in a recent column, I got many suggestions from readers about finding the best exchange rate. Check the comments below.
Several people said they had opened a U.S. dollar bank account and gotten a U.S. dollar credit card. To shop around for U.S. dollar credit cards (which aren’t offered by every bank), look at the Financial Consumer Agency of Canada’s tables.
TD Canada Trust’s U.S. dollar Visa card has the lowest annual fee at $25 (U.S.), but the interest rate is a steep 19.75 per cent. If you want a better interest rate, check out BMO Mosaik MasterCard U.S. Dollar card with Low Rate and No Fee Reward Option at 11.4 per cent. The annual fee is $35 (U.S.).