Cross-Border Discover & Learn

While the banking systems between Canada and the U.S. have some similarities, there are some differences that are important to be aware of if you’re moving from one country to the other.

Here, we list some of the more common banking terms that you might come across in the U.S., and how they compare to terms you might be familiar with as a Canadian.

CD¹⁵ or Certificate of Deposit. (GICs)

You might also see this referred to as a Timed Deposit, or TD. CDs and TDs are similar to Canadian Guaranteed Investment Certificates (GICs), as they are deposit accounts that offer a guaranteed return on your principal investment, fixed rates of return and a set maturity date.

Check (Cheques)

Just like it sounds, a U.S. check is the same as a Canadian cheque. But there is a key distinction: In the U.S., you can’t issue post-dated checks. If you provide a check with a future date on it, the individual or organization receiving the check can deposit it immediately. That’s a difference you don't want to learn the hard way!

IRA (RRSP)

An IRA stands for Individual Retirement Account, and is similar to a Canadian RRSP in that it’s a savings account designed to help you save for retirement with certain tax advantages (such as tax-free or tax-deferred growth).

401(k) (Group RRSP)

A 401(k) is an employer-sponsored retirement account, similar to a Group RRSP. It lets employees save and invest part of their paycheck before taxes are taken out. Taxes then aren't deducted until you withdraw the money from the account.

Routing Number (Transit Number)

The Routing Number is also called an ABA/ACH number. It is the bank’s nine-digit number identifying the bank’s location and transit information. The routing number is printed at the lower left of each check. 

SSN (SIN)

A SSN—or Social Security Number—is a nine-digit number that the U.S. government issues to all U.S. citizens and eligible U.S. residents who apply for one. The government uses this number to keep track of your lifetime earnings and the number of years you work. It serves a similar purpose as your Social Insurance Number (SIN) in Canada.

Visa^‡ Debit Card (Debit Card or Client Card)

A Visa Debit Card is similar to your Canadian Debit Card or Client Card, but with a bit more functionality. With a Visa Debit card, you can get cash or make deposits at U.S. ATMs, pay for purchases at the store, and get cash back at large retailers such as grocery stores. The difference is, you can also use your card to make purchases online or over the phone—wherever Visa is accepted. The funds still come directly out of your account.