TD Borderless Exchange Rate Savings
Convert CAD to USD (Buy USD)
Convert USD to CAD (Sell USD)
1 USD = X CAD
Standard Account Rate:
1.3900
Borderless Preferred Rate:
1.3750
USD Received (Standard):
$0.00
USD Received (Borderless):
$0.00
Estimated Savings with Borderless Plan:
$0.00
Note: This calculator estimates savings based on typical bank spreads. Standard accounts typically charge a spread of ~3.0% over the mid-market rate, while the Borderless Plan offers a "Preferred Rate" typically reducing that spread to ~1.8%. Actual rates at the branch may vary.
About the TD Borderless Plan Exchange Rates
The TD U.S. Dollar Borderless Plan is a popular banking product in Canada designed for frequent travelers, cross-border shoppers, and snowbirds. Unlike a standard daily interest savings account, the Borderless Plan is a checking account that offers distinct advantages regarding foreign currency exchange.
How "Preferred Exchange Rates" Work
One of the primary selling points of the Borderless Plan is access to Preferred Exchange Rates. When you transfer funds between your Canadian and U.S. dollar accounts, the bank applies an exchange rate that includes a markup (the spread) over the mid-market rate.
For standard accounts, this spread is typically wider, meaning you pay more CAD to buy USD, or receive fewer CAD when selling USD. The Borderless Plan reduces this spread, keeping more money in your pocket during the conversion.
Calculating the Break-Even Point
The TD U.S. Dollar Borderless Plan typically carries a monthly fee (e.g., $4.95 USD, though this can be waived with a minimum balance). To determine if the plan is worth it solely for exchange purposes, you should compare the "Preferred Rate" savings against the monthly fee.
- High Volume: If you convert thousands of dollars annually, the improved rate usually covers the monthly fees quickly.
- Low Volume: If you only convert $100 once a year, the monthly fees might outweigh the exchange rate savings, unless you maintain the minimum balance to waive the fee.
Understanding the Inputs
To use this calculator effectively, you need to understand the variables:
- Mid-Market Rate: This is the "real" exchange rate seen on Google or news sites. Banks do not trade with consumers at this rate.
- Standard Spread: The markup added by the bank for regular customers (estimated at 3% in this calculator).
- Preferred Spread: The discounted markup for Borderless Plan holders (estimated at 1.8% in this calculator).