Almost 99.999% certain, yes, with only a few exceptions, when a Canadian bank lends to a U.S. resident/corporation, a withholding tax is applicable. In order for the Canadian bank to receive the full amount of interest under the loan after any deduction for U.S. withholding tax, the interest rate generally grossed up by a factor of 1.111. The bank then in turn remits the excess interest (10%) to the U.S. government.

In case of U.S. residents holding Canadian $ bank accounts. 15% of the interest paid will be withheld and remitted to CRA as non resident withholding tax. Again, there are a few exceptions. The rate of withholding will depend on the country and tax treaty between that country and Canada. I am not sure on the withholding tax regulations on US$ bank account in Canada as "foreign" currency may be exempted.

You can call your personal Canadian banker to confirm pretending that you have an American relative who is a non resident of Canada wanting to borrow a loan in Canada, or open a C$ bank account to facilitate frequent visits to Canada.

May be a tax lawyer/accountant FF reading this Forum could comment?