{“menuItems”:[{“label”:”Best business bank accounts in Canada, by feature in June 2023″,”anchorName”:”#best-business-bank-accounts-in-canada-by-feature-in-june-2023″},{“label”:”Best savings account for business in Canada: Tangerine Business Savings Account”,”anchorName”:”#tangerine”},{“label”:”Best premium (unlimited) business bank account in Canada: CIBC Unlimited Business Operating Account”,”anchorName”:”#cibc”},{“label”:”Best basic business bank account in Canada: TD Basic Business Plan”,”anchorName”:”#td”},{“label”:”Best free business bank account in Canada: BMO eBusiness Plan”,”anchorName”:”#bmo”},{“label”:”Best online bank business account in Canada: Tangerine Business Savings Account”,”anchorName”:”#tangerine2″},{“label”:”Best mobile business bank account in Canada: RBC Digital Choice Business Account”,”anchorName”:”#rbc”},{“label”:”Best US dollar business bank account in Canada: Tangerine Business US Dollar Savings Account”,”anchorName”:”#tangerineus”},{“label”:”Best multi-currency business bank account in Canada: Wise Business Account”,”anchorName”:”#wise”},{“label”:”Best business bank account in Canada for start-ups: RBC Flex Choice Business Account”,”anchorName”:”#rbcflex”},{“label”:”Best low-volume business bank account in Canada: BMO Business Builder 1″,”anchorName”:”#bmobuilder”},{“label”:”Best high-volume business bank account in Canada: RBC Ultimate Business Account”,”anchorName”:”#rbc-ultimate”},{“label”:”Best business bank for e-commerce businesses: Loop”,”anchorName”:”#paypal”},{“label”:”Why you should use a business bank account in Canada”,”anchorName”:”#why-you-should-use-a-business-bank-account-in-canada”},{“label”:”Types of online bank accounts in Canada”,”anchorName”:”#types-of-online-bank-accounts-in-canada”},{“label”:”How to choose the right business bank account for your needs”,”anchorName”:”#how-to-choose-the-right-business-bank-account-for-your-needs”},{“label”:”Fintech and credit union alternatives”,”anchorName”:”#fintech-and-credit-union-alternatives”},{“label”:”How to open a business bank account in Canada”,”anchorName”:”#how-to-open-a-business-bank-account-in-canada”},{“label”:”FAQ for best business accounts in Canada”,”anchorName”:”#faq-for-best-business-accounts-in-canada”}]}Finding the right business bank account is an important part of doing business. The best business bank account in Canada for you will meet all your banking needs, whether that’s keeping your business finances separate from your personal account, low or no monthly fees, unlimited transactions or maybe a large branch and ATM network.In this guide, we’ll show you the 13 best business bank accounts in Canada, and show you how to find the right business bank account for your needs.Best business bank accounts in Canada, by feature in June 2023Best savings account for business in Canada: Tangerine Business Savings AccountIf you’re searching for an account to help boost your business’ bottom line, we recommend checking out the Tangerine Business Savings Account. With tiered interest rates ranging from 2.30% to 2.9% available, your bank balance will grow without you having to lift a finger. There’s no minimum balance requirement to worry about either, and no monthly fees that’ll eat into your savings. Simply link the Tangerine Business Savings Account to your business chequing account, then use it to set cash aside for future expansion or just a rainy day.
Best premium (unlimited) business bank account in Canada: CIBC Unlimited Business Operating AccountIf you need a business bank account that lets you perform lots of transactions, the CIBC Unlimited Business Operating Account has got you covered. This account supports unlimited monthly transactions, including Interac e-Transfers, deposits, withdrawals, bill payments and more. You can also deposit up to $15,000 cash, $1,000 in coins and 100 cheques each month, leaving you free to focus on running your business. There’s a $65 monthly fee attached to the account, but the fee is waived if you maintain a balance of $45,000 or more. And with extra perks such as the ability to send fee-free international transfers to over 120 countries, there are lots of reasons why the CIBC Unlimited Business Operating Account could be the best choice for your business.
Best basic business bank account in Canada: TD Basic Business PlanIf you’re just looking for a no-frills account to manage your essential business banking needs, the TD Basic Business Plan is a good fit. The key figure you need to remember with this simple account is five — it supports five transactions per month, five deposits per month (excluding cash deposits) and comes with a $5 monthly fee. It’s a straightforward solution for businesses with minimal banking requirements, and handy features like mobile cheque deposits help make this account the best basic business bank account in Canada.
Best free business bank account in Canada: BMO eBusiness PlanTired of bank fees eating into your bottom line? The BMO eBusiness Plan could be the business bank account you’ve been searching for. This account is designed to suit small business owners and has no monthly fee or minimum balance requirement. You’re entitled to unlimited Moneris and electronic transactions, including Interac e-Transfers, making it easy to manage all your online payments. So if you’re looking for a free business bank account, the BMO eBusiness Plan is definitely worth a closer look.
Best online bank business account in Canada: Tangerine Business Savings AccountNext on our list of the best business bank accounts in Canada is the Tangerine Business Savings Account. As a digital bank, Tangerine specialises in making it easy to manage your money online. The online application process is quick and easy, and its internet banking portal and mobile banking app are as user-friendly as they come. Throw in a competitive tiered interest rate — 2.30% on balances less than $100,000, 2.65% on balances $100,000.00 to $499,999.99, and 2.90% on balances $500,000 and above — along with a large ABM network and no monthly fees, and it’s easy to see why this account has a lot to offer for Canadian businesses.
Best mobile business bank account in Canada: RBC Digital Choice Business AccountIf you manage most of your business banking via your smartphone, we think the RBC Digital Choice Business Account is the best business bank account in Canada. With the RBC Mobile app you can quickly and easily pay employees and suppliers, request payments, track your spending and business performance, deposit cheques, send transfers and much more. For a $5 monthly fee the Digital Choice account supports unlimited electronic transactions and 10 Interac e-Transfers per month, with unlimited mobile and ATM cheque deposits also included. So if you’re comfortable managing your business finances digitally, this might just be the best business bank account in Canada for you.
Best US dollar business bank account in Canada: Tangerine Business US Dollar Savings AccountIf you commonly transact in US dollars and you want to build your business bank balance, there are lots of reasons why you should check out the Tangerine Business US Dollar Savings Account. With an interest rate of 1.60%, your money will work hard for you in this account, and there’s no monthly fee to chip away at your hard-earned balance. There’s also no minimum balance requirement you need to meet, and it’s quick and easy to open an account online. Just link it to a US dollar business chequing account at another bank and away you go.
Best multi-currency business bank account in Canada: Wise Business AccountIf your business makes and receives international payments on a regular basis, you need an account that makes it easy to hold and exchange multiple currencies. And that’s where a Wise Business Account has so much to offer. It lets you pay staff and suppliers in over 70 countries around the world, and you get the mid-market exchange rate when you send money overseas. You can also hold funds in 10 different currencies, including CAD, USD, GBP and EUR. It’s also easy to integrate your account with accounting platforms like QuickBooks, while features like batch payments ensure that this is a well-rounded account for global businesses.
Best business bank account in Canada for start-ups: RBC Flex Choice Business AccountFlexibility is a key requirement for start-up businesses, and that’s something the RBC Flex Choice Business Account offers in spades. With no minimum or maximum transaction limits, this account is well worth considering if you don’t yet know exactly what your banking needs are. With a monthly fee of $6, this account is designed for businesses that have 5 to 75 paper transactions per month. The account also entitles you to a 40% fee discount on transactions made through RBC Online Banking, the RBC Mobile app and RBC ATMs, while you also get preferred pricing when you make a deposit at an RBC ATM or through the Night and Day Deposit Service. And with the flexibility to perform transactions online or in-branch, the RBC Flex Choice Business Account is worth a closer look for your start-up.
Best low-volume business bank account in Canada: BMO Business Builder 1If your monthly business banking needs are limited, the BMO Business Builder 1 account is the best low-volume business bank account in Canada. This account supports 35 transactions per month, including two Interac e-Transfers and unlimited Moneris transactions. You’ll need to pay a $22.50 monthly fee, but there’s no minimum balance requirement to worry about. The package also includes 25 items deposited per month and $2,500 in cash deposits, while BMO Online Banking for Business makes it easy to manage your funds. Add the BMO Business Builder 1 to your shortlist of account options if you’re looking for the best small business bank account in Canada.
Best high-volume business bank account in Canada: RBC Ultimate Business AccountDoes your business perform lots of transactions each and every day? The RBC Ultimate Business Account is the business bank account for you. This all-inclusive package includes unlimited electronic debit, credit and e-Transfer transactions, not to mention the convenience of 100 paper transactions per month. Unlimited electronic cheque and Moneris deposits are included too, plus up to $25,000 free cash deposits per month. There is a monthly fee of $100, but this is waived if your balance is $75,000 or higher. And with the ability to easily manage your money via RBC Online Banking for business and the RBC Mobile app, the RBC Ultimate Business Account is the best business bank account in Canada for those with high transaction needs.
Best business bank for e-commerce businesses: LoopRunning an e-commerce business not only means learning how to distribute and market across borders, it also means finding a cross-border business banking platform. At one point, Canadian e-commerce business owners had only one option, PayPal, but that’s changed in the last few years. Now, there are a number of fintech apps that offer seamless cross-border banking products and one of the best options for Canadian entrepreneurs is Loop. As a single platform, Loop offers one account to manage all your business banking needs, including corporate cards, payments, foreign exchange, loans and capital funding, as well as setting up sales in multiple currencies. The best part is that Loop USD accounts are no-fee business bank accounts that let you save FX fees, reduce funding transit times and allows you top pay suppliers worldwide. The best part is that you can start using Loop to meet your business banking needs and, over time as you establish your business profile, you gain access to long-term credit (either in Canadian or US funds) based on business performance.
Why you should use a business bank account in CanadaBusiness bank accounts are designed specifically for businesses. They offer the features you need to manage all your day-to-day business banking, like paying staff and contractors and keeping track of your revenue and expenses. And even though it may not be essential for your business to have a business bank account, there are several reasons why it’s a good idea.Top benefits of using a business account in CanadaEasier to manage payroll. The best business bank accounts in Canada include payroll solutions to help you pay your staff and suppliers. This makes it easy to set up automatic payments by direct deposit.Easier to keep tax records. Keeping your business finances separate from your personal expenses will make things a lot easier come tax time. With all your business income and expenses managed through one account, reporting your financial details to the taxman is a much simpler process.Accepts credit card payments. Business bank accounts include payment processing functionality, allowing your business to accept credit card payments. This can lead to increased sales and also help your business seem more professional.Helps you keep better records. The best business bank accounts offer comprehensive reporting tools to help you track your spending and manage cash flow. This makes it easy to monitor the performance of your business and identify areas where you can improve your bottom line.Helps you build a business relationship. Opening a business bank account lets you establish a history of income and expenses with a financial institution. Developing this relationship will make it easier for your business to access business credit cards, lines of credit and other types of financing in the future.More professional. Finally, providing business rather than personal banking details to your clients and suppliers simply makes your business appear much more professional. It sends the right message to everyone you deal with that you are serious about running a business.Can I use a personal bank account for business?You can use a personal bank account for business if you’re a sole proprietor, but there are plenty of reasons why you shouldn’t. Those reasons all boil down to the fact that keeping your personal and business finances separate just makes things so much easier.It’s easier to ensure that personal and business payments and expenses don’t get mixed up. It’s easier to keep track of your tax obligations and manage your business accounting. And it’s also just a safer way of doing business — for example, you wouldn’t want to give an employee access to your personal account to make business purchases, so a business bank account is a more professional solution.Types of online bank accounts in CanadaThere are two types of business bank accounts to choose from in Canada.Traditional business bank accounts are much like personal chequing accounts, providing easy access to money so you can manage all your day-to-day transactions. But there are also business savings accounts to help you build a bigger bank balance, so let’s take a closer look at how each option works.Business bank account vs business savings accountA business bank account or chequing account allows you to manage your day-to-day business banking. That includes tasks like paying employees and suppliers, receiving payments and managing your cash flow.Depending on the business bank account you choose, you’ll be able to perform a certain number of transactions per month, and some accounts support unlimited transactions. However, most business bank accounts come with a monthly fee attached, plus additional fees for every transaction above your monthly limit.A business savings account is designed to help you grow your business’ bank balance by paying interest on every dollar in your account. Some banks offer a flat savings rate no matter how much money is in your account, but others offer tiered interest rates — the more money in your account, the better the rate you’ll get.The best business savings accounts in Canada won’t charge any monthly fees that can eat away at your savings. However, because they’re not designed for day-to-day spending, there may be fees for performing certain transactions, so check the fine print closely.How to choose the right business bank account for your needsConsider the following factors when comparing accounts to help you find the best business bank account in Canada.FeesWhile some financial institutions offer a free business bank account in Canada, most accounts come with a monthly fee. Check the fee that applies to the account. Is the fee waived or reduced if you keep your balance above a minimum threshold?Next, read the fine print to find out about any other fees the account has. These can include:Additional transaction fees when you exceed your monthly transaction limitCash deposit feesBranch transaction feesCheque deposit feesATM withdrawal feesInterac e-Transfer feesInternational transaction feesMonthly transactionsSome business bank accounts support an unlimited number of transactions per month. Others place a limit on the number of monthly transactions you can perform without incurring any fees, so make sure the account has a high enough limit to suit your banking needs.Availability and ATM accessIf you like doing your business banking face-to-face, choose a bank with a large branch network and easily accessible locations near you. If you decide to go with an online-only bank, check how you can access customer support (phone, email, live chat) and during what hours.You’ll also need to consider the size of the bank’s ATM network, as using an ATM from another bank’s ATM network will usually incur fees.Interest ratesIf you’re searching for the best business savings account in Canada, check the interest rate that will apply to your savings balance. Many accounts offer tiered interest rates — the bigger your balance, the higher the interest rate you will get.InsuranceFor peace of mind, make sure you only open a business bank account with a financial institution that is a member of the Canadian Deposit Insurance Corporation. This means that deposits of up to $100,000 will be insured if the bank goes broke.Promotions and PerksMany banks offer accounts as part of business banking packages, so check to see what other perks and rewards you may be able to access. For example, an account might also come with access to a business credit card with a discounted annual fee, access to a free safety deposit box, or a business savings account. Just make sure you check the fine print for the full details of any special offers before signing up.Fintech and credit union alternativesFor many business owners, your first port of call when searching for a business bank account will be a major bank. But your search shouldn’t end there. There’s plenty of value to be found at alternative providers that offer business bank accounts and money management tools. Options include:Smaller banks. It isn’t just major banks that offer business bank accounts in Canada. You’ll also find accounts from a wide range of smaller banks and online-only banks, such as high-interest savings accounts from Manulife Bank, or a high-interest savings account or business chequing account from ICICI Bank Canada. If you choose a digital bank, the lack of branches means you’ll need to make sure that most of your business transactions are completed electronically.Credit unions. A wide range of credit unions offer business banking products and make it easy to manage your money via online and mobile banking. For example, Alterna offers a selection of business chequing accounts, while Coast Capital offers sole proprietorship, general partnership and corporation accounts.Money management apps. Canadian fintechs also offer a range of money management apps, payment systems, technology solutions and savings accounts for businesses. Options to consider include WealthSimple, KOHO and Neo Financial.How to open a business bank account in CanadaOK, so you’ve found the best business bank account in Canada and you’re ready to open an account. It’s easy to apply online or by visiting a branch, but the process is a little more involved than opening a personal bank account.What documents are required to open a business bank account?The exact documents you’ll need to provide vary depending on two factors:The bank you chooseThe structure of your businessFrom a general point of view, you’ll need to provide:Proof of IDYour name, address, contact details and SINThe documentation required after that varies depending on your business structure.Sole proprietorIf you run a sole proprietorship, you will need to provide your trade name registration certificate or a copy of your master business licence. If you’ve been in business for more than a year, the bank may request additional information, such as your latest business notice of assessment.PartnershipIf you’re running a partnership, you will typically need to provide:A registered declaration of partnership or partnership agreementYour trade name registration certificatePhoto ID for all partnersCorporationCorporations may be asked to provide:Articles of incorporation/associationTrade name registrationPhoto ID for authorised signatoriesIf your company is more than 12 months old, you may also be required to provide extra documentation such as your latest business notice of assessment, latest financial statements or certificate of complianceFAQ for best business accounts in Canada
What do you need for a business bank account?
While requirements vary between banks and depending on the structure of your business, you will need the following to open a business bank account:Your name, contact details and SINProof of IDBusiness registration papers
How do you open a business bank account in Canada?
Most banks allow you to apply online, but in some cases you may need to visit a branch to complete the application process. You’ll need to provide personal information and business details, plus upload proof of ID. Additional documentation may also be required depending on whether you’re opening an account as a sole proprietorship, partnership or corporation.
Do you need a small business bank account?
If you’re wondering whether you need a small business bank account, there are lots of reasons why opening a business bank account makes sense. While it may be possible to manage your small business finances from a personal bank account, it’s a good idea to search for the best small business bank account in Canada. Business bank accounts often support more monthly transactions than personal accounts, and opening a business account allows you to keep your business transactions separate from your personal spending.
Is a business account mandatory in Canada?
A business account is not necessarily mandatory in Canada. If you’re a sole proprietor, it may not be mandatory for you to open a business bank account. However, there are several reasons why it’s a good idea to open a business bank account. Keeping your business finances separate from your personal finances makes it easier to track business spending and manage cash flow, and it also helps your business look more professional to clients and suppliers.
What is the best business bank account in Canada?
The best business bank account in Canada varies depending on your needs. First, you’ll need to decide whether you want a chequing or savings account. You’ll then need to consider which features are most important for your business, such as how many transactions you need to make per month, how large the bank’s branch/ATM network is, and how much you’ll pay in monthly fees. Once you know exactly what you need, you’ll be able to compare a range of options and find the best business bank account in Canada.
What is the best Canadian bank for small business?
The best Canadian bank for small business varies depending on what banking services you need. For example, if you want a bank with branches and ATMs conveniently located close to you, the right bank for you may be different to the right bank for a small business owner who wants a business chequing account with low fees.However, if you’re a small business looking for a low-volume chequing account, we recommend checking out the BMO Business Builder 1 account.
Can a bank refuse to open a business account in Canada?
Yes, a bank can refuse to open a business account in Canada. If you don’t meet the bank’s eligibility requirements, or if the bank believes you will be using the account to carry out illegal activities, your application will be refused.
