Looking for the best business bank account Canada? You’re in the right place. This guide reviews top accounts for 2024, so you can see the features, fees and benefits to choose the right one for your business.
Bottom Line
- The top business bank accounts in Canada for 2024 have no or low fees and unlimited transactions for all business types.
- RBC Digital Choice Business Account is our top pick for low fee and unlimited digital transactions for small to medium size businesses.
- When choosing a business bank account consider transaction limits, service hours and fees to find the best for your business.
Business Bank Accounts in canada
Managing finances, staying compliant and getting corporate services are the reasons to open a business bank account. In Canada 2024 the best business accounts offer minimal or no fees and unlimited debit and credit transactions, which are beneficial for businesses with high transaction volumes.
Top picks include RBC Digital Choice Business Account, TD Basic Business Plan and others like BMO eBusiness Plan, Scotiabank Right Size Account for Business and CIBC Unlimited Business Operating Account. These are some of the top options for a company’s banking needs.
RBC Digital Choice Business Account
RBC Digital Choice Business Account is our top pick for small to medium size businesses in 2024 from the Royal Bank of Canada. It’s designed for businesses that want online banking and has low fees and unlimited digital transactions and cheque deposits for $6 a month.
This account has flexibility for businesses since there’s no minimum balance requirement. The combination of low cost and unlimited transactions makes it a great and cost effective option for business banking.
TD Basic Business Plan
Small businesses can use the TD Basic Business Plan as a simple and cost effective way to manage their business finances. For $5 a month it includes 5 transactions and 5 deposits a month, perfect for those with limited transaction needs.
This plan is very accommodating since there’s no minimum balance requirement so businesses can manage their finances freely without the stress of maintaining a big balance. For small businesses on a tight budget this plan offers basic banking services at an affordable rate.
BMO eBusiness Plan
BMO eBusiness Plan is a great option, it has unlimited electronic transactions with no monthly fees. It’s perfect for businesses that do most of their banking online since it has unlimited free electronic transactions and 2 free Interac e-Transfers a month.
To open a BMO eBusiness Plan account you need to schedule an appointment which ensures personalized service throughout the sign up process. That makes it a good option for businesses looking for affordable and flexible banking.
Scotiabank Right Size Account for Business
Scotiabank has designed the Right Size Account for Business for small businesses with affordability and flexibility in mind. This small business bank account has no minimum balance and is $6 a month. The terms are low fees – $1.00 per transaction after 50 free monthly transactions which is good for businesses with moderate banking activity.
To cater to different needs Scotiabank has 9 chequing accounts to choose from so each business can get an account that fits their business needs. In this range of options the Right Size Account is a great solution for the changing financial needs of running a small business.
CIBC Unlimited Business Operating Account
CIBC Unlimited Business Operating Account is for businesses that need the freedom to do unlimited transactions so they can manage their cash flow without transaction fees. By keeping a certain balance businesses can eliminate monthly account fees and save more.
To this flexibility CIBC adds business discounts and advanced online tools for better financial control. That makes it a comprehensive banking solution for businesses looking for big banking.
Digital Business Bank Accounts in canada
Digital business bank accounts have changed the way businesses manage their finances, offering more flexibility, lower costs and more features. They are perfect for businesses that do most of their business online or those who want to avoid the hassle of traditional banking.
This section will feature some of the best digital business bank accounts in the market including Wise Business Account, PayPal for Business and Motusbank Chequing Account.
Wise Business Account
For businesses that do international transactions the Wise Business Account is a great option. It allows businesses to manage and do business in over 40 different currencies perfect for businesses with international activities. The account is designed to give businesses big financial benefits by removing high exchange rates, hidden fees and monthly fees – a way to save on international transactions.
The multi currency features and its financially friendly setup makes the Wise Business Account a great asset for businesses looking to expand globally.
PayPal for Business
PayPal for Business is for small and medium sized businesses a simple and widely recognized platform to do online transactions. This service allows businesses to accept credit card payments, manage their invoices and streamline their online sales process so it’s a must have for any e-commerce business.
Motusbank Chequing Account
The existing Motusbank business chequing account is a digital banking solution for sole proprietors with no monthly fees perfect for small business owners who want to save and be online. This no fee chequing account is designed for those who own their own business. It is also designed to complement an existing business chequing account at other financial institutions, making it suitable for businesses of all sizes.
Business Savings Accounts
Saving excess funds and earning interest on idle balances is part of business finance which can be done through business savings accounts. There are many options in Canada to suit different financial needs, each with its own features to help with financial control and efficiency.
Among the best business savings accounts, we feature Tangerine Business Savings Account and Wealthsimple Save for Business. These are top of their class in their respective categories for businesses savings needs.
Tangerine Business Savings Account
For businesses looking for an online only banking solution the Tangerine Business Savings Account is a great option. As a digital bank Tangerine excels in providing simple and efficient online banking services for business savings needs. This account offers progressive interest rates that increase with your balance and zero monthly fees to help reduce business expenses.
From startups to established businesses can find value in this affordable and flexible offering. The flexibility of the Tangerine Business Savings Account is designed to grow your business’s savings no matter what stage it’s at.
Wealthsimple Save for Business
Wealthsimple’s Save for Business account is designed to help businesses manage their finances. This account has no fees so it suits different business models and sizes. With competitive high interest rates Wealthsimple allows businesses to save more.
By connecting with accounting software Wealthsimple helps businesses with financial administration. This integration makes accounting easier and more efficient across business operations.
Choosing the Right Business Bank Account
When choosing a business bank account you need to consider factors such as fees, services, access to banking and customer support. High service charges, limited financing options or poor customer service makes many business owners move their accounts from one bank to another.
When considering to switch banks for your business you need to compare different financial institutions. Look into details like transaction limits without extra fees, fees for exceeding those limits and conditions for monthly fee waivers based on your balance.
A business bank account involves many aspects such as doing daily banking, paying suppliers on time and keeping track of all income and expenses related to your business.
Big Banks vs. Online Banks
Big banks have the advantage of physical branches, necessary for businesses that need to make frequent cash deposits. They also have good customer service and reputation.
On the other hand, online banks can offer lower fees as they save on overhead costs. To provide multiple communication channels and advanced digital features for easier access and banking convenience.
Big banks means paying more for their services. There are extra fees when you use ATMs of other banks. Evaluate your needs for physical bank branches carefully.
Key Features to Look For
When choosing a business bank account you need to evaluate the transaction limits, cash deposit capabilities and digital resources. Make sure any wire transfer and extra transaction limits fit your business needs.
Some business bank accounts have unlimited monthly transactions which can reduce the cost of these activities. Evaluating the cash deposit options is important as it affects how you can manage your finances. Digital features like mobile app and online banking can make managing your bank account easier.
How to Open a Business Bank Account in Canada
Opening a business bank account in Canada involves several steps and documents. Having a solid relationship with a business bank can make the process easier.
The specific documents required to open a business bank account varies by financial institution.
Documents Required
To start the process of opening a business bank account you will need to provide different documents based on your business structure. Sole proprietors should be prepared to provide Certificate of Business Registration and valid ID. Corporations will need to provide personal ID, business registration documents like business license and articles of incorporation, latest company annual report and latest notice of assessment.
Having all the necessary documents ready will make the application process smoother when opening a new bank account for your business. Each financial institution has its own requirements. Being prepared with all the documents will speed up the process and avoid any delays.
Online vs. In-branch Application
You can open a business bank account online or in-branch. Online is faster and more convenient, you can do the necessary steps from the comfort of your own space with simpler process.
On the other hand, applying in-branch gives you immediate access to banking experts who can explain the terms and answer your unique questions. The choice between online or in-branch ultimately depends on your preference for speed versus personalized service.
Why You Need a Business Bank Account
Having a separate business bank account is essential for any business, beyond being just convenient. It plays a big role in separating personal and business finances which helps in accurate bookkeeping and compliance to legal requirements by not mixing personal expenses with business expenses. This separation makes it easier to monitor all business transactions and tax preparation.
Having a separate account for your business operations will project a professional image to your clients and suppliers, plus it’s good for reputation. Beyond that perception, it’s also builds credit history which is needed when you need to access financial tools like corporate loans or credit cards.
In the end, setting up a solid foundation by opening and using a business bank account for your business dealings means good financial management that leads to business banking success.
Conclusion
In summary, choosing the right business bank account is a big decision that can affect your business’s financial well-being and productivity. Whether you choose traditional or digital, consider the fees, transaction limits and your business needs. We hope this guide helps you make a smart choice and manage your finances.
FAQ
What is the best business bank account for small business in Canada?
RBC Digital Choice Business Account is the best for small business in Canada, low fees and unlimited digital transactions.
This is a good option for managing your business finances.
Are there business bank accounts with no monthly fees?
Yes, BMO eBusiness Plan has unlimited electronic transactions with no monthly fees. This is good for businesses who want to minimize banking costs.
What documents do I need to open a business bank account in Canada?
To open a business bank account in Canada, you need a Certificate of Business Registration, valid ID and for corporations, articles of incorporation and annual report.
Make sure you have all the necessary documents ready.
Can I open a business bank account online?
Yes, you can open a business bank account online as most banks have a simple and fast application process for this.
Why do I need a separate business bank account?
Having a separate business bank account is important to separate personal and business finances which makes tax preparation easier and your business more credible.
This separation means better financial management and long term growth.
