Here are some of the best business accounts in Canada

Piyush Singh

30.08.23

6 minute read

Whether you are setting up your business in Canada or looking to switch to a new account to suit your needs, it is important to note that business accounts come with many different features.

In this article we will examine a variety of online and digital business accounts. We will also be looking at some online accounts along with Canada’s biggest banks for business accounts. We will also take a look at Wise as an alternative for all your business banking needs. What’s more, it can be used with or without a business account.

Table of Contents
Documents needed Online business alternative accounts and digital business bank accounts Canada’s biggest banks USD Business Accounts What makes a business account the best one for you?

What are the essential documents needed to open a business account in Canada?

Documents needed to open a business account in Canada include:

Business registration with the government of Canada, which includes registration as a sole proprietorship, partnership or corporation;
Incorporation documents and/or bylaws;
A valid Canadian business number (CBN);
Proof of identity such as a driver’s license or passport;
Proof of residence such as a utility bill, lease agreement or mortgage statement;
Statement of operations or projected operating budget for the next year;
List of authorized persons associated with the company; and
Articles of incorporation (for corporations).

It is important to note that this list is non exhaustive. Other documents might therefore be required by banks or money service businesses depending on your situation and requirements.

Online business alternative accounts and digital business bank accounts

Wise

Wise is a hassle-free money services business. The Wise business account can be used by businesses of all sizes.¹

You can pay employees, get paid and manage your cash flow overseas all in one place. You can also manage your money without dealing with high exchange rates, hidden charges and monthly fees.

The key features:

Batch payments
Invoices
International payments at the speed and cost of local payments
Free API Integration
App Marketplace for software integrations - save time with Xoom and Quickbooks
Mid market exchange rates

Account Feature	Fees²
Register for a Wise account	42 CAD
Sending money	From 0.43%
Withdrawing 350 CAD month/account	Free (2 or less withdrawals)
ATM fees over 350 CAD month/account	1.75% +1.50 CAD per withdrawal
Account Funding transactions	2%
Getting Wise debit card	0 CAD
Converting money	From 0.43%
Holding 40+ currencies in your account	Free

PayPal business account

One of the most popular fintech companies, Paypal is designed for small to medium businesses. While it does offer an Enterprise solution, it is very customized. Here are the key features of the Paypal business account³ in Canada.

Key features:

Get paid online and in-person
Tools to support your operations and manage risk
Integrated in thousands of marketplaces so you can sell on different platforms
Accept donations for your business

Account Feature	Fees⁴
Commercial transactions	2.90% + fixed fee
QR code Transactions - 10.01 CAD and above	1.90% + fixed fee
QR code Transactions - 10.00 CAD and below	2.40% + fixed fee
Percentage based fee for international commercial transactions	0.80-1.00%
Fixed fee for commercial transactions (based on currency received)	0.30 CAD
Campaign fee - store cash transactions	8.00%
Paypal fundraisers	No fee
All other Donations	2.90% + fixed fee
Currency coversion	3-4%

Tangerine Business savings accounts

Tangerine business savings account is designed to complement your existing business chequing account at another financial institution. Tangerine business savings is suited for business of all sizes.

The key features are:

Interest rate up to 3.25%
Monthly fee $0
Minimum balance $0
No unfair fees or service charges
Must have a business chequing account at another financial institution

The current interest rates since June 17th 2023 are as follows⁵

Balance	Interest
$0.00-$99,999.99	2.65%
$100,000.00-$499,999.99	2.75%
$500,000.00 or more	3.25%

Canada’s biggest banks

Canada’s biggest banks have been around for over a century, and are therefore able to offer physical presence with easily accessible branches. These banks are therefore seen as some of the most reliable options. Like most financial solutions, they come with their own set of key features and points to consider.

RBC Business Essentials Savings Account

RBC Business Essentials Savings Account is designed to help you earn interest on the funds you hold in the account. If you have unused funds at the end of the month this can be a good way to earn interest on your money. You also need an everyday business operating account to be able to move money between the two accounts. Let us take a look at some key features and the fees for this option:

No minimum monthly fee
Up to 999 credit included transactions
No minimum balance required
Benefit from tiered interest rates
Two free cheques or debits per month

Transaction	Fee⁶
Debits/Cheques	2 Free; 3.5 CAD each thereafter
Credits/Deposits (beyond 999 per month)	1.00 CAD each
Items deposited	1.00 CAD each
Cash deposited	10.00 CAD per 1,000 CAD

Scotiabank Basic Business Account

This option from Scotiabank is a simple way to manage your Canadian and US Dollar funds. Let’s take a look at the key features and fees for this account. Since this is one of the big three banks this option suits businesses of various sizes.

Key features:

Account fees tailored to usage
Available in both Canadian and US Dollar accounts
Improved cash flow - get funds the next day with Chase Merchant Services

Account feature	Fees⁷
Monthly fee	10.95 CAD, waived with minimum balance of 8,000 CAD or over
Transactions per month	1 free transaction for every 1,500 CAD in the account.

TD Everyday Business Plan

The TD Everyday Business Plan is suited for small businesses and they offer 3 different plans depending on the monthly balance you maintain and how much business you do. Let’s take a look at the key features and fees for the 3 plans depending on your budget and business requirements.

Key features:

2 free monthly e-Transfers
Send additional remittance details
Monthly rebate fee on business overdraft protection
All debit and credit deposits credited to your account through POS terminals are non-chargeable transactions and are not subjected to transaction and deposit limits

Account feature	Fees for Every Day A/B/C Plans⁸
Monthly Plan Fee	19-72 CAD
Fee rebate with minimum monthly balance	20,000-45,000 CAD
Transactions included per month	20-120
Additional transaction fee	1.25 CAD each
Deposit items included per month	50
Additional deposit item fee	0.22 CAD each
Cash deposits included per month	5,000 CAD
Additional cash deposit fee	2.50 CAD per 1,000 CAD

CIBC SmartBanking for Business

CIBC SmartBanking helps manage your cash flow from a single dashboard. This can be an option suited for small, medium and large businesses because of the amount of features available. Let’s take a look and also consider the fees.

Key features:

Save time with single sign on
Comprehensive reporting
Payroll management
ACH payments (USD)
Leave cheques behind and leverage EFT to send money to suppliers or employees
Balance your books and reduce errors by integrating your accounting software

Account features	Fees⁹
Pay Directly to Canadian accounts	2.00 CAD per payment
Pay with interac e-Transfer	Cost based on the business account
Pay with wire payment	20 CAD per payment
Pay directly to US accounts	10 CAD per payment
Pay with online tax filing	2 CAD per transaction
Get paid with pre-authorized payment	39 CAD per month
Integrate Quickbooks, Xero or Ceridian	5.00 CAD each per month

National Bank Foreign Currency Accounts

With National Bank Foreign Currency Accounts you can receive funds and make payments in 13 major currencies. A small business could certainly use an account like this but typically medium and large businesses who are being paid in one of these 13 currencies would be a better fit. Let’s compare the features and fees for this option.

Key features:

No minimum balance required
Receive funds and make payments between CAD/USD at any time
Amounts are automatically converted into the currency of the receiving account
Protect your earnings with a fixed conversion rate
Cash deposits and withdrawals are not permitted and cheques cannot be used

Account Feature	Fees¹⁰
Account opening	Free
Monthly fee	35.00 CAD¹⁰
Account closing within 90 days of opening	16.00 CAD

USD Business Accounts

RBC US Dollar Business Account

The RBC US Dollar Business Account is suited for businesses who are making and receiving payments in U.S. dollars. This includes small, medium and large businesses as long as you sell and buy products in US dollars or you pay employees or vendors who are based in the US. Let’s compare the key features and fees for this account.

Key features:

Save on US dollar transactions
24/7 account access
No monthly fee with a low balance
Link your RBC business cards to your Petro-Canada and save 3 cents/L on gas
Save money and earn points faster with Avion

Account Feature	Fees¹¹
Monthly fee	9 USD (waived with a balance of 2,500 USD)
Debits/Cheques	1.25 USD each
Credits/Deposits	1.25 USD each
Items deposited	0.22 USD each
Cash deposited (night and day deposit chutes)	2.25 USD per 1000 USD
Cash deposited (in branch)	2.50 USD per 1000 USD

BMO Business Current Account

The BMO Business Current Account is designed for small business because it offers a pay-as-you-go model for all your daily business banking needs. Let’s compare the key features and fees.

Key features:

No minimum balance requirement
Pay only for the services you need
Make deposits on your schedule in branch or BMO ATM
Free monthly eStatements
Add one Business Banking Plans for a low monthly fee
Available for Canadian or U.S. dollar accounts

Deposits/Transactions	Fees¹²
Branch deposits	1.25 USD
Pre-authorized credits/Eletronic Funds Transfer	1.25 USD

Account debit per transaction	Fees in USD¹²
Cheque	1.25 USD
Pre-authorized payment/electronic funds transfer	1.25 USD
Branch withdrawal	1.25 USD
Customer initiated transfer via branch or debit card	Free
Monthly account admin fee	6.00 USD
Monthly eStatement with cheque images	Free
Monthly paper statement	4.00 USD
Fee per statement cycle	5.00 USD

TD US Dollar Basic Business Plan

The TD US Dollar Basic Business Plan is designed for businesses transacting in U.S. dollars and would suit a small business best. Let’s take a look at the key features and fees.

Key features:

Free services such as EasyWeb online and mobile banking electronic inquiries
TD convenience, withdrawals, transfers, bill payments and deposits at any TD branch
Free online statements with cheque images

Account costs and transactions	Fees¹³
Monthly Plan Fee	5.00 USD
Transactions included per month	5
Additional Transaction Fee	1.25 USD each
Deposit items included per month	5
Additional Deposit Fee	0.22 USD each
Cash Deposit Fee	2.50 USD per 1,000 USD

What makes a business account the best one for you?

When comparing which business account is the best fit for your needs there are a few things to consider.

Fees and other costs can add up over time. It is important to not only compare interest rates but also look for any monthly or transactional fees as well as any potential minimum balances that may be required to avoid these fees.
Transaction limits refer to the maximum amount you can transfer in and out of a business bank account within a given period of time, such as daily or monthly. Businesses should compare the transaction limits among different bank accounts when choosing an account to ensure they can manage their cash flow needs.
In the context of a business comparing bank account options, exchange rates are important to consider as they will impact the overall amount of profit.
An ATM network and branch locations are important factors when comparing bank accounts for a business. With an extensive ATM network, businesses can make deposits and withdrawals conveniently without having to visit a branch location.

Sources:

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.