Smarter Loans > Best Business Bank Accounts in Canada

Best Business Bank Accounts in Canada

May 01, 2023 by Loraine Couturier

Canadians that run their own small business should consider having a business account. In fact, by law, non-sole proprietorships need a separate bank account from their personal bank account. Even if you do have a sole proprietorship, it looks more professional to have your business name when doing transactions. A separate account is also useful during tax time. When you use a business bank account, it can help the business you run build its own credit profile, which can be useful down the road. So how easy is it to open a business account? We’ll go through the process and help you understand how much the fees are for every given business bank account.

Application Process

There are specific documents you’ll need to get your business bank account. They will differ depending on the banking institution, your business type, and type of business account you open. The definitive documents across the board include:

Proof of identity such as government issued photo ID

Proof of full name and address

Social insurance number (SIN)

If you’re looking to open a business bank account for a sole proprietorship, the bank will usually require the following:

Trade name registration certificate

Master business license

This is the certification you’ll receive when you register your business in the province you’re operating out of.

A business account for a partnership requires the following:

Registered declaration of partnership
Master business license when necessary

Trade name registration certificate
ID for your business partner

To open a business account for a corporation, documents required include:

Articles of Incorporation/Association
Name, address, and occupation for anyone owning a minimum of 25% of your business
Trade name registration certificate
Master business license if needed
Annual financial return or report, which may require you to get signature from an independent account if the business is between 12-18 months old.
Your Canada Revenue Agency registration number

The Best Business Bank Accounts in Canada

There are a variety of options when it comes to the business bank accounts and the banking institutions you can use. We’ve looked through the best options and created this helpful list so you can make comparisons and figure out which bank and account option is best for you.

Wealthsimple Save For Business Account

Wealthsimple is not one of the big 5 banking institutions and is a great option for smaller businesses who want a savings account. There is no minimum balance required to keep your monthly fees free of charge. You’re getting a great interest rate of 0.6% and they boast next-day withdrawals so you can quickly transfer money. If you just need a simple account, this is a great option. It may not be as robust as you need for all your banking needs but it’s a great place to hold money you don’t need to spend.

Monthly fee: Free
Additional fees: N/A
Interest rate: 0.6%

Looking to take control of your investments and banking? Learn more about Wealthsimple’s comprehensive services, investment options, fees, and customer support by visiting this page.

RBC Digital Choice Business Account

For a small to medium sized business, this is a great account offered by RBC. The monthly fee is low and you’re able to process payments and cheque payments online. Cash deposits are reasonable based on industry standards. If your business is more in-person and you receive a lot of cash payments, this isn’t the best option based on the amount you have to pay for in-person deposits.

Monthly fee: $5
Digital debit/credit transactions: free
Cheque deposits: free
Interac e-Transfer: free for the first 10, then $1.50 each thereafter
Paper deposits/credit transactions: $2.50/each
Cash deposits (per $1,000): $5 in branch, $2.25 at automated teller machine (ATM) and Night and Day drop chute
Paper statement: $3.50 without images, $4.50 with images

RBC Flex Choice Business Account

Another business bank account option through RBC costs a bit more but gives you more flexibility. If you want to deposit cash at the branch, you won’t have to pay the $2.50 deposit you would with the Digital Choice Business Account. This account also offers you perks like fuel savings and Petro-points when you pay with your RBC card linked to the account. There are no transaction limits either so you can freely do your business without having to rely on the end and beginning of billing cycles.

Monthly fee: $6
Cheque and draft deposits: free
Electronic deposits: $0.75
Interac eTransfer: $1.50
Paper statement: $4 without images, $5 with images

National Bank of Canada Package 20

There are six different business bank account options with National Bank of Canada. Every account comes with a free subscription the banks’ Internet Banking Solutions. If you have a business credit card from National Bank, you can gain overdraft protection for any cash advances you make on it as well. Determining what account you want will have to do with how many transactions you make monthly. The Package 20 gives you 20 free debit or credit transactions as well as 15 cheques. You can deposit up to $500 in coins and $1,000 in banknotes. If you handle more transactions or cash deposits than this, you may want to get a more robust account that also offers better free perks.

Monthly fee: $15.99
Assisted in-branch transactions: $2.50
Branch services: $1.30
24/7 Depository Service Deposit: $1.30
Withdrawal or payment by cheque: $1.25
Transferring within accounts: $1.30

TD Basic Business Plan

If you have a side hustle and are already banking with TD, this account is a great option. Fees are affordable and you are able to hold your business name on the account, making it look more professional. However, if you are looking to grow your business, the limits are restrictive so you would likely need to upgrade in the future.

Monthly fee: $5
Transaction fee: $1.25 (first 5 free each month)
Deposit fee: free for the first 5 transactions. For cheques or money orders, it’s $0.22
Cash deposit fee: For $1,000 -$2.50

TD Unlimited Business Plan

The Unlimited Business Plan is an expensive monthly fee of $125 but if you keep a balance of at least $65,000, it’s free. If you opt for this plan, TD waves merchant service account fees and will give you a $149 rebate on some of their best business visas.

Monthly fee: $125
Unlimited transactions
$25,000 in cash deposits: Free
Additional fees:
Cash deposit: $2.50 per $1,000

TD Business Savings Account

If you’ve already got a TD Business Chequing account, you might want to consider signing up for the business savings account as well. This allows you to save and it’s free of charge. How much you have in the account will determine what your interest rate is. If you have a balance that’s less than $500,000, you earn 1.50% while over $2 million earns you 2%. Transferring money from your TD chequing account to the savings account is free of charge.

Monthly fee: Free
Deposit: $1.00
Withdrawal: $5.00
Cash deposit: $2.50 per $1,000
Cheque or money order deposit: $0.22

ICICI Business Chequing Premium

ICICI may not be one of the major banks in Canada, but they do offer a great business chequing option thanks to low fees. You can get a Canadian or US account with them and it’s Canadian Deposit Insurance Corporation (CDIC) insured. If you have a small to midsize business, this is a great segway from a free account to a more professional account. For just $5 a month, you can enjoy free direct deposit and money transfers to Canadian accounts. Also free are bill payments, POS transactions, in-branch credit and debit transactions.

Monthly fee: $5.00
Cash deposit fee: $2.00 per $1,000
ATM fee: $1.50
Outgoing wire transfer fee (with currency exchange): $10.00
Incoming wire transfer fee: $10

BMO Business Builder 1

You can pay a higher flat rate monthly to avoid paying for every transaction when you do your business banking. The BMO Business Builder 1 gives you 35 transactions monthly and you’re able to deposit up to $2,500 cash and deposit up to 25 times per month. You get unlimited Moneris transactions as well. If it’s not enough freedom to do the banking you need to do, you can select a higher tier. In the long run, the Business Builder account options can save you a lot of money if you do a lot of transactions. The additional fees you would have to pay if you did go over your transaction limits are quite low as well.

Monthly fee: $22.50
Fees if you go over the limit:
Electronic transactions: $0.60
In-branch transactions: $1.25
Cash deposits: $2.25 per $1,000
Cheque or money order deposit: $0.20

Scotiabank Basic Business Account

If you are a charity perhaps doing not-for-profit work, the Scotiabank Basic Business is a good option. While there are a lot of small fees included with the account, charities will receive a 50% discount on all fees. Community groups get 35% off fees. You have to qualify to get the deep discounts so you’ll need to register at a Scotiabank branch.

Monthly fee: $10.95
Transactions per month: 1 free transaction per $1,500
Additional fees:
Branch or ATM deposit: $1.25
Cheque deposit: $1.50
Bill payment: $1.25
Debit purchases: $1.25

Scotiabank Unlimited Account

Scotiabank Unlimited Account is a high monthly fee of $120 but if you have a lot of payments coming in, this is a great option. You get unlimited transactions and deposits so you likely won’t ever see additional fees. The one exception is being charged a small surcharge if you deposit more than $30,000 per month. You also get software with the account that allows you to manage finances, paystubs, and taxes.

If you happen to have more than $75,000 in your account, it’s free.

Unlimited transactions and deposits
Cash deposit: $2.50 per $1,000

Tangerine Business Savings

Tangerine offers great interest rates that are also tiered. The more money you have in your account, the higher interest you’ll get. Tangerine is a free account so there’s no risk. Keeping in mind that the account should be used for money you won’t soon need, there are fees for using the account to do a lot of withdrawals while deposits are free.

Monthly fee: Free
ATM withdrawal: Free at any Scotiabank machine, $1.50 at other ATMs

Looking for a digital banking experience? Visit the Smarter Loans page on Tangerine Bank to learn more about their innovative online banking services, competitive rates, and excellent customer service, and take the first step towards simplifying your finances today!

Motusbank chequing account

If you’re a sole proprietor, you can open up a chequing account with Motusbank and use it for business purposes. You can enjoy unlimited transactions and free access to the Price Drop program. This program involves you emailing your receipts to the bank where they will then check out the internet for deals on anything you purchases. This allows you to request for cashback, making it an easy way to save on business expenses. The best part is there is no monthly fee so it’s a great place to put your money when you are looking to separate personal and business expenses.

Monthly fee: free
ATM fee: $2.00
Interac eTransfer: $1.25

Motusbank is a Canadian digital bank that offers innovative online banking services, competitive rates, and flexible mortgage options. Learn more!

Manulife Business Savings Account

The Business Savings Account from Manulife allows you to save money while getting all the benefits of a business account. It’s a great interest rate too at 2.25%. It’s important to note that this is a savings account so the point is to leave money in the account. Taking money out costs you $1.00 every time. There are no fees to take advantage of this account either so you’ve got nothing to lose and everything to gain. It’s a good way to save money on cash your business has made.

Monthly fee: Free
Bill payment: $1
Sending an Interac eTransfer: $1

There are businesses of all kinds throughout Canada, which is why there are so many business account options. All the main banks offer various business accounts while some of the smaller banking institutions offer one specific type. Make sure to do a good comparison so you get the best option for your business.

After opening a bank account, if you are in need of a loan to grow your business, you can apply through Smarter Loans’ Business Loans page.

Loraine Couturier

Loraine Couturier is a Canadian that has been working as a freelance writer for the past ten years, specializing in topics that include personal finance, medical journals, and the online gaming industry. She is a published author, digital marketing expert and an authority in the fields in which she writes about.