Dive deeper: Do I need a business bank account?
Business banking in Canada
The right mix of business banking products can help you manage and grow your small business in Canada.
Every business owner needs to keep an eye on the bottom line. Business banking products like chequing and savings accounts, credit cards, lines of credit and loans are essential for managing your business’ finances and helping your business grow.
In this guide we breakdown the ins and outs of business banking. So whether you’re a beginner wondering if you need a business account, or an experienced entrepreneur looking to level up your finances, keep reading to learn how business banking in Canada can work for you.
Compare business bank account options in Canada
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Finder Score for business bank accounts
To make comparing even easier we came up with the Finder Score. Interest rates, account fees and features across 20+ business bank accounts and 15+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
What is business banking?
Business banking is an umbrella term for all accounts, products and services that focus on the needs of business owners. In-person and online banking for business owners makes it possible to send and receive payments, earn interest on revenue, track transactions, get help during financial dry spells and scale operations.
Every major Canadian bank, as well as plenty of smaller financial institutions, offer business banking solutions.
Who needs a business bank account?
Not every business in Canada is required to have a business account. For example, you do not need a business account if you have a sole proprietorship operating under your personal name, whereas a business account may be required if your sole proprietorship operates under a business name. Partnerships and corporations do require business accounts.
Can I use my personal bank account for business banking in Canada?
It depends on your business structure and your bank’s rules. If the CRA deems your business structure to be legally separate from you personally (as in the case for corporations), then you need a separate business bank account.
But even if you aren’t requires to have a business account, it can often be a good idea to open one in order to keep personal and business expenses separate and to be able to easily manage your business finances, especially during tax time.
Why should I use business banking in Canada?
Even if you don’t have to open a business bank account, you might want to for several reasons:
- Avoid headaches when filing taxes. You don’t need to spend countless hours sorting through transactions come tax time, and it’s easier to spot opportunities for tax deductions and credits. It’s also easier to retrace your financial steps during audits.
- Apply for business credit more easily. Having an account that clearly shows accounts receivable and payable—without the confusion of personal expenses—goes a long way in establishing the credibility of your small business if you apply for a loan.
- Get a transparent view of your business’s performance. Having an account that exclusively reflects your business’s financial activity helps you remain accountable and determine if your company is on the right track.
Types of business banking products in Canada
Business chequing accounts
Manage day-to-day expenses. Send and receive payments from suppliers and customers. Use reporting tools to track expenses, manage cash flow and meet your tax obligations.
Business savings accounts
Compound your revenue by placing it in an account that pays interest. Savings accounts are designed to hold funds in the long run and only support a limited number of transactions.
Multi-currency business accounts
Great for international businesses, these accounts let you hold, spend and move money in multiple currencies. Enjoy competitive international money transfer fees.
Business credit cards
Choose between cards that come with low interest, low (or no) fees, rewards points for business spending or accelerated rewards for frequent travellers.
Business lines of credit
Great for international businesses, these accounts let you hold, spend and move money in multiple currencies. Enjoy competitive international money transfer fees.
Business loans
Scale your business or cover unexpected financial shortfalls. Some loan providers cater specifically to small businesses, startups or businesses with bad credit.
How to choose a business bank account
When it comes to business banking in Canada, one of the most important considerations is cost versus value. Are you prioritizing spending as little as possible each month? Or are you looking for a souped-up product that rewards frequent usage? When comparing business banking products, consider the following:
Transactions
Are the free transactions included with your account enough for your business now and as it grows? Are there extra fees for in-branch cash deposits? Will there be any holds on your deposits?
Fees
Check the fine print for details of any fees that apply to your account. Most business chequing accounts come with a monthly fee, but not all do. Your bank may also waive the monthly fee if you meet a minimum balance requirement.
Other business banking fees to be aware of include:
- Interac e-Transfer fees
- Branch transaction fees
- Cash and cheque deposit fees
- Non-network ATM withdrawal fees
- Foreign transaction fees
- Paper statement fees
- Chequebook fees
Branch and ATM access
If you need to perform in-branch transactions on a regular basis, such as making cash deposits, make sure the bank you choose has convenient locations near you. It’s also a good idea to consider the size of the bank’s ATM network so you can make fee-free cash withdrawals when needed.
Online and mobile banking
Does the bank offer dedicated web business banking and mobile banking apps? Read independent customer reviews to find out whether the online and mobile banking offerings are easy to use and allow you to perform all your essential transactions.
Interest rates
If you’re opening a business savings account, be sure to compare interest rates to find an account that will help you grow your balance as quickly as possible. Also check how easily you will be able to withdraw funds when you need access to capital.
Supported currencies
If you do business in the United States and internationally, check what foreign currencies the account supports. Remember to consider which currencies you can receive and hold funds in, as well as which currencies are supported when you need to send an international transfer.
Extra perks and business resources
Are there discounted business banking packages for holding multiple accounts (i.e. chequing and savings accounts)? Does the bank offer tools like advisory services and online educational resources to help your business grow?
Deposit insurance
Make sure you open a business bank account with a bank or financial institution that is a member of the Canada Deposit Insurance Corporation (CDIC). This means deposits of up to $100,000 are insured in the unlikely event that the bank fails.
Customer support
Check how you will be able to access customer support if you have a problem with your account. Can you get help via live chat, over the phone or by email? During which hours can you contact the customer support team?
CIBC is the leading bank among small business customers, according to the J.D. Power 2024 Canada Small Business Banking Satisfaction Study. BMO ranks second, while TD and RBC are tied for third. Interestingly, satisfaction decreased by 33 points compared to the previous year’s study among small businesses with debt, which is in contrast with the 10 point increase found for businesses without debt.Which bank is best for business accounts in Canada?
For many business owners, the first option when choosing a business bank account is to apply with one of Canada’s Big Five banks. These major, established banks operate large branch and ATM networks, offer a full suite of business banking products and provide extensive customer support.
But popular banks like RBC and TD aren’t your only option. You can also open an online business bank account in Canada with fully digital financial institutions like Tangerine or region-specific banks and credit unions like ATB Financial (Alberta) or Vancity (BC).
See our full list of the best business accounts in Canada
RBC business banking
RBC offers six business chequing accounts, including options such as:
- RBC Digital Choice Business Account. Designed for businesses that transact largely online, this account supports unlimited electronic debit and credit transactions as well as unlimited electronic cheque deposits. A $6 monthly fee applies, while paper transactions and cash deposits attract additional fees.
- RBC Flex Choice Business Account. For a $7 monthly fee, this RBC business banking account doesn’t have any maximum transaction limits but instead lets you pay for the transactions you perform each month. You can save by transacting online, via mobile app and at an ATM.
- RBC Ultimate Business Account. This high-volume account features unlimited electronic debits and credits, 100 paper transactions, and 500 outgoing Interac e-Transfers per month. A monthly fee of $100 applies, but the fee is waived if your balance is $75,000 or higher.
You can manage your account via the RBC online business banking portal. RBC also offers a foreign currency account, business savings account and not-for-profit account.
RBC cross-border business banking customers can open a US dollar checking account or an interest-bearing money market account and freely transfer between Canadian and US RBC accounts.
Dive deeper: Our full guide to RBC business banking
TD business banking
TD business bank account options include six chequing accounts (including a not-for-profit banking plan), a business savings account and a range of US dollar accounts. Popular options include:
- TD Basic Business Plan. This entry-level account has a $5 monthly fee and is designed for businesses with minimal banking needs. It comes with 5 deposits and 5 transactions per month.
- TD Everyday Business Plan A. This mid-range plan supports 50 deposits and 20 transactions per month. A $19 monthly fee applies, but the fee is waived if you keep a balance of at least $20,000.
- TD Unlimited Business Plan. This high-volume transaction account comes with . There’s a $125 monthly fee which is waived if you maintain a balance of $65,000 or more, while you’re also entitled to annual fee rebates on eligible TD business credit cards.
You can manage your account, send transfers and add account users in the TD Small Business Online Banking portal or the TD Bank mobile app.
BMO business banking
BMO similarly offers six business chequing accounts. Standout BMO business account options include:
- BMO eBusiness Plan. This BMO online business banking plan has no monthly fee and supports unlimited electronic and Moneris transactions plus 2 free Interac e-Transfers per month. There’s no minimum balance requirement, but you’ll need to check the fees that apply to non-electronic transactions.
- BMO Business Start Chequing Account. If you’re starting a new business, this BMO business banking account is designed with you in mind. It has a $6 monthly fee and supports 7 transactions per month with no minimum balance requirement.
- BMO Business Builder. Available in four different plan levels to suit your business’ monthly transaction needs, this account supports both online and in-branch transactions. Monthly fees range from $22.50 for Business Builder Plan 1, to $120 for the high-volume Business Builder 4 plan.
CIBC business banking
CIBC business accounts include four chequing accounts, savings and US dollar accounts and solutions for farmers and not-for-profit organizations. Here are a few popular options:
- CIBC Basic Business Operating Account. This flexible account is designed to let you only pay for the transactions you use each month. A $6 monthly fee also applies, while you can also take advantage of CIBC Global Money Transfer for Business.
- CIBC Everyday Business Operating Account. This basic account features 30 transactions per month, and the monthly fee varies from $20 for self-service access or $25 for full-service access. The monthly fee is waived if you have a minimum daily balance of $20,000.
- CIBC Advanced Business Operating Account. This mid-level CIBC business account supports 100 transactions per month, including Interac e-Transfers. There’s a monthly fee of $40, but that’s waived if you maintain a minimum daily balance of $35,000.
- CIBC Unlimited Business Operating Account. If your business needs to be able to perform unlimited transactions per month, this CIBC business account will let you do that for a $65 monthly fee. The fee is waived if you keep your balance at $65,000 or higher, so you can deposit as much as $15,000 cash, $1,000 in coins and 100 cheques each month.
Scotiabank business banking
If you want to open a Scotia business account, Scotiabank offers three chequing accounts as well as savings accounts and GICs for business. Scotiabank business banking products include:
- Scotiabank Select Account for Business. This Scotia business account is available in four different plan levels that support between 25 and unlimited transactions per month. The more transactions you need the higher your monthly plan fee, but the fee is waived if you meet minimum balance requirements.
- Right Size Account for business. This flexible account can be used as much or as little as you want. It comes with a $6 monthly fee, plus a fee for each transaction you perform. The size of this transaction fee varies depending on your account usage—it’s $1 per transaction if you perform 51 or more transactions per month, but higher if you perform fewer transactions.
- Scotiabank Basic Business Account. Available in Canadian and US dollars, this account offers 1 free transaction for every $1,500 in the account. The monthly fee is $10.95, but the fee is waived when you maintain a monthly balance of at least $8,000.
National Bank business banking
NBC business customers have 3 packages to choose from, but National Bank business accounts also come with options for US dollars, investments and foreign currencies.
- National Bank Digital Business Package. The basic tier costs just $7 a month, which is waivable with an eligible National Bank business credit card. You’ll get unlimited transactions and self-service cheque deposits but only 12 free Interac e-Transfers.
- National Bank Hybrid Business Package. The next tier costs $8 per month, which is also waivable with an eligible National Bank business credit card. It’s best for those who require both in-person and online service but who don’t want to pay for the premium package. Get 6 assisted (in-person) or electronic transactions, unlimited self-service cheque deposits and 2 free Interac e-Transfers.
- National Bank Premium Business Package. This beefed up package offers 100 assisted transactions and unlimited transactions and Interac e-Transfers. Pay $95 per month (less if you have an eligible credit card or maintain a balance of at least $80,000).
Tangerine business banking
Being a fully online bank, Tangerine has few overhead costs to worry about and can afford to slash fees for customers. Tangerine does not offer a business chequing account (although it does have a no-fee personal chequing account), but you can open a business savings account or GIC in Canadian or US dollars. You’ll never need to worry about paying a monthly fee or maintaining a minimum balance.
Online banking for businesses
You don’t necessarily need to work with a major bank to open an online business bank account in Canada. Online-only banks and fintech firms now offer more choice for Canadian business owners, with day-to-day money accounts, multi-currency accounts, corporate cards and easier access to business loans and credit.
While some online-only banks are subsidiaries of brick-and-mortar banks, others are strictly digital-only fintechs. In almost all cases, online-only business bank account options come with lower fees, more services and an instantaneous and digital method of banking for your business.
How to open a business bank account in Canada
Once you’ve found the best business bank account for your needs, make sure you meet all the application requirements before opening an account.
Required documents
You’ll need to provide government-issued photo ID and business registration documents. The type of document depends on your business structure.
- If you’re a sole proprietor, a copy of your trade name registration certificate or your master business licence will be required.
- Partnerships may be asked to provide a partnership agreement and a copy of a trade name registration certificate.
- Corporations may be asked to provide articles of incorporation/association.
Application process
While many banks allow you to open an account online, you may be required to visit a branch or book an appointment with a bank rep to finalize your application. If applying online, here’s what to do:
- Select Apply now on the bank’s website.
- Provide your business name, contact details and registration details. You’ll also be asked to provide details about what your business does, how long it’s been established, and your annual revenue.
- Provide personal information as well as the details of any other business owners or directors.
- Upload proof of ID for yourself and anyone else associated with the account.
- Submit your application.
Dive deeper: What do I need to open a business bank account?
FAQs about business banking in Canada
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