RBC Digital Choice Business Account
- Unlimited electronic debits & credits
- Unlimited electronic cheque & Moneris deposits
- Low $6 monthly account fee
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 help you financially stay on track and grow. Find out about in-person and online banking for business owners, and compare some of the best business banks in Canada.
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.
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, then you need a separate business bank account. Corporations are legally distinct from their owners, but sole proprietorships are not.
Some banks like RBC go the extra mile and require that all business owners, even sole proprietors, have business accounts.
Even if you don’t have to open a business bank account, you might want to for several reasons:
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.
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.
Great for international businesses, these accounts let you hold, spend and move money in multiple currencies. Enjoy competitive international money transfer fees.
Choose between cards that come with low interest, low (or no) fees, rewards points for business spending or accelerated rewards for frequent travellers.
Great for international businesses, these accounts let you hold, spend and move money in multiple currencies. Enjoy competitive international money transfer fees.
Scale your business or cover unexpected financial shortfalls. Some loan providers cater specifically to small businesses, startups or businesses with bad credit.
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:
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?
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).
Here’s what some of the best business banks in Canada have to offer entrepreneurs nationwide. View the best business bank accounts here.
RBC offers six business chequing accounts, including options such as:
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.
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:
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 similarly offers six business chequing accounts. Standout BMO business account options include:
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:
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:
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.
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.
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.
Once you’ve found the best business bank account for your needs, make sure you meet all the application requirements before opening an account.
You’ll need to provide government-issued photo ID and business registration documents. The type of document depends on your business structure.
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:
Learn more about RBC business banking services and how to find the right account for your business.
Read more…Learn about the rates, fees and eligibility criteria of the Tangerine Business Savings Account.
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Most big banks offers discounted plans to help your club, nonprofit or community organization run smoothly, plus there are fintech providers that offer international accounts at lower fees.