12 Best Business Bank Accounts In Canada for 2024

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What are the best business bank accounts in Canada? This is one of the first questions that any freelancer, business owner, or self-employed individual will likely ask. That’s because how you have your banking set up can play an essential role in how you run your business.

The good news is that there are many bank accounts to choose from. There are literally dozens to choose from. You also don’t have to use the same bank where you do your personal banking. If you’re considering opening a new account or switching from your current one, here are the best business bank accounts in Canada.

Business Bank AccountMonthly fee/min. balace for fee waiverMonthly transactions
RBC Ultimate Business Account Package$100/$75,000Unlimited
TD Every Day Business Plan A$19/$20,00050
TD U.S. Dollar Unlimited Business Plan$125 U.S./$65,000 U.S.Unlimited
CIBC Advanced Business Operating Account$35/$35,000100
BMO eBusiness Plan$0Unlimited electronic transactions
Scotiabank Right Size Account for Business$6 or total payable transaction feesUnlimited self-service transfers
Tangerine Business Savings Account$0Unlimited (online banking)
Alterna Savings Business Premium Account$55/$5,000100
Vancity Independent Business Account$6.50/$1,500Unlimited INTERAC e-Transfers
Wise Business Account$0Unlimited (online banking)
Wealthsimple Save For Business Account$0Unlimited (online banking)
ATB Financial Unlimited Business Account$85/$70,000Unlimited

RBC Ultimate Business Account Package

Monthly fee – $100, waived with a minimum balance of $75,000.
Additional fees – $1.25 for each transaction over your limit, $2.25 – $2.50 on cash deposits over $25,000.
Monthly transactions – Unlimited Moneris and electronic debit, credit, and e-Transfer transactions. 100 paper transactions.

High-volume businesses may be attracted to the RBC Ultimate Business Account Package. For $100 a month, you get unlimited transactions.  Admittedly, the monthly fee is quite high, but you can get it waived if you keep a monthly balance of $75,000.

While it may be tempting to keep a monthly balance of $75,000 to avoid your monthly fee, it’s likely not worth it. Investing that money instead could be the better deal.

This is one of the best business bank accounts in Canada since it serves businesses with medium to high transaction volumes. With 100 free paper transactions each month, you likely won’t go over your limit. Even if you do, your e-transfers will only cost $1.25 each.

This account is great if you’re looking to pay employees, get unlimited electronic debits and non-electronic transactions.

TD Every Day Business Plan A

Monthly fee – $19, waived with a minimum balance of $20,000.
Additional fees – $1.25 for each additional transaction, $.22 for additional deposits, $2.50 per additional $1,000 deposited.
Monthly transactions – 50, $5,000 for cash deposits.

The TD Every Day Business Plan A is a good choice for those just starting their business. The $19 a month is reasonable for the number of deposits you get. That said, you only need to hold $20,000 to get your monthly fee waived, which might be a bit much for those just starting.

The 50 monthly transactions are great, but you can only deposit $5,000 before you’re charged additional fees. On a positive note, debit and credit card deposits that come through your POS terminals, are non-chargeable transactions. That means they won’t count toward your transaction and deposit limits.

If you don’t think 50 deposits is enough, TD does have B and C plans which come with 60 and 120 transactions, respectively. That said, the monthly fee also jumps up to $39/$72. Since TD Bank is a CDIC member, your deposits are insured by the Canada Deposit Insurance Corporation.

TD U.S. Dollar Unlimited Business Plan

Monthly fee – $125 U.S., waived with a minimum balance of $65,000 U.S.
Additional fees – $2.50 U.S. per $1,000 U.S. deposited after exceeding the $25,000 U.S. limit.
Monthly transactions – Unlimited

For those that have a business that primarily deals with U.S. clients/dollars, the TD U.S. Dollar Unlimited Business Plan may be appealing. You get unlimited monthly transactions and deposits. That said, you can only deposit up to $25,000 U.S. monthly before deposit fees apply.

The monthly fee of $125 U.S. is waived if you maintain a minimum balance of $65,000 U.S. Like many other small business bank accounts in Canada, it’s not worth it to keep that balance since you don’t get any additional perks. Regardless, this is one of the best business bank accounts in Canada.

CIBC Advanced Business Operating Account

Monthly fee – $35, waived with a minimum balance of $35,000.
Additional fees – $1.00 for each additional self-service or $1.25 for full-service transactions.
Monthly transactions – 100, $5,000 cash, $500 coin and 50 cheques deposits.

At just $35 a month, the CIBC Advanced Business Operating Account focuses on business owners that have a lot of transactions. You get 100 transactions a month before you’re charged for additional transactions. If you don’t like the idea of paying monthly fees, you can get the fee waived by maintaining a minimum balance of $35,000 in your account.

Although you get a fair amount of transactions, it’s worth paying attention to the cash deposit limits. Your monthly deposit limits are $5,000 for cash, $500 for coins, and 50 cheques. The nice thing about the Canadian Imperial Bank of Commerce is that they have over 1,100 branches and more than 3,400 ATMs in Canada.

BMO eBusiness Plan

Monthly fee – None
Additional fees – None
Monthly transactions – Unlimited Moneris and electronic transactions.

If you’re looking for a free business bank account in Canada, the BMO eBusiness Plan is worth looking into. You get unlimited Moneris and electronic transactions. In addition, you can use Interac e-Transfer to pay vendors and employees ($3,000 daily limit)

While a free business bank account is great, this plan only helps if you do all of your banking digitally. You get zero cash transactions. That means if you need to make any deposits, you will be paying $2.25 per $1,000 in deposited cash or $100 in coins. Even ATM withdrawals will run you $1.25 each.

The Bank of Montreal is one of the big six banks in Canada and has many brick-and-mortar banks, so it’ll be easy for you to get support.

Scotiabank Right Size Account for Business

Monthly fee – $6 or total payable transaction fees (whichever is higher).
Additional fees – $1.25 each (1 – 15 transactions), $1.15 each (16 – 50 transactions), $1 (50+ transactions).
Monthly transactions – Unlimited FREE self-service transfers.

The Scotiabank Right Size Account for Business is interesting because it comes with a low annual fee, and your transaction fees drop depending on how many you use. The base monthly fee is $6. However, transactions in a branch or at an ATM start at $1.25 each. The more transactions you do, the more you’ll pay.

On a positive note, you get unlimited free Canadian dollar self-service transactions. So basically, anything done online won’t cost you any money.

What’s interesting about this account is that it also pays interest on balances of at least $10,000. The interest you’ll earn will increase depending on how much you have in your account. While this is appealing, the overall interest rates are relatively low. However, they’re good enough if you’re saving your money for a future business purchase.

Tangerine Business Savings Account

Monthly fee – None
Additional fees – None
Monthly transactions – Unlimited

Many people will argue that the Tangerine Business Savings Account is the best free business bank account in Canada. Whether that’s true or not will depend on your point of view. As the name implies, this is a business savings account. Since most business accounts pay no or little interest, Tangerine’s business account allows you to earn a good interest rate.

While there’s no denying the benefits of having high interest, the main concern is that Tangerine is a digital bank only. That means your business banking will need to be done through online banking. There won’t be any transactions available in person. Most people will use this account in conjunction with a separate business bank account.

That means this account should only be considered for people who can run their business completely virtually or are looking to earn interest on their savings. Fortunately, you do get an unlimited number of transactions.

Alterna Savings Business Premium Account

Monthly fee – None, waived with a minimum balance of $5,000.
Additional fees – $1.25 for additional in-branch deposits, $2.50 per $100 addition deposit in-branch, and $1 per additional in-branch withdrawal.
Monthly transactions – 100

What makes the Alterna Savings Business Premium Account one of the best business bank accounts in Canada is that you can get your monthly fee of $55 waived if you maintain a balance of at least $5,000. This is significantly lower than what other banks require.

As far as monthly transactions are concerned, you get 100 a month. That said, in-branch deposits are limited to $1,000 per day. On a positive note, your transactions cover cheques, in-branch withdrawals and transfers.

Alterna Savings mainly operates out of Ontario, so if you live in the province and have a small business, you may want to consider them.

Vancity Independent Business Account 

Monthly fee – $6.50, waived with a minimum balance of $1,500.
Additional fees – $.75 per in branch transaction, $.60 per ATM, mobile, online, or phone banking transaction.
Monthly transactions – None (pay per use), Free INTERAC e-Transfers, one free transaction per every minimum balance of $500.

Although the Vancity Independent Business Account doesn’t give you any free transactions, you do get one for every $500 minimum balance you keep in your account. Since it takes a minimum balance of $1,500 to get your monthly fee of $6.50 waived, you can basically get 3 free transactions a month.

While a lack of transactions is obviously disappointing, you do get Free INTERAC e-Transfers. This includes sending, receiving, requesting money and auto deposits. Your deposits are also 100% guaranteed by the Credit Union Deposits Insurance Corporation of British Columbia.

Wise Business Account

Monthly fee – None
Additional fees – Low exchange fees when converting currencies
Monthly transactions – Unlimited

The Wise Business Account isn’t a traditional bank account. It’s basically an online account that allows you to send and receive 55 different currencies. More importantly, when switching between currencies, the exchange rate you pay is quite low.

Another unique think about the Wise Business Account is that you can set up virtual bank accounts in multiple countries. This is good for business owners that need to accept different currencies. You could then transfer that money back to Canadian dollars (CAD) at a minimal cost.

The Wise Business Account is best used as a complement to your regular business bank account. In addition, you get a Wise debit card, which can be used when travelling to limit your foreign transaction fees. All your transactions will be self-service access, but you do get unlimited electronic transactions.

Wealthsimple Save for Business Account

Monthly fee – None
Additional fees – None
Monthly transactions – Unlimited

For those looking to earn some interest on their business income, the Wealthsimple Save For Business Account could be a good choice. The interest rate is typically much higher than a regular business bank account. In addition, there are no monthly fees and no account minimums. Think of this as a basic business savings account.

Since Wealthsimple doesn’t have any physical branches, all your transactions will have to be done online. To be clear, this is a savings account, so you won’t get any benefits that typically come with a chequing account.

Opening an account is done completely online. You just need to answer a few questions about your incorporated business. Transfers between the Wealthsimple Save For Business Account and your separate business account only take one day. Some people believe this is the best free business bank account in Canada

ATB Financial Unlimited Business Account

Monthly fee – $85, waived with a minimum balance of $70,000.
Additional fees – None
Monthly transactions – Unlimited

For those living in Alberta, one of the best business accounts in Canada is the ATB Financial Unlimited Business Account. For $85 a month, you get unlimited transactions. If you keep a minimum balance of $70,000, that fee is waived completely.

This account is great for any business that does four or more transactions a day. When you do the math, that works out to 120 transactions a month. You’re not going to find many business accounts that offer you that many transactions for just $85 a month. 

What is a business bank account?

Business bank accounts are a type of account designed specifically for business owners. It doesn’t matter if you’re a freelancer, self-employed, or a small business owner; there will likely be a business bank account in Canada that suits your needs.

Unlike personal bank accounts that are opened under an individual’s name, business bank accounts are opened under your business. That said, your business name can be your own name if that’s how you’re registered.

As you can imagine, with a business bank account, you’ll get access to more business options. For example, you may get much more transactions. In addition, you might get access to business credit cards, which typically come with higher credit limits and a longer interest-free grace period.

Business bank account vs business savings account

Similar to personal accounts, business bank accounts come in two forms: chequing and savings. Most business owners will use a business chequing account since it allows you multiple transactions each month. This would cover things such as payroll, deposits, and payments.

With business savings accounts, the idea is to grow your money. These types of savings accounts pay out interest, but not a whole lot. Quite often, they pay less than some of the best high interest savings accounts in Canada. Even though the interest rate may be low, having a business savings bank account can be handy since it’ll allow your money to grow.

Using the best bank accounts for business and personal use can go a long way.

Is a business bank account mandatory in Canada?

Not all business owners, freelancers, and self-employed individuals are required to open a business bank account. You could technically use a personal bank account if you keep good records of your business-related expenses.

However, if you’re incorporated, you do need a business bank account. That’s because your business is a separate legal entity, so the bank account can only be used for business reasons.

What are the benefits of a business bank account?

Even though having one of the best business bank accounts in Canada isn’t mandatory, there are still many reasons why you may want to consider getting one, including the following:

  • Taxes – Regardless of how big or small your business is, you will need to file taxes every year. With a business bank account, you’ll know that every transaction is related to your business. This makes things significantly easier for you and your accountant. If you merged things with your personal account, you’d have to manually go through every transaction to figure out which ones were business related.
  • Business credit cards – Even though you don’t always need a business to get a business credit card, some banks will only issue you one if you have a business bank account. The best business credit cards in Canada typically offer you a higher credit limit and increased base earn rate. Plus, you usually get business perks such as a longer interest-free period and employee fraud protection.
  • Payroll – With a business bank account, you can set your payroll to automatically deduct funds from your account to pay your employees. This can be done automatically, whereas using a personal bank account would require you manually do transfers.
  • Business records – Many banks will provide detailed business records for business bank accounts. These records will break down what you’ve been spending the most on and what your cash flow looks like. This will allow you to analyze your business and make smarter decisions in the future.
  • Tax breaks – You don’t technically get any tax benefits with a business bank account. However, if you’re incorporated and keep your money within the company, you’re taxed a lower amount. This allows businesses to reinvest any profits to grow their business.

Requirements to open a business bank account in Canada

The documents and requirements to open one of the best business bank accounts in Canada will depend on how your business is set up.

Sole proprietorship

  • Photo ID
  • Canadians address
  • Trade name registration (if applicable)
  • Master business license (if applicable)

Corporations

For corporations, you’ll need to provide your personal identification, address, and the nature of your business. In addition, the documents you need to open a small business bank account in Canada will depend on how long your business has been in existence.

Less than 18 

  • Articles of incorporation
  • Letters patent/company charter
  • Articles of amendment
  • Articles of amalgamation
  • Corporate profile report

18 months or more

  • Annual/statutory return
  • Certificate of status
  • Certificate of compliance/existence
  • Financial statement or annual report that’s signed by an accounting firm
  • Government Assessment
  • Corporate Search

Partnership

With a partnership, you need to provide your bank with your name, address, and the nature of your business. On top of that, you’ll need to provide additional documents based on the type of partnership.

General partnership

  • Partnership Registration
  • Partnership Agreement

Limited partnership

  • Limited partnership agreement
  • Certificate, declaration, or application of limited partnership

How to choose a business bank account

Even though I have a detailed list of the best business bank accounts in Canada listed above, choosing one can still be intimidating. You want to find something perfect for your business needs, but you also don’t want to overpay for it. Considering the following when picking a business bank account.

  • Monthly fees – Generally, the higher the fees, the more services you get. If your business requires many different services, getting an account with a higher fee could be worth it. That said, if you aren’t using your account much, just look for a business bank account with low fees.
  • Transaction limits – Like personal accounts, business bank accounts can come with transaction fees. You should look for an account that gives you enough transactions for your needs. Note that electronic and non-electronic transactions are often separated. If you go over that limit, you must pay per transaction, which can be expensive.
  • Fee waivers – A few business bank accounts will waive the monthly fees or transaction limits if you keep a minimum amount within the account. This could be worth it if you don’t mind keeping the funds in your account.
  • Interest rate – Although it won’t be much, some banks will pay interest on any money you currently have deposited in your business bank account. Business owners that typically keep a lot of cash in their accounts may want to look for a financial institution that offers higher interest rates.
  • Proximity – Some people want a business bank account at a financial institution close to their business or home. This will make things easier if you need to physically deposit funds or want access to live customer service.
  • Packages – There are different business bank accounts in Canada that come as part of a bigger package. With these accounts, you could also get a business credit card, bank drafts, and possibly a safety deposit box for free.
  • Insurance – You should only consider a bank account that has Canadian Deposit Insurance Corporation (CDIC) insurance. With this insurance, each eligible account is insured for up to $100,000 in the rare event that your bank fails.
  • Ease of use – If you’re using an online bank account, you want something that’s user-friendly regardless of whether you’re using a computer, smartphone, or tablet.

How to open a business bank account

If you’re ready to open one of the best business bank accounts in Canada, you can do so by doing the following:

  • Choose an account – Refer to my list of the best small business bank accounts in Canada above.
  • Gather your documents – What documents you need will depend on the type of business you run.
  • Start the process – Go online or into a branch to open up an account
  • Fund your account – Once your account has been opened, deposit some funds so you can access your money as needed.

Final thoughts

If you’re a business owner with a modest income, getting a business bank account won’t be at the top of your priorities list. That said, since business bank accounts allow you to separate things from your personal account, they can be quite convenient.

The best business bank accounts in Canada are designed for all types of business owners. Like personal bank accounts, you want to choose one that meets your needs, so you don’t pay more than you must. However, pay attention to the details of each account, as it’s possible to get your fees waived or to get additional monthly transactions, as long as you meet the minimum balance requirement.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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