Best 5 Business Accounts in Canada for Small Business 2024

Are you newly launched business owner looking to open a business account? Do you know having a business account is really important? So, here we have gathered an exclusive list of Best Business Accounts in Canada for Small Business. These will definitely guide you in making the right choice.

Business Bank Accounts Canada

Do you run your own business in Canada or are you thinking of starting one? Using the best business bank account is essential. But it is often easy to feel frustrated and overwhelmed with all the options out there. Also, according to Canadian law, non-sole proprietorships need a separate bank account. Therefore, opening a business bank account is non-negotiable.

A business bank account helps your business to build a credit profile making it easier to secure a business credit card. It also makes your business look more professional and trustworthy when sending or requesting funds. But small-business banking has become a competitive market in Canada. Not to talk of the numerous low-fee options available for businesses. Therefore, it’s worth comparing the choices. Here are the best business bank accounts for Canadian small businesses.

Documents Required to Open a Business Account

Opening a business account in Canada is not a tough task. You can either apply online or visit the bank branch and fill the application form. Since it’s a business account the procedure is a bit different than a personal account. When it comes to documentation it depends on the bank you are choosing and the type/structure of your business. Here is a list of documents:

1. ID Proof
2. Name, address and SIN.
3. Sole Proprietor- Registration Certificate, Master business license
4. Partnership- Partnership agreement, Trade name certificate, Photo ID of all partners
5. Corporation- AOA, Trade name registration, Photo ID, financial statements or certificates.

Best Business Accounts for Small Business in Canada

Let’s take a sneak peek into the popular business accounts available for Canadian small business owners:

1. Wise Business Account

The Wise Business account is one of the best for small business owners. It provides low-fee transfers, and you can receive and hold 55 different currencies. You can also send payments to over 80 countries and connect various currencies to your business debit Mastercard.

Wise business accounts charge zero banking fees when sending and receiving money. Transactions and monthly deposits are also unlimited. The account provides cheap conversion rates for foreign currencies. It also links up accounting software like Quickbooks and FreeAgent, keeping your books and banking info up to date.

Additionally, Wise business accounts have an easy invoicing system that lets you make one-time, recurring or batch payments. 

2. RBC Digital Choice Business Account

The RBC Digital Choice Business Account is great for small businesses with online transactions. It is a smart choice for business owners that need a basic business account that provides online services. But, non-electronic transactions, such as those conducted through paper debit cards, credit cards, or ATMs, have additional costs. 

The RBC Digital Choice Business Account charges a $5 monthly fee for unlimited electronic debit and credit transactions with no minimum balance requirement. This account also allows users to accept payments however their customer wants to pay them. Furthermore, you can apply online and complete the process by visiting a local branch or RBC.

3. TD Basic Business Plan

The TD Basic Business Plan is a cost-effective and simple way to manage small business transactions. It is designed as an everyday business operating account with a mobile banking app. The account is the perfect choice for start-up businesses with few monthly transactions. It is also simple to use, allowing you to keep track of your finances no matter where you go.

The TD Basic Business Plan charges $5 with five transactions and five free deposits monthly. TD Basic Business Plan charges an additional $1.25 fee per transaction if you exceed the limit and a $0.22 fee for each additional deposit above the limit.

4. Alterna Business Account

Alterna business accounts require no monthly fee as long as you maintain a $3,000 minimum balance. There are unlimited debit and credit transactions with unlimited incoming Interac e-Transfers. It is also one of the few online-only banks that offer a business-specific chequing account.

Alterna business account gives customers access to 3,300 ATMs via Canada’s EXCHANGE Network, and deposits are insured up to the max allowed by the Canada Deposit Insurance Corporation. The account also offers small business loans and payment processing. Also, customers with a business chequing account are more apt to get these additional services through a bank they are already using.

5. Scotiabank Basic Business Account

Scotiabank is one of the largest banks in Canada, with many local offices and ATMs around the country. These make Scotiabank Basic Business Account one of the most accessible business banking accounts. With this account, you can hold the United States and Canadian dollars, which is very useful. It also provides one free transaction for every $1,500 in the account.

Scotiabank Basic Business Account also provides overdraft insurance and digital banking access. These allow you to pay bills and make transfers with ease. But, the account has a standard monthly fee of $10.95. However, the fee is waived if you have a balance of more than $8,000.

Important: Banks and financial institutions keep running promotional offers to win new clients. These may include cashback, bonus, gift cards, account credits, etc. So, do keep note of it! This can add some money to your pocket.

Not to miss our exclusive post on Financial Literacy in Canada

Choosing the Right Bank Account for Your Business

There are many things you should put into consideration when looking for the best bank account for your small business. They include the following:

1. Fees

Many banks charge their customers a monthly fee, while others do not. Also, keeping the minimum balance avoids paying an account fee at your bank. A no-fee checking account might be all you need if you do most of your banking online. But, you will be charged an additional fee if you want to take advantage of other features or require access to a branch from time to time. Therefore, do thorough research on the services provided by each bank to choose the one that best suits your needs. 

If you feel that monthly fee is not something you want to pay then try the Digital business bank accounts started by – Loop, Vault, Wise, Tangerine and WealthSimple. The usual monthly fee for business accounts start with a minimum $6 and for transactions the fee is extra.

2. Availability

Check if the bank offers free ATMs at convenient sites. You do not want to save money on monthly expenses only to pay it in transaction fees later.

3. Insurance Safety

Ensure the bank you choose has insurance. These give you peace of mind knowing your money is secured. Additionally, all the banks listed above are active Canadian Deposit Insurance Corporation members. Your deposit accounts are fully protected up to $100,000.

4. Interest Rates

Check the minimum deposit required to open an online savings account with your chosen bank. Also, note down their interest rate and compare them with other banks. While some banks waive most monthly and everyday banking fees on an online bank, others do not.

You may also like reading about How to Open a Business Bank Account in Canada?

5. Bonus

It is important to know if the bank of your choice provides bonuses for small business accounts. Such bonuses include A package that includes; a free business chequing account, business savings account, drafts, safe deposit box rentals, credit card fee rebates, loyalty points, and many more.

6. Beware of Misleading Promotions

Many institutions often feed the public with attractive but misleading information when marketing their services. This is done to gain new clients. While these bonuses may sound very lucrative, some of them may not benefit for long. So, do verify the facts and representations made to you.

You may also like to explore Best Online Banks in Canada

Small Business Bank Account Canada

It is important to choose the best Canadian business bank account when starting your business. Avoid missing out on the distinct benefits of business banking and the ability to build business credit.

Do thorough analysis and check your priorities before finalizing your business account. After all, you will be having a long-term business relationship with the bank, so it’s your right to clarify all the terms and conditions beforehand.

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Have you opened a business account? Which small business account do you prefer? Do you wish to add any other name to our list of Best Small Business Accounts in Canada? If yes, you may comment below or email us with details and why the bank should be a part of our top business accounts list.