The Best Bank for Small Business in Canada for 2023

If you’re a small business owner, you know how important it is to have a dedicated bank account for your business. The problem is that business bank accounts are generally more expensive than personal accounts. If you’re not careful in choosing the right service plan, you can spend hundreds of dollars on unnecessary fees each year.

To help you find the right account for your business, I’ve compiled a list of 18 of the best business bank accounts in Canada. I’ve included the big five banks and several online banks and divided the accounts into the following categories:

• Best Basic Business Accounts: Best for small and new businesses
• Best Unlimited Business Accounts: Best for companies with large transaction volumes
• Best US Dollar Business Bank Accounts: Best for US dollar transactions
• Best Online Bank Business Accounts: Best for earning interest on business savings

You’ll notice that the big banks offer the widest range of features and service plans, but the online banks are great as complementary accounts where you can earn interest on your excess savings. I also included a few US dollar accounts.

Best Basic Business Account Plans

The following accounts are the cheapest business chequing accounts offered by the big five banks that allow you to bank online or in person. But while these plans enable you to deposit cash and coin through a bank teller, they are not meant for businesses that need to deposit cash regularly. These accounts are best suited for new businesses or solopreneurs who only need to make a few transactions per month, mostly online.

BMO Business Start Chequing

• Monthly Fee: $6/month
• Transaction limit: 7
• Deposit Item Limit: 0
• Cash Deposits Included: None
• Cash Deposit Fee: $2.25 per $1000 deposited
• Additional Transaction Fee: $1.25 (in-branch) or $0.60 (electronic)
• Additional Deposit Item Fee: $0.20 each

BMOs Business Start Chequing plan is designed for seasonal businesses or new businesses just starting out. The plan is ideal for the business owner who doesn’t need to deposit cash (there’s an additional fee) and will limit their transactions to less than 10 per month. The plan includes two free e-Transfers per month. If you need to transact more often, Business Builder 1 is the next step, at $22.50/month for 35 transactions.

CIBC Basic Business Operating Account

• Monthly Fee: $6
• Transaction limit: 0
• Deposit Item Limit: 0
• Cash Deposits Included: None
• Cash Deposit Fee: $2.25 per $1000 deposited
• Coin Deposit Fee: $2.50 per $100 in coins deposited
• Additional Transaction Fee: $1.00 (self-serve) or $1.25 (in-branch)
• Additional Deposit Item Fee: $0.22

CIBC’s Basic Business Operating Account is a pay-as-you-go account, and as such, it doesn’t offer the same value as some of the other accounts on our list. The $6 fee doesn’t include any monthly transactions, so you’ll pay $1.00 or $1.25 each time you make a deposit or withdrawal, depending on whether it’s an electronic or in-person transaction. If you only use the account a few times a month, you’ll pay less than $10. If you need to do more transactions, consider the CIBC Everyday Business Operating Account. It’s $20 (self-serve) or $25 per month (full-serve), and includes 30 transactions. The fee is waived if you maintain a minimum account balance of $15 throughout the month.

RBC Flex Choice Business Account

• Monthly Fee: $6
• Transaction limit: unlimited deposits, withdrawals are $0.75 – $1.25
• Deposit Item Limit: unlimited
• Cash Deposits Included: 0
• Cash Deposit Fee: $2.50 per $1000 deposited in-branch
• Additional Transaction Fee: $1.25
• Additional Deposit Item Fee: 0

RBC’s Flex Choice Business Account is unique because you receive unlimited deposit items. However, you will pay for every withdrawal or transfer from the account. The fee is $0.75 for self-serve transactions and $1.25 for full-serve transactions. If you don’t require in-branch access, RBC has a popular digital-only business account called the RBC Digital Choice Business Account. For $5 per month, you get unlimited electronic debit and credit transactions and free mobile cheque deposits, and you can send ten free e-Transfers per month. If you need to use more transactions, the RBC Ultimate Business Account Package is the next step. I’ll cover that plan in more detail below.

Scotiabank Right Size Account for business

• Monthly Fee: $6
• Transaction limit: 0
• Deposit Item Limit: 0
• Cash Deposits Included: 0
• Cash Deposit Fee: $2.50 per $1000 deposited
• Coin Deposit Fee: $2.50 per $100 in coins deposited
• Additional Transaction Fee: $1.00-$1.25 (tiered)
• Additional Deposit Item Fee: $0.25

The Scotiabank Right Size Account for small businesses is a basic business account that includes four monthly transactions. Beyond that, the cost per transaction is tiered, as follows ($1.25 for 1-15 transactions, $1.15 for 16-50, and $1.00 for 51+). If the cost of your transactions exceeds $6 within the month, your fee will be the higher amount. Of course, this many transactions would be very costly, and you would likely not be using this account with that level of activity. Scotia has another low-cost account, the Basic Business Account. It’s $10.95 monthly, but the fee is waived if you maintain a minimum balance of $8,000 or higher. The account is available in both Canadian and US currencies.

TD Basic Business Plan

• Monthly Fee: $5/month
• Transaction limit: 5
• Deposit Item Limit: 5
• Cash Deposits Included: None
• Cash Deposit Fee: $2.25 per $1000 deposited
• Additional Transaction Fee: $1.25 each
• Additional Deposit Item Fee: $0.22 each

The TD Basic Business plan is designed for businesses with low monthly transactions. This includes freelancers and other companies that may only receive income from a handful of clients each month and have limited withdrawal needs. If you think that you’ll have trouble staying within the transaction limit each month (transactions include deposits and withdrawals), the next plan up is the TD Every Day Business Plan A. It’s $19/month, but you get 20 transactions.

Best Unlimited Business Bank Account Plans

Large businesses can easily conduct hundreds of banking transactions per month. This includes cash and cheque deposits, written cheques, and electronic transfers in and out of their accounts. Business bank accounts offering unlimited transactions for a fee represents the best value for these companies. Let’s take a closer look at the following unlimited business bank accounts, starting with BMO.

BMO

• Monthly Fee: $120
• Transaction limit: 160
• Deposit Item Limit: 90
• Cash Deposits Included: $12,000
• Cash Deposit Fee: $2.25 per $1000 deposited
• Additional Transaction Fee: $1.00-$1.25 (tiered)
• Additional Deposit Item Fee: $0.25

BMOs Business Builder 4 lags behind the competition because it’s NOT an unlimited account, which is disappointing. Sure, the 160 transaction limit will be enough to cover most businesses’ monthly activity, but many large companies will exceed that number. In addition, you only get $12,000 in cash deposits before you start paying the additional fees. If you keep a minimum balance of $80,000 in the account, the monthly fee is waived.

CIBC Unlimited Business Operating Account

• Monthly Fee: $65
• Transaction limit: Unlimited
• Deposit Item Limit: 100 cheques
• Cash Deposits Included: $15,000 cash, $1,000 coin
• Cash Deposit Fee: $2.50 per $1000 deposited
• Coin Deposit Fee: $2.50 per $100 in coins deposited
• Additional Transaction Fee: $1.00-$1.25 (tiered)
• Additional Deposit Item Fee: $0.25

Unlike BMO’s Business Builder 4, CIBCs Unlimited Business Operating Account offers fantastic value. The monthly fee is only $65, and you get unlimited transactions, including free e-Transfers. You can deposit up to $15,000 in cash before the additional fees kick in. A nice perk, CIBC will waive the $65 monthly fee if you maintain a balance of $45,000 or more throughout the month.

RBC Ultimate Business Account Package

• Monthly Fee: $100
• Transaction limit: Unlimited electronic, 100 full-serve transactions.
• Deposit Item Limit: 0
• Cash Deposits Included: $25,000
• Cash Deposit Fee: $2.25 to 2.50 per $1000 deposited
• Additional Transaction Fee: $1.25
• Additional Deposit Item Fee:

RBCs Ultimate Business Account Package is meant for high-volume businesses. It offers unlimited self-serve transactions, but full-serve transactions are capped at 100 per month. Moneris deposits are unlimited and free, too. You can deposit up to $25,000 in cash before paying additional fees. The monthly fee of $100 is lower than Scotiabank and BMO but higher than CIBCs $65 fee.

Scotiabank

• Monthly Fee: $120
• Transaction limit: Unlimited
• Deposit Item Limit: Unlimited
• Cash Deposits Included: $30,000
• Cash Deposit Fee: $2.50 per $1000 deposited
• Coin Deposit Fee: $2.50 per $100 in coins deposited
• Additional Transaction Fee: $1.00 to $1.50
• Additional Deposit Item Fee: $0.25

Scotiabank’s unlimited account is very straightforward. For a monthly fee of $120, you get unlimited transactions, including deposit items. While transactions are unlimited, if you deposit more than $30,000 in cash, you’ll be subject to the cash deposit fee of $2.50 per $1000 deposited. If you maintain a minimum balance of $75,000 or more, the $120 monthly fee is waived.

TD Unlimited Business Plan

• Monthly Fee: $125
• Transaction limit: Unlimited
• Deposit Item Limit: Unlimited
• Cash Deposits Included: $25,000
• Cash Deposit Fee: $2.50 per $1000 deposited
• Coin Deposit Fee: $2.50 per $100 in coins deposited
• Additional Transaction Fee: $1.25
• Additional Deposit Item Fee: $0.25

The TD Unlimited Business Plan has the highest monthly fee amongst the big 5 banks. But unlike some of its competitors, like BMO and RBC, it’s a true unlimited account. There is also no limit on the number of cheques you can deposit each month. The monthly fee will be rebated if you maintain an account balance of $65,000 or more throughout the month, which is lower than Scotiabank and BMO.

Best US Dollar Business Bank Accounts

If you do a lot of business in the US, you must have a US Dollar business account. Here are a few US business account options from Canadian banks.

TD US Dollar Unlimited Business Account

• Monthly Fee: $125 USD
• Transaction limit: Unlimited
• Deposit Item Limit: Unlimited
• Cash Deposits Included: $25,000 USD
• Cash Deposit Fee: $2.50 USD per $1000 USD deposited
• Additional Transaction Fee: $1.25 USD
• Additional Deposit Item Fee: $0.25 USD

TD makes it easy by offering the same business account plans in US dollars. This includes their US Dollar Unlimited Business Account. It’s the same pricing as the Canadian dollar account but in US dollars. I like that it’s a true unlimited account. If you maintain a balance of $65,000 USD or more throughout the month, the $125 fee will be waived.

Tangerine Business US Dollar Savings Account

• Account Type: Business Savings
• Fees: $0
• Interest Rate: 1.60%

It can be difficult for Canadian business owners to earn interest on their US funds. Tangerine makes it easy with their Business US Dollar Savings Account. If you have an existing business bank account, you can deposit your excess US funds with Tangerine. There are no monthly fees and no minimum balance requirement. Currently, the account is paying 1.60% interest, much higher than you’d get in a US dollar account with a big bank.

RBC US Dollar Business Account

• Account Type: US Dollar Business chequing
• Fees: $9/month (Pay-As-You-Go)

RBC’s US Dollar Business Account is designed to help you manage your cash flow. If you receive payment in US funds, you can avoid having to exchange them for Canadian dollars by depositing the funds into your US dollar account. There is a $9 monthly fee, which is waived if you maintain a minimum account balance of $2500 USD or more throughout the month.

Best Online Bank Business Accounts

Many business owners associate business banking with traditional banks, like RBC or CIBC. But more and more online banks are offering business products, including business bank accounts. Here are some of the top business bank accounts from Canadian online banks. Note that most of them are savings accounts and are designed to complement your primary business chequing account at your main financial institution. The best way to use an online business account is by transferring over your excess savings. In most cases, you’ll earn an attractive interest rate and can access the funds anytime.

Tangerine Business Savings Account

• Account Type: Business Savings
• Fees: $0
• Interest Rate: Up to 2.90%

Tangerine is the digital banking arm of Scotiabank and one of Canada’s leading online banks. You can earn an attractive interest rate in Tangerine’s small business bank account, called the Tangerine Business Savings Account. The account does not have cheque privileges but is a great place to store excess funds outside your business operating account. There are no monthly fees, and you can earn up to 2.90% interest as of the time of this writing. One caveat, you must have a business chequing account at another financial institution to qualify for a Tangerine business bank account.

Wise Business Account

• Account Type: Online account for sending and receiving foreign currencies
• Fees: No monthly fees (low fees for foreign exchange)
• Interest Rate: none

If you have customers outside of Canada, you’ll save a lot of money on foreign exchange and international transfer fees by opening a business account with Wise (formerly TransferWise). Wise transfers are much cheaper than using PayPal or sending wire transfers from your bank. You’ll also get a break on the exchange rate – instead of marking up the exchange rate as your bank does, Wise charges the real exchange rate. This can save you thousands of dollars in the long run. Note that this is not a chequing account. You’ll need to open a separate bank account elsewhere for your operating needs, but you can transfer to and from your Wise account.

Alterna Business Basic Account

• Account Type: Business chequing account
• Fees: $10
• Monthly Transactions: 15

Alterna offers a Business Basic Account for $10 a month. You get 15 transactions, along with the ability to write cheques. If you live near an Alterna branch location, you can make cash deposits of up to $1000 daily. You won’t pay surcharges at Alterna and Exchange Network ATMs (over 3000 across Canada). Alterna is a CDIC member, so your deposits are fully insured up to the applicable limits. If you operate a large business with high transaction volumes, the Alterna Business Prestige Account is available for $100 a month. The plan includes 200 monthly transactions.

Manulife Business Advantage Savings Account

• Account Type: Business Savings
• Fees: $0
• Interest Rate: 2.85%

Manulife Bank offers a business savings account that is designed to complement your main business account at another financial institution. There are no monthly fees, and you can transfer money to and from other bank accounts free of charge. Currently, Manulife’s 2.85% interest rate on their Business Advantage Savings is higher than the standard rate offered by Tangerine (2.30%).

Wealthsimple Save for Business Account

• Account Type: Business Savings
• Fees: $0
• Interest Rate: 1.00%

Like the Tangerine and Manulife business savings accounts, the Wealthsimple Save for Business Account lets you earn interest on excess funds with no fees. There are no account minimums, and according to Wealthsimple, you can transfer funds to your primary business account within 1-day. Currently, Wealthsimple is paying 1.1% interest on this account.

Is there a Best Small Business Bank in Canada?

When it comes to day-to-day business banking, it’s difficult to pick a winner from the big five banks. As I did my research for this article, the thing that surprised me the most was how different the various service plans were between banks. I assumed they would largely be the same on monthly fees and other account limits, but they varied quite a bit.

For example, CIBC’s unlimited business account is much more affordable than the other banks, at $65 monthly. And not all of the banks offer truly unlimited banking – TD and Scotiabank being the only ones. So, CIBC is the best value, and out of the online banks, Manulife currently offers the highest interest (2.85%) on the full account balance. (Tangerine’s 2.90% rate is only available on balances over $500,000).

As far as the Basic business accounts go, BMO and TD are the best value, in my opinion, as the others are really just pay-as-you-go accounts.

To summarize, there isn’t an outright winner; the best business bank account will depend on how you bank and the number of monthly transactions you perform.