This is probably one of the biggest pain points for business owners: what is the best bank account for my online business in Canada??
With so many options available (and with increased demand for products specific to small business owners), I wanted to highlight some of my current fave banking options across Canada.
When it comes to choosing the right bank account for your business, there are 5 key areas you’ll want to get really clear on before opening a new account.
1. Volume of Bank Transactions
How many transactions (money coming in, money going out) do you anticipate each month and what is the average dollar amount? Many accounts will have deposit/limit withdrawals that affect your monthly fee so important to start with this question when setting up a new account.
2. Type of Bank Transactions
Are you a completely digital business (think Stripe, Etsy payments, Shopify, PayPal, e-transfers to other Canadians) or do you require physical services (like cheque deposits or coin withdrawals for a cash float)? HOW you use your bank can determine what fees you’ll need to pay.
3. Business Banking Services
One of the great advantages of having a business bank account in Canada is they’ll often have unique services for entrepreneurs like: wire transfers, direct payments to Canada Revenue Agency, and enhanced detail on banking statements.
4. Cost
Once you’re clear on how you’ll be using your account, now’s the time to talk PRICING. I absolutely loathe hidden fees so make sure you read the “Fine Print” on every agreement, checking for special fees, minimum balance requirements, etc.
5. Growth & Loyalty Options
What you need from a bank will likely change over time as your business grows. What services/options does the bank provide outside of a standard bank account- do they have credit products like Credit Cards or Lines of Credit? Will they offer you a free savings account if you open a business bank account? Do they have loyalty or points programs on their products that you can use?
Getting clear on these areas BEFORE signing up for a new account will ensure you have the right solution for YOUR unique business needs.
In my bookkeeping and tax business, I interact with a lot of different banks so see first-hand which have competitive pricing and useful features for small business owners.
Here are my top 3 picks for the best online business bank accounts in Canada:
RBC Royal Bank Digital Account Package
COST: Starting at $5/month
Why I Like It:
A great solution if you mostly do business “online” (online payments, billing, e-transfers, etc.)
Unlimited electronic debit and credit transactions
Unlimited electronic cheque deposits
10 Included Interac E-Transfers
Things to consider:
There is a charge for in-branch transactions (Cash deposits start at $5 per $1000 deposit), so not a good fit if you have a high volume of cash sales or need coin for a float.
BMO Bank of Montreal eBusiness Plan
Cost: Start for free
Yup, you read that right. FREE. This is another good solution if most of your banking can be done online.
Why I like it:
Unlimited electronic transactions
Deposit cheques via app
Things to consider:
Charge for in-person transactions (i.e. deposit cash)
Interac E-transfers up to $3000 ($1.50 per transaction)
Wise (formerly TransferWise)
Cost: Free basic account
Wise has increased its services & products for Canadians, and is a great option if you’re doing multi-currency sales (i.e. selling in USD, EUR, etc) and need a trusted online International Bank Account.
Why I like it:
Competitive & Transparent Pricing (lowest transfer + processing fees I know of!)
Accept & hold multiple currencies
Stripe & Amazon automatic payments
Sync with QuickBooks + Xero
Payout to multiple banks/accounts
Pay bills/contractors
Simple to set up
Things to consider:
1-3 business days to transfer funds to another bank account
SUMMARY:
Before signing up for a new online business bank account in Canada, make sure you get clear on exactly what you need to help you save money & time (use my 5 clarity questions above!). If you do most of your transactions online, there are some great free & low-cost business bank account options to help you manage your business.
Affiliate Disclaimer: I sometimes use affiliate links for my trusted fave products. If you click and purchase, I may receive a small commission at no extra cost to you.
