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In Canada, there are plenty of different financial institutions that are good for small businesses. Financial institutions have specific small business accounts that cater to a business's needs and help it make the most of its finances.
Best Financial Institutions for Small Businesses
When it comes to running a small business in Canada, it’s no surprise that some of the top 5 banks are the best choices for running your business. Let’s take a look at these and how they can make your business thrive.
TD Canada Trust
TD Canada Trust has a wide variety of banking options for small business owners. Not only can you save money, but they can help you build a financial plan to help you make the most of your small business. They offer bank accounts, credit cards, online banking, credit solutions, and TD merchant services so you can accept credit card payments.
Bank Accounts
TD offers three different options for some of the best business bank accounts.
| Account Type | Fee | Features |
| TD Basic Business Plan | $5.00 per month | 5 deposits5 transactions |
| TD Everyday Business Plan A | $19.00 per month | 50 deposits20 transactions |
| TD Unlimited Business Plan | $125 per month | Annual fee rebate for business credit cardsUnlimited deposits, transactions and online bill pay, such as e-transfers |
Credit Cards
When it comes to business credit cards, TD also has a wide variety of options.
| Credit Card | Annual Fee | Features |
| TD Business Travel Visa Card | $149 | 19.99% purchase interest22.99% cash advance interest |
| TD Aeroplan Visa Business Card | $149 | 14.99% purchase interest22.99% cash advance interest |
| TD Business Cash Back Visa Card | $0 | 19.99% purchase interest22.99% cash advance interest |
| TD Business Selct Rate Visa Card | $0 | 11.99% purchase interest11.99% cash advance interest |
Credit Solutions
Another thing you need to consider when choosing a final institution is the different credit solutions that they offer. Here are the ones that TD offers.
| Credit Solution | Features |
| Business Overdraft Protection | This is like traditional overdraft protection and is designed to cover unexpected expenses in your account. |
| Business Line of Credit | These give you extra funds to help you grow and manage your business. |
| Agricultural Borrowing Solutions | These help cover agricultural expenses, whether they’re for everyday operations or in order to finance large business purchases. |
TD Merchant Solutions
One last thing you need to consider from your financial institution is the different Merchant solutions. TD offers point-of-sale systems, online payment processing, and partnerships. You can even order your point-of-sale accessories from them.
Royal Bank of Canada
Another large bank in Canada that offers great financial services for small businesses is RBC. They offer a variety of accounts, credit cards and loans that can help you make the most of your business.
| Business Account | Monthly Fee |
| Digital Choice | $6 |
| Flex Choice | $7 |
| Ultimate | $100 |
| Business Essentials Savings | $0 |
| Business Premium Investment | $0 |
| Agriinvest | $0 |
| Business Trust Account | Custom |
| US Dollar | $9 |
| Online Foreign Currency | $25 |
| RBC Bank Cross-Border | $150 USD |
On top of all these different account options, RBC also offers business credit cards.
| Credit Card | Annual Fee | Rates |
| Avion Visa Infinite Business | $175 | 19.99% |
| RBC Avion Visa Business | $120 | 19.99% |
| Business Cash Back Mastercard | $0 | 19.99% |
| Visa Business Card | $12 | 19.99% |
| Visa Credit Line | $0 | Prime + 2.9% to 11.9% |
Bank of Montreal
Another bank that offers a wide variety of services for small business owners is BMO, also known as the Bank of Montreal. They offer a wide range of business bank accounts as well as credit cards, loans and mortgages specifically for small businesses.
Bank Accounts
With BMO, you can get bank accounts to fit your business needs. Each account has its own features and a specific monthly fee.
| Bank Account | Monthly Fee | Features |
| eBusiness Plan | $0 | This account allows you to manage your business account online. You get unlimited Moneris transactions and unlimited e-transfers. |
| Business Start | $6 | You get 7 transactions per month, unlimited Moneris transactions, and no minimum balance requirements. |
| Business Builder 1 | $22.50 | This account includes 35 transactions per month, unlimited moneris transactions and no balance requirements. |
| Business Builder 2 | $45 | This account includes 70 transactions per month, unlimited moneris transactions and no balance requirements. |
| Business Builder 3 | $80 | This account includes 120 transactions per month, unlimited moneris transactions and no balance requirements. There’s no fee when you keep a balance of $35,000. |
| Business Builder 4 | $120 | This account includes 160 transactions per month, unlimited moneris transactions and no balance requirements. There’s no fee when you keep a balance of $80,000. |
Credit Cards
When it comes to credit cards for your business, BMO has a wide variety of options to fit your business needs.
| Credit Card | Annual Fee | Rates |
| BMO World Elite Business Mastercard | $149 | 17.99% purchase interest22.99% cash advance interest |
| BMO Cash Back Business Mastercard | $0 | 19.99% purchase interest22.99% cash advance interest |
| BMO Air Miles World Elite Business Mastercard | $149 | 19.99% purchase interest22.99% cash advance interest |
| BMO Air Miles No Fee Business Mastercard | $0 | 19.99% purchase interest22.99% cash advance interest |
Canadian Imperial Bank of Commerce
CIBC, also known as the Canadian Imperial Bank of Commerce, also has some great options for those who have small businesses. In bank accounts, there are four different options. There are also multiple options for credit cards as well as other financing options.
Bank Accounts
While CIBC offers multiple bank accounts, it also has a variety of business bank accounts. As a small business owner, you can choose the one that suits your needs the best.
| Bank Account | Monthly Account Fee | Features |
| CIBC Basic Business Operating Account | $6.00 | With this account, you only pay for the transactions you make. Nothing is included. |
| CIBC Unlimited Business Operating Account | $0 or $65 | You get unlimited transactions with this account. You can deposit $15,000 in cash, $1,000 in coins and 100 cheques. With a $65,000 account balance, there’s no fee. |
| CIBC Advanced Business Operating Account | $0 or $40 | You get 100 transactions with this account. You can deposit $5,000 in cash, $500 in coins and 50 cheques. With a $35,000 account balance, there’s no fee. |
| CIBC Everyday Business Operating Account | $0, $20, or $25 | You get 30 transactions with this account. You can deposit $3,000 in cash, $300 in coins and 25 cheques. With a $20,000 account balance, there’s no fee. |
Credit Cards
CIBC offers a variety of different credit card options. These include:
| Credit Cards | Annual Fee | Interest Rates |
| CIBC Bizline Visa Card | $0 | Starting at:Prime + 1.5% purchase interestPrime + 1.5% cash advance interest |
| CIBC Aventura for Business | $180 | 12.99% purchase interest14.50% cash advance interest |
| CIBC Costco Business Mastercard | $0 | 20.75% purchase interest22.49% cash advance interest |
| CIBC Aeroplan Visa Business Card | $180 | 12.99% purchase interest14.50% cash advance interest |
| CIBC Aventura for Business Plus | $120 | 19.99% purchase interest22.99% cash advance interest |
| CIBC Aeroplan Visa Business Card Plus | $120 | 19.99% purchase interest22.99% cash advance interest |
| CIBC Corporate Classic Plus Visa Card | $20 per card | 19.99% purchase interest22.99% cash advance interest |
Along with these standard bank options, CIBC also offers borrowing and investing solutions. They even offer cash management services and small business advice in order to help you make your business thrive.
Best Bank Accounts For Small Businesses
While we have already discussed the best financial institutions for small businesses, it’s also important to discuss some of the best bank accounts out there. No surprise, they’re accounts from the top 5 banks.
RBC Business Essentials Savings Account
This a great account for those who own a small business. There's no minimum balance requirement, no minimum monthly fee and up to 999 monthly transactions. While this isn’t a chequing account, it’s great for those who have a remaining balance at the end of the month. Due to the fact this is a business savings account, you can transfer funds between your accounts whenever you like.
Another great feature of this account is that you earn interest on all of your balances. Plus, while this account isn’t meant to be used every day, you get two free cheques or debits per month.
Scotiabank Basic Business Account
With the Scotiabank Basic Business Account, you can manage both Canadian and US funds. Unless you have an account balance of $8,000 or more, then the account fee is $10.95 per month. You get one free transaction for every $1,500 in the account, otherwise transaction fees apply.
TD Everyday Business Plan
TD offers 4 different TD Everyday Business Plans. You can choose what works best for you based on your needs. Here’s how they work.
Everyday Plan A
With the everyday Plan A, there’s a monthly fee of $19. If you keep a balance of $20,000 or more, than your monthly account fee is waived. Included with this plan are 20 transactions, and each additional translation costs $1.25. You can make up to 50 deposits per month, with each additional one costing $0.22.The free cash deposits included per month are $5,000. Each additional $1,000 is $2.50.
Everyday Plan B
With Plan B's everyday account, everything is the same as Plan A except for the monthly plan fee, fee rebate balance, and the transactions included per month. It allows for 60 transactions; the monthly fee is $39, and you don’t pay the fee if you have a minimum daily balance of at least $35,000 in your account.
Everyday Plan C
With the Plan C everyday account, everything is the same as Plan A, except for the monthly plan fee, fee rebate balance, and the transactions included per month. It allows for 120 debit and credit transactions; the monthly fee is $72, and you don’t pay the fee if you have a minimum balance of at least $45,000 in your account.
CIBC Smart Banking for Business
Lastly is the CIBC Smart Banking for Business account. This account gives you all the best options for managing your everyday business expenses. Instead of cheques, it includes ETFs, also known as Electronic Funds Transfers. Plus, instead of just being able to send funds in Canada, you can send them globally using mobile banking.
This particular business account also allows you to grant your accountant access to your accounts and sync xero as well as quickbooks. The ability to send e-transfers and wire transfers also makes organizing your finances easier.
Online Banks For Small Businesses
If you’re looking for alternatives to the big banks in Canada, online banks offer some great options for small businesses. Many of these offer low to no fees and plenty of options for credit cards and other lending as well.
Wise
For some small businesses, a large part of their income comes from international currencies. This account doesn’t just let you receive money; you can also get cards and use them like a traditional bank account. Depending on how many people are using the account, you can also set limits for how much each person can spend.
With Wise, there are no foreign exchange fees and low transfer fees. They also make sure you get paid fast, with international money transfers that come through in just 20 seconds. You can even sync your account to accounting software programs that can make tracking your finances much simpler. You don’t even have to speak to someone to sign up; you can do it online.
Paypal Business Account
If you’re looking for a non-traditional bank account to use for your small business, another option is the Paypal Business Account. The great thing about this account is that there are no monthly commitments and no hidden fees.
This account is particularly convenient if you operate using an e-commerce platform. Paypal lets you connect with your commerce platform to receive and make payments. The most popular ones that they partner with are:
- Big Commerce
- Woo Commerce
- Adobe
- Wix
- ShopWare
- Shopify
- Squarespace
- Bigcartel
While PayPal doesn’t allow you access to your funds with a card like a traditional account, it does allow you to receive your payments safely and securely with online and mobile banking. You can even send invoices in order to collect your payments faster.
Tangerine Business Savings Account
If you’re looking for all of the conveniences of a traditional bank without having to go into a branch, then a Tangerine Business Savings Account might be the right option for you. This particular account. Not only can you keep track of your finances and run your business, but you can also earn interest on the balance in your account.
While this isn’t designed to be a small business chequing account, it can work alongside your chequing account to help you grow your income. On your balances, you can earn up to 2.55%. How it works is that you earn $1.95% on amounts up to $99,999.99, 2.05% on amounts from $100,000 to $499,999.99, and $2.55 on amounts $500,000 and up.
In order to sign up for this account, you need to have an existing business chequing account, whether it’s with Tangerine or another financial institution. Once you can prove that you have one, then you can sign up. Because they don’t charge monthly maintenance fees and there are no minimum balance requirements, you can choose to save as much or as little as you like.
Best Banks for Small Businesses By Province
Due to the fact that there are so many smaller banks and credit unions in Canada, the financial institution that works best for you may not be available all over the country. This is specifically the case in some of the larger provinces. Let’s take a look.
Ontario
If you’re in Ontario and looking for another business banking option, it might be a good idea to consider alternative banking options or credit unions. These financial institutions offer alternatives to the larger banks and low monthly fees. However, to open a business account in Ontario you do need a master business license,
Desjardins
In Ontario, doing your business banking with Desjardins could be the best fit for you. Which account you choose with them though, will be based on whether you own a large corporation or a sole proproprietorship. You also have the option of business chequing and business savings accounts.
The chequing accounts with Desjardins include all the standard services that a personal chequing account offers. There are no monthly fees, and the transaction plan is based on your specific needs. Savings accounts, on the other hand, allow you to earn interest on the funds in your account. There are also no monthly fees.
On top of these standard features, Desjardins offers international payments as well as service provider payments and security alerts. The ability to efficiently run your business and keep your money safe is their first priority.
First Ontario Credit Union
As an alternative to Desjardins, another good credit union for small businesses in Ontario is the First Ontario Credit Union. They offer a wide variety of accounts, including:
- Business Chequing
- Business Savings
- Business US Dollar
- AgriInvest
Their featured accounts are the Business Premium Chequing Accounts and the Business US Dollar Chequing Account. The premium account is only $25 per month and includes up to 50 business transactions, and 10 e-transfers. There’s also no fee if you hold a minimum balance of $25,000. The US Dollar account is $1 per month with no fee with a minimum of $200 USD. There are 2 free withdrawals and a tiered interest rate.
Alberta
Similarly to Ontario, Alberta also has a wide variety of financial institutions that are great for small business owners. While they do still offer the big 5 banks, if you’re looking for something different then there are plenty of alternatives. Before you choose, though, you need to consider your cash flow, the monthly maintenance fees and consider competitive interest rates.
Servus Credit Union
In Alberta, Servus Credit Union offers a wide variety of banking solutions to help you run your business as well as your finances. They have everyday banking and borrowing products as well as the ability to help you run your business smoothly with different payroll and retirement account solutions.
Some other things that Servus offers are:
- Business credit cards
- Business expense cards
- Group savings and retirement programs
- Wealth management solutions
- Small business resources
Vision Credit Union
Another great options for small business in Alberta is Vision Credit Union. Along with business banking they also offer agricultural banking which is ideal in Alberta. With their variety of bank accounts, investing (money market accounts and more) and borrowing options, you can have all of your financial business needs met in one place.
BC
British Columbia is another province in Canada that’s popular amount small business owners. While it’s one of the most beautiful places to live in Canada it’s also the most expensive. This is why many business owners are looking for the most competitive pricing. Along with the big 5 banks, credit unions are really popular here for business financing.
Van City
In British Columbia, Van City is a credit union that has a variety of options for small businesses. They have 4 different banking packages that you can choose from based on your specific needs.
- The Independent Business Account is meant for businesses that use e-transfer often. It’s only $6.50 per month, includes free e-transfers, and gives you one free transaction for every minimum monthly balance of $500.
- The Business Full Service Package is ideal for those who want to do their day to day banking in branch. You get a specific number of transactions per month, and can access all services in the branch. This is only $15 per month.
- The Business Self-Serve Package is ideal for those who wish to do most of their banking online instead of in person. It’s only $8 per month and allows for a set number of transactions. All of your telephone banking with a bank representative and online banking is included, but there’s an additional charge of $1.25 per transaction for in-person banking services.
- The Business USD Chequing account is a good choice for those operating their business in US Dollars. You get one free transaction every month for every $500 minimum monthly balance. This account only costs $3 per month, which is waived with a minimum balance of $1,500.
- The Community Service Package is meant for small non-profit organizations. You get up to 40 transactions per month with this package, and there’s no monthly fee.
Other businesses also offer business prime accounts and trust accounts. All types of businesses offer multiple borrowing options, including business credit cards.
Coastal Community Credit Union
Just like Van City, Coastal Community Credit Union offers a variety of different borrowing and credit card options. They also have member services that cater to small businesses and help them grow. When it comes to their business options, there’s something to fit everyone's need.
- Business Unlimited: This account is for those who plan to take full advantage of their bank account. It’s $35 and offers unlimited free transactions per month.
- Pay-As-You-Go Business: With this account, businesses only pay for what they use on top of the small monthly fee of $6.00.
- Business Package A: This is a good bank account option for businesses that are just starting out. It’s only $10.25 per month and includes 15 full service transactions.
- Business Package B: This business banking option is for those who use their bank account, but don’t rely on it. It’s only $19.95 per month and includes 30 full service transactions.
- Business US Chequing Package: For a $2 monthly fee you can use this bank account for all of your USD transactions. There are other costs but they’re pay per transaction.
- Community Parter Package: This account is meant for non-profit organizations. There’s no monthly fee and includes unlimited transactions.
Manitoba
Another province that has other options than the big 5 banks for small business banking is Manitoba. Just like the other provinces, they offer a variety of credit unions that can help small businesses thrive.
Assiniboine Credit Union
With Assiniboine Credit Union, also referred to as ACU, there are plenty of options for small businesses. What they offer is different than other credit unions. Here, you get a dedicated account manager. This account manager can help you set up everything you need to get your business running smoothly.
Sunrise Credit Union
Another option besides ACU is Sunrise Credit Union. Not only do they help with different size businesses, they also help with agricultural businesses. They even have specific credit cards, chequing accounts and lending options for each one. Here are the options for business chequing accounts.
| Chequing Account | Monthly Fee | What The Account is Best Used For |
| Business | Pay as you go | You pay for what you use. |
| All In One | Variable | If you carry a large balance and want to earn interest. |
| Platinum | $31 | You carry a low balance in your business account. |
| Platinum Plus | $63 | You carry a low balance but do lots of transactions. |
| Premium Plus | $17.50 | Have low overheard and do very few transactions. |
| EZ | $25 | Do less than 50 transactions and send lots of e-transfers. |
| US Chequing | Free | You currently deal a lot in the US and want to earn interest. |
Along with their chequing accounts, they also have a few credit cards for you to consider.
| Credit Card | Annual Fee | Interest Rate |
| Low Rate Mastercard | $25 | 12.99% |
| No Fee Cashback Mastercard | $0 | 19.99% |
| Platinum Business Mastercard | $99 | 20.99% |
Wrapping Up
If you own a small business and are looking to find a bank account that works for you, there are plenty of different options. You can choose to go with one of the big 5 banks that offer a variety of products for those who run small businesses, or you can choose to go with a smaller bank that might have different things to offer.
Before you open a business bank account, it’s important to pay attention to the banks in your area. Depending on where you live, there are different banking options. While the large Canadian banks are available everywhere, the smaller banks only have select locations and more specialized services.
That said, there’s nothing saying you can’t have two business chequing accounts or have your personal and business finances with the same back. No matter where you choose to do your business banking or even manage your personal finances, be sure to do some research before you sign up.
