TL;DR
A comparison of the best business bank accounts in Canada. From $5/month starter accounts to unlimited plans, here's which one fits your transaction volume and growth stage.
Your business bank account shouldn't be an afterthought. It's where every dollar flows through. The wrong account costs you in fees. The right one saves you hundreds per year and keeps your books clean. I've compared the major options so you don't have to.
Starter Accounts (Under $10/month)
TD Basic Business Plan: $5/month, 5 free transactions. Good for businesses just getting started with very low transaction volume.
BMO Business Start: $6/month, 7 transactions. Similar to TD, slightly more room.
RBC Digital Choice: $6/month, unlimited electronic transactions, 10 free Interac e-Transfers. Best value in this tier if you bank digitally.
These work for the first few months. But if you're processing more than 10 transactions per month, you'll burn through the included transactions fast. At $1.25 per extra transaction, costs add up.
Growth Accounts ($25-$65/month)
ICICI Business Chequing Elite: $24.95/month, unlimited transactions. Fee waived with minimum balance. Strong value for cost-conscious businesses that need full access.
Coast Capital One Small Fee: $38/month, unlimited transactions. Straightforward pricing for businesses past the startup stage.
TD Every Day Business Plan B: $39/month, 60 transactions. Fee waived with qualifying balance. Good middle ground.
CIBC Unlimited Business Operating: $65/month, unlimited transactions including e-Transfers. Fee waived with $65,000 daily balance. Best for high-volume businesses with cash reserves.
Premium Accounts ($100+/month)
RBC Ultimate Business: $100/month, unlimited electronic transactions. Fee waived with minimum balance.
Scotiabank Select Unlimited: $120/month, full banking access. Fee waived with qualifying balance.
According to the Canadian Federation of Independent Business, small businesses process an average of 30 to 50 transactions per month. If that's you, an unlimited plan saves money compared to paying per-transaction fees on a basic account.
The CFO Perspective
I see two common mistakes. First, business owners who stay on a $5/month basic plan while processing 40 transactions and paying $43.75 in overage fees. They'd save money on a $25 unlimited plan.
Second, business owners who get sold on a $120/month premium plan when they process 15 transactions. They're paying for features they don't use.
As Warren Buffett put it, "Price is what you pay. Value is what you get." Match your account to your actual transaction volume, not what the bank representative recommends.
What To Do About It
- Count your monthly transactions. Include payments, deposits, transfers, and e-Transfers. Pick an account that covers your actual volume.
- Check fee waiver thresholds. If you keep $5,000 to $10,000 in the account, you might qualify for a free upgrade.
- Separate personal and business from day one. No exceptions.
- Consider a credit union. Innovation Federal, Coast Capital, and others often offer better rates.
- Review annually. Your transaction volume will change as you grow.
The Bottom Line
Start with a basic account if you're under 10 transactions per month. Move to unlimited once you're past 20. Don't pay for premium features you won't use. And always keep business and personal finances separate. If you need help getting your financial systems set up, book a free call.
Next step: run your numbers through the free CFO scorecard.
Frequently Asked Questions
- What is the cheapest business bank account in Canada?
- TD Basic Business Plan at $5/month with 5 free transactions. BMO Business Start is $6/month with 7 transactions. Both are suitable for very early-stage businesses with minimal banking activity.
- Do I need a separate bank account for my business in Canada?
- Legally, sole proprietors aren't required to have one, but it's strongly recommended. For incorporated businesses, keeping a separate account is essential. Mixing finances creates accounting headaches and increases audit risk.
- Can I get a business bank account with no monthly fee in Canada?
- Some credit unions and online banks offer no-fee business accounts with limited features. Most major banks charge $5 to $120/month but waive fees if you maintain a qualifying balance.
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