Where Canadian small business banking actually stands
Business banking in Canada has split into two camps that rarely talk to each other. On one side sit the Big Five, with monthly account fees that run from about $5 to $35 depending on the plan, and a branch network that solves problems a website cannot. On the other side sit digital banks and fintechs that charge nothing monthly but ask you to give up cash deposits, in-person advice and, sometimes, your province.
The cost gap is not just the monthly fee. Comparisons of Canadian business accounts published this fall put foreign exchange markups at traditional banks in the range of 2.5% to 3.5% on top of the mid-market rate. For a Toronto agency billing US clients $80,000 a year, that markup quietly removes something in the neighbourhood of $2,000 to $2,800 before the money ever lands. No monthly fee survives that kind of drag.
Eligibility is the second wall. EQ Bank's business account is not available to Quebec residents or businesses, nor to trusts, partnerships or companies owned by another company. Venn excludes Quebec-incorporated corporations. A shop in Laval therefore has a shorter list than a shop in London, Ontario, and most comparison articles ignore this entirely.
Interest is the third. Digital institutions are paying in the 2% range on operating balances, and the difference adds up. Keeping $40,000 parked in a 0% chequing account costs roughly $900 a year in foregone interest at a 2.25% rate. That is real money for a business that runs on thin margins.
Then there is cash. No online-only account in Canada accepts a till full of twenties. Market vendors, cafés, landscapers paid in cash and anyone with a float still needs one relationship with a credit union or a branch, even if the day-to-day account lives online.
The accounts worth putting side by side
| Provider | Monthly account cost | Standout feature | Best fit | Watch out for |
|---|
| EQ Bank Business Account | $0, no minimum balance | 2.25% interest on the full balance, up to 10 sub-accounts, 50 outgoing Interac e-Transfers each month | Sole proprietors and small incorporated teams that bank entirely online | Not offered in Quebec; excludes trusts, partnerships and businesses owned by another company |
| Wealthsimple Business Chequing | $0 | Interest up to 2.25%, simple interface, links to the same platform owners use for investing | Solo founders, freelancers, early-stage startups | Not a chartered bank; no branch and no cash deposits |
| Airwallex Business Account | $0 on the entry plan | Collection in 20-plus currencies, 1% cash back on corporate cards, no FX markup when spending from held currency | Exporters, e-commerce sellers, agencies paid in USD or EUR | No commercial lending, no way to deposit cash |
| Venn | $0 | Interest on USD balances reported as high as 3.5%, plus 1% card cash back | Corporations sitting on cash reserves | Newer platform, shorter track record; not open to Quebec-incorporated businesses |
| TD Business Essential Account | $35, waived at a $45,000 balance | Branch access, cash handling, lending conversations in person | Businesses with cash or a credit application ahead | Highest fixed cost in this group |
| BMO Essential Business Account | $5 | Low entry cost from a familiar Big Five brand | New businesses that want a recognizable name | Transaction allowances are tight; extras are billed |
| RBC Business Essentials Savings | $0 | Tiered interest reported up to 2% | Parking tax money or reserves beside an operating account | A savings product, not a replacement for a chequing account |
The pattern is clear enough. Savings-first accounts win on yield, global accounts win on currency, and branch accounts win on things you can hold in your hand.
Take a Calgary seller moving about 40% of revenue through US marketplaces. On a $150,000 book of business, that is $60,000 exposed to conversion. The 2.5% to 3.5% markup at a branch works out to somewhere between $1,500 and $2,100 annually, before the $35 monthly fee. Holding USD in a multi-currency account and converting on her own schedule flips that line item into a rounding error. She still keeps a credit union account for the cash she takes at weekend markets.
A one-person consultancy in Mississauga has the opposite problem: almost no cash, a handful of invoices, and a strong preference for not paying $420 a year for a branch she visits twice. A $0 account with interest on the balance and a linked bookkeeping tool covers her entirely.
Setting it up without a week of back and forth
Start with the fee schedule, not the marketing page. Look for the transaction allowance, the e-Transfer cap, the cost of an extra EFT, and whether the monthly fee can be waived by holding a minimum balance. That last clause is often the difference between a $35 plan and a $0 one.
Confirm three things before you apply, because each one can stop an online sign-up cold. Your business structure has to be on the eligible list, which rules out partnerships and trusts at several digital banks. Your province has to be served; Quebec owners should check Desjardins and National Bank alongside the fintech options. And the person opening the account usually needs signing authority plus a major ownership stake, so a minority partner cannot do it alone.
Match the account to your transaction rhythm. Fifty outgoing Interac e-Transfers sounds generous until payroll, rent, three vendors and a CRA instalment all land in the same week. If you clear 80 outgoing transfers a month, a $0 account with a hard cap costs more in add-on fees than a $35 plan with room to spare.
Keep one account for cash. Credit unions in BC such as Vancity and Coast Capital, ATB in Alberta, Meridian in Ontario and Desjardins in Quebec all take deposits that online banks cannot. Even a modest savings account there keeps the float from becoming a shoebox problem.
Connect the bookkeeping the same week you open the account. Categories drift fast in a new account, and a business that files GST/HST quarterly feels that drift at filing time. Set the CRA direct deposit details once, in one place, and stop re-entering them.
Read the deposit protection note too. EQ Bank states that business deposits up to $100,000 may be eligible for CDIC insurance, and fintechs typically hold client money in trust at a CDIC member institution rather than under their own charter. That distinction matters if the platform ever stumbles.
One more practical item: mobile cheque deposit is standard at most digital banks now, but the limit per cheque and per month varies widely. A contractor receiving a single $12,000 cheque from a property manager should check that ceiling before signing up, not after.
The account itself is a small decision. The cost of choosing wrong compounds every month, in fees, in conversion spread, and in interest left on the table. Pull up three fee schedules this week, compare them against your own transfer history, and open the one that matches how money actually moves through your business. Then revisit it after a quarter, when you have real numbers instead of estimates.
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