Why the branch stopped being the default
Canada's big five banks still hold most business deposits, but the way owners open and use accounts has shifted. Online applications, mobile cheque deposit, and accounting software connections now matter more than a teller who recognizes your face. In rural Saskatchewan or Newfoundland, the nearest branch might be an hour away, which makes a digital-first account less of a preference and more of a practical need.
The catch is that pricing did not get simpler. Entry-level business plans sit anywhere from no monthly fee to roughly $25, while premium tiers climb toward $100. Waivers exist, but they usually require keeping $20,000 to $75,000 in the account every day, which is cash you cannot spend on inventory. Then come the per-item charges: extra Interac e-Transfer transactions, cash deposits, paper statements. BMO, for example, charges $1.50 for each e-Transfer beyond the plan limit and $2.50 for every $1,000 in cash deposited. Send 40 extra e-Transfers in a month and that is $60 before your base fee.
Quebec adds its own layer. Statements, agreements, and support are expected in French, and many owners there compare against Desjardins rather than a national bank. In the Prairies and Atlantic provinces, credit unions are a real third option, though deposit protection comes from a provincial insurer with different limits than CDIC.
Comparing the realistic options
| Account | Monthly fee | What is included | Best fit | Watch for |
|---|
| Tangerine Business Spending Account | None, no minimum balance | 1.25% interest on the balance | Solo operators, online sellers | Limited rollout, no cash handling |
| RBC Royal Business Community | $3.75 | Reduced fees for eligible groups | Non-profits, community groups | Modest transaction volume |
| RBC Ultimate Business Account | $100 | Highest included transaction limits | Firms with heavy payment flow | Fee waiver needs $75,000 daily balance |
| RBC U.S. Dollar Business Account | $9 | Pay-as-you-go pricing | Businesses paid in USD | Conversion still costs money |
| CIBC Everyday Business Operating | $0, $20 self-serve, or $25 full-service | 30 transactions including e-Transfers | Hybrid online and in-branch banking | Waiver needs $20,000 daily balance |
| BMO Essential Business Account | Low monthly fee | Unlimited electronic transactions | Online-first operations | $1.50 per extra e-Transfer, $5 paper statements |
| Scotiabank Basic Business Account | About $11, waived with a minimum balance | Transactions scale with your balance | Owners holding both CAD and USD | Fees return when the balance dips |
| Wise Business | No monthly fee, one-time charge for local account details | 22 currencies, conversions from 0.19% | Freelancers paid from abroad | No cash or cheques, no CDIC protection |
Published rates change without much notice, so confirm the current fee schedule before you commit.
Matching the account to how you actually earn
Solo and freelance work
Tangerine moved into business banking this fall, and its structure is unusual: no monthly fee, no minimum balance, and 1.25% interest on the spending account with 3% on savings. Access is still limited to a select group of entrepreneurs while the rollout expands, so expect a waitlist rather than an instant signup. For a translator in Halifax paid in euros or a designer invoicing US clients, Wise Business often makes more sense on the receiving side, since local CAD transfers cost nothing and currency conversion starts at 0.19%. Just remember that Wise is not a Canadian bank, holds no branch network, and its balances are not covered by CDIC the way a domestic deposit account is.
Incorporated companies and cash-heavy businesses
A retail shop, café, or contractor taking deposits needs somewhere to hand over bills and coins. Digital banks generally cannot help here, and cash deposit pricing at the big banks is where the bill grows. This is also the group most likely to need a credit facility later, and lenders tend to look for a year of business account history before they will talk. Staying with a mainstream bank during the first two years is often cheaper than switching twice.
Selling across the border
A USD account at RBC runs $9 a month with pay-as-you-go pricing, which suits a business paid in US dollars that wants the funds to sit in that currency. Adding a multi-currency tool on top gives you local account details in the currency your customer prefers, which cuts down on wire fees charged by their bank rather than yours.
Opening one without losing a week
Have your business number from the CRA, a Master Business Licence or articles of incorporation, one government photo ID, and ownership details for anyone holding 25% or more. Simpler structures can usually apply online, while partnerships and complex corporations more often need a branch visit or a phone appointment.
Order cheques or download a void cheque early, because pre-authorized debits for rent, software, and payroll all need one. Set up CRA direct deposit for refunds at the same time. Then connect the account to your bookkeeping file so the first month does not end in a spreadsheet scramble.
Two things worth doing before you sign. Read the fee schedule for the items you actually use, not the headline monthly number, and ask what happens when your balance dips below a waiver threshold. Then check whether the account supports the payment types your customers send. A plan that saves $20 a month but charges for every incoming e-Transfer is not saving anything.
Business account fees are deductible, and interest earned is taxable, so keep the statements together for filing season. If you are leaving an existing account, move pre-authorized debits first and close the old account only after payroll and rent have cleared once.
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