The 8 Best Online Banks For Small Business in Canada

Tangerine Business in Short

To open a Tangerine Business Savings account, you will need to already have a business bank account open at another financial institution and provide proof. They offer a simple fee schedule with free Interac e-Transfers, stop payments, replacement cards, and Scotiabank ABM withdrawals. There's no sign up fee and no minimum balance.

However, they have a 2.5% exchange rate fee on foreign transactions. You'll also be charged for non-sufficient funds fees for over-drafting. Overall, this account is designed for you to collect savings over time and earn interest, without touching your balances too often.

Tangerine Business Advantages

• Free Interac e-Transfers, stop payments, replacement cards;
• Free Scotiabank ABM withdrawals;
• No sign-up fee and no minimum balance requirement;
• 2.9%+ interest on savings;
• Business Guaranteed Investment accounts available for 4.6% interest.

Tangerine Business Disadvantages

• 2.9% rate only applies to balances $500,000.00 or more;
• Balances of $99,999.99 or less get interest of 2.3%;
• 2.5% exchange rate fee on foreign transactions;
• Non-sufficient funds fees for over-drafting.

Final Word

Open a Tangerine Business Savings account and grow your business cash at a great interest rate of 2.9%*. We recommend Tangerine for their free Interac e-Transfers, stop payments, replacement cards, and Scotiabank ABM withdrawals. Overall, it's an ideal option for accumulating savings and earning interest while avoiding unnecessary costs.

*The 2.9% annual interest rates applies as of January 19, 2023 to balances of $500,000.00 or more.

Wise Business in Short

Wise Business is open to various types of businesses, including sole traders, limited and public companies, freelancers, partnerships, charities, and trusts in Canada. The application process requires sharing business registration details, location, industry, and personal details of company stakeholders.

Once you're signed up, you'll be able to take advantage of the following features for free:

• Send money and make payments locally and internationally
• Hold, exchange, and top-up over 50+ currencies
• Use the batch tool for efficient invoicing and payment processing
• Integrate with administrative and accounting software like QuickBooks
• Obtain your first multi-currency debit card for free (with a one-time $42 opening fee)
• Access local bank details (AUD, CAD, EUR, GBP, HUF, NZD, RON, SGD, and USD)
• Set up direct debits
• Withdraw money from platforms like Shopify and Stripe.

Wise Business Advantages

• Receive international payments without big fees.
• Batch pay up to 1,000 invoices and salaries at once;
• Give select employees access to money management;
• Mid-market exchange rate offered for currency transfers;
• Wise card can be used to avoid foreign transaction fees;
• No setup fees or monthly charges;
• Authorised as an Electronic Money Institution by the FCA.

Wise Business Disadvantages

• Cash or cheque payments aren't supported;
• Negative interest on large Euro account balances;
• Fees to top up the account via debit and credit card;
• Tight limits and conditions to fee-free ATM withdrawals.

How Wise Business Works

To understand how Wise Business works, let's take an example. Suppose you conduct business in the UK and need to pay a supplier in British pounds. With the Wise Business Account, you can:

1. Send CAD from your bank account to your Wise CAD account.
2. Convert CAD to GBP at a low fee (e.g., for a $1,000 transaction paid with Canadian dollars, the total fee would be around 0.43% or $4.30).
3. Pay your supplier in GBP with your Wise debit card, make or receive SEPA (and SWIFT) payments, or set up direct debits.

Final Word

In summary, unlike online business accounts, Wise Business does not charge monthly fees. If you serve international clients, Wise Business allows you to receive payments like a local in their country. If you're tired of incurring international transaction fees when dealing with international clients, Wise Business could be the solution for you.

Royal Bank of Canada in Short

The Royal Bank of Canada provides online and mobile banking for most transactions, ensuring convenience and accessibility for its customers. With a focus on simplicity, it offers a straightforward business banking service that meets the needs of business owners. Additionally, the bank allows you to link your eligible RBC business cards to your Petro-Canada card, providing the benefit of saving 3¢/L on gas at Petro-Canada locations.

Here is list of their standard fees:

• Paper deposits and credit transactions: $2.50 each
• Paper statement without images: $4.00
• Paper statement with images: $5.00

RBC Advantages

• Unlimited credit and debit transfers;
• Unlimited electronic cheque deposits;
• 10 free Interac transfers, $1.50 / transfer thereafter;
• No minimum balance requirement.

RBC Disadvantages

• No free multi-currency accounts;
• High international transaction fees;
• Not specialised for international transfers.

Final Word

If you primarily conduct your banking online or through your mobile device, the RBC Digital Choice Business Account Package may be suitable for you. By embracing digital banking, you can save time and money while accessing various features that assist you in managing your business efficiently.

Mike Mozart, (CC BY 2.0, unmodified)

TD Bank in Short

The TD Bank Small Business Account provides a practical solution for businesses with its streamlined invoicing capabilities. With this account, you can send invoices to your customers at no cost, enabling them to make online payments conveniently. The account also allows you to accept online credit card and ACH payments, with per-transaction fees applied.

Standard Fees at TD Bank

• Minimum Deposit to Open: $25
• Monthly Maintenance Fee: $10
• Accept credit card payments: 3.49%
• Accept ACH payments: 1.99%
• Accept lockbox payments: 1.99% ($5 cap).

Advantages of TD Bank

• $5,000 free Cash Deposits in store (additional $0.25 per $100 thereafter);
• No ATM fees at TD ATMs;
• Free debit card.

Disadvantages of TD Bank

• No free multi-currency accounts;
• $25 minimum balance requirement;
• Does not earn interest;
• No ways to waive monthly fee;
• High international transaction fees;
• Not specialised for international transfers.

Final Word

If you primarily conduct your banking online or through your mobile device, TD Bank's business banking services may be suitable for you. They offer lines of credit and business loans, which you may consider as a small business owner once you grow and scale your company.

Alterna in Short

The account allows you to make ACCEL® and Maestro® debit payments both within the United States and internationally. Pre-authorized credits, bill payments, and pre-authorized payments/debits (PAP/PAD) can be conveniently managed through online, mobile, and telephone banking. You can also make deposits using Alterna's Deposit Anywhere™ feature and perform transfers through online, mobile, and telephone banking. Lastly, making debit card payments at point-of-sale terminals is included as part of the account's free day-to-day transactions.

Here are the most common current account fees:

• Monthly Fee: $5
• Day-to-day Transactions: Unlimited electronic day-to-day transactions
• Interac e-Transfers (Send and Request Money): 6 free per month, $1.50 per after
• In-branch cash deposit of up to $1,000 per day: $2 per $1,000 deposit
• All-in-One® Statement: $3 per paper statement
• e-Statement: Free
• Cheque Images in Statements: $2
• Chargebacks: $5

Alterna Advantages

• 24/7 account access for convenient banking;
• Access to over 3,300 surcharge-free ATMs in THE EXCHANGE® Network;
• Eligible deposits insured up to the maximum amount through CDIC for added safety;
• No monthly fee with a minimum daily closing balance of $3,000;
• Free unlimited electronic debit and credit transactions;
• Free incoming Interac e-Transfers®;
• 6 free Interac e-Transfer® Send or Request Money transactions per month.

Alterna Disadvantages

• Not specialised in foreign exchange;
• Not available to residents of Quebec;
• No physical branch locations west of Toronto;
• Monthly fee if minimum balance is not maintained;
• Limited number of free Interac e-Transfers per month;
• Not specialised for international transfers.

Final Word

In conclusion, Alterna Bank is a solid digital choice for Canadian small businesses. With its online platform, it offers convenient access to your account anytime, anywhere. The absence of a monthly maintenance fee, as long as you maintain the minimum balance requirement, makes it an attractive option for cost-conscious businesses. Additionally, the inclusion of a few free Interac e-Transfers® each month adds value to your banking experience.

While it may have limitations, such as being unavailable to residents of Quebec and no branches west of Toronto, Alterna Bank provides a reliable and accessible banking solution for small businesses in Canada.

Scotiabank in Short

Scotiabank offers the Basic Business Account, providing a straightforward solution for managing Canadian and US Dollar funds. This account is designed with account fees that are tailored to your usage, ensuring cost-effectiveness for your business. With Scotiabank's partnership with Chase Merchant Services, you can also experience improved cash flow by receiving funds the next day.

Here are the most common current account fees:

• Mail deposit: $5.00
• Branch deposit: $1.50
• ABM deposit: $1.25
• Cheque: $1.50
• Night deposit: $1.25
• Remote deposit: $1.00
• Merchant credit: $1.00
• Merchant debit: $1.00
• ABM withdrawal: $1.25
• Bill payment (ABM, Internet or Telephone): $1.25
• Self-service transfer (ABM, Internet or Telephone): $1.00

Scotiabank Advantages

• 24/7 access through online banking;
• Access to credit and loans;
• One free transaction for every $1,500 in your minimum monthly balance;
• Account maintenance fee waived when the minimum monthly balance is $8,000+.

Scotiabank Disadvantages

• Fees for cheques, deposits, and withdrawals;
• Low ratings on Trustpilot from customers;
• High international transaction fees;
• Not specialised for international transfers.

Final Word

Scotiabank provides various business account options with features, including a standard small business chequing account. While it is generally high in fees with a lot of fine print in the fee schedule, Scotiabank does offer a wide range of other accounts to consider when your business grows. It may be a viable choice to pair along with digital bank Tangerine, which is a subsidiary that offers convenient and low-fee digital banking solutions.

Andrew Neel on Unsplash

Wealthsimple in Short

Wealthsimple offers a savings account with a competitive interest rate of 1.1% for businesses. Their investing account provides commission-free stock trading and a management fee of 0.5% for managed investing accounts. With instant deposits of up to $50,000 and access to customer support from real humans, Wealthsimple provides a user-friendly and accessible investment platform. To get started, a minimum investment of $1 is required, and they offer paid tiers that provide lower management fees.

Wealthsimple Advantages

• Competitive 1.1% interest rate for business savings;
• Commission-free stock trading with $0 trading fees;
• Access to customer support from real humans;
• Instant deposits of up to $50,000;
• Data encryption and two-factor authentication;
• CIPF protection for your accounts in the event of insolvency.

Wealthsimple Disadvantages

• Management fees of 0.5% for managed investing accounts;
• Minimum investment requirement of $1;
• Paid tiers for lower management fees.

Final Word

Wealthsimple is a platform for businesses to consider to passively grow their wealth. However, it's important to note that Wealthsimple is not designed to function as a traditional chequing account. If you're seeking a comprehensive banking solution that includes everyday transactional capabilities, loans, or lines of credit, it may be more appropriate to consider a traditional bank. Nevertheless, if you're looking to invest surplus funds and take advantage of features like $0 commission stock trading, managed investing accounts with low management fees, and access to customer support, Wealthsimple is a highly recommended platform.

Payoneer in Short

Payoneer provides a single free account that enables enterprises of all sizes to venture into global markets, receive local payments, and withdraw revenue to a local bank account. This serves as a cost-effective alternative to paying fees for wire transfers or local bank withdrawals. Rather than offering tiered paid services, Payoneer implements a comprehensive fee structure, which we will outline below.

Payoneer Advantages

• Get paid into local bank accounts;
• Coverts foreign currency at the mid-market rate;
• Withdraw multi-currency earnings into local account at low cost;
• Connect with thousands of online marketplaces;
• Access working capital and manage cash flow
• 24/7 multilingual support;
• Authorised as an Electronic Money Institution.

Payoneer Disadvantages

• Charges fee to withdraw Payoneer balance to your Canadian bank;
• Charges fixed transaction fee when converting foreign revenue;
• Charges annual fee for Payoneer's MasterCard.

Payoneer's Fee Schedule

In short, Payoneer is a global infrastructure that connects you to a network of customers, suppliers, and online marketplaces. To access this powerful service, there are fees associated with various transactions. Transactions between Payoneer users are free, whether you are sending or receiving payments.

Receiving payments into your Payoneer account is free for most currencies, except for USD, which may have a fee ranging from 0 to 1% depending on the country. If you receive payments from specific marketplaces like Airbnb or Fiverr, please refer to their websites for the relevant fee information.

• Get Paid: Payments by credit card will cost you 3% per transaction, regardless of currency. If you get an ACH bank debit from an American customer, that will cost 1% per transaction.
• Withdraw to Bank: The principle here is to avoid foreign currency exchanges. Withdrawing your EUR Payoneer balance to your Canadian bank will cost a flat fee of $1.50 (the same applies to USD to USD banks and EUR to EUR banks). Foreign currency withdrawals (i.e. USD Payoneer balance to GBP account in the UK) will cost 2% of the transaction. Withdrawing in a non-local currency (i.e. withdrawing your USD into a USD account in the UK) will also cost you 2% per transaction.
• Pay: If you pay suppliers or partners by bank transfer, Payoneer will charge 2% per payment. A fixed fee will also apply if the payment is made in AUD, GBP, USD, EUR ($1.50, £1.50, $1.50, €1.50 respectively).
• Currency Transfer: For each transfer from one currency to another, you will pay 0.5% of each transfer.
• Inactivity Fee: Pay a $29.95 penalty for not making a transaction or Payoneer card payment in 12 months.

Final Word

One of the most remarkable aspects of Payoneer is its extensive global infrastructure, connecting you to the world's largest and most expansive online marketplaces. This software simplifies the payment process for customers, making Payoneer the most appealing online business account for e-commerce businesses. Additionally, its low fees for international money transfers make Payoneer an ideal solution for those aiming to expand their customer base internationally.