Best Online Banks for Small Businesses in Canada

Managing your business finances online has never been easier. If you’re a small business owner in Canada, choosing the right online bank can save you time and money while offering tools to streamline your financial operations. Here’s a breakdown of six online banking options tailored for Canadian small businesses:

• Tangerine: No monthly fees, pay-as-you-go transactions, and access to Scotiabank’s ATM network.
• EQ Bank: No monthly fees, unlimited free transactions, and a competitive 2.50% interest on balances.
• Simplii Financial: No monthly fees, free Interac e-Transfers, and global money transfer options.
• Wealthsimple: Combines business banking with investment tools in a single platform.
• CIBC SmartBanking: Offers U.S. and Canadian account integration and mobile cheque deposits.
• TD Small Business Online Banking: Flexible plans starting at $5/month, catering to various transaction volumes.

Each platform varies in fees, features, and support, so your choice will depend on your business’s specific needs, such as transaction volume, cash flow management, and international payment requirements.

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Quick Comparison

Bank	Monthly Fee	Included Transactions	Key Features
Tangerine	$0	Pay-as-you-go	No monthly fees, Scotiabank ATM access
EQ Bank	$0	Unlimited	2.50% interest, no minimum balance
Simplii Financial	$0	Unlimited	Free Interac e-Transfers, global transfers
Wealthsimple	Varies	Varies	Banking + investment tools
CIBC SmartBanking	$6	None	U.S. & Canadian account integration
TD Small Business	$5–$125	Varies	Flexible plans for different needs

Whether you’re looking for no fees, higher interest rates, or advanced digital tools, there’s an option that aligns with your business goals. Let’s explore each in detail.

The Best Business Bank Accounts in Canada

1. Tangerine Business Account

Tangerine, a digital-first bank under Scotiabank, offers straightforward business banking tailored for entrepreneurs who value simplicity and convenience. With the backing of a major financial institution, Tangerine combines modern digital tools with the reliability of a trusted name in Canadian banking.

Fees (Monthly/Transaction)

This account stands out with no monthly fees. Instead, transaction costs are charged on a pay-as-you-go basis, giving businesses greater control over their banking expenses.

Account Features

The Tangerine Business Account comes equipped with a range of digital tools designed to simplify business banking. Its online platform supports essential tasks like electronic funds transfers and bill payments, offering the kind of streamlined experience that many modern, tech-savvy businesses expect. These features ensure the account can handle the demands of daily operations with ease.

Customer Support

Support is primarily digital, with a variety of online resources available. For more direct assistance, extended phone support is also offered, ensuring help is just a call away.

Accessibility

While all transactions are managed online, accessing cash is straightforward thanks to Scotiabank's extensive ATM network, making withdrawals quick and convenient.

2. EQ Bank Business Account

EQ Bank is stepping up to offer Canadian small businesses a modern, no-fee banking solution. Currently in beta for existing customers, this business account reflects the bank's focus on meeting the needs of entrepreneurs across the country.

Fees (Monthly/Transaction)

The EQ Bank Business Account removes the common financial hurdles associated with small business banking. With no monthly fees and free unlimited transactions, businesses can manage their finances without worrying about extra charges. This no-fee policy extends to all standard banking services.

Account Features

What makes EQ Bank stand out is its 2.50% interest rate on all balances, with no minimum required. Businesses can also put surplus funds to work by investing in EQ Bank Business GICs.

The account supports essential tasks like customer payments, bill payments, and deposits, all through a streamlined digital platform. Signing up is quick and paper-free, and existing customers can seamlessly manage both personal and business accounts in one place. On top of that, EQ Bank backs these features with responsive customer service.

"Small businesses are the backbone of the Canadian economy, and they deserve better banking options. EQ Bank is proud to support entrepreneurs with a modern banking experience that addresses their unique needs", said Mahima Poddar, SVP and group head, personal banking, EQ Bank [2].

Customer Support

EQ Bank offers dedicated support from Canadian-based business service agents. With extended hours from 8:00 a.m. to 12:00 a.m. ET, the bank ensures help is available when business owners need it, even outside traditional banking hours.

Accessibility

Currently in beta, the platform is accessible on desktops and iOS devices, with Android support on the way. EQ Bank is also planning to enhance its multi-account connectivity. As of July 31, 2024, the bank manages $125 billion in combined assets under administration and management, highlighting its strong position in Canada’s evolving digital banking landscape [2].

3. Simplii Financial Business Account

Simplii Financial, a branch of CIBC, offers a digital-first banking experience tailored for Canadian small businesses. By operating without traditional physical locations, Simplii keeps things simple and cost-effective, focusing on essential online banking services.

Fees (Monthly/Transaction)

The Simplii Financial No Fee Chequing Account stands out by completely eliminating monthly fees. Small businesses can enjoy unlimited debit purchases, bill payments, and withdrawals without any extra costs. Plus, there are no minimum balance requirements, making it a stress-free option for managing day-to-day finances.

That said, businesses should note that overdraft protection comes with additional charges. While the monthly fee for this service isn’t specified, any overdraft balance is subject to a fixed 19% interest rate. Keeping a close eye on cash flow is key to avoiding unnecessary costs.

Account Features

Simplii Financial’s business account is packed with practical tools for digital banking. Here’s what you get:

• Free Interac e-Transfers: Send, request, and receive payments without any transaction fees.
• Global Money Transfers: Send money to over 120 countries with no transfer fees, ideal for businesses with international dealings.
• Currency Options: Open both CAD and USD savings accounts with no monthly fees. Transfers between these accounts benefit from competitive exchange rates.
• High Interest Savings Account: Earn competitive interest rates on idle cash.
• USD Savings Account: Conveniently manage funds in U.S. dollars.
• Foreign Cash Orders: Order foreign currency online with free delivery to your home or the nearest Canada Post location.

Customer Support

Simplii Financial offers round-the-clock customer support. Business owners can get help by calling 1-888-723-8881 or emailing talktous@simplii.com. Whether it’s a quick question or an urgent issue, their team is ready to assist.

Accessibility

As a digital-first bank, Simplii provides easy access through its online banking platform and mobile app, making mobile banking a breeze. For in-person needs, businesses can use over 3,400 CIBC ATMs across Canada for free deposits and withdrawals. Simplii also simplifies interactions with government services, offering single sign-on access to more than 80 Government of Canada websites [3].

4. Wealthsimple Business Account

Wealthsimple, widely recognized for its investment platform, has expanded its offerings to include a business account tailored for Canadian entrepreneurs. This account aims to simplify financial management by combining operational funds and investment tools in one place.

Key Account Features

• Effortless integration with Wealthsimple's investment platform, enabling business owners to handle both day-to-day funds and investments from a single interface.
• A user-friendly digital platform available on both mobile devices and web browsers.

Customer Support and Accessibility

Wealthsimple provides digital support to assist with banking and investment-related questions. Detailed information on fees and transaction limits can be found directly on the Wealthsimple website.

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5. CIBC SmartBanking for Business

CIBC’s SmartBanking platform is designed to help Canadian small business owners handle their financial tasks efficiently. By embracing digital solutions, this platform caters to businesses with both domestic and cross-border financial needs.

Account Features

With CIBC SmartBanking for Business, users can take advantage of several convenient features, including:

• Online bill payments
• Transfers through CIBC NetBanking
• Mobile cheque deposits using the CIBC US Mobile Banking App

To access these features, users need both Canadian and U.S. online or mobile banking accounts [4].

Customer Support

For assistance, business owners can contact the Client Support Centre at 1-877-448-6500. This dedicated support line ensures users have access to help whenever needed [4].

Accessibility

This account is available exclusively in English and requires access to both Canadian and U.S. online or mobile banking platforms [4].

6. TD Small Business Online Banking

TD provides a range of digital tools to make business banking more streamlined and accessible. With flexible plans, the bank caters to various business needs, complementing the online banking features already discussed.

Fees (Monthly/Transaction)

TD's plans come with different fees and transaction allowances, offering options for businesses of all sizes. Here's a breakdown:

• Basic Business Plan: $5.00/month, with no included transactions and a $1.25 fee per transaction.
• Community Plan: $1.95/month, waived if your balance stays above $5,000, and a $1.25 fee per transaction.
• Community Plus Plan: $4.95/month, waived with a $10,000 balance, and a $1.25 fee per transaction.
• Everyday Business Plan: Costs range from $19 to $72/month, covering 20–120 transactions, with rebates available for balances between $20,000 and $45,000. Additional transactions cost $1.25 each.
• Unlimited Business Plan: $125/month for unlimited transactions, with the fee waived for balances of $65,000 or more.

Plan	Monthly Fee	Included Transactions	Additional Transaction Fee	Fee Rebate Balance
Basic Business	$5.00	0	$1.25	N/A
Community	$1.95	0	$1.25	$5,000
Community Plus	$4.95	0	$1.25	$10,000
Everyday Business	$19-$72	20-120	$1.25	$20,000-$45,000
Unlimited Business	$125	Unlimited	N/A	$65,000

*Plans are available in both CAD and USD.

Account Features

TD Small Business Online Banking offers a user-friendly platform accessible via desktop and mobile app. You can handle a variety of tasks, including account management, fund transfers, and bill payments. The service supports both domestic and international transactions. However, note that international transfers come with a 3.5% currency conversion fee above the mid-market rate.

Comparison of Features and Costs

Choosing the right online bank means weighing fees against the features that matter most for your business. Some banks keep costs low but offer fewer services, while others charge more for a broader range of features.

Here’s a snapshot of how some popular options compare in terms of cost and features:

Tangerine is the go-to for budget-conscious businesses. It offers business savings accounts with no monthly fees and free Interac e-Transfers [6][8]. However, it lacks business chequing accounts, which could be a dealbreaker for businesses needing a full suite of banking services [10]. Keep in mind that additional chequebooks come with extra charges [5].

Simplii Financial shines in customer service, delivering a top-notch digital experience with an average response time of just 0.33 hours. This earned it a Platinum Surviscor Response Standard [11].

"Simplii Financial delivers the best digital service experience and the fastest average response times across Surviscor interactions." – Surviscor Group [11]

EQ Bank, on the other hand, offers competitive interest rates but struggles with customer support. It ranked last in service experience with a 24% score and an average response time of over 60 hours [11].

"EQ Bank ranked last out of 29 firms reviewed, offering the poorest overall service experience." – Surviscor Group [11]

Traditional banks offer a mix of pros and cons. For example, CIBC’s Basic Business Operating Account charges $6 per month, includes no free transactions, and applies fees of $1.00 to $1.25 per transaction [7]. Meanwhile, TD’s Basic Business Plan offers better value at $5 per month, which includes five free transactions and five free deposits, with additional transactions costing $1.25 each [10].

Here’s a quick comparison of key banking options:

Bank	Monthly Fee	Included Transactions	Transaction Fee	e-Transfer Fee	Key Advantage
Tangerine Business Savings	$0	Varies	Varies	Free	No monthly fees
CIBC Basic Business	$6	0	$1.00–$1.25	$1.50 (sending)	Established network
TD Basic Business	$5	5 transactions + 5 deposits	$1.25 per transaction; $0.22 per deposit	Not specified	Balanced offering
Simplii Financial	Varies	Varies	Varies	Varies	Best customer service
EQ Bank	Varies	Varies	Varies	Varies	Higher interest rates
Wealthsimple	Varies	Varies	Varies	Varies	Investment integration

When it comes to international transactions, traditional banks tend to charge around 3.5% above mid-market rates for currency conversion. For a more cost-effective solution, services like Wise offer competitive fees, with a one-time setup fee of $55 CAD [1].

Customer support quality also varies widely. Simplii Financial leads with an impressive 80% customer support score, while EQ Bank lags behind at 24% [11]. With the industry’s average response time sitting at 39 hours in 2024, Simplii’s sub-hour response time is a standout [11].

For businesses needing advanced digital tools, there’s a clear trade-off: traditional banks provide established networks and services, while newer players deliver modern, streamlined digital experiences.

Another factor to consider is transaction limits. For example, Tangerine allows e-Transfers of up to $3,000 daily, $10,000 weekly, and $20,000 monthly. On the receiving side, limits are significantly higher at $10,000 daily, $70,000 weekly, and $300,000 monthly [9].

Traditional banks often waive fees if you meet minimum balance requirements. While this can save money, it may tie up funds that could be better used for other business needs. Balancing liquidity and cost savings is key when evaluating these options.

Conclusion

The comparisons above shed light on the strengths of each option, helping you align your business needs with the right provider. For those keeping an eye on costs, Tangerine's no-fee savings accounts might be a practical choice.

Interestingly, in Q4 2024, about 76% of small business owners seeking funding opted for non-bank lenders instead of traditional banks[14].

Traditional banks, like TD with its $5/month basic plan, or CIBC offering unlimited transactions at $65/month, cater to businesses that value large networks. Meanwhile, fintech options such as Wise stand out for lower foreign exchange fees, requiring only a one-time $55 CAD setup fee[1][13]. These comparisons emphasise the need to balance costs with the features that matter most to your operations.

Key factors to evaluate include whether your business prioritises automated tools like expense categorization and accounting integration, or if in-person support and broader services are more critical[15][16].

Tailor your decision to your company's structure and goals. Think about branch access, monthly transaction limits, and international banking needs. Choosing the right banking solution can set the stage for long-term success[12][1].

As your business grows, your banking needs will evolve. Picking a solution that scales with you - from startup to expansion - can ensure you're aligned with the ongoing digital transformation shaping Canadian business banking today.

FAQs

What should I look for in an online bank for my small business in Canada?

When choosing an online bank for your small business in Canada, it’s important to weigh factors like fees, transaction limits, and the range of account options available. Make sure the bank can handle your specific needs, such as international payments, online deposit services, or payment solutions designed with small businesses in mind.

You’ll also want to explore features like credit options, cashback rewards, and responsive customer support. These can make your daily operations smoother and more efficient. By focusing on these elements, you can find a banking partner that not only supports your business goals but also helps you save time and money in the long run.

What are the differences in interest rates and transaction fees among the top online banks for small businesses in Canada?

Interest rates for small business savings accounts in Canada typically fall between 1.95% and 2.20%, though some high-yield accounts can go up to 5.00%. The specific rate you’ll get depends on the bank and the type of account, so it’s a smart move to compare your options and find what works best for your business needs.

Transaction fees are another key factor to keep in mind. Some banks offer unlimited electronic transactions with no monthly fees, which can be a great perk. Others might charge $1.25 per extra transaction or have a monthly fee of about $22.50, which usually covers a set number of transactions. Think about how often your business handles transactions to make sure you’re not paying more than necessary.

What are the benefits of using a digital bank instead of a traditional bank for small business banking in Canada?

Digital banks are gaining popularity among small businesses in Canada, thanks to their lower fees, higher interest rates, and quick, convenient transactions. Operating entirely online means these banks cut down on overhead expenses, allowing them to share those savings with their customers.

With perks like 24/7 account access, smooth payment processing, and intuitive apps, digital banks are built for efficiency. They're particularly handy for small business owners who value flexibility and need the ability to handle their finances anytime, anywhere.

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