The line items that actually drain a small business
Most owners compare the headline monthly fee and stop there. That is where the surprises start.
Canada's big banks all sell a digital entry plan in the $5 to $6 per month range. Unlimited electronic and ATM transactions sound generous, yet the things a growing business does most often sit outside the bundle. Incoming Interac e-Transfers beyond the included handful cost roughly $1.50 each. Paying the CRA online can carry a small per-payment charge. Walking into a branch for a wire or a certified cheque pushes you onto a different price list entirely.
The higher tiers move in the other direction. Unlimited business accounts from the large banks run from about $65 up to $125 a month, usually waived only if you park a large daily balance — often tens of thousands of dollars. That money is then unavailable for payroll, inventory or tax installments.
Pure digital options price differently. Several now charge $0 monthly and pay interest on the whole balance, somewhere between 2% and 2.5%. On a $40,000 operating balance, that interest is a real line of savings rather than a marketing footnote. The catch is what they cannot do, which I will get to.
How the main options stack up
| Account type | Monthly fee | Interest on balance | Included e-Transfers | CRA payments | Best for | Main trade-off |
|---|
| Big-bank digital plan (TD, RBC, CIBC, BMO, Scotiabank) | $5–$6 | None | 6–10 free, then about $1.50 | Free to about $2 per payment | Owners who need a branch and cash deposits | Transaction fees add up fast |
| Big-bank unlimited plan | $65–$125, often waived with a large balance | None | Unlimited | Included | High-volume, cash-heavy operations | Large idle balance required |
| EQ Bank Business | $0 | 2.25% | 50 outgoing, 100 incoming | Free | Sole proprietors and small corporations wanting yield | Not available in Quebec |
| Wealthsimple Business | $0 | Up to 2.25% | Unlimited | Free | Digital-first service businesses | Limited cash handling |
| Venn | $0 | 2% on CAD | Unlimited | Not supported | Startups holding both CAD and USD | Local transfers priced per plan |
| Wise Business | One-time setup fee of about $55 | 2.22% on CAD | Pay per use | Not a core feature | Importers, exporters, freelancers paid in other currencies | No domestic cheque clearing |
Fees above reflect published pricing; your own plan can differ once transaction volume and balances are factored in.
Three things online accounts still cannot do
Cash. A bakery, a market stall or a contractor paid in cash cannot deposit banknotes into a digital-only account. Mobile cheque deposit handles paper, not coins and bills. Owners in that situation usually keep a cheap branch account open for deposits and move the money across by EFT, accepting the extra step as the cost of doing business.
Provincial gaps. EQ Bank's business account is not offered to Quebec residents or businesses. Some digital providers also exclude trusts, partnerships and companies owned by another corporation. Read the eligibility list before you gather documents — it is a short list and it rules people out quickly.
Deposit protection. A fintech is not always a bank. Where a provider holds client money in trust under federal payment regulations rather than as a deposit, CDIC coverage may not apply the way it does at a chartered bank. Ask directly, in writing, before routing payroll through any new account.
Match the account to how your business actually moves money
A sole proprietor invoicing four clients a month has almost nothing in common with an incorporated retailer running hundreds of card settlements.
If your revenue arrives by e-Transfer and you pay a handful of suppliers, a no-fee account paying interest is close to a free win. One Toronto design studio moved its operating cash from a $6 digital plan to an interest-bearing account and stopped paying per-transfer fees; the difference covered a laptop upgrade within a year. Nothing exotic, just fewer line items.
If you are incorporated, check who is permitted to open the account. Most digital providers want a majority shareholder who is also a signing officer and director. Only one person per business can usually hold the account, which becomes awkward when two partners both need visibility. Corporation status must be active, and a federal or provincial business number is part of the application either way.
If you buy from overseas suppliers or get paid in US dollars, currency conversion is the hidden cost. A domestic account that converts at a markup of two to three percent above the mid-market rate will quietly cost more than any monthly fee. Multi-currency accounts that hold USD and settle locally avoid repeated conversion. Compare the markup, not the subscription.
If you carry a healthy balance, run the interest math first. Two percent on a $50,000 balance is roughly $1,000 a year; a $6 monthly plan costs $72 and pays nothing. That comparison often settles the question faster than a feature checklist.
Opening an account without wasting a week
- Gather your articles of incorporation or sole proprietor registration, your business number, government photo ID and proof of Canadian address.
- Confirm the ownership rules — who can sign, what shareholding threshold applies, and whether your province is served.
- Apply online and expect identity verification through a credit file or document upload; a Canadian mobile number is usually required.
- Fund the account with a small test deposit, then send one e-Transfer and one bill payment before you redirect client payments.
- Set your CRA biller profile early so tax installments come from the right account, and note the per-payment charge if there is one.
- Keep statements downloadable. Many digital accounts issue no paper statements, and your bookkeeper will want a clean export at year end.
Worth doing before you commit: run one month of real transactions through the new account while the old one stays open. The fee structure that looked cheapest on paper often loses to the one that handles your actual deposit mix.
Start with the balance you keep, the payment rails your clients use, and whether cash ever touches your hands. Those three answers narrow the field to two or three accounts — and the fee comparison becomes a five-minute job instead of an afternoon of tabs.
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