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Best Banks for Small Business Owners Canada 2025

Low-fee business accounts, free e-Transfers, payroll tools, and business credit cards for Canadian entrepreneurs

Best Business Bank Accounts in Canada 2025

Choosing the right business bank account can save a small business owner hundreds or thousands of dollars per year. Key factors: monthly fees, transaction costs, e-Transfer limits, integration with accounting software (QuickBooks, Xero), and access to business credit when you need it.

1. RBC Business Account Best for Growing Businesses

RBC's Digital Choice Business Account is one of the best value business accounts in Canada: low monthly fee ($6/month), unlimited e-Transfers, and seamless QuickBooks/Xero integration. For businesses with a Canadian credit need (line of credit, business loan), RBC has the most robust small business lending program.

Pros

  • $6/month base (among lowest Big Five)
  • Unlimited e-Transfers included
  • QuickBooks & Xero integration
  • Strong small business lending
  • Business credit cards
  • Excellent business advisors

Cons

  • Per-transaction fees beyond included limit
  • Complex fee schedule

2. TD Business Account

TD's small business banking is popular with service-based small businesses. TD Business Direct includes strong digital tools, seamless merchant payment integration, and solid business credit options. TD also has specialized advisors for immigrant entrepreneurs and multicultural business owners.

Pros

  • Strong digital business tools
  • Good merchant payment integration
  • Business advisors for diverse entrepreneurs
  • TD Business Visa available

Cons

  • Monthly fees $19–$125/month

3. Scotiabank Business Account

Scotiabank's small business banking offers competitive rates and strong international banking for businesses that trade with Latin America or Asia (leveraging Scotiabank's international network).

Pros

  • Good for businesses with international payments
  • Scotiabank Global Business Banking
  • Business Visa/Mastercard options

Cons

  • Monthly fees $22–$90/month

4. Relay Financial Best for Low-Cost Online Business Banking

Relay is a Canadian online business banking platform with no monthly fees, free unlimited e-Transfers, and excellent expense management features. It integrates with QuickBooks and is ideal for freelancers, solopreneurs, and small teams.

Pros

  • $0/month — no monthly fees
  • Unlimited e-Transfers
  • Multiple accounts (separate by project)
  • Team debit cards
  • QuickBooks & Xero integration
  • No transaction fees

Cons

  • No cash deposits
  • No physical branches
  • No business credit products (loans, LOC)

Business Bank Account Comparison 2025

BankMonthly Feee-TransfersAccounting IntegrationBusiness Loans
RBC Digital Choice$6/monthUnlimited includedQuickBooks, XeroYes
TD Business$19–$125Varies by planYesYes
Scotiabank Business$22–$90Varies by planYesYes
Relay Financial$0Unlimited freeQuickBooks, XeroNo
BMO Business$6–$60VariesYesYes
Sole Proprietors: If you're a sole proprietor, some accountants allow using a personal account for business (with careful record-keeping). KOHO is an excellent personal no-fee account that many freelancers and solopreneurs use for business spending while they're getting started.

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FAQ — Small Business Banking in Canada

Do I need a separate business bank account in Canada?

Legally, incorporated businesses (Inc./Ltd.) must have a separate business bank account. For sole proprietors and partnerships, a separate account is not legally required but is strongly recommended for tax purposes, liability protection, and cleaner bookkeeping. Most accountants insist on it.

What is the cheapest business bank account in Canada?

Relay Financial ($0/month) and RBC Digital Choice Business ($6/month) are the most affordable options for small businesses. Relay is best for purely digital businesses; RBC is better if you need a physical bank relationship for loans or complex transactions.

Can I accept Interac e-Transfers in a Canadian business account?

Yes. All major Canadian business accounts support Interac e-Transfer. Relay, RBC Digital Choice, and BMO Business all include unlimited e-Transfers. For customer-facing e-Transfer acceptance (like a payment request), your business email is used as the e-Transfer identifier.

Which Canadian bank is best for a small business needing a loan?

RBC and TD are the top choices for small business lending in Canada, particularly for businesses under 5 years old. BDC (Business Development Bank of Canada) is also excellent for startups and businesses that don't yet qualify for traditional bank financing.

Does KOHO work for small business banking?

KOHO is a personal account and is not designed for incorporated businesses. However, many freelancers and sole proprietors use KOHO for business spending because of its zero fees and cashback. For any incorporated business, you need a proper business bank account (RBC, TD, Relay, etc.).