Best Small Business Banking Canada 2025

A complete guide to choosing the right business bank account — from Big Six options to free online alternatives.

Why Your Business Bank Account Matters

For Canadian small business owners, choosing the right bank account is one of the most financially impactful decisions you can make. Traditional Big Six banks (RBC, TD, BMO, Scotiabank, CIBC, National Bank) typically charge $20–$65 per month for business chequing accounts — that's $240–$780 per year just to hold your money.

Over five years, that's up to $3,900 in banking fees that come directly out of your business profit. Online and fintech alternatives have disrupted this model significantly, offering the same core functionality for a fraction of the cost — or free entirely.

Big Six Business Account Fees (2025)

Bank	Account	Monthly Fee	Transactions Included
RBC	Digital Choice Business	$6–$25	10–unlimited digital
TD	Basic Business Plan	$19–$125	20–unlimited
BMO	Business Start	$22–$70	35–unlimited
Scotiabank	Basic Business	$22–$75	25–unlimited
CIBC	Everyday Business	$20–$80	20–unlimited
KOHO Business	Free Tier	$0	Unlimited

What to Look for in a Business Account

• No or low monthly fees — especially important for startups
• Sufficient free transactions (e-transfers, deposits, withdrawals)
• Integration with accounting software (QuickBooks, Wave, Xero)
• Corporate credit card access or cashback debit
• CRA remittance payment support
• Multi-user access for bookkeepers or partners
• CDIC deposit insurance coverage

Online Business Banking Alternatives in Canada

The fintech space has produced several strong competitors for Canadian small businesses:

• KOHO Business — Free tier with no monthly fee, cashback on purchases, instant spend notifications. Code 45ET55JSYA earns $20 on signup.
• Relay — Built for small businesses; $0–$30/month; up to 20 sub-accounts; excellent QuickBooks/Xero sync
• Wealthsimple Cash (Business) — Limited but growing business features
• Wise Business — Excellent for businesses dealing with international payments and foreign currencies

CRA and Payroll Considerations

Your business bank account must support CRA payments, including HST/GST remittances, corporate income tax installments, and payroll source deductions (PD7A). Most major banks support CRA bill payments natively. Online alternatives like KOHO and Relay also support CRA payments through bill pay features.

If you run payroll, ensure your bank supports direct deposit (EFT) for employee payments. Most businesses with more than two employees benefit from payroll software integration (ADP, Payworks, Wagepoint) that connects directly to your bank account.

Separating Personal and Business Finances

CRA requires that business income and expenses be tracked separately from personal finances. Having a dedicated business bank account makes this straightforward and provides a clear audit trail. Commingling funds is a red flag in a CRA audit and can result in disallowed deductions.

Even as a sole proprietor, open a separate account. It simplifies bookkeeping, makes tax prep faster, and looks more professional to clients.

Business Savings and GICs

Once your business has a cash reserve (aim for 3–6 months of operating expenses), consider parking excess funds in a business HISA (High-Interest Savings Account) or short-term GIC. Rates vary widely — shop around at credit unions and online banks like EQ Bank for better rates than Big Six branches typically offer.