If you’re a business owner, you know how difficult it is to figure out which business bank account is best for your needs. If you’re just starting out, it can be downright overwhelming. Luckily, the Tangerine business account is an online-only banking solution specifically designed with entrepreneurs and small businesses in mind. It offers a range of benefits, from earning high interest on your balance to no monthly fees, that can help you reach your business goals faster.
Having said that, the Tangerine business account isn’t like other business bank accounts and might not be appropriate for your needs. Let’s take a look at the features, benefits, fees and eligibility requirements of the Tangerine business account to help you make an informed decision.
About Tangerine
Tangerine Bank is an online-only bank that was founded in 1997 and originally known as ING Direct Canada. In 2012, the bank rebranded itself as Tangerine Bank and became a division of Scotiabank.
Today, Tangerine is one of the most popular digital banks in Canada because it offers no-fee banking services and competitive interest rates on deposits well above what traditional banks offer. It also offers a full range of financial solutions like investment products, mortgages, credit cards and more.
You can open an account in minutes online or over the phone with no minimum balance required and no monthly fees either. You can even use their free mobile app to manage your finances anywhere, anytime.
That’s great for everyday people, but what about business owners? Here’s what Tangerine can do for your business:
The Tangerine business account
The Tangerine business account is not a chequing account. It is a business savings account that offers a better way to grow your savings and “complement your existing business chequing account at another financial institution.” If you were hoping to use a debit card, get a business credit card, or write cheques on this account, you’re straight out of luck.
Having said that, the Tangerine business account is still a great option for businesses looking for a cost-effective, high-interest savings account with convenient online and mobile banking access. If you want to spend less, save more, and reach your goals faster, here’s how Tangerine can help:
No monthly fees
The Tangerine business account does not charge any monthly fees, making it a cost-effective option for businesses looking to save money.
High interest rate
Tangerine offers a high interest rate on its business account of up to 2.70% per year. This is significantly higher than the interest rates offered by many traditional banks, making it a good option for businesses looking to earn more on their savings.
No hidden or unfair charges
Any applicable fees are disclosed to you upfront, so there are never any surprises. They claim the fees that they do charge are fair because the amount corresponds to the benefit you receive.
Easy to open
The Tangerine Business Savings Account is easy to open online, and there are no minimum balance requirements or fees to open the account.
- Annual Fee : $0
- Interest rate on purchases : 19.99%
- Rewards Type : Cashback, Gas
- Cash Advance : 22.99%
- Balance Transfer : 22.99%
Convenient banking
Tangerine offers convenient banking options for businesses, including online banking and mobile banking through its app. This makes it easy for businesses to manage their finances on the go.
How to open a Tangerine business account
In order to open a Tangerine business account, you need to be an existing Tangerine client and already have a business chequing account at another institution. If you’re not already a client, no worries. Tangerine will prompt you to become one when you try to open a business savings account online.
Simply visit the Tangerine website and select Products from the toolbar at the top of the page. Then scroll down until you see the Business Products icon and click on Business Savings Account. Next, select Sign Me up, answer the questions, and follow the prompts to submit your enrollment request.
Once that’s done, Tangerine will contact you to finish setting up your account. When they do, you’ll need to verify that you have a business chequing account at another institution in order to complete the enrollment, so make sure you have that information on hand.
Other Tangerine business accounts
Tangerine also offers a few other savings options for businesses, including savings accounts and guaranteed investment certificates (GICs). Let’s take a look at the benefits and requirements of three additional accounts that can help you make the most of your business cash holdings:
Business GIC
Tangerine’s Business GIC allows businesses to invest their money in a guaranteed investment certificate (GIC). GICs are a low-risk investment option that earn a fixed rate of return over a specific period of time. The Tangerine Business GIC offers:
High rate of return: get a fixed rate of return of up to 5.07% over a specific term, so you know exactly how much you will earn on your investment.
Low-risk investment: GICs are a low-risk investment option, as they are backed by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000 per depositor, per insured category.
Flexible investment terms: multiple terms ranging from 90 days to 5 years. This allows you to choose the term that best meets your investment needs.
No minimum balance: No matter what stage your business is at or how much cash you have, you can earn interest on your investment to help your savings grow.
In order to purchase a Tangerine Business GIC you need to have a Tangerine Business Savings account.
Business US$ Savings Account
The Business US$ Savings Account offered by Tangerine Bank allows businesses to save money in US dollars and offers:
High interest rate: the rate is currently at 1.60% per year. That’s higher than the interest rates offered by many traditional banks, making it a good option if you’re looking to earn more on your US dollar savings, especially if you have a large balance.
No monthly fees: The Tangerine Business US$ Savings Account does not charge any monthly fees, making it a cost-effective option for your cash on hand.
No minimum balance: this account earns interest no matter how much or how little you have in the account. That’s a great perk for small business owners or new entrepreneurs just starting out.
To open this account, you must already have a Tangerine Business Savings Account and a USD business chequing account at another financial institution.
Business US dollarUS$ Guaranteed Investment
Tangerine’s US$ Business GIC allows businesses to invest in a US dollar-denominated GIC (Guaranteed Investment Certificate). Some of the features and benefits include:
Higher interest rates: The US$ Business GIC offers a high fixed rate of return of up to 4.40%.
Flexible investment terms: There are several investment terms ranging from 90 days to 5 years. This allows you to choose a term that meets your investment goals and needs.
No currency exchange fees: Because the US Business GIC is denominated in US dollars, you don't have to worry about currency exchange fees when investing in this product.
Diversification: Adding a US dollar GIC to your business portfolio can help to diversify your investments, which can potentially reduce risk and volatility.
No minimum balance: No matter where what stage your business is at or how much cash you have, you can earn interest on your investment to help your savings grow.
In order to purchase a Tangerine US$ Business GIC, you must have a Tangerine Business Savings Account, a Tangerine USD Business Savings Account, and a US dollar business chequing account at another institution.
Should you open a Tangerine business account?
Tangerine Bank might be a fan favourite among everyday Canadians, but probably not among business owners. At this time, Tangerine does not offer business chequing accounts or business credit cards.
But its savings and investment options are still a great tool for any business owner looking to make the most of their cash on hand. The benefits of these products include the ability to earn higher interest rates on your savings, flexible investment terms, and the convenience of online banking. Not to mention, there are no monthly fees or hidden charges either
However, there are some cons to consider, like charges for certain types of transactions, the eligibility requirements to open an account, and no business credit card options.
It's important to carefully review the terms and conditions of any financial product or service before making a decision and to consider the specific needs and goals of your business. You should compare the Tangerine business account to the alternatives offered by other financial institutions to ensure that you are getting the best fit for your business.
Yes, Tangerine Bank offers 4 different business savings accounts: the Business Savings Account, the Business US$ Savings Account, a Business Guaranteed Investment (GIC), and a Business US$ Guaranteed Investment (GIC). However, Tangerine does not currently offer any business chequing accounts.
To open a basic Tangerine business savings account, you must have a Tangerine client number and a business chequing account at another financial institution. You may also need to provide a valid Canadian Business Number (CBN).
No, Tangerine currently only offers business savings accounts.
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About The Author: Heidi Unrau
Heidi Unrau is the senior Finance Journalist at Hardbacon. She studied Economics at the University of Winnipeg, where she fell in love with all-things-finance. At 25, she got her first bank job as an entry-level teller. She moved up the ranks to Credit Analyst, Loans Officer, and now a Personal Finance Writer. In her spare time, you'll find her hiding in the car listening to Freakonomics podcasts, or binge-watching financial crime documentaries with a pint of Häagen-Dazs. When she's not chasing after her two little boys, she's in the hot tub or arguing with her husband over which cash back card to use for date night. She’s addicted to coffee, crypto, and obsessively checking her credit score on Borrowell.
Fun Fact: Heidi has lived in five different provinces across Canada, loves her free Tangerine bank account, and will never cut back on Starbucks. Like ever.
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