A Tangerine business chequing account would be a game-changer… if it existed. Profitability is the goal of your business, so it’s essential that all options are weighed when determining worthwhile business expenses. Payroll, equipment, software, office rental, insurance and bank fees add up quickly, so finding the least expensive options for each makes a difference to your bottom line. Choosing a business bank account is one of the first decisions you’ll make as a business owner.
For Canadians, a Tangerine business chequing account might sound like an attractive option because Tangerine is one of Canada’s favourite free digital banks. However, Tangerine only offers personal chequing accounts and business savings accounts, not business chequing accounts. Fortunately, there are many other alternatives that also offer low-fee options. Here are our top 5:
1. Wise business account
If you’re looking for a business chequing account with tons of versatility that also operates online, then a Wise business account is a great option. It’s the best business account out there for businesses working with international clients, as there are more than 50 currencies available through Wise. International money transfers and conversion rates are as cheap as they come for a business chequing account.
There are no monthly fees for the basic business account, but it’s worth paying the one-time setup fee of $42 to access the full range of account features. Once you pay the setup fee, you’ll have access to local bank details for 10 different currencies, meaning clients can pay you in their local currency, and you’ll receive the money immediately. You’ll also be able to withdraw money from platforms like Shopify and Stripe.
Transaction fees vary by currency and method of payment. When paying someone in Canadian dollars, you’ll only pay a small transaction fee of around $3.50 regardless of the size of your transfer. For international payments, you’ll pay the fixed fee of $3.50 plus a percentage of the amount you’re transferring, depending on the currency.
Some other benefits of the Wise business account include integrations with Quickbooks, FreeAgent, Xero, QuickFile and more to keep your books up to date and organized. You can set up recurring payments to employees, with batch payments of up to 1000 people at once. You can also send payment requests directly to your clients, and there is no monthly deposit limit.
2. TD Basic business plan
The TD Basic business plan is the perfect business chequing account for managing a small volume of transactions. It’s an ideal everyday business operating account. Plus, TD is a popular Canadian bank, so it’s easy to find branches in your area.
The account has a $5 monthly fee, which includes 5 free transactions and 5 free deposits. If you go over the free allowances, you’ll pay $1.25 per transaction and $0.22 per deposit, which are very low compared to other business chequing options. There is also a cash deposit fee of $2.50 per $1000. All deposits are insured through the Canada Deposit Insurance Corporation (CDIC), and you can deposit through TD mobile deposit feature in the app.
You won’t be able to open the account online, so you will need to call or visit a branch to do so. Once it’s open, it’s easy to manage via the TD mobile banking app and online banking. This is a great basic low-fee business plan option to get you started. TD also offers a range of great business credit cards.
3. RBC Digital Choice business account
The RBC Digital Choice business account has some of the best perks of any Canadian business chequing account and is best for small businesses with mainly electronic transactions. There is a $5 monthly fee, which includes unlimited electronic debit and credit transactions, unlimited e-cheque deposits, unlimited Moneris deposits, and 10 free outgoing Interac e-transfers each month. Every additional Interac e-transfer is $1.50. Deposit fees are $5 per $1000 in-branch deposit and $2.25 per $1000 ATM deposit. Regular cheque deposits are $2.50.
You can open this account online in less than 15 minutes, but you’ll have to visit a branch in person to verify your identity and activate your account. You’ll need a government-issued ID and business registration document for verification.
With your RBC Digital Choice business account, you’ll get some extra benefits, such as fuel savings at Petro Canada, plus a huge list of special offers on NextDoor, Owner, Moneris, Sherweb, Go Digital and more. It’s an inexpensive and straightforward business banking account for your low-volume electronic banking needs.
4. Alterna small business e-chequing account
Another 100% online banking option is Alterna Bank, the digital arm of Alterna Financial Group. Online banks like Alterna offer lower fees than established physical banks since their operating costs are lower. The Alterna small business e-chequing account is a fantastic option for a starter business chequing account.
There is no monthly fee on this account, provided you keep your balance above $3000. If it drops below $3000, you’ll pay a monthly fee of $5, which is still quite low. With your account, you’ll get unlimited debit and credit transactions, unlimited incoming Interac e-transfers and 6 free outgoing Interac e-transfers. For any additional transfers, you’ll pay $1.50. You can also deposit cash in an Alterna Savings branch for a fee of $2 per $1000 deposited.
With your Alterna small business e-chequing account, you’ll have access to over 3000 ATMs in Canada’s EXCHANGE Network and 24/7 digital account access. All deposits into your account will be insured up to the maximum allowed by the Canada Deposit Insurance Corporation (CDIC). This is an excellent starter business account, but Alterna also offers other paid business accounts with additional features. It also offers small business loans and payment processing.
Unfortunately, this account is not available to Quebec residents.
5. BMO business start account
The BMO business start account is a great low-fee business chequing account for small businesses. There are no fees to change your business account type as your business grows. The monthly fee is $6, which includes unlimited Moneris transactions, 7 free transactions per month and 2 monthly Interac e-transfers. Additional transactions will cost $1.50 each, but there is no fee to receive transfers.
There is no minimum balance required to maintain this account each month, and you can add overdraft protection at a rate of $4 per month, or you can pay $5 per overdraft item. For cash deposits, you’ll pay a fee of $2.25 per $1000, which is on par with other Canadian business accounts on our list. The account is only available in Canadian dollars, and you’ll need a business registration document to open an account.
If you find you consistently require more than 7 transactions per month, you can upgrade to Business Builder 1. Although this account has a $22.50 monthly fee, you’ll get 35 free transactions, which will offset the cost.
Tangerine business chequing alternatives
Tangerine is a fantastic online banking solution for Canadians, but without a business chequing account option, it might not be right for you. Luckily, many low-fee business chequing account options deliver the same quality of service with low fees to keep your business growing.