Why the cheap digital plans are not always cheap
Canadian business banking has split into two lanes. The big banks now sell stripped-down digital packages at low monthly fees, while fintechs and digital banks sell accounts with no monthly fee and a different set of trade-offs. On paper the entry prices look similar. In practice, the cost lands wherever your money moves.
The first pain point is transaction volume. Most entry-level packages bundle unlimited electronic debits and credits but cap Interac e-Transfers at a small number. RBC's Digital Choice package includes ten outgoing e-Transfers at C$6 a month; BMO's Essential Business Account includes six before charging C$1.50 each. A consultant invoicing twenty clients a month can pay more in transfer fees than in account fees. Counting your e-Transfers before you sign up matters more than comparing headline prices.
The second pain point is cash. Online-only accounts generally do not accept it. EQ Bank's business account pays 2.25% interest on the full balance with no monthly fee, but it has no cash deposits and no foreign currency support. Airwallex, which is a fintech rather than a bank, holds client funds in segregated trust accounts and offers no branch or cash handling. A Winnipeg plumbing contractor or a Halifax café cannot run on that alone.
The third pain point is currency. If you invoice US clients or buy from overseas suppliers, the bank's exchange spread quietly eats your margin. Airwallex charges a 0.5% markup on major currencies at interbank rates, which is a different cost structure from a standard bank conversion.
The fourth is paperwork. Opening an account online is genuinely faster than it was a few years ago, but incorporation documents, trade name registration and ownership details for anyone holding 25% or more of the business are still required. Missing one page stalls the application for a week.
Comparing the realistic options
| Provider | Monthly fee | What is included | Strongest feature | Trade-off |
|---|
| RBC Digital Choice Business Account | C$6 | Unlimited electronic transactions, 10 outgoing e-Transfers | Next-day Moneris settlement with no volume cap | Standard fees apply after 10 e-Transfers |
| TD Business Digital Account | C$6 | Unlimited electronic transactions and deposit items, 10 e-Transfers | Teller access a few times a year | No interest on operating balance |
| BMO Essential Business Account | C$5 | Unlimited self-serve electronic transactions, 6 e-Transfers | Lowest entry cost among the big banks | C$1.50 per e-Transfer beyond six |
| Scotiabank Select Account | C$20 and up | 25 transactions on Plan A, fee rebated with a C$20,000 balance | Rebate structure for growing firms | Pay-per-use fees add up at low volume |
| EQ Bank Business Account | C$0 | 50 outgoing and 100 incoming e-Transfers monthly | 2.25% interest on the whole balance | No cash deposits, not available in Quebec |
| Wealthsimple Business Chequing | C$0 | Unlimited transactions | Open to sole proprietors and corporations | Limited branch support for cash and coins |
| Airwallex Business Account | C$0 on the Explore plan | Multi-currency collection in 20+ currencies | Local receiving details in many countries | No cash or cheque handling |
| Loop Basic | C$0 | Unlimited local transfers | Multi-currency card | Newer platform, thinner track record |
Industry comparisons put the overall range for Canadian business accounts somewhere between C$0 and C$125 a month, depending on how many transactions a package carries. For a business that banks online and deposits little cash, a C$5 or C$6 digital plan usually covers the basics.
Match the account to how money arrives
Priya, a bookkeeper in Mississauga, started on a big-bank digital package and watched C$1 fees pile up because nearly every client paid by e-Transfer. She moved her operating account to EQ Bank, kept a C$5 BMO account for the occasional cash deposit and cheque, and cut her monthly banking cost to roughly the price of one coffee. Two accounts, one spreadsheet, no drama.
A Vancouver import business took the opposite route. Its owner ran everything through a single bank account until currency conversion on supplier payments in euros and yuan became the largest line in the overhead budget. Moving collections to a multi-currency account with local receiving details in Europe and Asia kept funds in the original currency and removed the forced conversion on every invoice.
A Halifax café tried an online-only account first. Cash from the till had nowhere to go, so the owner added a credit-union account with a branch two blocks away. The lesson is simple: check whether cash touches your business before you commit to a branchless account.
Documents and setup, in order
Start by pulling three months of statements and counting four things: electronic debits and credits, e-Transfers sent, cash deposited and cheques written. That count decides your plan tier more reliably than any comparison chart.
Then gather your paperwork. A sole proprietor needs personal identification plus a Master Business Licence if operating under a trade name. An incorporated business needs articles of incorporation or letters patent, and if the company is older than eighteen months, a recent annual return or certificate of status as well. Ownership details for anyone with a 25% or greater interest are required in all cases.
Register or confirm your CRA business number before applying, since most banks ask for it during onboarding. Provincial registries (ServiceOntario, BC Registries, and the equivalent offices elsewhere) issue the trade name documents the banks want to see.
Ask two questions that never appear on the pricing page: how long does a deposited cheque stay on hold, and who is authorized to sign. A hold period of five business days hurts a small importer more than a C$6 monthly fee ever will.
Finally, keep the old account open for one billing cycle. Payroll pre-authorized debits and supplier EFT details take time to migrate, and a missed pre-authorized debit costs more than a month of duplicate fees.
Local resources worth a phone call: your provincial credit union (Meridian in Ontario, Vancity in British Columbia, Desjardins in Quebec), the Canadian Federation of Independent Business for plain-language guidance on account agreements, and your accountant, who has likely seen the same bank pitch a dozen times.
What to do this week
Write down your monthly e-Transfer count and cash volume, then compare exactly two accounts against those numbers rather than against a list of features. If your balance routinely sits above C$20,000, ask about fee rebates tied to minimum balances, which several banks apply on business plans. If you sell abroad, price out one multi-currency option alongside your domestic account so you can see the spread in dollars.
Banking costs are one of the few overheads a small Canadian business can reduce without cutting anything it actually uses. Fifteen minutes with last quarter's statements will tell you more than another comparison table will. Take the statements out and count.
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