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Holding Company - Best account and best FI to use?
August 18, 2022
5:25 pm
AdrenalineTrade
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November 18, 2016
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I have recently incorporated a holding company and am curious which would be the best business account to connect to it? Preferably something that pays even a little bit of interest and has low to no fees. Fire away with your thoughts!

September 22, 2022
5:53 am
Hubble
Alberta
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January 12, 2018
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I would suggest you look at Scotiabank Dual Rate account. Works for me. Rate subject to change every month and currently 2.9% to 3%.

Tangerine is now also accepting applications from Holdco's. A few months back they would not accept applications from Holdco's (not sure why?). They have fairly attractive GIC rates for business compared to other FI's. I would imagine they will play the rate game with business saving accounts much as the do with personal accounts, but I have not bothered to call as the Dual Rate works fairly well for me.

https://www.scotiabank.com/ca/en/small-business/business-banking/savings-gics/dual-rate-investment-account.html

September 22, 2022
6:46 am
Koogie
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November 19, 2014
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For me, the easiest thing was to have the Holdco account with the same FI as the OpCo and my personal accounts (in my case, TD)

This makes moving retained earnings from the Opco to the Holdco easy, it makes paying out non eligible divvys to myself and my wife easy and it also facilitates the few times I've had to have the Holdco loan funds back to the Opco.

I opened self directed trading accounts with TDDI for the Holdco. I have invested the retained earnings through those trading accounts. One of the investments being the TD ISA which is currently paying 2.90% for CAD deposits.

September 22, 2022
7:11 am
KamWest
Toronto
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December 20, 2019
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I use Meridian CU and it has a basic $30 charge but no fees of any kind after that.

I can pay taxes and calculate hst right from Meridian. The business savings account currently pays me 2.10% interest and the chequing account pays no interest. I move all profits to the savings account daily and the interest payout is far greater than my $30 monthly charge.

Probably the most accommodating financial institution I have dealt with when it comes to a business account. CIBC was a nightmare, they charge for everything, I was paying hundreds and hundreds of dollars annually and it seemed like they kept making up new charges to squeeze more out of me.

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