April 6, 2013
Then, again, it might be some other combo of transactions. Every month, your bill will be a surprise! - just what is not needed.
And, even at $24, I can't see any reason for it to cost so much, considering that these kinds of accounts rarely if ever offer any interest at all.
It is the cheque processing. $17.80 of the $24 is the $1.12 for each of ten cheques written and 22¢ for each of the 30 cheques deposited.
The banks have never really done their share to help small businesses as far as I know. They will lend megabucks to big corporations, hardly batting an eye, but the bar is much higher for the little guy.
The bar is high for everyone. The bank does like to see their loan repaid.
Banks are justifiably wary of lending to new businesses. I think the failure rate is something like 30% in the first two years and 50% in the first five years.
Shopping around with the faint hope of finding a reasonable deal is a big time-waster, something the small business person can ill afford, especially considering how unlikely it would be to find a significantly better deal. And who wants to waste their time with some advisor from ManuLife? You'd never be rid of them!
I don't think the Manulife Business Advantage Account has free chequing. That would be great if it did. However, the current Manulife Bank fee schedule shows $1.50 for each cheque written.
April 6, 2013
While a sole proprietor can use a personal account, a small corporation cannot.
So here is the uestion to ask: if you received personal income of 4000$ per month, would you be happy paying 45$ bank fees?
So why is it ok for a small business?
Then don't incorporate. The banks are not going to be sympathetic. They know that the incorporated business spent $500 to $5,000 to incorporate. They also know the business will be paying at least $500 a year for preparing the T2 corporate tax return.
Perhaps some people should have job instead of run a business. I don't think anyone with a salary of $4,000 (or even $10,000) a month needs to have their bank process 60 cheques a month for that income. Not surprisingly, such people don't have to pay $45/month in transaction fees either.
October 28, 2016
I agree some people should have a job. We also need people to create jobs. Incorporation is often a necessity for many reasons not the least of which is to make hiring more efficient and beneficial.
Thanks for your input.
Will continue to search for the bank that seizes the opportunity to become the preferred bank of small business.
February 8, 2017
Oaken Financial have no service charges.
They offer commercial accounts.
They offer 1.5% on a savings account. No lock in, not a GIC, etc. :
Online banking is easy and modern.
They are insured under the Canadian CDIC:
"Are Oaken GICs and Oaken Savings Accounts eligible for protection under the Canada Deposit Insurance Corporation (CDIC)?
Yes! Each deposit is available through either Home Bank or Home Trust Company, both of which are separate members of CDIC. So all of your Oaken deposits are eligible for CDIC coverage, up to applicable limits. Please visit the CDIC website for more information."
They will give you these rates:
Does Oaken offer commercial accounts?
Yes. We offer Commercial GICs and the Oaken Savings Account to corporations, trusts, non-profits, condominium boards and other commercial entities.
They have NO Service Charges:
" One of the highest daily interest rates, with no monthly fees and no minimum balances. Just the good stuff!
There’s no limit to the number of transactions you can make free of charge"
December 12, 2015
October 30, 2017
I think small business owners are a worthy market now. Banks are actually competing with one another to create business bank accounts that small business owners will find attractive. You can get at lower bank fees but even i don't think any no fee bank exist. To get free option I think you won't have to pay the financial fee if you maintain a minimum monthly balance of $20,000. Talk to Royal Bank.
May 22, 2015
I have two small business (corporation) accounts: one in CAD and one USD
The business income is in USD, so it gets wired into the USD account.
Time to time I need to convert some USD into CAD to pay day to day bills.
I'm wondering if, from tax purposes, if I (as director/sole employee) I can take the USD from the corporation and deposit the equivalent in CAD (based on the Bank Of Canada's rate, and yes, bookkeeping it, ...) into the corporation's CAD account to avoid the exchange fees from the bank (or other online exchange sites).
Basically, I have the CAD and I'd like to offer this exchange service to the corporation instead of using the banks.
I believe, this should be fine as long as it is well documented, but just wanted to double check.
August 19, 2023
EQ Bank announced recently that they are going to be offering Small Business Bank Accounts.
This is their sales pitch: "Our Small Business Bank Account comes with no monthly fees, no minimum balance, free unlimited transactions (subject to certain dollar limit maximums), and high interest."
DUCA used to offer a free "Start Me Up" business account, but recently introduced a $10 per month fee. So perhaps EQ Bank has decided to move in and take over the "free business banking account" market segment that DUCA recently abandoned.