Choosing the right bank is crucial for small businesses in Canada, as it affects fees, loan access, payment processing, and growth support. The Big Five banks—RBC, TD, BMO, CIBC, and Scotiabank—dominate, but fintech options like Wise and credit unions offer competitive alternatives for low-volume operations. Factors like monthly fees, transaction limits, interest rates, and integrations matter most for startups and SMEs.
Key Criteria for Selection
Small businesses prioritize low or waivable fees, unlimited transactions for scaling, cash deposit options, credit card rewards, and lending flexibility. Online banking, merchant services, and payroll tools reduce overhead, while regional availability suits local needs. In 2026, digital-first accounts from fintechs excel in FX rates and API integrations for e-commerce.
Top Traditional Banks
Royal Bank of Canada (RBC)
RBC suits growing businesses with flexible accounts like Digital Choice at $6/month and Ultimate at $100 for unlimited transactions. It offers robust loans, credit cards, and merchant services, ideal for retail with high cash flow. Business Essentials Savings has $0 fees, supporting investment alongside chequing.
TD Canada Trust
TD provides comprehensive plans including accounts, credit cards, and merchant services for payments. Its financial planning tools help optimize cash flow, with options for online banking and credit solutions. Small businesses benefit from widespread branches and employee payroll support.
Bank of Montreal (BMO)
BMO delivers tailored business chequing, credit cards, loans, and mortgages. It emphasizes customized financing, making it strong for expansion needs like property purchases. Digital tools and advice services aid sole proprietors and partnerships.
CIBC
CIBC stands out with affordable unlimited options around $65/month, lower than peers. Cards like the Costco Business Mastercard ($0 annual fee) offer cash back, while Aeroplan Visa suits rewards seekers. Borrowing, cash management, and advice thrive small operations.
Scotiabank
Scotiabank's Right Size Account costs $6/month with tiered fees, scaling to unlimited at higher tiers. It supports cash deposits up to $30,000 included in premium plans, fitting retail-heavy businesses. Global reach aids exporters.
Fintech and Credit Union Alternatives
Fintechs disrupt with no-fee models. Wise excels in multi-currency for international trade, low FX rates. Venn integrates accounting software, minimizing fees for digital businesses. Manulife offers high interest (up to 2.85%) on balances.
Credit unions like Innovation Federal or Servus provide personalized service. Servus in Alberta includes payroll, credit cards, and wealth management at competitive rates. Desjardins fits Ontario sole proprietors with chequing and savings.
| Bank/Account Type | Monthly Fee | Transactions | Cash Deposits | Best For | |
|---|---|---|---|---|---|
| RBC Digital Choice | $6 | Limited | Tiered | Startups | |
| TD Business Plan | Varies | Unlimited options | Included | Planning | |
| BMO Business Chequing | Varies | Flexible | Custom | Loans | |
| CIBC Unlimited | ~$65 | Unlimited | Included | Value | |
| Scotiabank Premium | $120 | Unlimited | $30k | Retail | |
| Wise Business | $0 | Unlimited digital | N/A | International | |
| Servus Everyday | Low | Varies | Included | Alberta locals |
Low-Fee Options for Startups
For minimal activity, Scotiabank's $6 Right Size or RBC's $6 Digital Choice waive fees via e-transfers or balances. CIBC's basic accounts avoid high costs, with $0 coin fees in some. Online banks like Tangerine offer 2.90% interest on large balances, beating traditional savings.
Reddit users recommend low-fee picks like CIBC for Ontario or fintechs to dodge Big Five overhead. Avoid coin-heavy deposits, as fees hit $2.50/$100 across most.
Business Credit Cards Comparison
Cards boost rewards. CIBC Costco ($0 fee, 20.75% APR) suits volume buyers; Aeroplan ($180 fee, lower APR) for travel. RBC and TD offer cash back or miles tailored to sectors. BMO's no-fee options pair with loans.
| Card | Annual Fee | Purchase APR | Rewards | |
|---|---|---|---|---|
| CIBC Costco Business | $0 | 20.75% | Cash back | |
| CIBC Aeroplan Visa | $180 | 12.99% | Points | |
| CIBC Aventura Plus | $120 | 19.99% | Travel |
Lending and Growth Support
Big Five lead in loans; RBC and BMO offer quick small business lines up to $100k. TD's credit solutions include merchant financing. Fintechs like Float provide faster approvals via apps. Credit unions like Servus add retirement programs.
Regional Considerations
Ontario favors Desjardins or CIBC; Alberta, Servus. Nationwide, RBC/TD branches cover rural areas. Quebec businesses lean Desjardins for French support.
Making the Switch
Compare via NerdWallet's 2026 rankings highlighting TD and ICICI. Check eligibility: sole props need SIN; corps, articles. Open online, transfer via PAC, earn switch bonuses up to $500.
For low-volume, fintechs win on fees; scaling firms pick Big Five for loans. Evaluate transactions, deposits, and integrations annually. In 2026, hybrid models—bank for lending, fintech for daily—optimize costs
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