Business bank accounts are very important to businessmen especially the small –scale ones because it allows them to posses good credibility with their creditors and clients. This equips with good record keeping skills so that they can be able to distinguish their business and personal expenses. Recently there has been a report that several Canadian bank owners are complaining. This report is courtesy of Banking Matters which is a search report compiled by the Canadian federation of Independent business(CFIB). This research body inquired from its members to rank their banks according to nine performance indicators, namely:
- Service charges
- Access to full-service branches
- Online banking
- How they are treated with their account manager
- The lending terms if they are favorable.
Some banking institutions improved their ratings after the previous survey but on the wider perspective the level of service satisfaction are generally low.
Report on the best business bank account in Canada
Report on the survey done indicates that the banking sector has motives of increasing its service to small and mid-sized business. Nevertheless they have not made much effort towards improving their services to the small businesses. These results are not that shocking since several banks who wish to serve their clients better have a hard time understanding the wants of these small businesses. A best business bank account should be able to offer best services to small businesses and as well open business accounts for them that are cheaper than the personal bank accounts. This fete has not been achieved yet by most banks in Canada.
Examples of some of the best business bank accounts in Canada
Some of the best business accounts that are found in most Canadian banks today are:
1. Business Vantage Account: – it’s an account offered by HSBC. Its an interest paying chequing bank account package in CAD or USD for $22.50 monthly for small business banking services.
Such services include:
a. Access to relationship managers for personal service
b. Trade and cash management advice
c. Activity charges reduced to up to 40 transactions
d. Volume based discounts
2. Value assist plan: – this is almost the same as the Business Vantage account. It is a chequing bank account which charges a fee of $22.00 but it may be waived if you keep a minimum monthly balance of $8000.
3. Unlimited Business Operating Account: – this account offers unlimited transactions with coin, cash and cheque deposit package for a $35.00 which is charged on a monthly basis.
Looking at how rare monthly transactions are included in most cheap business bank accounts and how efficient these additional fees pile up. Putting all these in consideration this may be the wisest option if your business is involved in monthly transactions.
4. ING’S Business Investment Savings Account: – this bank account has zero monthly fees and zero service charges with no minimum balance needed. During the time of writing it offers a 1% interest rate.
5. Scotia power savings Account: – this is offered by Scotia bank. It offers a minimum of 1% interest rate during the time of writing. Although it’s not a business account as such, there is no harm in using it. This interest rate is only achieved if you maintain a minimum monthly balance of $5000.