Owning a business account should be a priority prior to starting any business venture. A business bank account is is very important tool used to make personal and business expenses distinct from each other.
This will go along way in helping you to know how to keep your records. A business bank account earns you confidence from both the creditors and your clients as well.
One has to shop around before opening a business bank account in Canada . the reason for this is that various banks in Canada offer different charges in opening business accounts. In comparing business bank accounts with personal bank accounts, the later seems cheaper. Most of canada’s banks have developed interest in small businesses since they have discovered they are a worthy market. Such banks have tried all ways to appeal to these small business to the extent that they have reduced their banking fees for business accounts.
Business bank accounts in Canada have several categories key of which are:
1. Business bank accounts for Low-Volume business
This type of account is important for small business in Canada that have a low turnover in their banking transactions. Owners of such an account will have it easy if they are accessible to the internet. Key features of this business account are:
a. Unlimited free business internet banking, ATM, Mobile banking, bill payments and electronic deposits or withdrawals
b. Up to 20 free cheques to be deposited every month
c. Freedom to write up to 20 free cheques on a monthly basis
2. Pay-As-You-Go business bank accounts
Perhaps your business doesn’t do much business with the bank and most probably you don’t have a sufficient minimum bank balance to maintain your account. This will make it impossible for your bank to waive your bank account’s monthly charges. If you are need of services of the bank teller and ATM more frequently then its wise you open an account where you pay as per the transaction that yu perform. Some of the best bets for pay-as-you-go business accounts in Canada are:
a. RBC’s Business Essentials Variable Pricing Account : this is a pay-as- you –go account that charges a fee of $0.90 for every transaction done in hard copy,$ 0.60 for every electronic transaction, and about $2.25 for every $1000 deposited. A minimum monthly fee of $6.00 has to be paid. Account holders enjoy online and mobile banking services.
b. Basic Business Account : this account charges on a pay-per-use basis depending on all the transactions that you have done. It charges a minimum monthly fee of only $9.00
c. CIBC’s Basic Business Operating Accounts : this account charges a maintainance fee of $8.00 every month as ewll a s$0.9 for every transaction done.
The most important thing with business bank accounts in Canada is the relationship the bank has with the client. The cost of your business bank account shouldn’t be of much worry to you. You just have to ensure that you don’t pay unnecessarily huge sums of money on business account fees yet you don’t enjoy the business services that you require.