Entrepreneurship & Small Business

no fee small business bank acct??

  • Last Updated:
  • Jul 20th, 2016 3:36 pm
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[OP]
Sr. Member
Jan 30, 2013
601 posts
71 upvotes
RICHMOND HILL

no fee small business bank acct??

I am with BMO ,with $4000 hostage deposit (nowadays that amount does not give much interest anyway elsewhere) the monthly fee of $10 is waived.

Now I got a notice saying the deal will be gone by September.

Are there any no fee business account without the e-prefix??

Thanks
6 replies
Banned
Feb 19, 2013
289 posts
534 upvotes
Toronto
goldenball wrote:
Jul 19th, 2016 7:41 am
I am with BMO ,with $4000 hostage deposit (nowadays that amount does not give much interest anyway elsewhere) the monthly fee of $10 is waived.

Now I got a notice saying the deal will be gone by September.

Are there any no fee business account without the e-prefix??

Thanks
I am planning to open one too. I see on BMOs website that they will be making some changes to the existing small business account offers. I checked most of the big banks and don't see any no fee small business account. I still think BMO is a better option compared to other banks as most of the other banks have accounts with a fixed monthly fee plus each transaction charges as well.
Jr. Member
User avatar
Sep 15, 2008
157 posts
6 upvotes
goldenball wrote:
Jul 19th, 2016 7:41 am
without the e-prefix??
e-prefix?
goldenball wrote:
Jul 19th, 2016 7:41 am
Are there any no fee business account
Best I've found is RBC. I only pay $1.40/month on average, and that is for my salary ($0.70/payroll transaction to pay myself). If I paid my self once per month, or once per quarter, that would drop correspondingly.

-10d
Photographer, Traveler, Small Time Investor, Project Manager, Grease Monkey, Trance Addict. 'nuff said. :D
Deal Addict
Feb 25, 2007
1126 posts
542 upvotes
Ottawa
The BMO offering (with $4000 minimum balance for fee waiver, otherwise $10/mo) is still on their website. Am surprised to hear it would go away in September. BNS offers something similar with a $6000 minimum balance.

Otherwise Small business + no-fee + teller access (which is what you seem to want by excluding the RBC e-business account) to my knowledge does not exist from the major banks. You would be a money-losing proposition for them (no revenue for them, yet you use people time) and their calculations seem to indicate it isn't worth keeping you at a loss in the hope of upselling you later. All of them seem to offer a "minimum fee of $5-$6/mo" option though, with no minimum balance.

I don't know what is available near you, but you could try asking a local credit union. They sometimes offer better deals, to individuals or small businesses, than the major banks.

Keeping $4-6,000 "hostage" in order to save $5-10/mo represents a return of 1-3% on your business' working capital. If your business model has choppy cash flow and therefore you effectively treat it as an occasionally used line of credit that costs $5-10 to temporarily access, fine. If you're really keeping $4k+ in the business just to "earn" those few bucks, then that's probably not optimal cash management. If it's because you have better things to do with your time than optimize it, then a $5-6/mo, no minimum solution may be equally acceptable. Good luck!
Deal Addict
Jan 7, 2014
2321 posts
435 upvotes
Winnipeg
goldenball wrote:
Jul 19th, 2016 4:42 pm
likes these inpersonal kind of banking e-accounts,open to discrepancies and time waster???

small-business-account-1917075/
houska wrote:
Jul 20th, 2016 7:25 am
The BMO offering (with $4000 minimum balance for fee waiver, otherwise $10/mo) is still on their website. Am surprised to hear it would go away in September. BNS offers something similar with a $6000 minimum balance.

Otherwise Small business + no-fee + teller access (which is what you seem to want by excluding the RBC e-business account) to my knowledge does not exist from the major banks. You would be a money-losing proposition for them (no revenue for them, yet you use people time) and their calculations seem to indicate it isn't worth keeping you at a loss in the hope of upselling you later. All of them seem to offer a "minimum fee of $5-$6/mo" option though, with no minimum balance.

I don't know what is available near you, but you could try asking a local credit union. They sometimes offer better deals, to individuals or small businesses, than the major banks.

Keeping $4-6,000 "hostage" in order to save $5-10/mo represents a return of 1-3% on your business' working capital. If your business model has choppy cash flow and therefore you effectively treat it as an occasionally used line of credit that costs $5-10 to temporarily access, fine. If you're really keeping $4k+ in the business just to "earn" those few bucks, then that's probably not optimal cash management. If it's because you have better things to do with your time than optimize it, then a $5-6/mo, no minimum solution may be equally acceptable. Good luck!

Yes RBC e account doesn't seem to be as fancy as they advertise . I opened it and now rethinking even on day 2.
I do not know what do they mean by "Online transactions are free"? This does not include interec e transfer and pay the employee and vendor. They are paid service. They say Pre Authorised debit and bill payment is free. I do not know what will I use the pre-authorised debit and bill payment for? I need to pay me salary so I dont know will it be third part transfer or bill payment? They gave me 2000 CAD per day limit for third party transfer.

Here is the section from their service fee page
"Unlimited paperless account transactions
such as online bill payments, pre-authorized
debits, and point-of-sale transactions when
using RBC Royal Bank ATMs or RBC Online or
Mobile Banking."
Member
May 29, 2004
259 posts
20 upvotes
there hardly no fee small business anymore unless you maintain a balance. I use TD Business Saving if I deposit CDN and RBC for US. TD Business Saving will charge everytime you deposit the cheque but you don't have to pay any monthly fee. In term of withdrawing money, since I have personal account with TD, I just have link together and I don't have pay the transfer between from Business Saving and Personal Chequing. For RBC US, they waive deposit fee if you maintain $2500 per deposit. But they will still charge you item deposit fee $.40 and there is no monthly fee

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