Entrepreneurship & Small Business

RBC Small Business eAccount = $5/mo. June 1, 2019 - Alternatives?

  • Last Updated:
  • Apr 19th, 2019 11:10 am
[OP]
Member
Mar 14, 2009
308 posts
332 upvotes
Toronto

RBC Small Business eAccount = $5/mo. June 1, 2019 - Alternatives?

Well, looks like the Small Business eAccount is changing to some $5/mo. Digital package starting June 1. See: https://www.rbcroyalbank.com/business/p ... rvices.pdf

So I am on the hunt for alternatives. Figured I'd start a thread. My concerns are: 1) cost per cheque mobile deposited, 2) cost per cheque debited, and 3) can I transfer the funds out for free, in large amounts and with no hold period, either to a no-fee personal account at the same branch, or I suppose if you're a sole proprietor (I'm not) you could setup a PAD to your personal account elsewhere.

Here's what I've looked at so far:

BMO eBusiness Plan
https://www.bmo.com/main/business/accou ... ness-plan/
$0.20/cheque deposited. $1.25/cheque debited. 2 free Interac. I assume free transfer to your personal BMO account but they don't have any free personal chequing accounts [EDIT: See BMO Sobey's option below]. EFT service (e.g. Pay Vendors and Employees) is an add-on they won't tell me the price of unless I make an appointment so I imagine $$.

DUCA Start Me Up Account (Ontario only)
https://www.duca.com/business/accounts/ ... s-account/
EDIT: No fee on mobile or ATM cheque deposit. Looks like $0.75/cheque debited. Unlimited free Interac. Free transfers to personal DUCA accounts which can be no-fee. EFT/CAFT is an add-on.

FirstOntario $0 fee eBanking Account (Ontario only?)
https://www.firstontario.com/business/b ... g-accounts
Looks promising if you're in the Hamilton/Oakville/Burlington area but few details online.

I am in Ontario so haven't looked much at other provinces' credit unions but it looks like VanCity probably has some good options if you're in BC.

Curious to hear what others plan to do or what other options might be out there. Meridian, Alterna, MemberOne/Tandia, Servus, ATB all charge monthly minimum.
Last edited by dillybravo on Mar 25th, 2019 12:04 pm, edited 2 times in total.
31 replies
Member
Mar 23, 2009
379 posts
142 upvotes
Toronto
That really sucks...funny thing is I opened a BMO eBusiness account a week ago just to see if it would better meet my needs. It does since you can setup Tax Payments within it, whereas RBC charged to setup and monthly/transaction fees for that...I used to do it manually on CRA via Interac to get it free. ...I guess it turns out I am permanently making the switch to BMO. FYI - You can make an instant transfer to your BMO personal account. Luckily I have the no fee BMO Sobeys one there. ...hope BMO don't change any account fees any time soon!!!
Jr. Member
Oct 15, 2016
132 posts
37 upvotes
Oh man.
I'm going to have to move 2 of my accounts from RBC to BMO.
I assume they'll only do 1 personal credit check regardless of # of business accounts you're opening at that given time.
Koodo & Public Mobile Customer.
[OP]
Member
Mar 14, 2009
308 posts
332 upvotes
Toronto
Just got off the phone with the DUCA rep. Apparently they have changed their fees and now only charge where there is an admin cost for them.

So cheques deposited by mobile or ATM are now free. Cheques debited against the account are $0.75. Unlimited Interac e-transfers up to $3k/day limit.
Deal Fanatic
Aug 21, 2007
5084 posts
290 upvotes
Markham
Sucks cuz I currently have the RBC ebusiness account and i quite like it...the changes arent the worst...seems that for $5 you get unlimted deposits (used to charge $0.34 each) and 10 outgoing etransfers (at $1 a piece worth $10)...so its not all bad...however for my needs doesnt really make all that sense

i must say the DUCA account seems to have some very good advanced functionality, re:

Authorize others to view or initiate transactions
Authorize your bookkeeper, accountant or family member to view your online statements in a flash, and allow delegates to initiate transfers or bill payments.

Automate dual-signature approvals
Set up approvals from two people. The notification process between both signers is fully automated, and all parties can see what’s pending from the moment they log in.

I'm nto sure how those work, but i do like the sound of it

Think I'll be trying DUCA out
Deal Fanatic
Aug 21, 2007
5084 posts
290 upvotes
Markham
dillybravo wrote:
Mar 25th, 2019 12:03 pm
Just got off the phone with the DUCA rep. Apparently they have changed their fees and now only charge where there is an admin cost for them.

So cheques deposited by mobile or ATM are now free. Cheques debited against the account are $0.75. Unlimited Interac e-transfers up to $3k/day limit.
to clarify, if you write a cheque, you are paying $0.75 each?
[OP]
Member
Mar 14, 2009
308 posts
332 upvotes
Toronto
adeel wrote:
Mar 25th, 2019 1:44 pm
to clarify, if you write a cheque, you are paying $0.75 each?
Yes, that's right. They have some packages that include X number of debits of course. Looks like the same is $1.25/cheque @ BMO and was $2/cheque at RBC though I never wrote any.
Member
Feb 16, 2018
357 posts
238 upvotes
I'm not sure if you are incorporated or not but a lot of people are unaware that if you are not incorporated you do not need a business bank account to conduct business. My wife used to own a food truck and she ran the entire business thru a personal chequing account thru Simplii financial (At that time it was PC financial)

She ran about $200k a year thru that account for about 5 years before she sold it. I did her books for her and she paid everything via personal cheques from that account (HST, Vendors Rent, etc ) and her visa/debit transactions were processed into that account daily.

There is no need to pay the enormous fees that banks want to charge small businesses for using a business account. Now if she was running a lot more $$ thru the account maybe that might be an issue with the bank but she did it for 5 years with no questions asked which surprised me to be honest
Deal Fanatic
Aug 21, 2007
5084 posts
290 upvotes
Markham
im gonna ssume most ppl in this thread are incorporated, but you bring up som valid points ^
Member
User avatar
Mar 18, 2013
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Toronto
HghSsociety wrote:
Mar 25th, 2019 7:14 pm
I'm not sure if you are incorporated or not but a lot of people are unaware that if you are not incorporated you do not need a business bank account to conduct business. My wife used to own a food truck and she ran the entire business thru a personal chequing account thru Simplii financial (At that time it was PC financial)

She ran about $200k a year thru that account for about 5 years before she sold it. I did her books for her and she paid everything via personal cheques from that account (HST, Vendors Rent, etc ) and her visa/debit transactions were processed into that account daily.

There is no need to pay the enormous fees that banks want to charge small businesses for using a business account. Now if she was running a lot more $$ thru the account maybe that might be an issue with the bank but she did it for 5 years with no questions asked which surprised me to be honest
How sure are you about this? Do you have any supporting government material stating this?
I always thought that your incorp business should be absolutely and completely separate from your personal banking.
Newbie
User avatar
Nov 21, 2017
11 posts
6 upvotes
Hamilton, ON
Disappointed in the changes as I'm all electronic and had only a few transactions per month. Also interested in alternatives.
astroboy100 wrote:
Mar 23rd, 2019 8:31 pm
... whereas RBC charged to setup and monthly/transaction fees for that...I used to do it manually on CRA via Interac to get it free.
@astroboy - you can still do it for free with RBC or any bank using the CRA website. Instead of using the "My Payment" go to the "Pre-authorized debit" section just above the "My Payment" link. You need a few days lead time but you can debit any amount like a pre-authorized bill payment which doesn't use interac account limits or fees.
Nobody doesn't like free.
Member
Feb 16, 2018
357 posts
238 upvotes
webpromoinc wrote:
Mar 27th, 2019 11:46 pm
How sure are you about this? Do you have any supporting government material stating this?
I always thought that your incorp business should be absolutely and completely separate from your personal banking.
I said right in the post that if you are not incorporated. She was not. Everything was separate from her personal banking, she opened an account strictly for the business. It was a no fee personal chequing account. She never intermingled the two together. With the volume she was doing I was very surprised they never said anything. Especially since she took debit/visa/mc and it was deposited daily into her account when she closed the batch.

This wouldn't work for me. We are incorporated and do to much volume as we have multiple storefronts
Deal Addict
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Jan 2, 2012
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HghSsociety wrote:
Mar 28th, 2019 11:21 am
I said right in the post that if you are not incorporated. She was not. Everything was separate from her personal banking, she opened an account strictly for the business. It was a no fee personal chequing account. She never intermingled the two together. With the volume she was doing I was very surprised they never said anything. Especially since she took debit/visa/mc and it was deposited daily into her account when she closed the batch.

This wouldn't work for me. We are incorporated and do to much volume as we have multiple storefronts
Thanks for that tip!
I have a meeting set up with an accountant next week, and I'll discuss this with her to see if there are any issues with doing so.
Deal Guru
Aug 2, 2010
13557 posts
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Here 'n There
webpromoinc wrote:
Mar 27th, 2019 11:46 pm
How sure are you about this? Do you have any supporting government material stating this?
I always thought that your incorp business should be absolutely and completely separate from your personal banking.
Not true. CRA and the 'government' do not care where you do your banking and what type of account it is. All they care is your financial statements are correct and you pay your taxes. There is no law requiring you to have a business account. For one of my incorporated businesses I have all my Canadian revenue going directly from my credit card processor into a personal account, which of course means it is a draw for me and is income personally which I then declare.
Deal Addict
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Dec 21, 2013
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GTA
Damnit. I was just about to open up an eAccount at RBC. It still shows $0 online. Confused Face

Any other suggestions? My transaction needs are slim.

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