Entrepreneurship & Small Business

no fee banking (chequing account) for small business

  • Last Updated:
  • Mar 17th, 2021 11:12 am
[OP]
Member
May 22, 2019
481 posts
105 upvotes

no fee banking (chequing account) for small business

i am going to start as IT contractor, needs to open a chequing account for my incorporation, is there anyone that I can open online? or anyone that I can open in Toronto? Any no fee one?

I may also need a small business credit card. Any no fee one to recommend?

Thanks a lot for your advice.
17 replies
Newbie
Nov 3, 2008
82 posts
118 upvotes
I've used Manulife Bank for probably almost 15 years. Their "pay as you go" fees maybe are a little higher than other banks, but in those almost 15 years the "pay as you go" fees have always still added-up to less than other banks' flat monthly fees.

For example, in 2020 the Manulife Bank fees for my corporation totalled $103.50 for the year. That's roughly $8.60/month which I think is a steal compared to business account fees at the mainstream banks.
Sr. Member
Apr 7, 2019
866 posts
987 upvotes
drjohnnyfever wrote: I've used Manulife Bank for probably almost 15 years. Their "pay as you go" fees maybe are a little higher than other banks, but in those almost 15 years the "pay as you go" fees have always still added-up to less than other banks' flat monthly fees.

For example, in 2020 the Manulife Bank fees for my corporation totalled $103.50 for the year. That's roughly $8.60/month which I think is a steal compared to business account fees at the mainstream banks.
Do you use it as your primary business account?

Looks like link you posted is for Business HISA with 0.45% interest. Manulife says that this account should be used if " you Have a primary operating account at another Canadian bank"
Newbie
Nov 3, 2008
82 posts
118 upvotes
Yep... it's my primary (and only!) business bank account.

Maybe the "have a primary operating account at another Canadian bank" warning is because they don't offer extraordinary things like certified cheques. So for example I needed a certified cheque to buy a vehicle once and I had to swap cheques with my father's business (he's with BMO). But that's such a rare occurrence it barely registered as a reason not to use Manulife Bank.
Deal Addict
Jan 21, 2018
4565 posts
4616 upvotes
Vancouver
Nothing wrong with looking for a no fee account, but If you are running a business, your primary concern is to make your business run as smoothly and efficiently as possible. A few dollars saved per month on account fees is trivial next to an inconvenient process that costs you extra hours of your time every year, or hiccups that interfere with your business or customer relations. Consider carefully all the things you want to do with your business bank account, and then make your choice based on those things with the fees as one small element.
Newbie
Nov 3, 2008
82 posts
118 upvotes
Scote64 wrote: Nothing wrong with looking for a no fee account, but If you are running a business, your primary concern is to make your business run as smoothly and efficiently as possible. A few dollars saved per month on account fees is trivial next to an inconvenient process that costs you extra hours of your time every year, or hiccups that interfere with your business or customer relations. Consider carefully all the things you want to do with your business bank account, and then make your choice based on those things with the fees as one small element.
Other than that one time I described, that happened once in a 15 year span, nothing about Manulife Bank has been inconvenient. I deposit cheques with my phone... pay my vendors via EMT... pay my bills online... write cheques... and if you don't have a branch in your area you can make cash deposits at the Royal Bank.
[OP]
Member
May 22, 2019
481 posts
105 upvotes
Any suggestions for a small business credit card?
Scote64 wrote: Nothing wrong with looking for a no fee account, but If you are running a business, your primary concern is to make your business run as smoothly and efficiently as possible. A few dollars saved per month on account fees is trivial next to an inconvenient process that costs you extra hours of your time every year, or hiccups that interfere with your business or customer relations. Consider carefully all the things you want to do with your business bank account, and then make your choice based on those things with the fees as one small element.
Deal Addict
Jan 21, 2018
4565 posts
4616 upvotes
Vancouver
ilovetoyota wrote: Any suggestions for a small business credit card?
The only real reason to get one is to make your accounting simpler by keeping business expenses separate. But if there are any credit card perks to be had, you may as well use your personal credit card. There's nothing wrong with incurring and reimbursing business expenses on your personal credit card. Most companies do it.
Member
Mar 5, 2018
242 posts
103 upvotes
TD has TD EVERY DAY A BUSINESS PLAN account, it seems if you keep a sold 20K there is no fee. They have no fee credit card with cashback as well.
Member
User avatar
Nov 23, 2014
497 posts
466 upvotes
Toronto, ON
ilovetoyota wrote: i am going to start as IT contractor, needs to open a chequing account for my incorporation, is there anyone that I can open online? or anyone that I can open in Toronto? Any no fee one?

I may also need a small business credit card. Any no fee one to recommend?

Thanks a lot for your advice.

BMO has eBusiness plan for zero monthly fee...if you are planning to do most transactions online

https://www.bmo.com/main/business/accou ... ness-plan/
Deal Fanatic
User avatar
Jul 26, 2007
5366 posts
2911 upvotes
Toronto
I opened 2nd account to see if it's truly no fee. And I haven't paid single cent for past few months to the credit union(bank). Except for their $1 membership fee. If I need to enter the physical bank, their taller fee is $1.25 per transaction. As long as all my debit and credit transactions are done by electronically, there is no fee.

Hard for me to close my main bank account after having it for past 2 decades so going to keep it for few years longer and order some DUCA checks.
Jr. Member
Mar 18, 2006
154 posts
102 upvotes
peteryorkuca wrote: I opened 2nd account to see if it's truly no fee. And I haven't paid single cent for past few months to the credit union(bank). Except for their $1 membership fee. If I need to enter the physical bank, their taller fee is $1.25 per transaction. As long as all my debit and credit transactions are done by electronically, there is no fee.

Hard for me to close my main bank account after having it for past 2 decades so going to keep it for few years longer and order some DUCA checks.
I've been with Duca for business for almost 2 years. I've not paid any fees, as I do everything electronically. As for cheques, order them from ASAP (much cheaper than ordering directly from CU or banks). No issues for 9 years of using ASAP cheques with Duca now or BMO before that.

Unless you absolutely need to visit a bank branch, I'd start closing the account. I've started with my RBC account yesterday (paid off LOC, now waiting to close in first week of Feb). CU's have an advantage with low or zero fees, bigger exchange based ATM network, but do loose out on multiple physical branches.
Newbie
Mar 8, 2021
11 posts
1 upvote
DUCA seems a popular no fee account.

Anyone use coast capital savings or alterna bank for business and if they are a good option?
Sr. Member
Apr 13, 2003
594 posts
293 upvotes
North York
for DUCA, what ATMs are free to use? Also do they have the take a picture deposit for checks?
Tech Thrive Solutions
Riaz G
CEO, Owner
Web: www.TechThrive.ca | Tel: (647) 361-5977 | Email: riazg@techthrive.ca
Jr. Member
Mar 18, 2006
154 posts
102 upvotes
Riaz wrote: for DUCA, what ATMs are free to use? Also do they have the take a picture deposit for checks?
For DUCA, you can use any ATM on the exchange network (www.theexchangenetwork.ca) or acculink network. Some famous FI's that are part of these networks include:

Exchange
- National Bank
- HSBC Bank
- Manulife Bank
- Meridian

Acculink
- almost all credit unions in Canada (Meridian is the only exception I know that is not part of Acculink)

Just remember that for business deposits only, you may have to use a DUCA only ATM. If you have a personal account, exchange/acculink work just fine.

You can see im-confused-about-acculink-exchange-ding-free-2325151/ for a difference in both networks.

Yes, DUCA allows "remote deposit" via mobile app of cheques. Hold times will depend on your credit worthiness and how well they get to know you after you join.
Last edited by sprinter on Mar 17th, 2021 11:17 am, edited 1 time in total.
Jr. Member
Mar 18, 2006
154 posts
102 upvotes
choclover wrote: Is DUCA only for Ontario businesses?
I think they were open to any Canadian resident, though it seems like membership is only available to Ontario residents.

Best is to give their member connect centre a call at 866-900-3822 for the latest.

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