finances are an important part of running a small business. This process is made easier through business bank accounts which simplify transactions, money transfers and managing debts and credits. It also allows the individual access to various loans and grants which may help with the business growth needs. However, banks charge various fees for opening and operating business bank accounts in Canada.
It also allows one to various loans and benefits which may help with the business growth. However, it involves various charges varying as per bank to bank. Read the full answer to know about the charges involved.
Managing finances is a crucial and important part of running a small business. This process is made easier through business bank accounts which simplify business-related things like simplifies transactions, money transfers and managing debts and credits. It also allows the individual access to various loans and grants which may help with the business growth needs. However, banks charge various fees for opening and operating business bank accounts in Canada.
The major charges by various Canadian banks in business accounts are listed as follows:
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Account Opening Charges: Most banks in Canada impose an account opening charge from the user when opting for opening a business bank account. This is an amount depending on the type of business of the individual.
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Monthly Maintenance Fees: Many banks in Canada charge a monthly maintenance fee for maintaining a business bank account. This fee may range from a few to hundreds of dollars depending on company size and the number of monthly transactions. Some banks also offer waivers and discounts on maintenance charges to the business account holder on certain conditions varying from bank to bank.
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Transaction Fees: Banks charge a fee for all business account transactions like money transfers, deposits, withdrawals, and cheques. This fee can either be at a fixed rate or may vary according to the percentage set by the bank for various types of transactions.
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Additional Fees: Some banks also charge additional fees for services like online banking services, ordering a cheque book or any foreign currency-related transaction.
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Cash Handling Fees: Banks collect fees for the deposit and withdrawal of large amounts of cash from the bank. Businesses dealing in high cash volume are subject to cash handling charges. This is an important cost to consider if a business deals in high cash amounts.
A business bank account provides various advantages like simplifying transactions, money transfers and managing finances. It also allows the individual access to various loans and grants which may help with the business needs. However, it involves various charges as stated above and can cause a hike in the expenses of the business.