In the world of business, every dollar counts. But what do you do with the surplus cash that you don’t need for your day-to-day operations? The answer lies in business savings accounts. While these accounts may not offer sky-high interest rates, they are a smarter alternative to stashing your funds in a business checking account, where they often languish, yielding minimal returns.
In this article, we’ll explore the top business savings accounts in Canada for 2023, providing a breakdown of their interest rates, minimum and maximum balance requirements, and any associated fees. We’ll also discuss the benefits of having a business savings account, considerations when choosing one, the account opening process, and how these accounts are taxed.
With tiered rates ranging from 3.50% to 3.75%, Scotiabank’s Right Size Savings for Business account is an appealing option. Rates include:
Scotiabank’s tiered system allows you to earn more as your balance grows, but be mindful of transaction fees based on the number of transactions you make.
With rates of up to 4.50%, HSBC’s Small Business High Rate Savings Account offers competitive returns, with tiered rates based on the deposit amount.
While there’s no minimum balance requirement, familiarize yourself with the fee structure, including charges for cash deposits and additional debits.
Tangerine, Canada’s popular online bank, offers a tiered interest rate structure, including:
Tangerine’s online business savings account is free to use but requires a linked business checking account at another financial institution.
At 1.10%, Wealthsimple’s Cash for Business account is easy to open and provides the convenience of managing personal and business finances in one place.
Consider this account’s potential benefits, such as no monthly account balance requirements and easy online access.
Offering rates from 2.30% to 4.00%, TD’s tiered system ensures higher balances are rewarded with better returns.
TD’s account comes with unique perks like free transfers between TD accounts, but be aware of transaction fees for additional context.
Earning a flat 2.85% on all account balances, Manulife’s Business Advantage Account is a simple yet attractive option.
Enjoy free deposits and transfers and be aware of fees for bill payments and Interac e-Transfers.
Ranging from 1.50% to 2.00%, CIBC’s account offers tiered rates based on account balances.
Though there’s no minimum balance requirement, keep in mind debit and credit transaction fees and statement charges.
With rates between 2.30% and 2.85%, RBC’s account is suitable for optimizing idle funds.
Make the most of up to 999 free credits and deposits per month, with two free debits or cheques, and transaction fees beyond those limits.
At 0.40%, ICICI Bank’s account offers a modest interest rate.
Be mindful of the $5 in-branch withdrawal fee and other associated charges for specific transactions.
Business savings accounts help your company:
Prioritize accounts with competitive interest rates based on your balance.
Examine the fee structure, considering how it aligns with your business’s transaction needs.
Ensure the account’s balance requirements match your financial situation.
Interest earned from your business savings account is taxable income, and you must report it on your taxes.
In a financial landscape where every dollar matters, business savings accounts are essential for maximizing returns on surplus cash. While interest rates may not be exceptionally high, these accounts provide a secure and convenient means of growing your funds. By carefully comparing the top business savings accounts in Canada for 2023, you can ensure that your business’s financial health remains robust and prosperous.
