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Best Business Savings Account Rates in Canada 2024


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Which Canadian bank is best for small business savings accounts?

I recently searched for a savings account in Canada that paid a decent interest rate on a business account. While I wasn’t too impressed by many of the offerings available, there are a few of them worth looking at.

A business savings account makes sense when your business has some cash you do not need for everyday transactions, but you want to have access to it on short notice.

While you will hardly earn “high interest rates” on a small business bank account, it is better than leaving your funds in a business chequing account.

Read on to see my top picks for Canada’s best business high-interest savings accounts.

Top Business Savings Account Rates in Canada

Here are some of the best business savings accounts for earning interest in Canada.

1. Scotiabank Business Savings Account

  • Rate: 3.50% to 3.75%
  • Minimum balance: None
  • Maximum balance: $2,000,000
  • Fees: $0 monthly account fee; other fees may apply

Scotiabank’s Right Size Savings for Business account offers a tiered interest rate of up to 0.99%. The minimum account balance to start calculating interest is $10,000.

If you are looking for a high-interest business savings account, the Scotiabank Right Size Savings for Business Account has competitive rates.

Rates are as follows:

  • $1 – $99,999: 3.50%
  • $100,000 – $199,999: 3.55%
  • $200,000 -$999,999: 3.65%
  • $1-$2 million: 3.75%

Note that this account charges a fee per transaction as follows: 1-15 transactions ($1.25 each), 16-50 transactions ($1.15 each), and 51+ transactions ($1.00 each).

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2. HSBC Business High Rate Savings Account

  • Rate: Up to 4.50%
  • Minimum balance: None
  • Maximum balance: $10 million
  • Fees: $0 monthly account fee; other fees may apply

HSBC’s Small Business High Rate Savings Account offers a tiered interest rate on deposits up to 4.50%.

Rates are as follows:

  • between $0.00 – $99,999.99: 3.51%
  • between $100,000.00 – $499,999.99: 3.61%
  • between $500,000.00 – $1,499,999.99: 3.81%
  • between $1,500,000.00 – $4,999,999.99: 4.18%
  • between $5,000,000.00 – $9,999,999.99: 4.50%

There is no minimum balance. While three free debits and two credits are included in the plan, you should be aware of the following applicable fees:

  • $0.20 per cheque deposit
  • $2.50 per $1,000 per month for cash or coin deposits
  • $5 per transaction per additional debit
  • $1 per transaction per additional credit

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best business savings account canada

3. Tangerine Business Savings Account

  • Rate: 2.65% to 3.25%
  • Minimum balance: None
  • Maximum balance: None
  • Fees: $0 monthly account fee; other fees may apply

Tangerine is Canada’s most popular online bank. Its free online business savings account offers a tiered interest rate as follows:

  • $0 – $99,999: 2.65%
  • $100,000 – $499,999: 2.75%
  • $500,000 or more: 3.25%

The interest rate is calculated daily and paid out every month.

One requirement for opening a Tangerine business savings account is that your business must have a chequing account at another financial institution.

Tangerine also offers a business US$ savings account with a 1.60% interest rate. Learn about their personal savings account.

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4. Wealthsimple Business Cash Savings Account

  • Rate: 1.10%
  • Minimum balance: None
  • Maximum balance: None
  • Fees: $0 monthly account fee; other fees may apply

A Wealthsimple Cash for Business account is easy to open and offers:

  • No monthly account balance
  • Interest is calculated daily and paid monthly

You can use your online Wealthsimple account to manage your personal and business accounts in one place and access them via their mobile app.

Wealthsimple also offers corporate investment accounts with very low management fees, compared to traditional mutual funds. 

I have used both Wealthsimple and Tangerine for business savings accounts in the past.

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5. TD Business Savings Account

  • Rate: 2.3% to 4.00%
  • Minimum balance: None
  • Fees: $0 monthly fee; other fees may apply

The TD Business Savings Account is a good option if you already have a TD account because you can make free transfers between other TD accounts. In addition, it offers tiered interest rates, and deposits and credits are $1 each, while withdrawals and debits are $5.00 each.

There is also a fee of $2.50 per $1,000 cash deposit, and deposit items, including cheques and money orders, are $0.22 each.

TD savings rates are as follows:

  • $0 – $9,999.99: 2.30%
  • $10,000 – $24,999.99: 2.60%
  • $25,000.00 – $99,999.99: 2.60%
  • $100,000.00 – $499,999.99: 2.70%
  • $500,000 – $4,999,999.99: 3.35%
  • $5,000,000 and over: $4.00%

6. Manulife Business Savings Account

  • Rate: 2.85%
  • Minimum balance: N/A
  • Maximum balance: N/A
  • Fees: $0 monthly account fee; other fees may apply

Manulife’s Business Advantage Account pays 2.85% on every dollar in your account. The interest rate is calculated daily and paid monthly.

Their business account offers free deposits and transfers from other financial institutions. Mobile cheques, Interac e-Transfer deposits, and mail-in cheques are also free.

These fees may apply:

  • Bill payment: $1
  • Sending an Interac e-Transfer: $1
  • Cheques: $1.50

You can also deposit your U.S. funds in their US$ Business Advantage Account and earn a 0.20% interest rate.

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7. CIBC Business Investment Growth Account

  • Rate: Up to 2.00%
  • Minimum balance: None
  • Maximum balance: None
  • Fees: $0 monthly account fee; other fees may apply

The CIBC Business Investment Growth Account pays a tiered interest rate from 1.50% to 2.00%, depending on your account balance.

It has no minimum account fees, but you will pay $5 per debit transaction and $1.00 to $1.25 for credit transactions. Printed statements also cost $3.50 each.

The savings rates for this account are:

Daily closing balanceInterest rate
Portion up to $49,999.991.50%
Portion $50,000 to $249,999.991.55%
Portion $250,000 to $999,999.991.60%
Portion $1,000,000 to $5,000,0001.75%
Portion $5,000,000.01 to $10,000,000.002.00%
Portion $10,000,000.01 and over2.00%


8. RBC Business Essentials Savings Account

  • Rate: 2.30% to 2.85%
  • Minimum balance: None
  • Fees: $0 monthly fee; other fees may apply

If you have unused funds and want to earn interest on them and get easy access to your money, the RBC Business Essentials Savings Account is a good option.

You can use this account to complement your operating account and move money between your business accounts while earning interest on your funds.

It offers tiered interest rates, and up to 999 credits and deposits are free each month. You also get two free debits or cheques each month.

RBC rates are as follows:

  • $0 – $9,999.99: 2.30%
  • $10,000 – $99,999.99: 2.60%
  • $100,000 – $249,999.99: 2.70%
  • $250,000 and over: 2.85%

9. ICICI Bank Business Savings Account

  • Rate: 0.40%
  • Minimum balance: N/A
  • Maximum balance: N/A
  • Fees: $0 monthly fee; other fees may apply

ICICI Bank offers a 0.40% interest rate on their no-minimum, no-monthly-fee, business savings account. The interest rate is calculated daily and paid monthly.

Transfers between bank accounts and bill payments are free; however, in-branch withdrawals will cost you $5 per transaction.

ICICI Bank also offers a US Dollar Business Savings Account that pays a 0.25% interest rate.

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Savvy New Canadians ranks the best business bank accounts in Canada based on their product offerings, monthly and service fees, mobile apps, branch and ATM coverage, transaction limits and minimum balance requirements, savings rates, personal experience, and many other features. We carefully evaluate each bank account’s offerings, and our scoring methodology places more weight on each account’s overall value. Based on our research, these are some of the best business bank accounts, but they may not be right for you. Visit each bank’s website to learn more about their services.

top business bank accounts in canada

What is a Business Savings Account?

A business savings account is opened in the name of a business (sole proprietor, partnership, or corporation) and operates very much like a personal savings account.

To open one, the bank will ask you for details about your business, including the:

  • Business name registration, partnership registration, or certificate of incorporation
  • Business address
  • Addresses, date of birth, and SIN of the principal officers
  • Business tax ID

Business savings accounts pay interest on your deposits, and they are protected by the Canada Deposit Insurance Corporation (CDIC).

Unlike investments in mutual funds, ETFs, and stocks, money put in a savings account is unlikely to lose face value due to fluctuations in the financial or stock markets.

When opening a business savings account, you should look out for:

  • Monthly fees: There should be no monthly account fee.
  • High-interest rate: Find an account that pays a competitive interest rate.
  • Transaction fees: Choose an account that offers some free transactions, e.g. deposits, transfers and withdrawals.
  • No minimum balance: You want to earn interest on every dollar.

What to Look For in a Business Savings Account

There are several factors to consider when looking for a business savings account in Canada.

Interest Rates

If you have funds left over at the end of the month, you want to earn as much interest as possible. As such, you will want to look for a savings account with high interest rates.

Many business bank accounts provide tiered interest rates. The best option is to compare the interest rates based on the balance you expect to have in the account.


Many of the best business bank accounts have no monthly fees. However, they often come with other fees for deposits and withdrawals.

Depending on how you plan to use your business savings account, check which fees you can expect to pay.

Transaction Limits

Transaction limits may be put in place by the bank to prevent you from making too many withdrawals. If you go over this limit, you will often pay a penalty.

Minimum and Maximum Balances

Business bank accounts may or may not have minimum and maximum balance limits. Even if your account does not have limits, you can usually only earn high rates of interest on higher balances.

Benefits of a Business Savings Account

A business savings account can help your company manage its cash flows, increase profit, and weather emergencies.

1. You earn interest on your surplus cash instead of leaving it to sit idle in a chequing account. When you need the money, you can easily access it without penalty.

2. Mixing personal and business finances can land you in trouble and wreck your “limited liability” status. A business savings account separates your assets from that of your company.

3. You can save for future business goals, expansion plans, equipment, and other purchases. 

4. Business accounts help you build your company’s credit profile. This makes it easy for you to access loans and business financing when needed.

5. Risk-free investing: savings accounts are generally low to no-risk in Canada. CDIC protects your deposits up to $100,000 per bank, and for some provincially-regulated credit unions, your deposits are insured 100% regardless of the amount.

Downsides of Business Savings Accounts

You should be aware of a few potential disadvantages of business savings accounts before opening one.

  • High minimum balances – The best business bank accounts have no minimum balance, but some will require a high minimum balance.
  • Fees – They often come with several fees for deposits, withdrawals, credits, etc., which can add up. This may or may not be an issue for your business.
  • Transaction limits – There may be a limit on how much you can withdraw to encourage you to keep your money in your savings account.

Business vs Personal Savings Account

Business savings accounts are only for use by businesses. A business savings account allows your business to save money away for any reason, including unexpected events. On the other hand, personal savings accounts are designed for personal use.

You may be able to use your personal savings account for your business if you operate a sole proprietorship, but it’s not recommended.

How to Open a Business Savings Account in Canada

Opening a business savings account in Canada is straightforward. First, you will need to gather several documents. The documents required will depend on the bank, and different institutions have different requirements.

You will usually need ID, proof of your name and address, and your social insurance number.

Depending on your business structure, you will also need to provide supporting documents.

For a sole proprietorship, you will often need a trade name registration certificate. For a corporation, you may need the articles of incorporation.

You may also need your CRA registration number, annual financial return, and more. Check with your bank to find out which documents you need to present.

To open your account, you will usually need to book an appointment at your local branch to open it in person but check the details on the website. You can often book an appointment online, or you can call the bank to find out more.

You will then visit the bank branch and provide all the information required at the appointment. If you are approved, the bank should open the account shortly afterwards.

Are Business Savings Accounts Taxed in Canada?

You may be wondering whether the funds in your business savings account are taxed. The answer is yes, but the only thing that is taxed is interest.

If you earn interest on the money deposited in your business savings account, this interest is considered taxable income, and you must pay taxes on it. You should receive a T5 tax slip from your bank that you can then file with your taxes.


The interest income earned on your business savings account is included in your bottom line at the end of the year. 

If you are looking for the best rates possible, look at what the non-traditional financial institutions and online banks are offering and compare it with that of the big banks.

Also, read the small print to ensure that you are comfortable with limits on transactions and any associated fees.

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Interest rates: Not applicable (for refunded prepaid cards).

Annual fee: $0 for standard cards.

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Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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3 thoughts on “Best Business Savings Account Rates in Canada 2024”

  1. Gravatar for dharanee

    info is incorrect for wealthsimple, rate is 0.10%

    • Gravatar for Enoch Omololu

      @dharanee: Thanks for bringing the updated rates to my attention.

  2. Gravatar for Herb Jerb

    Excellent information for the author, disgustingly low rates from our pathetic Canadian banking sector.

    I guess it’s easier to steal from your captive audience than charge foreign clients market rates.

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