The 7 best business bank accounts for sole proprietors in Canada

Key takeaways

• CDIC combines a sole proprietor's business deposits with personal deposits under a single $100,000 coverage limit.¹

• Selecting a sole proprietor account requires reviewing the monthly Interac e-Transfer allowance and checking FX markups for foreign client payments.

• EQ Bank, BMO, RBC, TD, Scotiabank, and National Bank offer Canada's top sole proprietor bank accounts, with Airwallex as the best sole proprietor bank account alternative. 

Canadian law doesn’t require sole proprietors to open dedicated business accounts. Consequently, several sole proprietors process revenue through personal chequing accounts. A dedicated business account simplifies tax deductions, keeps GST/HST tracking clean, and complies with commercial terms.

This guide reviews the six best Canadian business bank accounts for sole proprietors, plus the leading business bank account alternative. It details fees, e-Transfer limits, and personal account usage considerations.

Best sole proprietor business accounts in Canada at a glance

Two variables determine the right choice for most sole proprietors, and neither is the monthly fee: how many e-Transfers you send in a typical month, and whether any of your clients pay you in a currency other than Canadian dollars. If you want the wider market view before narrowing down, this comparison of the best Canadian business accounts covers the incorporated options too.

Top-rated business bank accounts for sole proprietors in Canada

Digital-first platforms

Best business bank account alternative for sole proprietors: Airwallex Business Account

Ideal for:

Freelancers and consultants billing US or European clients who want to hold that revenue in its original currency.

Our take:

The Airwallex Business Account benefits businesses that invoice abroad by receiving, holding, and spending payments in original currencies. 

Airwallex Multi-Currency Accounts provide US dollar receiving details, allowing clients to pay domestically rather than via international wire. Funds remain in US dollars without forced conversion. Account holders convert funds at interbank rates when convenient, incurring a 0.5% markup on major currencies and 1.0% on others.

Pros

• The Explore plan features no monthly fee or minimum balance requirement, preventing idle cash lockup.

• Interbank exchange rates with a 0.5% markup on major currencies and 1.0% on all others.

Cons

• Not a bank: Airwallex (Canada) International Payments Limited is registered as a Money Services Business with FINTRAC (MSB No. M19395067) and is pending registration as a Payment Service Provider with the Bank of Canada. Not CDIC-insured, though client funds are held with leading global financial institutions and safeguarded in line with local regulation.

• No cash or cheque handling, meaning trades and retail businesses need a bank alongside it.

Best for earning interest: EQ Bank Business Account

Ideal for:

Sole proprietors outside Quebec holding GST/HST and income tax reserves between remittance dates.

Our take:

EQ Bank pays 2.25% interest across full balances without fees or minimums.² This structure accommodates sole proprietors accumulating quarterly tax reserves, yielding roughly $560 annually on a $25,000 average balance.

The account includes 50 outgoing and 100 incoming e-Transfers monthly at $0.50 beyond. Quebec is excluded, and there is no foreign currency support.

Pros:

• 2.25% on the entire balance, with no monthly fee.

• 50 outgoing and 100 incoming Interac e-Transfers included each month.

Cons:

• Not available in Quebec.

• No cash deposits or foreign currency support.

Traditional Canadian big banks

Best low-cost big bank account: BMO Essential Plan

Ideal for:

Sole proprietors who want a branch nearby and the cheapest possible Big Six monthly fee.

Our take:

BMO formerly offered this plan as the fee-free eBusiness Plan. BMO renamed it the Essential Plan and introduced a $5 monthly fee for accounts opened on or after March 9, 2026, grandfathering older accounts at $0.³

The Essential Plan provides the lowest entry cost among Big Six banks at $5 a month, including unlimited self-serve electronic transactions with branch and ATM access. However, Interac e-Transfers cost $1.50 each, accumulating rapidly for businesses invoicing weekly.

Pros

• $5 a month with no balance requirement, the cheapest Big Six option.

• Unlimited self-serve electronic transactions, with full branch access.

Cons

• $1.50 per Interac e-Transfer beyond the included allowance.

• No interest and standard bank FX spreads.

Best for digital-first operations: RBC Digital Choice Business Account

Ideal for:

Sole proprietors accepting card payments who require next-day settlement and periodic branch access.

Our take:

RBC charges $6 monthly for unlimited electronic debits, credits, and mobile cheque deposits, with ten free outgoing e-Transfers included.⁴ Next-day Moneris settlement without volume caps differentiates this product for businesses processing card payments. Standard transaction fees apply after ten e-Transfers, favoring sole proprietors paying suppliers via EFT over frequent transfer senders.

Pros:

• Unlimited electronic transactions, including mobile cheque deposits.

• Next-day Moneris settlement with no volume cap.

Cons:

• Only 10 free e-Transfers before standard charges.

• No interest on operating balances.

Best for occasional branch services: TD Business Digital Account

Ideal for:

Sole proprietors who bank mostly online but need a teller a few times a year.

Our take:

TD charges a non-waivable $6 monthly fee for the Business Digital Account. The plan includes unlimited electronic transactions and deposit items, along with ten free Interac e-Transfers ($1.50 each thereafter) and no minimum balance requirement.

Cash deposits cost $5 per $1,000, and assisted branch transactions cost $2.50 each. This pricing model suits consultants or tradespeople banking primarily online with infrequent branch visits.

Pros:

• Unlimited electronic transactions and deposit items, with branch and ATM access.

• Ten free Interac e-Transfers each month, with no minimum balance.

Cons:

• $6 a month with no waiver available at any balance.

• Cash deposits at $5 per $1,000 and assisted branch transactions at $2.50 each.

Best pay-as-you-go pricing: Scotiabank Right Size Account

Ideal for:

Very low-volume sole proprietors running fewer than ten transactions a month.

Our take:

Scotiabank charges $6 monthly or the sum of total transaction fees, whichever amount is higher. Transactions cost $1.25 each for items 1–15, $1.15 for items 16–50, and $1.00 thereafter. Interac e-Transfers count directly toward these tiers without a free allowance.

A part-time consultant running five transactions a month pays the $6 minimum, while a tradesperson running 40 pays about $47. Model your own volume before choosing, since there is no waiver and no minimum balance option.

Pros:

• $6 minimum in a quiet month, so dormant periods cost very little.

• Full Scotiabank branch and ATM access.

Cons:

• Costs rise with every transaction, overtaking flat-fee plans quickly.

• Interac e-Transfers count as billable transactions with no free allotment.

Best fee waiver via credit card: National Bank Premium Business Package

Ideal for:

Quebec-based sole proprietors who need bilingual service and are not eligible for EQ Bank.

Our take:

National Bank charges a $100 monthly fee, which decreases to $80 with a Platinum Business Mastercard and reaches $0 at an $80,000 daily balance.⁵ Most sole proprietors do not maintain this balance tier, resulting in full fee payment.

This package provides Quebec sole proprietors ineligible for EQ Bank with a bilingual full-service option. Quebec-based operators prioritizing low fees over branch services should evaluate BMO and Airwallex before committing.

Pros:

• Bilingual business banking in French and English.

• Card-linked discount reducing the fee to $80 a month.

Cons:

• $100 base fee, the highest monthly cost in this comparison.

• $80,000 balance waiver that few sole proprietors will reach.

Our methodology for ranking sole proprietor bank accounts in Canada

This ranking specifically targets the sole proprietor case, which is not the same as the small business case. Monthly fees and e-Transfer allowances carry primary weighting due to low sole proprietor transaction volumes. Secondary evaluation criteria include foreign currency markups, tax reserve interest rates, accounting software integrations, and provider onboarding eligibility.

Deposit protection assessment follows sole proprietor coverage guidelines rather than corporate rules. Fee data verification occurred in August 2026.

Can I use my personal bank account for business in Canada?

Sole proprietors operating under their legal name may utilize personal bank accounts because no separate legal entity exists. However, maintaining a dedicated business account reduces operational risk, as personal account terms restrict commercial usage.

Commingling funds creates significant auditing exposure. Combining business and personal transactions requires manual substantiation for every claimed tax deduction during CRA reviews.

Mixed accounts also block automated accounting feeds and make GST/HST remittance tracking manual. The guide on whether business owners need a business bank account provides further analysis.

What sole proprietors should look for in a business account

Transaction volume and Interac e-Transfer allowances

Calculating monthly sent and received e-Transfers is essential. At $1.50 per transfer, sending 20 transfers monthly incurs $360 in annual costs—six times the annual cost of a $5 monthly fee plan. Allowance limits significantly impact overall banking costs.

FX markups on international client invoices

For foreign currency invoicing, conversion spreads constitute the primary banking expense. Foreign exchange costs scale directly with invoice volume rather than transaction frequency. Account selection requires comparing published markup rates over interbank rates and verifying multi-currency retention options.

Cash and cheque handling requirements

Providers without a branch network, including Airwallex, do not accept cash deposits. Trades, salons, market vendors, and anyone paid across a counter needs a chartered bank account, and should choose based on cash deposit allowances rather than headline fees.

Accounting software integrations

Direct bank feeds into Xero, QuickBooks, or Wave remove hours of manual entry every month. Confirm the provider offers a live feed rather than CSV export, because for a sole proprietor doing their own books that difference is worth more than a few dollars of monthly fee.

How to open a sole proprietorship bank account in Canada

Step 1: Register your trade name and get a CRA Business Number if needed

Operating under a legal personal name requires no business registration. Operating under a distinct business name requires provincial trade name registration. A CRA Business Number becomes mandatory upon reaching the $30,000 annual GST/HST registration threshold.

Step 2: Gather your identity and business registration documents

Opening an account requires government photo identification, proof of address, and applicable trade name registrations. Certain financial institutions also require proof of commercial activity, such as client invoices or an active website.

Step 3: Complete FINTRAC identity verification

Financial institutions verify identity per FINTRAC regulations. Digital platforms utilize automated document checks, whereas traditional banks often require branch visits. The walkthrough on how to open a business bank account details the full procedure.

Step 4: Apply online or in-branch and fund your account

Applicants complete the documentation, deposit initial funds via EFT from a personal account, transfer client invoicing details, and establish accounting software connections.

Frequently asked questions about sole proprietor bank accounts in Canada

Can I use my personal bank account for business in Canada?

Sole proprietors operating under personal legal names may use personal bank accounts, though standard terms restrict commercial activity. Dedicated business accounts simplify CRA record-keeping and deduction verification.

What is the best sole proprietor bank account in Canada with no monthly fees?

The best sole proprietor bank account in Canada with no monthly fees is EQ Bank, which pays 2.25% but excludes Quebec. Airwallex also charges no monthly fee as a business bank account alternative, and suits sole proprietors invoicing in foreign currencies.

Do I need a separate bank account for a sole proprietorship in Canada?

Sole proprietors operating under personal legal names do not require separate bank accounts by law. However, separate accounts simplify GST/HST tracking, audit defense, and accounting automation.

What documents do I need to open a sole proprietorship bank account in Canada?

Opening an account requires a government-issued photo identification, proof of address, trade name registration (if using a business name), and a CRA Business Number (if registered for GST/HST).

How do Canadian banks charge for Interac e-Transfers on business accounts?

Canadian banks charge for Interac e-Transfers on business accounts by including a small monthly allowance and then charging roughly $1.50 per outgoing transfer. Digital providers tend to include more, with EQ Bank allowing 50 outgoing monthly and charging $0.50 beyond that.

What is the best sole proprietor account for handling USD and foreign currencies?

Airwallex serves sole proprietors handling USD and foreign currencies by providing local receiving details in 20+ currencies and lets you hold the balance in its original currency rather than converting on arrival.

How do I remit GST/HST to the CRA from my sole proprietorship account?

Sole proprietors remit GST/HST to the CRA using online business banking tax payment services. Individual providers supply specific setup instructions.

Sources

1. https://www.cdic.ca/depositors/whats-covered/deposits-held-in-one-name/

2. https://www.eqbank.ca/business/business-banking/business-account/fees-and-features

3. https://www.bmo.com/main/business/accounts/ebusiness-plan/

4. https://www.rbcroyalbank.com/business/accounts/digital-choice-business-account.html

5. https://www.nbc.ca/en/business/accounts/premium.html