20–30% of Canadian startups fail in year one; 42% cite cash-flow issues. A $15 monthly bank fee costs $180/year, enough for a month of AWS or a Google Ads test. This guide lists CDIC-insured, $0-fee business accounts that eliminate that drain.
Target: Bootstrapped founders, solopreneurs, <10-person teams.
Criteria:
– CDIC insurance (≤$100K/category)
– $0 monthly fee (or realistic waiver)
– Unlimited electronic transactions
– Online onboarding ≤15 min
Why Separate Business Banking
| Benefit | Risk of Personal Account |
| Clean CRA tax filings | Audit flags |
| Build business credit | None |
| Professional invoices | “John Doe” payments |
| CSV exports + QuickBooks sync | Manual sorting |
Legal note: CRA expects separation; banks may freeze mixed funds.
Safety = CDIC + Digital Security
CDIC covers:
– Chequing, savings, GICs
– Up to $100,000 per depositor per category (principal + interest)
– Automatic, no claim forms
CDIC excludes: crypto, stocks, non-member fintechs (Wise, Koho).
025 digital minimums:
– Biometric 2FA
– Real-time fraud SMS/push
– 256-bit TLS
Evaluation Criteria
1. $0 fee or <$5K waiver
2. Unlimited e-Transfers + EFTs
3. <15-min online open
4. Accounting API (QuickBooks/Xero)
5. USD hold or <1% FX
6. Mobile app ≥4.5 stars
Top 5 CDIC-Insured, $0-Fee Accounts
| Account | Fee Waiver | Transactions | Interest | Startup Perk | CDIC |
| Venn Business | None | Unlimited | 2% CAD/USD | USD cards, 0.5% FX | Yes (Peoples Trust) |
| Alterna eChequing | $3K bal | Unlimited | None | 3,300 Ding-Free ATMs | Yes |
| Manulife Business Savings | None | Unlimited pushes | 3.75–4.25% | Free CRA payments | Yes |
| Tangerine Business Savings | None | Unlimited | 4% promo | USD sidecar | Yes |
| BMO eBusiness | Any activity | Unlimited electronic | None | QuickBooks sync | Yes |
Account Breakdown
1. Venn Business
Open if: >20% revenue in USD
– 2% interest on CAD & USD
– 1% cashback corporate cards
– 0.5% FX markup
– Cash deposit: Canada Post ($5)
Open: https://venn.ca
2. Alterna Small Business eChequing
Open if: 100% CAD, < $3K cash/month
– $3K balance waives fee (avg. 2 invoices)
– Unlimited debits/credits
– Cash limit: $3K free, then $1.50/$1K
Open: https://alterna.ca
3. Manulife Business Savings
Open if: Parking >$10K runway
– Unlimited free pushes to any FI
– Tiered rates (4.25% on >$50K)
– No debit card → pair with chequing
Open: https://manulifebank.ca
4. Tangerine Business Savings
Open if: Want 90-day 4% promo
– USD account, no FX on internal moves
– Sub-accounts for tax/goals
– Pair with Alterna for daily ops
Open: https://tangerine.ca/business
5. BMO eBusiness Plan
Open if: Need occasional branch
– Fee waived with 1 transaction
– Nationwide ATMs/branches
– Paper cheque: $1.50 after 10
Open: https://bmo.com/ebusiness
How to Open
Docs:
– Articles OR Master Business Licence
– CRA Business Number
– SIN + photo ID
2. Site → “Business Account” → upload
3. Selfie + ID verification
4. $100 e-Transfer → live
Pitfalls to Avoid
| Mistake | Cost |
| Non-CDIC fintech core banking | $0 insurance |
| Ignoring cash caps | $1.50/$1K surprise |
| Single account | No interest on buffer |
Fix: Chequing (Venn/Alterna) + Savings (Manulife) + auto-sweep.
Conclusion
Safest + free = CDIC + $0 fee.
– Global teams: Venn
– CAD solopreneurs: Alterna
– Runway buffer: Manulife/Tangerine
Open two accounts today; review at $1M ARR.
FAQ: Safest Free Business Bank Accounts for Canadian Startups
Which free Canadian business bank account is fully CDIC-insured and has no minimum balance?
Venn Business Account (via Peoples Trust) and Tangerine Business Savings require $0 balance, offer unlimited electronic transactions, and are CDIC-insured up to $100K per category. Open online in 10 min.
Can a sole proprietor open a free CDIC-insured business account without incorporation papers?
Yes. Tangerine Business Savings and Manulife Business Savings accept a Master Business Licence or CRA Business Number only. Both $0 fee, unlimited transfers and CDIC-insured. Sole props skip Articles of Incorporation.
What’s the best free account for a startup receiving USD payments from Stripe?
Venn Business holds USD at 2% interest, charges 0.5% FX, and issues USD corporate cards. CDIC-insured via partner. No other $0-fee account offers native USD chequing.
Are there truly unlimited free e-Transfers with CDIC-insured business accounts?
Yes:
– Alterna Small Business eChequing ($3K avg balance waiver)
– BMO eBusiness Plan (any activity waiver)
– Venn Business (no waiver)
All CDIC-insured, unlimited incoming/outgoing e-Transfers.
How do I avoid fees when depositing cash into a free startup bank account?
Use Alterna eChequing ($3,000 free cash/month) or Canada Post for Venn ($5 flat). For >$5K/month, pair with a local credit union branch account (still CDIC). Avoid Big 5 paper cheque fees.
