A closer look at the BMO USD business account in Canada
Discover whether the BMO USD Business account would be the right one for your business. Alternatively, you could use Wise for your international business needs
Is HSBC no longer in Canada? Here are some business alternatives
In March 2024, HSBC Canada was acquired by RBC, leading to a significant transformation in the banking landscape for many Canadian businesses. Existing HSBC business accounts have been replaced by their RBC counterparts.
If you’re searching for a business account that matches the capabilities previously offered by HSBC, you’ve come to the right place. This article explores top alternatives to HSBC’s business accounts in Canada.
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Alternatives to HSBC for businesses in Canada
BMO USD Current Business Account
The USD Current Business Account from the Bank of Montreal (BMO) is designed to meet the unique needs of businesses that frequently conduct transactions in U.S. dollars.
Key features¹
- No minimum balance
- Pay per service
- Make deposits in-branch or at a BMO ATM
Fee structure¹
BMO allows you to create an account with or without a plan. Below are the monthly fees for each plan and the account fees without a plan.
| Business Banking Plan | Monthly Fee |
|---|---|
| eBusiness Plan | $0 |
| Business Start | $6 |
| Business Builder 1 | $22.50 |
| Business Builder 2 | $45 |
| Business Builder 3 | $80 |
| Business Builder 4 | $120 |
You would also be charged certain fees per transaction, with these accounts. These fees include:
| Service | Fee |
|---|---|
| Branch deposits | 1.25 CAD/USD |
| ATM deposits | 1.25 CAD |
| Point of sale | 1.25 CAD |
| Pre-authorized credits/Electronic Funds Transfer | 1.25 CAD/USD |
| Notes (currency) on deposit (per $1,000) | 2.25 CAD/USD |
| Coin on deposit (per $100, US coin accepted at par) | 2.25 CAD/USD |
| Items on deposit | 0.20 CAD/USD per item |
| Cheque | 1.25 CAD/USD |
| Debit card purchase | 1.25 CAD |
| ATM withdrawal | 1.25 CAD |
| Branch withdrawal | 1.25 CAD/USD |
| Bill payment | 1.25 CAD/USD |
| Monthly account administration fee | 6 CAD/USD |
| Monthly paper statement fee with cheque images | 4 CAD/USD |
| Fee per statement cycle, if statement produced more frequently than account standard | 5 CAD/USD |
Best suited for
This account is best suited for small to medium-sized businesses engaged in frequent cross-border transactions with the United States.
Wise Business Account
Wise, formerly known as Wise, is a leading money service business specialising in international money transfers and borderless banking solutions.
Key features
- Local account details for 10 currencies
- Built to handle high-volume transfers
- Use of the mid-market exchange rate, the fairest you can get
- Transparent pricing with minimal, upfront fees
- Automate payroll and batch payment processing with Wise's powerful API
- Integrate your account with popular accounting software like QuickBooks or Sage
- Make up to 1,000 payments at once
- Send money in over 40 currencies to 160 countries
Fee structure
| Service | Fee |
|---|---|
| Sending money | Starting at 0.33%* per transaction |
| ATM fees over 350 CAD per month per account (+1.50 CAD per withdrawal) | 1.75% |
| Account Funding transactions | 2% |
| Converting money | 0.33%* |
| Getting local account details in 10 currencies | 42 CAD |
| Receiving USD wire payments | 6.11 USD/payment |
| Receiving CAD Swift payments | 10 CAD/payment |
Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.
Best suited for
Wise is an excellent choice for small to medium-sized businesses and even larger corporations that require frequent, high-volume international transactions.
TD US Dollar Basic Business Plan
The US Dollar Basic Business Plan from TD Bank offers a straightforward and cost-effective solution for businesses that must manage transactions in US dollars.
Key features²
- Free online statements with cheque images
- Free services like EasyWeb online and mobile banking electronic inquiries
- Make withdrawals, transfers, bill payments, and deposits at any TD Canada Trust branch
Fee structure²
| Service | Fee |
|---|---|
| Monthly plan fee | 5 USD |
| Transactions over 5 included per month | 1.25 USD each |
| Deposits over 5 included per month | 0.22 USD each |
| Cash deposit fee | 2.50 USD per 1,000 USD |
Best Suited For
This plan is best suited for small to medium-sized businesses that handle a moderate volume of U.S. dollar transactions.
Tangerine Business savings accounts
Tangerine, a leading digital bank in Canada, provides straightforward and competitive business savings accounts designed for growth.
Key features³
- A great interest rate of over 2%
- Lack of “unfair fees”
- No minimum balance requirement
Interest rates³
| Balance | Rate |
|---|---|
| $0-99,999.99 | 2.10% |
| $100,000-499,999.99 | 2.20% |
| $500,000+ | 2.70% |
Interest rates are subject to change. This table reflects the rates between 8/1/2024 and 9/5/2024. Please refer to Tangerine's official website for the most up-to-date rates.
Best Suited For
These accounts are best suited for small to medium-sized businesses looking to grow their funds without the burden of fees and complex account management.
CIBC SmartBanking™ for Business
CIBC SmartBanking™ for Business offers a comprehensive financial management solution to simplify how businesses handle their finances.
Key features⁴
- Access to electronic funds transfer (EFT) in Canada
- Online payments globally in major currencies
- Integrations with Xero and QuickBooks
Fee structure⁴
| Service | Fee |
|---|---|
| Pay directly to Canadian accounts | $2/payment |
| Pay with wire payment | $20/payment |
| Pay directly to US accounts | $10/payment |
| Pay with online tax filing | $2/transaction |
| Get paid with pre-authorized payment | $39/month and $12/file + $0.14/transaction |
| QuickBooks, Xero, or Ceridian Powerpay Plus | $5/month |
Best suited for
This account is ideally suited for small to medium-sized businesses that require integrated financial management tools and enhanced cash flow insights.
National Bank foreign currency accounts
The National Bank of Canada’s Foreign Currency Accounts are specifically designed to meet the needs of businesses engaged in international trade.
Key features⁵
- No minimum balance is required to open an account
- Online banking solutions
- Automatic currency conversions on payments and transfers between accounts
Fees⁶
NBC has a detailed fee schedule where you can find information on various services. This table focuses on foreign currency-related fees.
| Service | Fee |
|---|---|
| Monthly fees | $35 |
| Transactions in foreign currencies made using a Client Card | Payment card network exchange rate + 2.5% |
| Foreign currency bank draft for $5,000 or less | 9 CAD |
| Foreign currency bank draft for $5,000.01 or more | 12.50 CAD |
Best Suited For
These accounts are best suited for small to medium-sized businesses and large corporations that engage in frequent international trading and transactions.
What makes a Business Account the best one for you?
Fees and other costs: Be aware of hidden costs such as transaction fees, maintenance fees, and foreign exchange fees.
Transaction limits: High transaction limits are essential for businesses with frequent or large transactions to avoid additional charges.
Interest rates: Consider accounts offering competitive interest rates to maximize the returns on your deposited funds.
Online and mobile app access: Choose an account with robust online and mobile app features for convenient, on-the-go access.
To sum it up
With the recent changes following RBC’s acquisition of HSBC Canada, you may want to explore other options.
From high-volume transaction solutions like Wise, to leveraging specialized business accounts, there are a variety of options to choose from. By carefully considering these aspects, you can choose a business account that saves you money and drives business growth .
Sources:
- BMO Currect Business Account
- TD Bank USD Basic Business Account
- Tangerine Business Savings Account
- CIBC SmartBanking
- NBC Foreign Currency Accounts
- NBC Fees
Sources verified on 19 September 2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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