The best bank accounts for side hustles in Canada for October 2023

If you’re one of the many Canadians with a side hustle, whether it’s selling on Etsy or delivering food, you’re not alone. In fact, a recent study by H&R Block found that 28% of Canadians are taking on short-term or freelance work to make ends meet. With rising costs of living, having multiple income streams can help cover expenses and provide extra spending money. Choosing the right bank account for your side hustle can help you maximize your earnings.

Whether you’re in need of a business package or simply a dedicated account for your side gig, it’s important to consider factors like fees, transaction limits, interest rates, and benefits. In this article, we’ll highlight the top chequing and savings accounts in Canada to help you make the most of your side hustle income.

Our Selections for the Best Side Hustle Bank Accounts in Canada

Top Personal Bank Accounts for Side Hustles in Canada

If you’re looking to earn extra income for bills or discretionary spending and don’t foresee your side job evolving into a full-fledged business, opting for a regular chequing or savings account for your side hustle might be the way to go. This approach can help you avoid additional fees often associated with business accounts. Plus, if you’re an unincorporated side-hustle business owner or a sole proprietor, a business account may not be mandatory. The accounts below offer attractive welcome bonuses and competitive interest rates, allowing you to boost your earnings effortlessly.

Wealthsimple Cash 

Wealthsimple Cash is a chequing account that maximizes your money with enhanced interest rates and seamless investment opportunities. Earn a 1% cash back when you open the account, with a potential boost to 3% by setting up direct deposits of over $500 from each paycheque and up to 4% with $100,000 total across all your Wealthsimple accounts. This no-fee account provides numerous benefits such as free Interac e-Transfers (daily limit of $5,000), bill payments, and no foreign exchange fees. Unlike traditional business accounts, Wealthsimple Cash rewards you with 1% back on card purchases, which you can choose to receive as cash back or automatic stock/crypto investment. No special registration is required for this non-business package. 

• Monthly fee: $0
• # of free transactions per month: Unlimited (daily Interac e-Transfers capped at $5,000, weekly e-Transfers capped at $10,000)

• Interac e-Transfer fee: $0

• Perks: No foreign exchange fees; no overdraft penalties; automatic reinvestment; CDIC coverage up to $300,000

Simplii Financial High Interest Savings Account*

With no monthly fees and unlimited transactions, including Interac e-Transfers, Simplii Financial meets all your basic banking needs. You can open multiple savings accounts using the user-friendly website or mobile app, making it easy to manage finances separately and benefit from higher interest rates. The current promotional rate offers 5.9% on eligible deposits for the first five months. Account holders also receive free transactions at CIBC ATMs. New chequing account holders can earn up to $400 by making eligible direct deposits for three consecutive months. Simplii’s generous promotional interest rate and cash bonus are ideal for those starting out in a side hustle.

• # of free transactions per month: Unlimited Interac e-Transfers, debit purchases, bill payments, and withdrawals

• Interac e-Transfer fee: $0

• Fees for ATM use: $1.50 per domestic withdrawal; $3 per international withdrawal

• Perks: Mobile banking app; free transactions at CIBC ATMs; CDIC coverage up to $100,000

EQ Bank Personal Account*

If you’re comfortable with online banking, consider the zero-fee EQ Bank Personal Account for unlimited monthly transactions, industry-leading interest rates, 0.5% cash back on reloadable prepaid card usage, and free access to any ATM in Canada. The account offers a competitive interest rate of 2.5%, with an additional 1.50% bonus interest available for pay direct deposits, totaling a potential 4% interest. As a non-business package, sole proprietors can easily open this account and benefit from its features.

• # of free transactions per month: Unlimited Interac e-Transfers, debit purchases, bill payments, and withdrawals

• Interac e-Transfer fee: $0

• Fees for ATM use: No fees, free withdrawals from any ATM in Canada

• Perks: High 2.5% interest rate; 0.5% cash back on card usage; no foreign exchange fees; CDIC coverage up to $100,000

Back to menu

Top Business Bank Accounts for Side Hustles 

If your side hustle is growing rapidly or requires more tailored banking services (e.g., freelancers, online shop owners, dog walkers), consider opening a business bank account. While business accounts may have slightly higher fees than personal accounts, they offer tax simplification, access to business credit cards, and potential funding opportunities for business expansion.

Alterna Small Business eChequing Account

By maintaining a minimum balance of $3,000, this account is fee-free; otherwise, it incurs a manageable $5 per month. Unlimited online debit and credit transactions, along with free incoming e-transfers, help keep costs low. Account holders receive six free Interac send or request money transactions per month. Sole proprietors can open this account without being incorporated, making it suitable for their needs. Customers may also access a small business line of credit or business loans through Alterna’s partnership with Driven. To sign up, you’ll need details like your business license number and CRA business number. 

• Monthly fee: $0 with a minimum daily balance of $3,000 or $5 per month

• # of free transactions per month: Unlimited online debit and credit transactions, free incoming e-transfers

• Interac e-Transfer fee: Free incoming plus six free outgoing per month ($1.50 after the limit)

• Fees for ATM use: $2.25 per Interac withdrawal, $3 per Accel, Cirrus, and Maestro (U.S.) withdrawal, $5 per Cirrus and Maestro (International) withdrawal

• Perks: Free access to over 3,300 ATMs in The Exchange network, mobile payment solutions, access to small business loans, CDIC coverage up to $100,000

Scotiabank Select Account for Business

Designed for growing businesses, the Scotiabank Select Account for Business is a flexible banking package that scales easily. Sole proprietors can open this account with business registration details. You don’t need a trade name to qualify (operating under your legal name is sufficient). The account starts with Plan A, offering 25 monthly transactions, including fund transfers, debit transactions, e-Transfers, deposits, and up to $6,000 in cash deposits for $20 per month. Account holders can switch to different plans based on their needs. All monthly fees can be waived with a minimum balance, starting at $20,000 for Plan A. Additional services include access to loans, lines of credit, and specialized support for small business owners through Scotia Advice+.

• Monthly fee: $20 (Plan A); $40 (Plan B); $75 (Plan C); $120 (Unlimited)

• # of free transactions per month: 25 (Plan A), additional transactions charged at $1.50 each (extra e-Transfers at $1 each)

• Interac e-Transfer fee: $1 each after the limit

• Fees for ATM use: $1 each after the limit

• Perks: Mobile banking app, CDIC coverage up to $100,000

TD Every Day Business Plans

For the security of a major bank like TD, especially if you already hold accounts with them, consider the TD Every Day Business Plans. Similar to Scotiabank’s offerings, these accounts provide scalability with slightly lower monthly fees and a fixed number of transactions. Sole proprietors are eligible, and the entry-level Every Day A plan costs $19 per month with 20 transactions included. This fee can be waived by maintaining a $20,000 balance. Additional benefits for small business owners include tools like a cash flow calculator, business plan templates, and access to government funding details through Fundica. Business owners can obtain loans and lines of credit by contacting a TD small business account manager. To sign up, you’ll need your registered business details, including registration number and business license. 

• Monthly fee: $19 (Every Day A); $39 (Every Day B); $72 (Every Day C)

• # of free transactions per month: 20 (Plan A), 60 (Plan B), 120 (Plan C), additional transactions charged at $1.25 each

• Interac e-Transfer fee: 2 free transfers per month, $1.50 after limit

• Fees for ATM use: $1.50 after limit

• Perks: Mobile banking app, $10 monthly fee rebate on overdraft protection, CDIC coverage up to $100,000

Back to menu

Frequently Asked Questions about our Bank Accounts Recommendations

Back to menu

Do Side Hustlers Require a Business Account?

While incorporated companies must have a business account in Canada, most side hustlers can legally use their personal accounts. However, business accounts offer several benefits, such as building credit in your business name, separating business and personal finances, simplifying tax season, and presenting a more professional image to customers.

Opening a business account for your side job is not mandatory. You can opt for a standard chequing or savings account with perks like no fees, unlimited transactions, or welcome offers to enhance your earnings. Here, we’ve compiled a list of the best bank accounts for your side hustle, including personal banking options and some business account alternatives for you to evaluate. 

Back to menu

Understanding Sole Proprietorship

A sole proprietorship is an unincorporated business owned by a single individual. If you’re a side hustler, you may choose this structure for your business. You can register your sole proprietorship under your legal name or apply for a trade name (a business name different from your own, like “Sam’s Sandwiches”). Provincial government requires specific business details upon registration, which may include a federal business number in some cases. 

Back to menu

Benefits of Opening a Business Bank Account for Your Side Hustle

While not obligatory for most side hustlers operating under their legal name, business accounts offer distinct advantages. Separate accounting for personal and business transactions, easier tracking of revenue and expenses, potential tax advantages, and a professional image are some of the benefits. Conducting payments through a business account adds credibility to your services and enhances customer confidence.

Back to menu

Requirements for Opening a Business Bank Account 

While some banks may allow you to initiate the business account opening process online, you might need to visit a branch with necessary documentation. Generally, the following items are required:

• Personal identification
• Your business registration, license, and trade name (if applicable)
• Partnership registration, if relevant
• Articles of incorporation, if applicable

It’s advisable to contact the bank in advance for a personalized checklist based on your circumstances.

Back to menu

Explore More on Banking: