Can anyone recommend a banking institution for a small business chequing account?

[Anonymous]

I did a search for this topic but I couldn`t find anything. Information on on which banking institution(s) provide the best interest rate and service for a small business would be most helpful to me. Does anyone have a favorite bank or credit union they can recommend? I`m in B.C

 

[navaz]

They are all just as bad- you are the cash cow that pays for the banks mistakes

 

[greg12]

A Credit Union`s business products are usually more friendly towards small business in terms of cost and features. It normally matters little which one you approach as their products are similar. You can also use ATMs belonging to any Credit Union "ding-free". Here is a link to Vancity`s Business products list: https://www.vancity.com/MyBusiness/Business...sinessAccounts/. However I highly recommend you identify which particular service you will be using most often, and research which CU will best deliver it to you. Some are better at some things than others.

 

[roizes]

My experience: avoid CIBC. Their staff is poorly trained, their IT antidated and upper management caught big time in all the big messes of the last few years (Enron and subprime). Put it on a deficient bank card or what but we were unable to use ATMs for anything and were made to bank exclusively at the branch where the account was physically located. Staff just shrugged off my questions/complaints instead of refering me to a branch manager. And to top it all when we finally decided to close the account, I was able to take all the cash with me no question asked even though the account was joint with 4 different business partners. I am at a loss to understand what we were paying for.

 

[joewood]

I agree with Greg. While not every credit union is a worthy choice, overall they are vastly better than banks. This stems from their structuring - at a credit union, you are a part owner by virtue of having an account at the institution. As a result, their fees are lower and their spread is smaller (meaning you get more for investments and pay less on loans). I have done a summer internship at a credit union and one of the Big Six banks. At the credit union the focus was customer service while at the bank it was all about achieving sales targets. You`re in Vancouver, consider chatting with someone at VanCity

 

[JRL]

In theory, you`d want a smaller, regional bank, who would probably be more aggressive to get your business and (at the very least) offer you more personalized service.

 

[francisheng]

QUOTE (Vancouver @ Apr 18 2008, 12:13 PM) I did a search for this topic but I couldn`t find anything. Information on on which banking institution(s) provide the best interest rate and service for a small business would be most helpful to me. Does anyone have a favorite bank or credit union they can recommend? I`m in B.C

I can get you connected with Scotiabank in Richmond. I know one of the small business managers who have been doing excellent work and giving excellent service to my members.

Just drop me your number in a message.

Regards
Francis

 

[UTCVenturesLtd]

The Royal Bank`s commercial acct is $5 a month if i remember right, and was good if you do not do a lot of transactions. Just use your Royal Bank credit card as much as possible and you should be able to keep your banking expenses down. I like the BMO one for the Air Miles card and then you can get RONA dollars redeeming your points, but their rates are higher.

The joys of a corporation: (win some, lose some)
Higher loan rates vs personal
Higher phone rates vs personal
Higher co. vehicle ins vs personal
Better tax rate vs personal
Limited liabilities

 

[joewood]

QUOTE (francisheng @ May 9 2008, 11:50 PM) I can get you connected with Scotiabank in Richmond. I know one of the small business managers who have been doing excellent work and giving excellent service to my members. Just drop me your number in a message.

Regards
Francis

In representing the interests of independent businesses in Canada, perhaps it would be wiser to promote credit unions. They typically operate with just one or a few branches and are more likely to qualify as small businesses. This, of course, is opposed to encouraging people to use one of the Big Six banking oligopolists that rule the fractional reserve system with an iron fist; especially given that your organization`s membership feels that there isn`t enough competition amongst banks (http://www.cfib.ca/en/media/releases03/n100703_e.asp). It just seems like one of those `solidarity` strategies wherein small businesses should use small businesses whereever possible.

Furthermore, "When the Canadian Federation of Independent Business surveys its members it finds that those dealing with credit unions are the most satisfied."
http://www.thestar.com/Business/article/295830

and your organization`s report on the matter:
http://www.cfib.ca/research/reports/Cda_big_money_e.pdf

In regards to another poster re: RBC. RBC does offer a business banking package where the minimum fee is only $6 (http://www.rbcroyalbank.com/RBC:SCY-lI71A8YAPKDeLxU/business/services/bus_ess_price.html). However, if you do more than three transactions a month, your fee will very quickly exceed this.

Look behind the curtain; don`t get caught in the normal web of high fees and interest rates charged by banks. We have one of the least competitive banking systems in the developed world. Almost without exception, you will get a better deal on banking services, loan products and investments at a credit union than at a bank.

 

[francisheng]

Totally agree on credit unions. Suggested Scotiabank presently because they work with our members as well on banking matters and it has been good so far up till now.


QUOTE (joewood @ May 10 2008, 06:48 PM) In representing the interests of independent businesses in Canada, perhaps it would be wiser to promote credit unions. They typically operate with just one or a few branches and are more likely to qualify as small businesses. This, of course, is opposed to encouraging people to use one of the Big Six banking oligopolists that rule the fractional reserve system with an iron fist; especially given that your organization`s membership feels that there isn`t enough competition amongst banks (http://www.cfib.ca/en/media/releases03/n100703_e.asp). It just seems like one of those `solidarity` strategies wherein small businesses should use small businesses whereever possible.

Furthermore, "When the Canadian Federation of Independent Business surveys its members it finds that those dealing with credit unions are the most satisfied."
http://www.thestar.com/Business/article/295830

and your organization`s report on the matter:
http://www.cfib.ca/research/reports/Cda_big_money_e.pdf

In regards to another poster re: RBC. RBC does offer a business banking package where the minimum fee is only $6 (http://www.rbcroyalbank.com/RBC:SCY-lI71A8YAPKDeLxU/business/services/bus_ess_price.html). However, if you do more than three transactions a month, your fee will very quickly exceed this.

Look behind the curtain; don`t get caught in the normal web of high fees and interest rates charged by banks. We have one of the least competitive banking systems in the developed world. Almost without exception, you will get a better deal on banking services, loan products and investments at a credit union than at a bank.

 

[Dan_Eisenhauer]

I used to manage stratas in the Vancouver area. When some of our strata councils began to complain about the fees the RBC was charging, I started to compare bank charges.

It has been several years, so I can`t recall the details. But, without a question, the credit unions are mush less aggressive with their fee collecting than the larger banks. We ended up going with North Shore Credit Union, and cut the fees by about half.

I had some investments in Grand Forks, BC, and used the Grand Forks Credit Union for that business. I was so impressed by thier willingness to help, and with their service that I have continued to maintain that account, and use it to collect my rents from all my tenants via Pre-Authorized Payments. From there I redistribute to the proper bank account.

In short, I have found the credit unions to be a better bet, both for costs and service.