What is cash management for a business?
It’s how a business manages the money it holds: keeping enough on hand to pay bills and payroll, and putting cash it doesn’t need right away somewhere it earns interest without losing access.
How much interest can a business account earn in Canada?
Many big-bank business savings accounts pay very little on standard balances, often around 0.01%, while several fintech and online accounts pay about 2% to 2.5% on every dollar. Rates change, so compare current rates.
What is the difference between a standard rate and a promotional rate?
A standard rate applies to your balance on an ongoing basis. A promotional rate is a temporary boost, often on new deposits only and for a set period, after which the standard rate applies.
What are tiered interest rates?
Tiered accounts pay different rates depending on your balance. Higher balances usually earn more, so check the rate for your actual balance, not just the top tier.
Are business deposits protected?
CDIC protects eligible deposits at member institutions up to C$100,000 per insured category. Fintechs often hold funds through partner institutions, so check how each provider holds and protects your money.
Should I use a GIC for business cash?
A GIC can pay more in exchange for locking money for a set term. Many businesses keep operating cash accessible and put cash they won’t need for months into a term deposit.
