Tangerine Business Savings Account review
- Monthly Account Fee
- $0
- Multi Currency Accounts
- CAD
- FX Fee
- N/A
Our verdict
Earn 2.1% to 2.7% interest on your business savings, but you’ll need a balance of $500,000 or more to get the maximum rate.
The Tangerine Business Savings Account is designed to help you grow a bigger business bank balance. It pays competitive interest ranging from 2.1% to 2.7% on every dollar in your account, and there are no monthly fees or minimum balance requirements to worry about. The savings account is linked to your business chequing account at another financial institution to allow easy deposits and withdrawals at any time.
However, this account has a tiered interest rate, so it’s worth noting that if you want to earn the maximum rate of 2.7%, you’ll need a balance of at least $500,000.
Pros
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Competitive rates
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No monthly fee
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No minimum balance requirement
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Manage your money via online and mobile banking
Cons
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You’ll need a balance of $500,000 or more to earn the maximum advertised rate
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You’ll need a separate chequing account with another financial institution
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No physical branches
Tangerine Business Savings Account: The basics
- Earn up to 2.7% interest. This account has a tiered interest rate structure — the bigger your balance, the higher your rate. Rates are as follows:
- $0 – $99,999.99: 2.1%
- $100,000 – $499,999.99: 2.2%
- $500,000or more: 2.7%
- No monthly fee. You don’t need to pay a monthly fee with the Tangerine Business Savings Account.
- No minimum balance requirement. You don’t need to meet a minimum daily or monthly balance requirement in order to earn interest on your savings.
What are the benefits of the Tangerine Business Savings Account?
- No strings attached. There are no terms and conditions you need to meet in order to earn interest on your balance. While some other accounts require you to deposit a certain amount each month or meet a minimum balance requirement, there are no such restrictions with the Tangerine Business Savings Account.
- Unlimited transactions. You can make unlimited transactions with the Tangerine Business Savings Account, so there are no deposit or withdrawal fees to worry about.
- Access your funds when needed. If an unexpected expense arises, you can enjoy fast access to funds by withdrawing the money you need to a linked chequing account.
- Manage your money 24/7. You can manage your account at any time online or via the Tangerine mobile banking app.
- CDIC protection. Tangerine is a member of the Canada Deposit Insurance Corporation, so deposits of up to $100,000 are covered in the unlikely event that the bank fails.
What are the drawbacks of the Tangerine Business Savings Account?
- Tiered interest rates. You’ll need a balance of $500,000 or more to earn the maximum interest rate of 2.7%.
- Higher interest rates available elsewhere. You may be able to find a higher interest rate on business savings accounts from other banks — but it’s worth noting that these accounts often come with minimum balance requirements.
- Not a chequing account. This is a high-interest savings account, not a business chequing account, so it’s not designed to be used to manage your day-to-day banking.
- Need a chequing account with a separate bank. Tangerine doesn’t offer a business chequing account, so you’ll need a chequing account with a separate financial institution. This is inconvenient if you prefer to do all your banking with a single bank.
- Dormancy fee. If it’s been two years since you last logged in to or accessed your account, a dormancy fee of $20 per year applies.
- Need to be a personal client. You’ll need to have a personal Tangerine client number before you can open a Business Savings Account.
- No physical branches. Tangerine is an online-only bank, so you can’t visit a branch to get face-to-face customer service if needed.
Is Tangerine legit?
Tangerine Bank started life in Canada in 1997 as ING Direct. Acquired by Scotiabank in 2012, its name was soon changed to Tangerine.
Tangerine Bank is a wholly-owned subsidiary of The Bank of Nova Scotia. It is a member of industry associations such as The Canadian Payments Association and Interac, and it’s also a member of the Canada Deposit Insurance Corporation.
What should I know before I apply?
You’ll need to have a business chequing account with another financial institution to open a Tangerine Business Savings Account.
You’ll also need to sign up as a personal Tangerine client before you can open a business account. This can be done online.
How do I open a Tangerine Business Savings Account?
You can open an account by completing the following steps:
- Visit the Tangerine Business Savings Account website and click “Open an account”.
- If you already have a Tangerine personal client number, you can enter your login details to begin an application. If not, you’ll first need to sign up as a personal client by completing the next steps.
- Enter your email address and create a banking PIN.
- Provide your name, personal information and contact details.
- Once you have a personal client number, complete the application for a Business Savings Account.
Compare other business bank accounts
Bottom line
The Tangerine Business Savings Account is well worth a look if you want to boost your bottom line. It pays a competitive rate and has no fees or minimum balance requirements, making it easy to grow your money. Just be aware that a tiered interest rate structure applies, so you’ll need a balance of $500,000 or more to earn the maximum advertised rate.
Compare the Tangerine Business Savings Account with a wide range of other savings accounts before deciding which one is the best fit for your business.
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