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TD Business Advantage Account: Overview, Rates & Fees

Lisa MacColl is a writer, investor and former compliance consultant in the group retirement and individual wealth management fields. Lisa has written about personal finance for 14 years and currently writes about investing and investment providers for Wealthsimple. Lisa's past work has been published in Canadian Money Saver, Advisor’s Edge, CBC, and CreditCards.ca. She was a nominee for the 2015 Oktoberfest Women of the Year, Professional Category. Lisa holds an M.A. and B.A. from the Wilfrid Laurier University.

Checking out TD Business Advantage Account options? Here’s what you should know about their rates, fees and more. Plus a humble introduction to the Wealthsimple Corporate Account.

Toronto-Dominion Bank has been in existence since 1955, following an amalgamation of the Bank of Toronto, which had been operating since 1855, and the Dominion Bank of Canada, which had been operating since 1869. In 2000, TD acquired Canada Trust. In April 2019, TD had assets under management of $1.4 trillion.

An Overview of TD’s Business Advantage Accounts

TD has a range of Business Advantage Accounts. We are providing you with an overview of the different options in one place, and we’ve added some information about Wealthsimple’s Corporate Account so you can do a comparison.

Your trust is important to us. That’s why we always do our best to be fair and provide complete, up-to-date and accurate information. You should know that TD may change their product features or fees at any time. To complete your homework, we recommend visiting their site to continue your research.

TD Small Business Banking Options

TD has a range of small business banking optionsin both Canadian and U.S. Dollars, and even has a couple of options for community or not-for-profit groups. All of these accounts are for a typical savings/chequing account available at a traditional financial institution. The fees vary from $1.95-$4.95 a month for the community/not-for-profit groups. For small businesses, fees range from $19-$125 per month, with different levels of free transactions depending on how active your business banking will be. They also offer a variety of U.S. Dollar accounts with fees that range from $19-$125 plus the same levels of free transactions.

TD Corporate Banking Options

TD customizes banking solutions for large corporations, and offers services like e-payment and e-deposit, detailed statements and other cash management services. They also offer corporate trust accounts. For account balances of more than $100K, the TD Premium Business Savings Account offers a tiered fee based on account balance.

TD Financial Services Corporate Options

Since TD is a bank, it can offer financial services like business loans and lines of credit, corporate credit cards and bridge financing. They have specialized banking services for certain economic sectors such as Agribusiness, Aboriginal, Automotive Floor Financing, Real Estate, Franchises and other specialized sectors that may not operate on a straightforward debit-credit, accounts payable/accounts receivable process.

TD Business Investment Options

Businesses may need to invest surplus funds for short or long-term, and TD offers an array of term deposits, Guaranteed Investment Certificates in a variety of terms, Federal and Provincial Treasury Bills, and different Bond options. They prefer to provide customized solutions for business investments.

A humble introduction to Wealthsimple

While we have your attention — we’d like to introduce you to Wealthsimple. We offer smart, simple investing, including a Corporate Accountwithout the high fees associated with traditional banks and there’s no minimum amount needed to open any of our accounts.

Get started with Wealthsimple Invest and we’ll create a diversified portfolio of low-cost ETFs that perfectly match your risk tolerance and investment goals. Our cutting-edge technology and unparalleled customer support comes at a surprisingly low fee. Put your business surplus to work for you, and take advantage of the lower tax rates for corporations when you withdraw the funds.

Our expert financial advisors are always available when you need them. They can help plan your financial milestones and answer questions you might have about potential risks or what sort of investment accounts you should have.

Investing is just one part of your financial picture. So, we’ve introduced more ways to reach your goals and manage your money. High interest savings, commmission-free trading. And features — like automatically investing your spare change— that make it easier to save for your future. That’s because we believe that everyone should have access to the tools they need to make smart financial choices.

Wealthsimple may not meet all your corporate finance needs. That’s okay. We don’t try to beat the banks at bank-stuff like loans, lines of credit and credit cards. However, if you have surplus cash that you want to put to work for you business, then you’ve come to the right place. We may not be able to replace all the traditional banking services, but we can sure complement the traditional banking services by making your money work harder for you with less fees.

What to look out for in a Corporate Account provider

Where you open your corporate account could mean a difference of thousands of dollars. Even tens or hundreds of them. That’s because different financial institutions charge different investments and fees. Not to mention different levels of smart technology and human advice.

Fees

Management fees can be a mortal enemy of investment growth. Because they often look so minuscule, they’re deceptively destructive. Small fees make a huge difference; one Toronto-based investment advisor showed that a fee of just 2% could decrease investment gains by half over the course of 25 years. And studies regularly demonstrate that fees are directly predictive of returns in a very simple way; the higher the fees, the lower the returns.

Investment choices

Corporations have different liquidity needs than private investors, so we offer you a range of financial investments, including cash, stocks or bonds. A number of factors will dictate how you invest, including your risk tolerance and investment horizon, aka, when you need to access the money.

If you think you may someday want someday to invest your surplus funds in investments that yield a bit more than a savings account, you may want to find a place that offers low fees as well investment choices that allow you access to the stock and bond markets.

Smart Technology

A lot of pizzas are pretty good, but some rise to the level of dude, this pizza is so good. Automated investing services are the same way. They employ different technologies and algorithms to optimize account performance. Some are smarter than others in that they’ll perform portfolio-supercharging tasks like automatic portfolio rebalancing and tax loss harvesting at no extra charge. Make sure that whichever investment provide you choose offers the most advanced technology available.

Methodology:

The information on this page was compiled by Wealthsimple in July 2019. In order to uncover this information, we looked at the TD website, press releases and third-party sites. The information collected is provided for educational purposes only, as at the time of publication and is intended for Canadian investors.

Last Updated August 9, 2019

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