For most Canadian side hustlers, who are sole proprietors rather than corporations, Wealthsimple’s business chequing account is not an option: Wealthsimple says it does not support non-incorporated businesses, and its business account requires a Canadian-controlled private corporation or a charity registered with the CRA. That leaves two practical setups. One is a separate personal chequing account used only for the side hustle, such as one of up to 8 no-monthly-fee Wealthsimple chequing accounts. The other is a big-bank small business account, such as TD’s Business Digital Account or RBC’s Digital Choice Business Account, each listed at $6 a month. Either works as long as business money stays separate and your records are complete. This guide compares facts, not products, and does not recommend a provider.
For the paperwork side, see record keeping, how much tax to set aside, and tax prep before January.
How do Wealthsimple and big-bank business accounts compare?
Wealthsimple lists no monthly fee and pays interest; the big-bank digital business accounts charge a monthly fee and are built for registered businesses. Details are from each provider’s page on October 4, 2026, and can change.
| Factor | Wealthsimple personal chequing | Wealthsimple business chequing | TD Business Digital Account | RBC Digital Choice Business |
|---|---|---|---|---|
| Monthly fee | $0 (chequing) | $0 | $6 (TD) | $6 (RBC) |
| Who can open it | Individuals | Canadian-controlled private corporations and CRA-registered charities only; not sole proprietors (business chequing) | Registered businesses, including sole proprietors with registration documents | Small businesses |
| Electronic transactions | Up to $50,000 a day in e-Transfers for eligible clients | Unlimited deposits and transactions; up to $50,000 a day in e-Transfers; wires $15 | Unlimited; 10 Interac e-Transfers a month included | Unlimited electronic debits and credits; 10 outgoing e-Transfers |
| Interest | Up to 2.25% depending on client tier (1.25% Core, 1.75% Premium, 2.25% Generation) | From 1.25%, tied to combined assets | Not listed for this account | Not listed for this account |
| Separate pots | Up to 8 accounts | Up to 8 business chequing accounts | One account per package | One account per package |
| Cash deposits | At Canada Post locations | Check before you sign up | Check before you sign up | Check before you sign up |
Wealthsimple’s chart lists maximum CDIC coverage of $1M for personal chequing, while its business chequing page lists $100,000 per entity. CDIC itself insures eligible deposits up to $100,000 per category, per member institution (what’s covered).
Do Canadian side hustlers need a business bank account?
Not necessarily. The CRA’s business records guidance requires you to keep a record of daily income and expenses, deposit slips, bank statements, and receipts, generally for at least six years, and to keep separate records for each business you run. A dedicated account, personal or business, makes those records easier to produce.
- A separate personal account: keeps side hustle money apart without a monthly fee, if your bank allows business use of the account.
- A business account: useful if clients pay a registered business name, you need business cheques, or you plan to grow. The documents and steps are in how to open a business bank account.
- Incorporated businesses: a corporation is a separate legal entity and should bank in its own name; that is when Wealthsimple business chequing becomes available.
What does each setup cost over a year?
A no-fee account costs nothing in monthly fees; a $6-a-month account costs $72 a year before any extra transaction fees.
Illustrative example
Assume a side hustle that keeps $3,000 on average in its account through the year to cover tax and expenses. The balance, and an interest rate that stays constant all year, are assumptions.
- Separate Wealthsimple personal chequing at the 1.25% Core rate: fees $0. Interest about 1.25% × $3,000 = $37.50 a year, which is taxable.
- TD or RBC $6 digital business account: fees 12 × $6 = $72 a year, generally deductible as a business expense.
- Difference before tax: $37.50 + $72 = $109.50 in favour of the no-fee setup, before the value of any business-only features you need.
What mistakes do side hustlers make with their business money?
The common mistakes are mixing personal and business money and spending tax money.
- Using one account for everything. It makes the six-year records harder to reconstruct. A simple three-account setup is in separating business and personal money.
- Assuming Wealthsimple Business accepts sole proprietors. It requires incorporation or a registered charity.
- Spending the tax set-aside. Keep tax money in its own account; see how much tax to set aside.
- Missing instalments. If your net tax owing is more than $3,000 ($1,800 in Quebec) in the current year and either of the two previous years, the CRA may ask for quarterly instalments. Due dates and calculation options are in CRA tax instalments for side hustlers.
- Ignoring account limits. Check e-Transfer and transaction limits before clients start paying you.
Which tax rules apply to side hustle bank accounts in Canada?
Bank fees on an account used for your business are generally deductible, and interest earned is generally taxable investment income. Keep statements and receipts as the CRA requires, and report business income on Form T2125, as covered in tax prep before January. Invoicing software such as FreshBooks TODO-AFFILIATE can help you match deposits to invoices.
This is not tax, legal, or financial advice.
Which guides sit next to Wealthsimple vs a bank business account?
This guide sits beside record keeping, how much tax to set aside, GST/HST registration, and tax on reselling and gig apps. For where payouts come from, see Shopify vs Squarespace vs Wix and Upwork vs LinkedIn.
What are the common questions?
Can a sole proprietor open a Wealthsimple business account?
No. Wealthsimple's business chequing page says it does not support non-incorporated businesses and requires a Canadian-controlled private corporation or a charity or association registered with the CRA.
Do I need a business bank account for my side hustle in Canada?
Not necessarily. The CRA requires complete records, such as bank statements, deposit slips, and receipts, kept generally for six years. A separate account, personal or business, makes that easier. This is not tax advice.
How much does a small business account cost at TD or RBC?
TD lists its Business Digital Account at $6 a month with unlimited electronic transactions and 10 Interac e-Transfers a month. RBC lists its Digital Choice Business Account at $6 a month.
Is money in Wealthsimple chequing CDIC insured?
Wealthsimple's chequing page lists maximum CDIC coverage of $1M, and its business page lists $100,000 per entity. CDIC insures eligible deposits up to $100,000 per category at each member institution.
Are bank fees tax deductible for a side hustle?
Bank fees on an account used for your business are generally deductible business expenses, and interest earned is generally taxable. This is not tax advice.
Which sources support this guide?
The rules, rates, and platform requirements in this guide are checked against these primary sources. Retail price ranges are labelled as ranges to verify locally, and they are not quotes.
- Chequing account — Wealthsimple
- Business chequing — Wealthsimple
- Small Business Bank Accounts — TD Canada Trust
- Small Business and Corporate Bank Accounts — RBC Royal Bank
- What's covered — Canada Deposit Insurance Corporation
- Business records — Canada Revenue Agency
- Required tax instalments for individuals — Canada Revenue Agency