There is a wide range of business bank accounts available in Australia. However, not all budgets are created equal. To find the best account for your business, you need to consider several factors, such as fees, features, and services.
To help you choose the best business bank account in Australia for your needs, we’ve compared a range of accounts from different banks. We’ve also considered the unique needs of other businesses, so you can find the account that’s right for you.
Key Takeaways
- You’ll learn How To Choose A Business Account
- Understanding Type Of Bank Account That Is Best For Businesses
- The 10 Best Business Bank Accounts In Australia
- Answers to Some Frequently Asked Questions on Business Bank Accounts In Australia.
What Is A Business Bank Account?
A business bank account is a kind of account that firms may use to charge and cash out loans, withdraw funds from checking or savings accounts, and pay taxes. It is an excellent method for small companies to get started and develop.
Various business bank accounts are accessible in Australia, depending on the company’s demands and what works best for them.A business bank account is established in the name of a company rather than an individual.
Those who have attempted to run their personal and professional activities from the same account know that it can get rather complicated as your company expands. That is why there are specific corporate bank accounts, and they are intended to give company owners the assistance, functionality, and visibility needed to run their operations.
It is also a legal necessity for many firms. If your company, partnership, or trust is registered in Australia, you must create a business bank account for tax reasons.
How To Choose A Business Account
Here are some essential factors to consider when evaluating your options to help you discover your small company’s most refined business bank account. It is not thorough, but it may make the procedure go more smoothly.
Account charges. Examine the account fees to check whether they correspond to the service level provided. Also, bear in mind that certain business bank accounts are fee-free.
Fees for international transactions. As a developing firm, you may be conducting business with foreign companies; thus, selecting a bank that provides cheap rates for sending and receiving money worldwide is critical.
A robust branch network. Some overseas banks do not have branches in Australia, so if you need to deal with them directly, be sure they have an Australian partner bank you can visit.
Is there an online platform or gateway available? A robust online business banking platform will make managing your funds much simpler.
Overdraft protection. You won’t always need overdraft protection, but knowing it’s there is reassuring.
Account restrictions. Some corporate bank accounts restrict the number of persons who may use the account, so be sure to verify this first.
Transactions aided by staff Check for transaction costs that employees help with. If you receive cash payments regularly, look for a bank that does not impose fees for in-branch staff-assisted deposits.
The Type Of Bank Account That Is Best For Businesses
Business bank accounts each have their function, benefits, and downsides. Five popular business accounts are discussed.
The sorts of business bank accounts required differ per firm. Below are five important business accounts. Compare their benefits and downsides to decide which is best for your organization.
Business Checking Account
A business checking account offers the fewest limitations on how you may spend your money. It offers electronic transfers, wire transfers, cheques, ATM, and debit card transactions, so it’s an excellent location to hold corporate funds.
You may add money to your checking account by electronic transfers, mobile check deposits, wire transfers, and perhaps branch or ATM deposits.
Business Savings Account
Business savings accounts are preferable to check for the operating income you won’t utilize soon. They provide attractive interest rates but restricted access. Federal law limits fee-free withdrawals to six per month, and most business savings accounts don’t allow checks or ATM cards.
Many banks restrict the quantity of monthly cash and business savings account deposits. This is something to remember while choosing the finest business savings to account for your firm.
Business Certificate Of Deposit (CD) Account
Business CDs are a higher-yielding alternative to business savings accounts and are not excellent for running expenditures.
When you open a CD, you promise not to touch the money during the CD period. This might be months to years, and a more extended CD period typically means a greater APY.
Business Money Market Account
MMAs are less prevalent than the other business bank accounts listed above, but they may appeal to you if you want an account that combines business checking and savings characteristics.
Federal law limits company MMAs to six monthly penalty-free withdrawals, comparable to savings accounts. MMAs provide better APYs than business savings accounts; however, rates vary by bank.
Due to increased administrative expenses, brick-and-mortar banks can’t match Internet banks’ higher rates. MMAs have more significant minimum deposit requirements than business savings accounts, which may deter some company owners.
Merchant Account
Businesses that take debit and credit cards need a merchant account. When a consumer pays with a card, the money goes into this account first and is then transferred to your other business bank accounts.
These accounts include application, setup, monthly, and per-transaction fees, so be aware before signing up. Otherwise, you’ll waste money.
Also Read: How To Open A Business Checking Account Online With No Deposit
Requirements For A Business Bank Account In Australia
The following information must be provided:
- The name of the company as it is registered with ASIC
- ACN (Australian Company Number) and ABN (Australian Business Number) (ABN)
- Registered office and company location
- Company directors’ full names
- Date of registration
- Trading name or company name
The 10 Best Business Bank Accounts In Australia
There are many excellent business bank accounts to pick from in Australia, and the finest provide high-quality services and various goods. Here are the top ten:
1. Westpac Bank Business One Low Plan
Westpac, another member of the Big Four, offers a variety of business accounts with varied features and cost schedules. The One Low Plan Account is designed for companies that perform the majority of their banking online.
Businesses that choose to bank online do most of their transactions inside Australia.
Fees for the account:
- Monthly account fee of $10
- Fees for in-branch transactions that exceed the monthly free allowance
Features
- Electronic transactions are not restricted.
- 25 transactions aided
- Free online invoicing software
Pros
- Business Syncs with accounting systems such as Xero and MYOB Pros were added by Mastercard.
- Debit card for business
- Occasional promotions to lower account fees for new members.
- Accounting software integration
- Allowance per month for free branch transactions
Cons
- The account earns no interest.
- Foreign currency transactions incur a 2.2% or 3% charge.
2. National Australia Bank Business Everyday Account
National Australia Bank (NAB), like Commonwealth Bank, offers two types of Business Everyday accounts.
An account with no monthly fees for businesses that primarily bank online.
Account for $10 per month for companies that bank at a branch and deposit large quantities of cash and checks.
Look at the NAB Business Everyday Account ($0 monthly cost). Small and medium-sized enterprises that do not often deposit cash or checks.
Main account costs: There are no monthly account fees.
- Banker-assisted transactions cost $2.50.
- Express business deposits and express cheque deposits are both $0.60.
Features
- There is a linked NAB Business Visa Debit Card available.
- Transactions facilitated for free
- There are no ATM fees.
Pros
- Debit card for business
- Standard online transactions are free.
Cons
- It does not integrate with accounting software
- There are no free allowances for branch transactions.
- Fees for numerous transfers of money
3. Commonwealth Bank Business Transaction Account
Commonwealth Bank is one of Australia’s Big Four financial institutions. They provide two layers of business transaction accounts.
An account with no monthly fees that favor internet banking
An account with extra branch support and services for $10 per month
Companies and enterprises that operate mainly in Australia and bank online.
Fees for the primary account:
- If you choose that option, you will be charged a monthly account fee of $10.
Features
- There is no minimum account balance.
- Comes includes a Visa Debit Card; syncs with accounting systems such as Xero and MYOB; and syncs with Apple Pay and Google Pay.
- Banking notifications in real time
- There are no transaction limitations.
Pros
- Debit card for business
- Account fee level selection
- Accounting software integration Personalised insights
Cons
- International trade is not a priority.
- To open the account, you may need to go to a branch.
4. ANZ Business Advantage Account
ANZ Business Advantage is one of three business transaction accounts offered by ANZ. It is the middle-tier account, with more features than the ANZ Business Essentials account but less than the ANZ Business Extras account. Small enterprises that are based mainly in Australia.
The primary account charge is $10 per month.
Features
- Accounting systems such as Xero and MYOB are compatible.
- Compatible with Apple Pay, Google Pay, and Samsung Pay
- Obtaining an ANZ Business Visa There is a debit card overdraft option available.
Pros
- Access to branch services is included.
- Overdraft protection is offered.
- Debit card for business
Cons
- Does not integrate with accounting software
- International transactions incur extra fees.
- Internet banking and ANZ Shie provide daily payment restrictions of up to AUD 50,000.
5. Great Southern Bank Everyday Business Bank Account
Everyday Business Bank Account at Great Southern Bank
Great Southern Bank is Australia’s most significant customer-owned financial institution. They provide an Everyday Business Account, which has no monthly account cost, among other accounts. Businesses in Australia, particularly those in the eastern states.
Fees for the primary account:
- There are no monthly account fees.
- $0.75 Cash out and EFTPOS purchases
- Branch cash-out features for $2.00
Feature
- Use Online Banking to make payments and arrange transactions with a Great Southern Bank Everyday Business Account.
- The account includes a Visa Debit card for free ATM withdrawals throughout Australia.
- Great Southern Bank enables daily bank feeds if you use MYOB.
- Using alternative accounting software, you may export your data as CSV, QIF, or PDF.
Pros
- Overdraft protection Business debit card
- Multiple account signatories may be added.
Cons
- Fees for EFTPOS purchases may accumulate.
- Only MYOB may be connected to daily bank feeds.
Recommended: An Easy Guide To Get Business Interruption Insurance In Australia
6. Suncorp Business Premium Account
Suncorp is a multi-award-winning Australian bank that offers a variety of business bank accounts. The Suncorp Business Premium Account has no monthly fees and allows for limitless fee-free transactions. Businesses that need both online and in-person assistance.
Main account costs:
There are no monthly account fees.
Feature
You enjoy limitless fee-free transactions with the Suncorp Business Premium Account, including electronic, cheque, phone, and branch transactions. Other Suncorp business products, such as Business Overdraft and Business Loans, may be connected to the account. Suncorp may also provide in-store EFTPOS and eCommerce payment systems.
Balances exceeding $20,000 are eligible for 0.01% annual interest.
Pros
- There are no costs for branch help.
- It is possible to attach it to a Business Overdraft Business debit card.
Cons
- Only Xero or MYOB connections
7. AMP Bank Cash Manager
AMP is a reputable Australian bank that provides various business banking services. An AMP Bank Cash Manager account combines the advantages of a transaction account with a savings account.
Australian corporations or single proprietorships operating inside Australia
Fees for the primary account:
- There are no monthly account fees or initial deposit requirements.
Feature
- The AMP Bank Cash Manager account is intended to be both a transaction and a savings account. You may earn interest on your company savings while keeping the cash available if required.
- The first account setup is free since there are no monthly fees or minimum deposits.
- It is possible to have signatories on the account, which makes it simpler if you want to allow different individuals access to it.
Pros
- Visa debit card linked
- Savings and transaction accounts are combined.
- Possibility of earning interest
Cons
- International transactions incur additional costs.
- There is no chequebook supplied.
- The interest rate is not fixed.
8. First Internet Bank Small Business Checking
There is no monthly service charge or minimum balance requirement with First Internet Bank Small Business Checking. You’ll also get reimbursed for ATM costs and be able to make limitless deposits. However, to receive interest, you must maintain an average daily balance of $10,000.
Pros
- There are no monthly service costs. There are ongoing monthly maintenance charges to consider.
- Reimbursement of ATM fees The usage of an ATM at First Internet Bank is free of charge. Every month, it will also reimburse up to $10 in ATM fees from other ATM owners.
- Deposits are unlimited. While other business checking accounts have a monthly deposit restriction, this account does not.
Cons
- Maintain a high balance to earn interest. To receive its 0.3% APY, you must have a balance of $10,000 or more.
- There are no physical branches. Customer service is solely available through live chat and email.
- Deposit slips and envelopes are required. First, Internet Bank deposit slips and envelopes are required if you want to mail your checks.
9. Wise Business Account
Wise is a secure payment provider specializing in international multi-currency accounts rather than a traditional bank. With the Wise Business account, you may simply send and receive money all around the globe at the current exchange rate.
Freelancers working with international clients and businesses doing business locally or internationally
Fees for the primary account:
- $22 one-time fee for access to local and international account information
Feature
- To hold large amounts, there is a 1.6% annual fee (or approximately 0.00437% daily). You can keep up to 23,000 AUD in reserve for free features.
- With the Wise Business account, you can have local account details in major currencies such as AUD, USD, GBP, and EUR.
- You will be able to pay invoices in over 70 countries and hold more than 50 currencies in a single account.
- To simplify your life, the Wise Business account may be linked to various accounting tools, including Xero.
Pros
- There is no minimum balance.
- There are no hidden costs.
- Multiple currencies can be stored in a single account.
- Local account information for international locations
- It includes several debit cards.
Cons
- Cash deposits are not accepted.
- There is no available overdraft.
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10. Airwallex Business Account
As a comparison, we’ve included the Airwallex Business Account to see what a better alternative looks like.
None. Airwallex has no monthly account fees, foreign costs, withdrawal fees, phone inquiry fees, or anything else. Simply pay a small FX margin of 0.3% or 0.6% whenever you convert funds between currencies.
Features
- Create business accounts in multiple currencies. Create separate foreign currency accounts for 11 or more currencies to send, hold, and receive international currencies while avoiding double conversions.
- Global Foreign Exchange and International Payments Transfer money to 130 countries in over 50 currencies with no minimum transfer fees.
- You can use virtual debit cards. Create multiple virtual debit cards in seconds and use them right away.
- Multi-currency physical cards Create and purchase real debit cards for your team and have them delivered promptly without visiting a bank.
- Expense control. Replace repetitious labor and cumbersome software with an authentic, zero-touch experience that your staff will like.
- Integration with Xero. Your Airwallex Business Account syncs easily with Xero, allowing you to maintain your financial information up to date and simplify reconciliation.
- FX rates are low. We never charge more than 0.3% or 0.6% over the interbank FX rate, ensuring that you always obtain the best possible rate—up to 90% better than what the Big 4 can give.
- Begin as soon as possible. You may use your account as soon as it is validated. There will be no waiting for authorization.
Conclusion
The best business bank accounts in Australia for 2022 provide high return rates on deposits and minimal overall expenses. When it comes to making the most of one’s finances, these accounts may be an excellent option for those who run their enterprises or are just starting.
FAQS
Which Bank Is Best For Small Businesses In Australia?
NAB is Australia’s leading business lender view Disclaimer, and they understand that running a company requires much more than just money. They take the time to learn as much as they can about you and your company so that they can provide the necessary skills and knowledge to give you the confidence to keep going ahead.
Aside from corporate finances, we offer the tools, knowledge, and alliances to guarantee you always get the most out of our cooperation.
Do I Need An ABN To Open A Business Bank Account?
To create a business bank account, you must have your ABN, and for corporations, you must also have your ACN. When opening a business bank account, banks need you to provide 100 points of identification.
Can I Use My Personal Bank Account For Business In Australia?
Although sole proprietors may use their bank account for their company, it is recommended that they create a separate one. If you utilize a single account, you must keep track of your money and spending in a cash book.
Is It Illegal To Pay Personal Expenses From A Business Account?
Nothing is unlawful about the withdrawal as long as you reimburse the money to the firm as quickly as feasible. However, it may result in more work for you or your accountant, and hazards are associated with combining commercial and personal activities.
Can I Use My Personal Bank Account For Business?
Although it may look cumbersome to have two bank accounts, you should not use a personal account for your company money since it may influence your legal responsibilities. Creating a business and personal bank account should be one of the first steps in starting a firm.
How Long Does It Take To Set Up A Business Bank Account?
Small firms with less than 100 workers may take a few days to have one authorized, but large organizations may require up to 120 days. Requesting an EIN ahead of time simplifies the procedure since you’ll have all of the necessary papers when you visit the bank.
You can learn more from the video below:
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