Featured Partners
On Revolut’s Secure Website
Monthly Fee
From $21 (Grow Plan)
Currencies
25+ (send, receive & exchange)
No-fee International transfers?
Yes, up to a certain amount and dependent on the plan
On Wise’s Secure Website
Sign up for the business account with no hidden charges, high rates or monthly fees
Pay employees, get paid and manage cash flow overseas – all in one place
Move money between currencies in seconds, always with the real exchange rate and without high conversion fees
What Is a Business Account?
A business bank account can include transactional and high interest savings accounts that are specifically designed to help you manage business-related income and expenses. Separate bank accounts for your business funds is not only a legal requirement for many businesses, it helps you run a tight ship.
“All businesses should have separate accounts—this will allow them to put money aside for important things such as tax, rainy days and employee obligations,” according to chartered accountant and partner at Carbon Group, Michelle Maynard.
“Only having one account runs the risk of not saving for those future liabilities—meaning (you may) get into trouble.”
Am I Legally Required to Open a Separate Business Account?
According to the Australian Tax Office, if your business is structured as a company, trust or partnership, you must have a separate bank account. You’re also required to keep banking records for five years, which is why online banking that simplifies record-keeping is a popular choice for Australian businesses.
For company owners and directors especially, a business bank account is critical for staying compliant. Companies are separate legal entities—meaning you can’t use money earned by the company for personal purposes. So, you can pay yourself a wage, but you can’t withdraw money at will to pay for your groceries.
Do Sole Traders Need a Business Bank Account?
Sole traders—which includes those who are self-employed, freelancers and independent contractors—can technically get away with using a personal bank account. But Maynard recommends that sole operators also create a clear distinction between business and personal funds.
“Have a dedicated business bank account where your customers pay you, and you pay your suppliers. This will make it easier to track,” Maynard adds.
“If you want to take funds from the business, transfer them to your personal everyday account.”
She said sole traders should also have at least one separate savings account to hold money to cover future tax bills.
Types of Business Bank Accounts
There are two main types of business bank account offered by lenders:
- Everyday transaction accounts for day-to-day banking such as accepting payments and making payments. These may be designed for internet banking only, or also support in-person banking and lots of cash deposits. They generally have low to non-existent interest rates on your savings.
- High interest savings accounts designed to help business owners grow their funds by earning interest. Just like in personal banking, there may be conditions attached to earning a higher rate of interest—such as minimum deposit amounts per month and linked products. Also, beware the lure of very high rates that are merely introductory and revert to a much lower interest rate after six or nine months.
Pro Tip
For company owners and directors especially, a business bank account is critical for staying compliant. Companies are separate legal entities—meaning you can’t use money earned by the company for personal purposes. So, you can pay yourself a wage, but you can’t withdraw money at will to pay for your groceries
Michelle Maynard says businesses are wise to open both an everyday transaction account and a savings account. You might even prioritise a bank that enables you to create multiple business savings accounts so you can separate savings by their purpose: e.g., BAS/GST/PAYG withholding, and income tax.
Here’s how Maynard suggests you leverage your multiple business accounts:
- Have customers pay you via your everyday transaction account, and also pay your suppliers from that account.
- Each week or pay run, transfer the equivalent GST from your weekly invoices/sales, plus the PAYG withholding and superannuation for employees, into your savings account.
- Each week, roughly calculate an income tax percentage (say, 20% of invoices/sales) and transfer amount to a savings account.
“By doing these things regularly, you will ensure you are building the right buffers so you don’t get unexpected bills when lodgements are due,” she says.
“If there is sufficient cash flow, also consider putting some aside for a rainy day—whether that be an unexpected bill or expense, wanting to purchase a large piece of equipment, or future business plans.”
How to Compare Business Bank Accounts
You might find it easier to open a business account with the institution where you do your personal banking—due to streamlined application processes and transferring between accounts. But Maynard cautions you should focus on setting up your business accounts in the most efficient manner, as opposed to the most convenient, to avoid the considerable hassle of changing accounts later on.
“So, investigate and think about how you will need the accounts now, and in the future. Will you need to add an eftpos or online payment option? Can your bank and the chosen account you have work with that?” she says.
“While it might take some more legwork to set up with a different provider—the convenience you save in the beginning might be far outweighed by issues in the future if you don’t get it right.”
Business Bank Account Features To Consider:
- Ongoing and one-off fees: Check what you’ll pay for monthly account-keeping fees, ATM usage, in-branch transactions and more complex assisted transactions such as depositing cash or cheques.
- Accessibility and speed of transactions: Which processes and technologies matter most to you? For instance, some online accounts won’t support cash deposits, a savings account may only enable direct debits/credits with no associated card or eftpos payments, and a bank may not incorporate real-time payment tools like PayID or Osko.
- Overdraft availability and limits: If the ability to go into negative balance without taking out a loan is important for your cash flow, check you can add overdraft facilities to your account and review the interest payable on overdraft balances.
- Interest rates and conditions: Both transaction and savings accounts may offer interest, although a dedicated savings account usually has a better rate. Always compare based on the standard variable rate outside any short-term, introductory or conditional offers.
- Online banking and app features: Some products come with sophisticated in-built reporting, expense tracking and goal-setting tools that may benefit business owners. Does it provide bank feeds to integrate with your accounting software—such as Xero or MYOB?
- Broader merchant support: If you’ve got plans to expand your business through in-person sales or an eCommerce website, you may want to choose a bank that can help you realise those ambitions down the track.
- Security and access: If you need multiple people within the business to have access, consider how the account handles multiple signatories and its approach to cyber security.
Maynard says that while cheques are pretty much non-existent and cash handling is dwindling in Australia—some businesses do still need to accommodate payments in cash and cheques.
“So, think about that when making your bank choice—is there a branch or deposit ATM nearby that you can access?” she says.
“Again, you don’t want to waste energy and time driving around to find a branch, so factor how you are going to use the account when deciding what account and bank to use.”
Maynard said finding a good rate on your business savings account was important, but having to meet certain conditions can be a downside.
“For some that offer higher savings there is a minimum deposit and limited withdrawal condition placed on it. Don’t be blinded by the interest rate offer—make sure it will actually work with how you need and want to use the account,” she says.
There are a few accounts that combine everyday transactions and the ability to earn interest (we’ve included a few in our list below), but having a separate savings account can help you be more organised and be psychologically important to avoid spending.
“For your savings accounts, try to have them with another institution than what you have your transaction accounts with—this will mean it will be harder to access those funds, and you can’t do a quick transfer. Hopefully that stops you dipping into the savings unless you really need it,” Maynard says.
However, she says a better approach for sole traders could be to allocate savings into an offset account linked to your mortgage.
“The interest you save on the mortgage will normally be more than what is paid on savings accounts—plus you don’t pay tax on it,” she adds.
Our Pick of the Best Business Accounts in Australia
We’ve highlighted some of the best business transaction and savings accounts below.
Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.
FEATURED PARTNER OFFER
Suncorp Business Premium Account
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest earned
0.01% interest paid on all balances
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest earned
0.01% interest paid on all balances
Why we chose them
Suncorp has won Money’s Business Bank of the Year multiple times, including in 2023, due to its customer-focused approach.
Businesses can earn a higher rate of interest with a feature called flexiRates, which is like a quasi term deposit—you lock away a portion of savings for between three to 12 months to earn interest of up to 4.70% (with no early release fee).
If you take out a Suncorp business loan there’s an offset feature—meaning money in your Premium Account is offset against your business loan balance. In terms of fees, there are free assisted transactions and deposits of cash and cheques; free, unlimited deposits or withdrawals at Suncorp ATMs; and a 3% transaction fee for international purchases.
Linked merchant facilities are available, such as EFTPOS devices that integrate with point-of-sale systems, eCommerce, BPAY, and recurring credit card payments. Overdrafts require an application and are subject to credit approval.
FEATURED PARTNER OFFER
Heritage Bank Business Cheque Account
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card.
Interest earned
0.01% interest paid on balances of $1 or more
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card.
Interest earned
0.01% interest paid on balances of $1 or more
Why we chose them
Heritage Bank is lauded for its customer service and offers 24/7 local contact if you need help with your business banking. Day-to-day transactions with zero fees and the ability to earn interest on your balance makes this a simple, cost-effective option for business owners. Note: Heritage Bank is a customer-owned bank, so you will have to sign-up as a member first.
There are free assisted transactions and deposits of cash and cheques, including at Australia Post, as well as free deposits or withdrawals at Heritage ATMs and some big four bank ATMs. There is a $5 currency conversion fee for overseas ATM or over-the-counter withdrawals. Overdrafts require an application and are subject to credit approval.
FEATURED PARTNER OFFER
CommBank Business Transaction Account
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest
No interest paid on balances
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest
No interest paid on balances
Why we chose them
Recognised as Australia’s most-recommended business bank at the DBM Australian Financial Awards in 2023, CommBank covers the bases when it comes to dependability, features and user-friendliness of its online and app-based banking.
Free, unlimited deposits or withdrawals are available at CommBank ATMs, while international purchases attract a 3% fee. While no interest is paid on balances you can link your account to a Business Online Saver account to get higher rates of between 0.25% and 1.25% (depending on your balance amount). If you need assisted transactions, you can get up to five per month for a monthly fee of $10.
Note: Commbank took over business accounts held with the highly lauded BankWest in 2022.
FEATURED PARTNER OFFER
AMP Cash Manager Account
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest
From 0.60% variable interest
Fees
$0 account-keeping or electronic transaction fees
Linked cards
Visa Business Debit card
Interest
From 0.60% variable interest
Why we chose them
With AMP’s Cash Manager Account, your business revenue is available to use as needed for online banking, eftpos, BPAY and transfers between accounts, yet you can earn an attractive interest rate with no conditions. This includes 0.60% variable interest on balances up to $10,000; 4.80% interest on balances between $10,000 and $250,000, and 4.35% for up to $5 million.
AMP is better-known as a superannuation provider, but its banking products are competitive—especially if your business has little need for over-the-counter assistance.
There are also free, unlimited deposits or withdrawals at all Australian ATMs (fees rebated), and free Bank@Post access for transactions involving cash and cheques.
FEATURED PARTNER OFFER
Macquarie Business Savings Account
Fees
$0 account-keeping or electronic transaction fees
Linked Cards
None
Interest
4.65% variable interest paid on balances up to $1 million
Fees
$0 account-keeping or electronic transaction fees
Linked Cards
None
Interest
4.65% variable interest paid on balances up to $1 million
Why we chose them
Simply put, Macquarie’s Business Savings Account offers a great interest rate if you want a no-frills business savings account, with no penalty for using your savings as you please.
Keep in mind, there’s no access to bank feeds for accounting software integration and no debit/credit card or EFTPOS facilities. Its digital application process promises a fast approval. Note, this account is for sole traders and proprietary companies only (no trusts).
FEATURED PARTNER OFFER
Hume Bank Business iSave Account
Fees
$0 account-keeping or electronic transaction fees
Interest
2.50% variable interest paid on balances of $10,000 plus
Fees
$0 account-keeping or electronic transaction fees
Interest
2.50% variable interest paid on balances of $10,000 plus
Why we chose them
If you just need internet and phone banking, and a place to ‘park’ your business savings to earn interest, Hume Bank offers an appealing interest rate. If you want to keep your business banking together and primarily bank online, the bank’s business transaction account is also good value—it has no account-keeping fees, lets you earn interest of 0.01% on balances, and comes with a Visa Debit card, payroll processing, as well as optional overdraft.
With the iSave account, there are also free, unlimited BPAY, direct debits and credits, Osko and PayID options. However, there are no cash or cheque deposits, ATM/cash withdrawals or EFTPOS, and there’s a $5 fee to issue a bank cheque.
How to Open A Business Bank Account in Australia
To open a business bank account you’ll need to prove your identity and your connection to the business in question. You may be asked to provide:
- Your personal details and identification documents.
- Personal details for all other owners and partners.
- Your business name, address and industry type.
- Your ABN and/or ACN numbers.
You may also be asked to provide proof such as a copy of your partnership agreement, the certificate of registration of your business name, or your ASIC certificate of registration. Depending on the services offered by your chosen bank, you may be able to complete your application online (most common), over the phone/email, and via a branch.
Featured Partner
On Revolut’s Secure Website
Monthly Fee
From $21 (Grow Plan)
Currencies
25+ (send, receive & exchange)
No-fee International transfers?
Yes, up to a certain amount and dependent on the plan
On Wise’s Secure Website
Sign up for the business account with no hidden charges, high rates or monthly fees
Pay employees, get paid and manage cash flow overseas – all in one place
Move money between currencies in seconds, always with the real exchange rate and without high conversion fees
Frequently Asked Questions (FAQs)
Which bank is best for business banking?
The best bank for business banking depends on the needs of your business and how you want to organise and manage your finances. For instance, some accounts offer better value if you only bank online, yet some businesses may have considerable cash handling requirements.
What are the disadvantages of a business bank account?
One disadvantage of savings accounts aimed at businesses can be that, in order to receive the highest rate, you need to meet conditions like a minimum deposit amount, or there may be limits on withdrawals. “Don’t be blinded by the interest rate offer – make sure it will actually work with how you need/want to use the account,” Michelle Maynard from Carbon Group said.
Can I transfer money from personal to business account?
Your business bank accounts exist to help you keep track of business income and expenses. Day-to-day, it doesn’t make sense to transfer personal funds into a business account—and it’s less messy at tax time if you avoid cross-contamination. However, when you’re first starting your business, or setting up your account, the funds to operate your business may come from your personal cash reserves. It’s wise to speak to your accountant or business adviser about the smartest, tax-effective way to fund your business with personal money.
The information provided by Forbes Advisor is general in nature and for educational purposes only. Any information provided does not consider the personal financial circ*mstances of readers, such as individual objectives, financial situation or needs. Forbes Advisor does not provide financial product advice and the information we provide is not intended to replace or be relied upon as independent financial advice. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. Forbes Advisor encourages readers to seek independent expert advice from an authorised financial adviser in relation to their own financial circ*mstances and investments before making any financial decisions.
We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor provides an information service. It is not a product issuer or provider. In giving you information about financial or credit products, Forbes Advisor is not making any suggestion or recommendation to you about a particular product. It is important to check any product information directly with the provider. Consider the Product Disclosure Statement (PDS), Target Market Determination (TMD) and other applicable product documentation before making a decision to purchase, acquire, invest in or apply for a financial or credit product. Contact the product issuer directly for a copy of the PDS, TMD and other documentation. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved or otherwise endorsed by our partners. For more information, read our Advice Disclaimer here.
Jody McDonaldContributor
Jody McDonald is a freelance writer based in Brisbane who specialises in writing about business, technology and the future of work. She’s helped a range of SaaS platforms and tech companies share their stories, and has written for the Mortgage and Finance Association of Australia magazine, MYOB Pulse, Anthill Magazine, Crypto News Australia and The Chainsaw.