Business bank accounts

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Business bank accounts explained

A business bank account is designed to help manage your company's income and day-to-day expenses. It provides a way to pay bills, purchase new assets or receive payments from customers.

As your company grows, a business bank account helps you keep track of your cash flow and lets you keep your personal finances and tax separate from the business.

A good business bank should let you make transactions and track your money easily, with minimal fees and features like accounting software integration and a business debit card.

Who can open a business bank account?

Business bank accounts are not for personal use. You can open a business bank account as a sole trader, a company, a trust, an association, a not-for-profit or a self-managed super fund (SMSF).

And you'll need the following:

• Your ID
• An ABN or ACN

Your business will need a registered address, and you'll need to be 18 or over.

How do I find the right business account?

A good business bank account should have:

• Minimal fees. Most banks don't charge a monthly account fee. But you should also look at what kind of transactions (if any) have a fee attached. Some banks don't charge fees for most online transactions but do charge fees for cashing or issuing cheques, or making staff-assisted transactions in a branch.
• A business debit card. If you want to be able to access your funds easily, look for an account that comes with a business debit card.
• Free transactions. The best business bank accounts offer unlimited electronic transactions for most types of transaction. Some charge fees for international transactions or overseas ATM withdrawals.
• Accounting software integration. Some banks let you plus your accounting software (like MYOB or Xero) into your business bank account. This makes it easier for you to track your accounts and is a huge help at tax time.
• Perks and support. Some banks offer extra benefits, such as small business advice or perks like discounts with partner providers.

Business bank account versus business credit card

A business bank account only lets you spend your own money, whereas a business credit card offers a line of credit for you to access and then repay when you can.

One benefit of a business credit card is it could help with cashflow, as it provides access to cash all month long even if you haven't yet been paid by clients or customers. However, a business credit card also comes with more fees, plus if you don't repay your balance within the interest-free period you'll be charged interest.

"Using a credit card can be really convenient for cashflow, but some providers charge up to 2% in credit card fees, which can really add up. You also need to pay credit card fees for the transactions you accept, unless you pass those on to customers.

All of these fees can really chew through your profits, so it’s important to factor them in to your budget and forecasts. I shopped around and settled on a bank that offered business transaction accounts for free."

Sarah Megginson

Money expert + media spokesperson

How to open a business bank account

Ready to open a business account? Follow these steps to open an account today.

1. Compare accounts. Use our table above to compare business bank accounts (see some tips below on how to compare business bank accounts).
2. Complete the application. You can complete the application form online. You'll need to supply your personal details as well as your business ABN, ACN and tax file number and registered business name and address.
3. Verify your identity. You'll need to verify your identity using your driver's license, passport or Medicare details. For a joint account, each person listed on the account needs to verify their identity.
4. Account opened. When the bank has successfully verified your business and completed the application process, your new business bank account will be open and ready for use (this can happen in a matter of minutes!). You'll receive your debit card (or cards if you opened a joint account) in the mail within 3 to 5 business days.

Frequently Asked Questions

• Does a pty ltd company need a business bank account?

  Yes, all partnerships, companies and trusts are required to have a seperate business bank account.

• Can I use a regular bank account for my business?

  Typically no, you need to have a dedicated business bank account for your business and can't use a personal account. If you're a sole trader or do contract or freelance work you may be able to use a personal bank account, but it's not recommended.

• What are good business term deposit accounts?

  A business term deposit allows you to lock some money away for a set period of time (called a term) and earn a fixed rate of interest. These aren't designed for day-to-day use, but could be good if you've got a large amount of money that you're not using for a while.

• What are good business savings accounts?

  A business savings account allows you to earn a variable interest rate on your money, but unlike a term deposit you can still access the money if you need to.

• What's the difference between personal bank accounts and business accounts?

  Personal bank accounts and business transaction accounts are very similar, and work in the same way. They're both designed for day-to-day spending and come with a debit card.

  While most personal bank accounts have no monthly account keeping fees, business bank accounts often do come with a monthly fee because they offer more services and features than personal transaction accounts. For example, they might offer a larger overdraft facility and bigger daily spending limits than personal accounts, along with added reporting and accounting features.

  Sometimes business bank accounts will offer additional accounting software and tools that personal bank accounts won't offer.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 649 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living

Co-written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 779 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips