Boost your business bank balance with a high-interest business savings account.
Whatever business you’re in, finding the most effective and affordable way to manage your finances is crucial. And when you’re a sole trader, a small business person or a business owner, financial strength is important for the survival of your business. That’s why you should compare high-interest business savings accounts to find the best one to help you grow your business’s bank balance.
Compare business savings accounts
Use our comparison tool below to find a business savings account to suit you.
What is a high-interest business savings account?
The name “high-interest business savings account” tells you pretty much everything you need to know. Designed for business customers only, these accounts pay a high rate of interest on your savings to help you grow a larger balance as quickly as possible. High-interest business savings accounts allow you to save money for whatever purpose your business may need. You may want to save money to fund future equipment purchases, pay off upcoming tax bills or simply generate a strong financial base for your business.
How do high-interest business savings accounts work?
High-interest business savings accounts allow you to earn interest on your balance at a much higher rate than on a business transaction account. Although the interest rates available typically aren’t as high as the interest rates offered on personal savings accounts, you can still grow your business savings quickly using a dedicated business savings account. There are several different types of high-interest business savings accounts available, depending on your needs, including:
- Online business savings accounts. These tend to pay a high rate of interest and allow you to manage and easily access your funds online.
- Business cash management accounts. A cash management account allows you to invest your funds and earn a high rate of interest, but also access your funds immediately for any expenses that arise.
- Business notice saver accounts. Notice saver accounts allow you to earn an even higher rate of interest than online savings accounts, but you will need to give notice of your intent to withdraw funds a certain period of time before you can actually do so. This notice period could be 90, 60 or 30 days.
- Business term deposits. These accounts allow you to deposit money for a fixed period and earn a fixed interest rate.
If you’re looking for a business savings account that pays a high rate of interest but also allows instant and easy access to your funds, an online business savings account will typically be your first pick. These accounts allow you to earn maximum interest on every dollar you deposit, and often don’t have any ongoing account-keeping fees to worry about. Online business savings accounts are offered by all major banks in Australia, including the Big Four, as well as by online-only banks such as ING Direct and RaboDirect.
What are the good points and bad points of high-interest business savings accounts
The good points
- You can earn maximum interest. You can use a high-interest business savings account to make your money work harder for you and boost your business’s finances.
- There are usually no ongoing fees. Many high-interest business savings accounts do not charge any ongoing monthly service fees, ensuring that more of your money is put towards saving for the future of your business.
- You get easy and flexible access to funds. High-interest business savings accounts offer quick and easy access to your funds online, allowing you to take care of expenses or investment opportunities as they arise.
The bad points
- Beware of the terms and conditions. Make sure you’re aware of any terms and conditions that apply to your account, for example, minimum balance requirements or any limits on the number of withdrawals you can make per month.
Who offers high-interest business savings accounts?
The table below outlines the features of some popular account options offered to Australian businesses by a number of Australian banks.
|AMP Business Saver Account||2.05% p.a.|
|ME Bank Business Online Savings Account||1.75% p.a.|
|ING Direct Business Optimiser||1.50% p.a. (with a welcome rate of 2.40% p.a. for the first 6 months)|
|RaboDirect Business High Interest Savings Account||1.70% p.a. (with an introductory rate of 2.25% p.a. for the first 4 months)|
|RaboDirect Business Notice Saver||31 days: 2.10% p.a. 60 days: 2.15% p.a. 90 days: 2.25% p.a. (on balances up to $250,000)|
|Westpac Business Cash Reserve||0.70% p.a. (on balances of $10,000 or more)|
|Suncorp Business Saver Account||1.65% p.a.|
|CommBank Business Online Saver||0.60% p.a. (on balances of $10,000 or more)|
How do I compare high-interest business savings accounts?
Make sure to consider the following features when working out which high-interest business savings account is right for you:
- Look for a high interest rate. The higher the interest rate, the quicker your savings balance can grow. Shop around for the account that offers the best interest rate, but make sure there are no exorbitant fees or restricting terms and conditions attached.
- There are no account-keeping fees. Do your research to find out what fees and charges apply to the account. Consider monthly fees, annual fees, withdrawal fees and other charges that may apply when you access your money.
- The terms and conditions are easy to follow. Check the fine print to see whether there are any terms and conditions attached to the account. For example, you may need to keep the account balance above a minimum level, or you may only be allowed to make a limited number of withdrawals each month.
- You get flexible access to your business funds. Consider how easy it will be to access the funds in your account if an emergency expense arises. Can you withdraw the funds without incurring hefty fees? Can you access the money immediately or do you have to wait a certain period of time? Is there a cheque book available if needed?
High-interest business savings accounts can help you strengthen the financial position of your business and prepare for a secure financial future. Start comparing high-interest business savings accounts at finder.com.au to find the right one for your needs.