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Your guide to comparing business savings accounts

Information verified correct on December 3rd, 2016

Grow your surplus capital in an easy-to-manage high interest savings account.

A high interest savings account (HISA) for Australian business owners can help you store and grow extra working capital in a safe and secure way. This could give you the benefit of passively earning income just for keeping your money in the right account.

There is a lot to consider when choosing a business HISA that can make a big difference in the way your capital grows. Here, we provide tips to help you choose which business savings account is right for you.

Designed specifically to help businesses of all sizes to save, an HISA is an account that is typically linked to the business transaction account.

RaboDirect Business High Interest Savings Account

Business Savings Account Offer

Introductory rate of 2.25% p.a for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000

  • Bonus Rate: 0.45% p.a.
  • Monthly Account Fees: $0
  • Minimum Balance: $0
  • Minimum Deposit: $0

    Compare business savings accounts

    Use our comparison tool below to find a business savings account to suit you.

    Rates last updated December 3rd, 2016
    $
    $
    months
    Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
    RaboDirect Business High Interest Savings Account
    Introductory rate of 2.25% p.a for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
    2.25% 1.80% 0.45% $0 $0 / $0 Open More
    Rates last updated December 3rd, 2016
    $
    $
    months
    Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
    ANZ Business Online Saver
    Introductory interest rate of 1.60% p.a until 31st August 2016 reverting to a rate of 0.95% p.a. Must have a minimum of $5,000 to earn interest.
    1.60% 0.95% 0.65% $0 $0 / $5,000 More
    AMP Bank Business Saver Account
    Ongoing, variable 2.05% p.a. when you link to a transaction account in the same name. Available on the entire balance.
    2.05% 2.05% 0.00% $0 $0 / $0 More
    Commonwealth Bank Business Online Saver
    Ongoing, variable 0.95% p.a. when you link to Commonwealth Bank Premium Business Cheque Account or Business Transaction Account.
    0.95% 0.95% 0.00% $0 $10,000 / $0 More
    Citibank Ultimate Business Saver
    An at-call savings account that offers a competitive interest on business savings. Can be opened for trust funds or a DIY Super Fund.
    1.90% 1.90% 0.00% $0 $10,000 / $0 More
    ING DIRECT Business Optimiser
    Introductory rate of 2.50% p.a. for 6 months, reverting to a rate of 1.60% p.a. Available on balances below $1,000,000.
    2.50% 1.60% 0.90% $0 $0 / $0 More

    finder.com.au featured business savings accounts

    Product nameMaximum interest rateInterest rate conditions
    ING Direct Business Optimiser2.50%Valid for the first 6 months only on balances up to $1 million (conditions apply)
    BOQ Business Websavings Account2.10%Valid for the first 4 months only between $10,000 to $5 million (conditions apply)
    AMP Business Saver Account1.00%Interest is earned on balances of $2,000 or more
    ME Business Online Saving Account2.00%No conditions - interest applies to whole balance
    Citibank Ultimate Business Saver1.90%Interest is earned on balances between $10,000 to $999,999.99

    What is a business savings account?

    As the business owner, you can easily transfer extra money into the savings account, where it earns interest while it waits to be spent. This could be a good option if your business gains periodic surpluses of cash, and needs a place to keep it safely until a large purchase comes up.

    To make it even more enticing, most business savings accounts work on a threshold system, so the more money you have in there, the more interest you receive.

    How do I choose the best business savings account?

    The best business savings account for you will be one that matches the financial needs and goals of your business. For example, are you looking to raise short-term capital or planning for a long-term investment strategy? Will you need to be able to access your funds regularly or will you be happy to lock them away for a fixed term?

    Once you know what features are important you can start shopping around and comparing business savings accounts. Look at the interest rates on offer, the fees charged, account access requirements and any other features. You can start comparing a wide range of business savings accounts today at finder.com.au.

    How do I find the business savings account with the highest interest rate on your site?

    You can use our comparison table above to view current interest rates available with each account. However, remember to consider all the fees and features of an account before deciding if it’s right for your business.

    How do I compare business high interest savings accounts?

    In order to maximise your business saving opportunity with a business savings account, you will want to compare the different features available across various Australian financial institutions. This will help in determining which account will work best with your specific business structure. Look for and compare the following:

    • Check the fees. A business HISA may not charge you any fees, while with others there is a monthly account keeping charge.
    • Is there a limit to how many transactions you can make per month? If your business requires that you are constantly adding or withdrawing to your HISA look at the number of free transactions allowed per month with each of the accounts you are comparing.
    • How do interest rates compare? Interest rates vary from bank to bank, with some even offering a higher introductory rate for a few months following the opening of an HISA for business purposes.
    • How often and how easily can you access your funds? The ease in which a business can access their money is very important when considering a business HISA. Some will have online access where funds need to be first transferred to your business transaction account, while others may allow for debit card access.
    • Minimum balance requirements. With some business savings accounts, the minimum balance requirement can be in the tens of thousands of dollars, while with others there is none at all. Consider how much your business can afford to have locked into savings when comparing the different accounts.

    It is a good idea to take into account all of your business savings needs and goals before actively looking into an high interest savings account. This will help you decide which features are of most importance to your business structure.

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    Do large bank transfers take longer?

    No, whether you’re sending $2,000 or $20,000, the funds should still take the same amount of time to arrive to your recipient. However, keep in mind that your bank may have imposed a limit on the amount you are allowed to transfer in one transaction or to a particular recipient, so you may have to apply to have your transfer limit increased.

    What are the benefits of a business savings account?

    Business savings accounts are specially designed with a range of features to help your business better manage its finances. These accounts can:

    • Allow you to earn a high rate of interest on business funds - much higher than you would receive in a business transaction account
    • Offer a bonus interest rate for a special introductory period
    • Offer minimal transaction fees
    • Allow easy access to your funds if required
    • Offer the security and confidence of knowing that your money is protected by the Government Guarantee
    • Be tailored to suit short- or long-term business goals

    What are the advantages or disadvantages?

    A business HISA could be a smart choice if you have extra money at the end of each month. When deciding if this is a banking product your business needs, consider the following good and bad points you could encounter.

    Advantages

    • Ability to build your business savings passively. An HISA for a business is a good way to keep your money at work when it’s not needed for other business purposes.
    • Withdraw funds without penalty. Unlike term deposits, an HISA allows you to withdraw funds when you need to without penalty.
    • Security for your funds up to $250,000. Due to the Australian Government guarantee on deposits totalling up to $250,000, a business HISA is a secure way to store your surplus business working capital.

    Considerations

    • Account keeping fees may vary. Not all business HISA's will waive fees for the account. Some banks may charge fees after a certain number of transactions.
    • A high minimum account balance may be required. Some banks will require you to maintain an ongoing account balance of at least $10,000.
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    Are business savings accounts covered by the Government Guarantee?

    Yes, deposits in business savings accounts are covered by this guarantee.

    Are there risks to be should aware of?

    Unlike investment accounts, there is no risk of losing your balance with an HISA unless it exceeds $250,000. There are, however, things you should avoid in order to maximise your savings benefits:

    • Too many transactions. If you choose an account that does not allow for unlimited free transactions, you may lose part of your interest earnings to fees if you make too many transactions into or out of your account in one month.
    • Depositing too much money. With accounts that require a minimum ongoing balance, you could find that you will have to pay fees if you need to use a portion of that money for your business.

    How am I taxed on my business savings account?

    Just as an individual needs to pay tax on any interest they earn from a personal savings account, your business will need to pay income tax on interest it accrues in a business savings account. Make sure to keep track of any interest you earn each year and declare it to the ATO.

    What is the difference between an ABN and ACN?

    An Australian Business Number (ABN) is issued by the Australian Taxation Office (ATO) to all businesses, from sole traders right through to large corporations. It is an 11-digit number and must be displayed on any invoices the business issues.

    An Australian Company Number (ACN) is issued by the Australian Securities and Investments Commission (ASIC) to every new company in Australia. This nine-digit number ensures that companies can be identified when transacting business.

    The ACN identifies your business while the ABN allows your business to carry out transactions.

    Who is responsible for my business’ debt on its Visa credit card?

    This depends on the liability option you selected when applying for the credit card. Company liability means that the company assumes liability for all transactions on the card, while individual liability means that one nominated person (for example a sole trader or a business employee) is responsible for paying off the debt on the card. Joint and several liability is suitable for partnerships and sees all partners accept joint and several liability for any debt on the card.

    What’s the best bank account for depositing lots of cheques?

    Look for a business bank account that offers zero or minimal fees on all transactions, including depositing cheques. For example, the Bankwest Business Zero Transaction Account does not charge any fees for domestic electronic, paper or over-the-counter transactions.

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    How keeping surplus capital in a business savings account can help grow your business

    maddy-case-study

    Maddy works a full time government job and has two children under the age of 12. As a single working mum, Maddy started an out-of-home baking business selling custom macaroons to friends and family. Now into the second year of her home business, her client base has grown and her services have expanded to include baking special occasion cakes. Maddy knows she will need to upgrade her oven to accommodate the growth of clients and order sizes. About six months into her business, she opened a St.George Business Access Saver Account which is linked to her St.George business transaction account.

    Because the St.George Business Access Saver Account offers a competitive maximum interest rate of 0.75%, she hopes this will help her afford a bigger oven and other industrial-sized kitchen appliances she needs to accommodate her growing business. In addition, the HISA she chose charges no monthly service fees and offers online and mobile banking services which means she is able to manage her funds anytime, anywhere.

    Common questions asked about business savings accounts

    Does cardless cash work for business debit cards?

    The cardless cash feature allows you to access your funds from an ATM even if your debit card has been lost or stolen. Instead of using your card, you can be sent a unique code that you can enter into an ATM when you need to withdraw cash. However, most banks do not yet offer this service on their business accounts - check with your financial institution for more details.

    How do 1-year business savings accounts work?

    A 1-year business savings account allows you to receive a fixed interest rate on your deposit amount for one year. This ensures a consistent investment return on your business funds but in many cases you are not allowed to access any money in the account until your deposit matures after one year.

    How do 30-day notice business savings accounts work?

    These accounts allow you to plan ahead and get your money to work harder for your business. They offer high interest rates and usually allow you to deposit funds at any time, but if you ever want to withdraw money from your account you will need to give written notice 30 days in advance. This allows you to access a higher rate of interest than is usually available with normal business savings accounts.

    Do I get instant access to funds with my business savings account?

    This depends on the type of account you open. Some accounts offer access to your funds whenever you need, while others will require you to provide notice ahead of time, for example 30 days in advance. Other accounts such as term deposits will not allow you to access any money until the fixed interest rate period ends.

    Does it matter if I have bad credit if I want to apply for a business savings account?

    Yes, banks will take your credit history into account when you apply to open a business account.

    Can a business HISA be used for personal savings?

    No, these accounts are designed specifically for business and will be subject to certain tax rates that will not be relevant to your personal savings.

    I have multiple employees who will need to access my business savings, is this possible with an HISA?

    Yes, some HISA accounts are structured to allow you to dedicate access to a certain number of employees. Understand however that you are still responsible for the account and any action they may make while using it.

    Is my business savings secure in an HISA?

    Deposits of up to $250,000 are secured by the Australian Government in the same way that a personal savings account is.

    Is the UBank USaver Ultra available for businesses?

    No, this account is only available for personal customers.

    Savings Account Offers

    Learn about our information service
    ME Online Savings Account

    Maximum Variable Rate

    3.05%

    Standard Variable Rate

    1.30
    ING DIRECT Savings Maximiser

    Maximum Variable Rate

    2.75%

    Standard Variable Rate

    1.60
    Bankwest Hero Saver

    Maximum Variable Rate

    2.65%

    Standard Variable Rate

    0.01
    RaboDirect High Interest Savings Account

    Maximum Variable Rate

    3.20%

    Standard Variable Rate

    2.05

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