Running a business comes with many financial needs. That’s why having a business bank account is crucial in streamlining your finances and bookkeeping.
The financial institution you opt for is crucial to receiving timely payments and access to business loans or credit, business credit cards, and other financial products.
With so many options like credit unions, traditional banks, digital banks, and other financial service providers, you’re probably confused about which is best suited for you.
This blog covers the best bank accounts in Australia for small businesses and will also give you an idea about how to choose your bank account.
READ: What You Need to Know About Starting a Business in Australia
What is a Business Bank Account?
As a business, you need a bank account to facilitate transactions and keep your funds safe. It also helps you manage your finances better and grow your company’s money.
A business bank account differs from a personal one in several ways. For one, a business account typically has higher fees and requires a higher minimum balance.
Here are some of the many benefits of having a business bank account:
- Easier to manage finances: Businesses can set up automatic payments and transfers to ensure they’re paying all their bills on time.
- Separate personal funds: Your personal funds will be kept separate from your business funds, which helps protect your personal assets if something goes wrong with the company.
- Access to more banking services: Businesses can access more banking services like credit cards, loans, overdrafts, etc., which help them grow their company.
Factors to Look Into when Choosing a Business Bank Account
The best account for your business depends on several factors, such as the size of your business, your banking needs, and the fees you’re willing to pay.
Some of the key aspects you have to look into include:
Financial Products and Services Offered
When opting for a business bank account, you must know the benefits and features the bank or lending institution can offer.
If you plan to keep all your business banking transactions in one place, you’ll need to opt for a provider that has all the services you need, including:
- Business checking account
- Business savings account
- Business loan options
- Business insurance
- Commercial real estate financing
- Credit against assets
Banking Network
Second, you must choose a bank with an extensive network of ATMs and branches across the country.
For small businesses, this is crucial, especially if you have customers in several parts of Australia. It helps you get in-person branch banking accessibility and can be a practical choice against an online-only bank.
Digital Features
In addition to networks, business bank accounts cannot depend only on traditional banking features.
You’ll need to consider banks with extensive online payment and transaction features, including a user-friendly mobile banking platform.
Great Customer Experience
Pick a banking partner offering excellent customer service, as this is crucial, especially when you encounter problems with your banking transactions.
The institution should be able to provide fast and hassle-free customer service. They should be ,perienced enough to handle issues for businesses or industry-specific banking.
Rates and Fees
Another crucial factor when choosing the best business bank account includes the interest rates, annual charges, and transaction fees you must pay.
Depending on your requirement, a small business bank account should generally have a fee structure that benefits your business depending on the range of transactions and banking features you use.
Whichever bank you opt for, ensure you get the best benefits at a minimal cost.
READ: Top 5 Small Business Grants in Australia
5 Best Business Bank Accounts in Australia
National Australia Bank
National Australia Bank (NAB) is one of the top traditional banks in the country. They have a specific NAB Business Everyday Account which is best for entrepreneurs and small businesses.
This account comes with AUD 0 monthly fees, unlimited electronic and NAB ATM transactions, and no fees on electronic transactions.
Plus, for AUD 10 a month, you can get an upgrade that includes 30 free transactions, with only the additional transactions being charged.
Pros
- Low fees on transactions and no monthly account fee
- Free online standard transactions
- Business debit and credit cards are available
- Good online support
- Wide network of branches and ATMs in Australia
Cons
- No free allowance for branch transactions
- Additional fees for fund transfers and limited free transactions may not be ideal for businesses that have a large number of daily or monthly transactions
Anz Bank
ANZ Bank has a wide range of offerings for businesses of all sizes. Their ANZ Business Advantage account is the most popular choice among small and mid-sized businesses.
The middle-tier option comes with unlimited ANZ monthly transactions and includes deposits, withdrawals, and transfers.
You also get access to the ANZ small business specialist, which comes with assistance for your business banking requirements.
Pros
- Extensive access to branch services and traditional banking features
- Overdraft available
- Several business debit and credit card facilities
- Includes online banking features
Cons
- Additional fees for international transactions
- Payment limit of AUD 50,000 for internet banking
Westpac – Best Online Banking Features in Australia
Westpac is a Big Four Australian bank with excellent features catering to small businesses.
The Westpac One Low Plan Account comes with an AUD 10 per month account fee. It includes unlimited online and app transactions, with 25 free branch transactions per month.
Pros
- Business debit and credit cards from Mastercard and the option to have a company chequebook
- Monthly allowances for free branch transactions
- Free online and app transactions with excellent online banking features
Cons
- No interest is paid on the account
- Up to 3% fees on foreign currency transactions
Wise
A digital payment option on the list, Wise is an international multi-currency account that helps you easily send and receive money from around the world.
A Wise Business account is ideal for tech companies, freelancers, and startups who work with domestic and international clients.
The account charges an AUD 22 one-off fee to access local and international account details and has 1.6% annual fees to hold amounts larger than AUD 23,000 or above.
Pro
- No minimum balance
- Allows you to pay invoices in 70+ countries and store over 50+ currencies in a single account
- Ideal for businesses that have overseas transactions
- No hidden fees
- Multiple debit and credit card options
Cons
- No overdraft facility
- Cash deposits are not possible
- Not a replacement for a business bank account
READ: Working from Home? Here’s How You Can Get Tax Deductions in Australia
Commonwealth Bank – Best Business Transaction Account
Commonwealth Bank has some great options for small business owners.
Their business transaction account comes with zero monthly charges on online banking and fees as low as AUD 10 per month for branch support and services. It is ideal for small businesses that work primarily within Australia and bank online.
Pros
- Business debit cards and other facilities
- Wide choice of business bank accounts with different fee levels
- Personalized insights on spending and integrates well with accounting software
- Wide network of banking branches and ATMs
Cons
- Not ideal for international transactions
- May require frequent visits to a physical branch to open an account, and for other requirements
Choose the Right Bank Account for Your Business
You should consider an institution with great deals and features for small business bank accounts. It should meet your current needs and can also be apt for your future requirements as your business grows.
Further, in the modern era, businesses can easily add payment options on their website, making it extremely simple for customers to buy and subscribe to your products or services.
All the bank accounts mentioned on this list are ideal for accepting online payments.
