Best High Interest Business Savings Accounts in Australia

Every business has a financial goal and choosing the right accounts can play a big part in how fast you get there. Different accounts and providers tailor to many different needs, interest rates, and benefits that can help your business save money and in some cases, even help your operations run smoothly.

Business savings accounts are financial tools useful at every stage of your business, they can help structure the finances for a startup’s first profits or be the safeguard of much bigger organisations.

In Australia, there’s many options to choose from which is why we grouped an overview of some of the top ones, together with an alternative to help businesses in many ways: the Wise account to help you choose the best solution.

What is a Business Savings Account?

A business savings account helps businesses build a financial cushion for any costs that were not predicted, emergencies, any opportunities for growth, or taking some risks in the future. They are designed to earn interest on any extra funds that the company might have, and be kept apart from the main business account.

The amount of interest earned on these funds will always depend on the interest rate of each account and on the fluctuations of the market. It is important to note that growth is not 100% guaranteed and the capital is at risk. Having said this, it’s very much common practice and a very well established way of making funds work extra and grow over the years.

What to look for in a Business Saving Account

There are a number of factors to consider to get the best saving account for your company, some of these are:

• Fee structure: Monthly fees can make your profits diminish quickly, so it’s best to look for an account with low or no monthly fees.
• Interest rates: One of the most important variables as it determines how much the account will yield over time.
• Conditions: It’s important to understand the small print of any agreement. Some banks will require a minimum amount of money, monthly deposits or variable interest rates according to how much your business makes.
• Withdrawal and transaction limits: some accounts restrict transactions per month and may penalise or disrupt your account.
• Cashflow: How much are you able to put in every month. The more capital you can direct into this account, the more potential it has to grow.
• Benefits: Some providers offer tailored solutions where others might offer more simple day to day benefits suitable for smaller businesses. Some providers will reward high-value accounts with better benefits such as better interest rates, less restrictions, appointed fund manager, or access to management tools for example.

What kind of business savings account do you need?

Before opening an account with a provider, the most important thing to measure is how much liquid assets your business has. From there, you can explore options and decide how much you’re able to put away each month, what kind of benefits would suit your company needs best and how much risk you’re willing to take.

Another step a business can take when profits are stable is a money market account. These accounts are for businesses that are looking for funds to be invested at the market once they reach a certain level. This level will depend on each of these accounts and the conditions of the provider.

The advantage of these accounts is that they often provide higher interest rates, so they are riskier but could potentially yield more profit over time. This is why understanding interest rates and comparing them over each account is so important for any business.

Comparing high interest business accounts in Australia

Australia has many different options when it comes to high interest business accounts depending on what you need, size of the business and overall financial goals. Here is a list of business bank accounts in Australia with details on their fees, interest rates, and key features below.

Wise Business - An alternative to banks

The Wise Business account helps streamline overseas business payments where money transfers are without any hidden markups on the mid-market exchange rate. This helps managing foreign currencies much more simpler and cost-effective for businesses with global operations.

In addition, this gives access to Wise Interest* which allows businesses to give their money a boost. The money is invested in a fund that holds government guaranteed/backed assets. Find out more about Wise interest here.

Fund rates:**

• 3.16% AUD after 0.72% annual fee
• 3.25% USD after 0.72% annual fee

What's more, you'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

Macquarie Bank

Macquarie Bank² offers a high interest online-only savings account. Eligibility for this account depends on your business structure (sole trader, private, Trust, etc) and your role in the company (company directors only). After that an online verification process will start and all business details need to be up to date with ASIC.

Fees:

• Mobile and online payments: free
• Transaction: free
• Account keeping: free

Interest rates:

• 4.40% Standard variable rate on balances up to $1,000,000

Key features:

• A competitive savings rate
• Online-only account
• Quick and easy access to your savings
• No monthly fees
• Multiple ways to pay
• Award-winning mobile app and online platform
• Access to eGift cards with Macquarie Marketplace
• Industry-leading digital security.

Not included:

• Debit card
• Eftpos facilities
• A dedicated relationship manager
• Access to bank feeds, including Xero integration.

Anz

The savings accounts of ANZ³ have tiered interest rate according to the amount of money in the account. To open an account, you must fill in your personal and business details online. The requirements are that you are +18, that the business is Australian, that you are the owner/director and two forms of ID + ACN for verification.

Fees:

• Monthly fee: $0 for Business Essentials account or $10 for ANZ Business Extra⁴

Interest rates:

Tiered interest rate, so it depends on the balance of your account.

• $0-$4,999: 0,00%
• $5,000-$24,999%: 0.25%
• $25,000-$249,999%: 0.50%
• $250,000-$499,999: 0.95%
• $500,000+: 1.15%

Key features:

• Unlimited ANZ transactions per month to eligible linked account
• Two types of linked account: ANZ Business Essentials or ANZ Business extra
• Online only access to Internet and Phone banking.

Commonwealth Bank

Commonwealth Bank⁵ offers several options with either flexible terms or standard⁵. To open a savings account, you need to find the rate and term that suits your business needs the best and have an active transaction account in the same business name to fund your new account. The minimum investment is $5,000 and the process can be one online or in person.

Flexi Business Investment Account

Fees:

• Set up or establishment: $0.
• Withdrawing your money before term ends: $30 admin fee + prepayment interest adjustment.

Interest rates:

• 3.80% for 9 months (for deposits between $5,000-$1,999,999)

Key features:

• Early withdrawal of up to 20% of your balance before the term ends
• 3, 6, 9 and 12 months term available
• Fixed interest rate

Business Investment Account

Fees:

• Set up or establishment: $0.
• Withdrawing your money before term ends: $30 admin fee + prepayment interest adjustment.

Interest rates:

• 4.05% for 9 months (for deposits between $5,000-$1,999,999)

Key features:

• Fixed term deposits with access to your money when your term ends
• Terms from 8 days to 5 years
• Fixed interest rate

NAB

The NAB⁶ account also requires a minimum of $5,000 and fixed terms to start earning interest. Fixed term also means that if you need to access your money early, you’ll need to pay a prepayment fee. The process to open an account will depend on the type of account, with business accounts typically needing a call back after entering some personal details.

Fees:

• Monthly account or application fee: $0.

Interest rates (for deposits between $5,000-$1,999,999):

• 2.90% for a 90 days
• 3.20% for 6 months
• 3.90 for 12 months

Key features:

• Minimum deposit of $5,000.
• Choose our own interest payment schedule
• Select a fixed term from 30 days to 5 years.
• Lock in a competitive rate
• Flexible investments options

Grow your money with Wise business

With the Wise business account you can put your business savings to work by using Wise interest. You can stay in control of your money and access it at any time with a fixed rate.

Explore Wise Interest to earn potential returns on your AUD and USD balances*

Your money is invested in a fund of government-backed securities—without being locked away. So, you can still spend your balance as usual while it has the opportunity to grow.

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** Interest is offered by Wise Australia Investments Pty Ltd ACN 659 961 083. Wise Australia Investments Pty Ltd holds an Australian Financial Services licence (AFSL) number 545411 issued by the Australian Securities & Investments Commission (ASIC).

*Investments can fluctuate, and your capital is at risk. Interest is not a deposit product and your capital is not protected under the Financial Claims Scheme. The Variable Rate is based on the Yield to Maturity as of 17 July 2024 and is exclusive of Wise fees. Past performance does not guarantee future growth. Franklin Templeton is the issuer and fund manager of the Franklin Templeton Cash Fund. To find out more about the Funds, visit our website.

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Sources:

1. Wise business
2. Macquarie Bank
3. ANZ Business Savings Account
4. ANZ Business accounts
5. CommonWealth Bank - Business term deposits
6. NAB Business term deposits