Business Savings Account Comparison

A business savings account has many of the same features as your personal high interest savings account, but the way you choose and use a business savings account is what sets it apart. The responsibility and accountability also shift with a business savings account because rather than simply saving for a holiday or maintaining an emergency fund for your family, you now have to look after the interests of your business venture, your investors, your clients and your staff so it is not only important how much you earn, but how you look after those funds too.

Featured Business Savings Account

Therefore, you need to learn more about:

• The features of a business savings account.
• How a business savings account can benefit you and your company.
• How to compare business savings accounts to find the best one for you.
• How to quickly and easily open a business savings account.
• How to use a business savings account to its full potential for the security of your business.

Just as you would research a new business investment option or a potential business partner, make sure you have all of the facts to make an informed business decision about how to best manage your finances.

Features Of A Business Savings Account

When you are considering whether your business could use a dedicated savings account, consider whether you could make use of the following features:

• A high compounding interest rate. The interest rates offered on high interest business savings accounts are often two to three percent above the official interest rate, which means that you can have a high interest rate calculated on your savings every day. That also means that this interest compounds because when interest is calculated daily, you earn interest on your balance, and interest on the interest already calculated from the previous days, before the balance of interest is paid to your account at the end of the month.
• Financial stability. Being able to transfer your business funds to a high interest savings account gives you stability in having a secure and ever increasing savings account balance. With a growing savings account balance you can show investors or lenders how financially stable your business is and this can make it easier to obtain business loans, overdrafts or a business credit card.
• Safety for your funds. A high interest savings account allows you to keep your business funds safe and growing until you need them. For example if your business is a not for profit organisation or a charity, then you want to make sure the funds you have and raise and there in strength when you plan your next event, and you can be sure you will have a healthy balance, plus interest and not worrying about any fees.
• Plan for the future. When you make a deposit of your profits into your business savings account you hope it will be just one of many because as your savings work hard for you by earning interest, you can continue to work hard so you can make more deposits. As a result, you can watch your savings grow and take the opportunity to review your business goals, plan for the future and decide on the best way to spend the funds, from a position of financial strength.
• Online banking. A business savings account is able to offer such competitive interest rates and low fees because it is based primarily online. This means the bank doesn’t need to pay for staff to help you manage your account because you can do it yourself. Just make sure that if more than one person has access to the online banking details that they can be trusted to act in the best interests of the business, or look for an account which requires authorisation for payments by email or SMS.
• Branch access. While an online account can help you avoid many account keeping fees, some businesses may require the ability to go into a branch when there are numerous signatories or board members to access the account for example.
• Regular business statements. Your high interest savings account should provide you with regular statements so that those with an interest in the business – board members, shareholders or directors – can see at a glance that the business savings plan is on track. Regularly reviewing your business savings account statements also allows you to review where you have met or exceeded your savings targets and where you have fallen short and why.

Best Business Savings Account

Whether you are investing or you are opening a new account it will always be beneficial to find the best deal. This may be in the form of a loan account with low interest rates and fees or a savings account with a high interest rate and low fees. This article is about the business savings accounts and who you can get the best account that suits your needs. Furthermore, this article will explain what the business savings accounts are and what they offer.

What is a Business Savings Account

Business savings accounts are a great way for people with a business to invest money they were previously not using. This section of the article will explain what the business savings accounts are and what the main feature of the accounts are:

• Business savings account. The business savings accounts are accounts that allow you to deposit your savings into the account. The account has a high interest rate and will therefore earn you money on the amount in the account. This means that any of the extra money you have from your business can be put into the account can earn you money.
• High interest rate. The main feature of the business savings account is the high interest rate that is offered with the account. Regular savings account will offer you a very low interest rate but the business savings account offers you an elevated interest rate so you can earn more money.

What will the Best Business Savings Accounts Offer

The best savings account will usually have a variety of features that will indicate how much you will earn and spend. These features will determine how much you will make with the account. The features that will make you more money are the:

• High interest rates. The interest rate is the main factor that will affect the amount you will earn. The higher the interest rate, the higher the return on your investment. If you can find the business savings account with the best interest rate you will earn more money on your investment.
• Low fees. The ongoing fees that are charges to an account can drastically affect how much you will make. This means that the lower the fees the more you will make on your investment. This means that the best account will be the account with the lowest fees.

How to Find the Best Business Savings Account

Above we have explained what the business savings accounts are and what the features of the best savings account will be. This section will now explain how you can find the best business savings account:

• Investment calculators. The main way people will find the best business savings accounts will be by using the investment calculators. These calculators will allow you to compare all the business savings accounts that are available in the database. The output of the calculator will allow you to see the business savings accounts that will earn you the most money. Contact us to find out about the best business savings accounts and how we can complete personalised calculations for your business to find you the one that will earn you the most money.

The business savings accounts are a great way to invest any surplus or savings you have gained in your business. With the high interest rate you will be able to earn money on your funds while still having complete access to the money if you need it. It is handy to have these funds at hand as you will never know when you will need quick access to money. If you would like to know more about the best business savings account then please contact us or follow our secure links to our comparison tables.

Benefits Of A Business Savings Account

In addition to the inclusive features of a business savings account, there are a number of ways your business can benefit from having a high interest savings account, such as:

• Having a central place for funds. When you run a business there are so many facets you need to be in control of that you want to make your business finances as simple as possible. This simplicity can be achieved when you have just one savings account to manage with your business funds. This means just one branch, one set of online log in details and one statement to review and file each month.
• A separation from your personal funds. No matter how big or small your business is, there often comes a time when the line between business and personal funds becomes blurred – there is a bill to be paid, a contractor who wants their money and you’re tempted to use your personal funds to tide you over. However, without a separate place for your business funds you are jeopardising the financial stability of the company because transfers to and from your personal account don’t look good to your accountant, and mean you can’t manage your business with the funds available from the income. Therefore, when you make a clear distinction between your personal and business funds you maintain a strong financial outlook.
• Professionalism for customers. When you are able to provide business bank account details to your customers for payment, you portray a professional image, rather than appearing to be unprofessional without separate business accounts.
• Easy accountability. With your business and personal funds separate, and your business savings all in one place, it makes for easy accountability at tax time when you need to report the income from your savings interest earnings. You can also easily report to your board or shareholders with all of the business savings in one place.

How To Compare Business Savings Accounts

There are features which are common to all business savings accounts, but there are also some very competitive interest rates, offers and inclusions which you should compare before you choose a high interest savings account. To compare all of the business savings account options and find the one which is right for your business:

• Know why you need a business savings account. Your business may need a savings account to act as an emergency fund, as a way to supplement other investments or to provide financial stability in the business with a central savings account. The reason for your business savings account will help you determine the features you need when you compare your options, for example, if your business savings account is primarily an investment then you need a high interest rate, but if you want to use your business savings for cash flow in emergencies to avoid credit card use, then you need an account with easy access.
• Know who will access the account, and how. The highest interest business savings accounts are accessed solely online, however, if you need to give the president of the board access to the account, the fact that he is at retirement age can impede his ability and willingness to access the account online and you’ll need branch access as well.
• Keep the size of your business in mind. Some business savings accounts require a minimum balance to open the account, or may be able to be used fee free if a certain balance is maintained. Other accounts will offer high interest only if the account balance is above a certain minimum amount, so choose the account with minimum balance requirements which suit your turnover.
• Compare the providers’ focus. Some Australian banks will have a big business focus, while others will be dedicated to small business owners and entrepreneurs and to choose the best business savings account you need to compare the focus of the bank, and the intended business of each account. For example, if you are a small business, then a savings account which requires a minimum balance and no monthly withdrawals to earn interest is not comparable to a business savings account which rewards you when you make regular deposits.
• Know the type of business you really are. Even a small sole trader business can turn over a million dollars in a year, so what you actually need to look at are the value of your savings, rather than how many staff you have, what your clients are worth or how much you owe on your overdraft. Consider the type of business you are, and how it is run, do you invest most of the profits back into the business by investing in assets and people, or do you have big business big balances which need a safe resting place?
• Start with your current bank. Not all high interest savings account offers are advertised, and if you set up a meeting with your existing business bank to find out what sort of deal they can strike for you on your business savings account and interest rate, you may be profitably surprised. Make sure not to discount an offer on a business savings account just because they can’t offer a comparative interest rate, as they may be willing to do you a better deal overall on your other accounts and financial products if you bring them your savings as well.
• Know how you will use the account. This will help you determine the features you will need on a business savings account. For example, will you make one lump sum deposit a year after a peak period, or will you make regular contributions, and do you need to make withdrawals or does your business have a long term savings plan?

How To Choose A Business Savings Account:

• Does your business allow online banking? Some organisations will require signatories to authorise any bill payments and wages transfers and the same may apply for online banking. If this is the case, choose a business savings account with a double layer of identification to ensure payments can be authorised, or choose a business savings account with email or SMS notifications of payments and transfers made.
• Does your business savings account need branch access? Opening an online business savings account can allow you to operate a fee free account, and earn a higher interest rate. When your savings accounts are managed online there are fewer costs for the bank and they are able to reward you by boosting your savings with a higher interest rate.
• Compare the types of business savings accounts. Some Australian banks will have a big business focus, while others will be dedicated to small business owners and entrepreneurs and to choose the best business savings account you need to compare the focus of the bank, and the intended business of each account. For example, if you are a small business, then a savings account which requires a minimum balance and no monthly withdrawals to earn interest is not comparable to a business savings account which rewards you when you make regular deposits.
• Choose a savings account which sends regular business statements. This will allow you to maintain transparency with the other board members, the directors, your customers, shareholders or anyone else your business needs to answer to, and also means you can follow the progress of your business savings and check that the savings plans are on track, or review where your savings may not be meeting their targets.

No matter what your business size, you need to make sure you are using the best business savings account for your hard earned business income. If you think a business savings account is the best place for your corporate funds, follow the Savings Account Finder™ secure links to your chosen provider to find out how to apply.

How To Open A Business Savings Account

The way in which you open a business savings account will depend on the type of business you have, and how you will be using the account. For example, most high interest savings accounts allow you to apply online. This online application takes less than ten minutes, in which you enter your personal details, business details, and include details of a linked transaction account you will be transferring funds to and from.

In most cases, even with an online application you will need to visit a branch to verify your details. This is where you will need to provide original copies of your driver’s license and other business documentation such as your ABN and business name registration.

You may also need to apply directly at a branch if more than one person in the business needs access to the account. Also remember that if you are opening a business savings account with another person as a partnership, you need a partnership ABN, and can’t use two sole trader ABNs.

Dealing with business finances is very different to managing your personal savings accounts as you are now accountable for a lot more money, to a lot more people. Not only will the investment choices and savings plans of a business affect the person signing the cheques, but there are other staff members, managers, customers and maybe even shareholders who are affected too.

To open a business savings account:

• Determine why your business needs a savings account, and what are its savings goals.
• Does the business need another income stream, or more financial stability?
• How will the business savings account be accessed, and by whom?

Why Does The Business Need A Savings Account?

A savings account is a sound investment option, but before you open a business savings account you need to be clear about what you need the account to be able to do, and why you are choosing a savings account over another business investment option.

Business savings needs:

• Is your business starting and, and therefore needs security and a stable financial backing? If you need a business savings account for a new business then you want to be able to transfer your hard earned and first-earned payments into the account so they can keep earning and help your business grow stronger. Having a stable and regularly increasing savings account is also good for a business as it shows you are financially stable, which not only looks good to banks if you need to apply for a business loan, but is also something which will come across to your customers too.
• Is your business a charity or not-for-profit organisation and needs a safe place for funds? If you are looking for a business account for a charity or a not-for-profit organisation, then you may be able to negotiate a lower fee structure, or even choose a fee free business savings account. This is important as savings account fees can easily eat away at your hard earned funds over time and if you need those funds to plan events and fundraisers, your plans would have to be significan’tly toned down if there was less in the business savings account than originally planned for.
• Does your business need a profitable place for its profits? A business savings account can help your profits continue to grow during the year while your business continues earning and operating. In this way a business savings account can have the same benefits as a personal account, as a designated savings account allows the business to review their goals and plans for the future and decide the best way to spend their profits, or whether to reinvest.
• The size of the business will determine the size of its savings and help you choose a business savings account. Business savings accounts may require a minimum balance to earn a higher interest rate, or may be able to be operated fee free if a minimum balance is maintained.

How To Use A Business Savings Account

Your high interest savings account is there to grow and strengthen your business, and this is another reason many accounts are primarily held online. When your business savings account is an online account you don’t receive an ATM, EFTPOS or credit card to access your funds. Instead, you nominate a linked account, from which you transfer funds into your business savings account, and to which you transfer funds to withdraw from the account.

Setting up a linked transaction account is usually part of the application , and depending on the provider, the linked account may or may not need to be from the same provider. If the linked account is with the same provider, then transfers to and from your business savings account will be instant, however, transferring between different providers can take around three days. This waiting time can also determine whether your business needs more distance or faster access to the funds.

If you are using your business savings account as a high interest investment, this is a good way to diversify your business investments. A cash investment is safe, secure and easy to manage, access and use, however, there are also much higher yield options available such as term deposits or shares. Therefore, while cash investments can be an important aspect of your business investments, don’t put all of your funds in one basket.

You can also use your business savings account as an emergency fund for your business, so you can avoid resorting to high interest credit cards or overdrafts when cash flow is slow. Just as you do in your personal emergency fund, aim to save up six months worth of expenses. This means your business will be able to pay its bills, pay its staff and keep running for six months if all of your clients suddenly disappear.

The structure of your business will determine how your business savings account is used because you will need to know how the savings will be accessed, where you will want to access them, and who will be accessing the account, to determine the best business account option.

As unlikely as this is, there are times you will find you have to dip into your emergency business savings account when a client is late paying an invoice, or you receive an unexpectedly large phone bill. Just make sure when you use funds from your emergency fund, you top it up again as soon as possible.

If you manage a small business it’s great to have a bank that encourages your business to grow and helps you manage your time and money to best effect. In this article we’ll be considering what to look for in high interest savings account for small business.

Bank Accounts For Small Businesses

Small businesses come in many varieties and each one has a unique set of circumstances that govern the way the business is managed. A café might have a regular level of income throughout the year, employ a dozen casual staff, and deal with only four or five suppliers; a florist might be a family business that employs no staff, buys all its stock at the wholesale flower market, and has high peaks of income on Mothers Day and Valentines Day, and quieter trade the rest of the year; a business consultant might receive a cheque every few months when a project finishes then have no more income until the next project ends, and only needs to buy stationery and computer supplies from the local newsagent.

This is just a handful of examples of small businesses with very different patterns of income and outgoings and very different banking requirements. Of the many banking options available, three of the most common types of business banking accounts suitable for small business operations are transaction accounts, savings accounts and term deposit accounts.

• Business transaction accounts are designed for day-to-day financial transactions. They offer a wider range of transactions than savings and term deposit accounts which are intended to have few transactions. Unlike term deposit accounts and savings accounts, transaction accounts don’t pay interest on any surplus funds in your account. A business transaction account might not be the best account for the business consultant described above who has a minimal number of transactions.
• Business savings accounts are designed to manage cash that is not likely to be required for routine transactions. You can access the funds in this account more easily than funds in a term deposit account, and you earn interest on account balance. If your business income is uneven you might want to use a high interest savings account to hold funds that you will need to access in the near future but not immediately – for example the florists described above might want to hold enough funds in a savings account to tide them over the periods when business is slow.
• Business term deposit accounts are designed for investing surplus funds that aren’t required for the business for a set period. Funds in a business term deposit account can’t be accessed until the set period expires, and interest is earned at a higher rate than funds in a business savings account. A small business might use a term deposit account as a place to keep funds that will be needed to pay the GST bill at the end of the financial year, or to hold savings intended to pay for future business development projects.

Choosing A High Interest Business Savings Account

If your business has surplus cash, or if you are expecting to save some surplus cash in the near future, a high interest business savings account may be the best way of earning interest while keeping the spare cash accessible in case of unforeseen costs. When comparing different high interest savings accounts you should concentrate on a few areas, including:

• Does the bank cater specifically for small business? A bank that advertises itself as encouraging small business clients might understand your needs and be more comfortable to do business with than a bank that focuses on the big end of town. A bank that requires a minimum deposit of $10,000 to open a high interest savings account may not be the place for your money, but a bank without a minimum deposit requirement would allow you to start saving and earning high interest immediately.
• Types of transaction available. Some online savings accounts offer higher interest or lower account fees than regular savings accounts. An online savings account is great for a business that can do all its banking transactions by internet or telephone but it might not suit the café business described above because cash takings can’t be deposited over the bank counter with an online account.
• Account fees. To avoid incurring high transaction fees you’ll need to choose an account that has a flat account fee irrespective of the number of transactions in a month, or has no monthly account fees provided you don’t exceed a set number of transactions. When considering one of these accounts you need to estimate your level of transactions, both current and future.
• Interest rate. You should now have a shortlist of high interest business savings accounts that satisfy your needs in terms account fee structure , minimum deposit required and types of transaction available, so now is the time to compare the interest rates on the accounts on your short list. You may be able to find an account that offers short term introductory interest rates or bonuses for a new account.

To compare the details of high interest business savings accounts, view our comparison table here and follow the secure links to your chosen provider’s website.

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