Compare the Best Business Savers in Australia for 2024

Everyday, you’re working hard for your business… but are you putting your capital to work too? 

Every dollar that you invest into or earn from your business should be working hard. Most of your money will instantly be returned to your immediate overheads and day-to-day operations, but what about your surplus funds? Why have them sitting in an ordinary account when they could be generating returns to help you grow? 

Business savings accounts are financial tools for enterprises at any stage of growth - and it could be argued that they’re especially helpful when a business is just getting started. If you’re generating returns on surplus liquidity, that’s another way to maximise every dollar and support the strength of your business’ cashflow. 

There are lots of business savings accounts on the market. Australian business owners are spoiled for choice (as they should be!). In this article, we’ll help you discover what’s available. 

Business needs are diverse, and one provider may be a better fit than another, depending on what your objectives and growth goals are. You might look at one of the “big four” banks for a solution, you might look at a non-traditional online bank, or you may not look at a bank at all.

Let’s explore a few options that you might consider when it comes to a business savings account, and uncover some of the key features and fees which will help you find the best solution for you.

What is a Business Savings Account?

A business savings account is a financial tool designed specifically for businesses. It's a place to store surplus funds that are not immediately required for business operations or activities. 

Business savings accounts often come with additional features tailored to the unique needs of businesses. Sometimes, like with Airwallex’s Yield product, savings solutions are tied into greater Business Accounts with other features like FX and transfers, expense management and debit cards to create a complete financial solution for businesses. 

Alternatively, some business savings accounts are offered as an independent solution that sits separately to a business’s day-to-day account from which they conduct their regular financial operations.

Top 5 Business Savings Providers in Australia (2024)

Let’s round up the latest and greatest high interest Business Savings Accounts in Australia. While these are presented in no particular order, we’ll start with Airwallex’s Yield product - a new alternative to the traditional business saver offered by the banks:

1. Airwallex Yield: Empowers businesses to earn competitive returns in AUD and USD, with no lock-up periods. It’s the latest addition to our Business Account, an all-in-one solution to help your business grow and operate anywhere.

2. Great Southern Bank’s Business+ Saver: Offers a range of financial products and services for individuals and businesses.

3. Macquarie Bank’s Business Savings Account: Offers a range of products and services, including investment banking, asset management, and retail banking.

4. Commonwealth Bank: Offers two types of business savings accounts; the Business Investment account and the newer Flexi Business Investment Account. 

5. Bank of Queensland Business WebSavings Account: Offers a range of banking products and services, including home loans, personal loans, savings accounts, and credit cards.

Compare the Top 5 High Interest Business Savings Providers

Based on the list above, let's dive deeper into the high interest Business Savings Accounts in Australia and take a deeper look at their features and fees.

Airwallex Yield, our high-rate business saver

Airwallex is not a bank, but as a fintech, we can offer competitive alternatives that offer a compelling point of difference to the traditional options.

Our Yield product is new on the market, and already it’s making big waves. Having had a limited release in 2023 to our wholesale clients, we responded to significant demand and made Yield available to all Australian users from July of this year. 

In order to do this, Airwallex became the first payments company in Australia to acquire an AFSL (Australian Financial Services License).

💡 An AFSL is a legal license granted by the Australian Securities and Investments Commission (ASIC) that allows a business to provide financial services in Australia, such as investing (e.g., shares, bonds, managed funds). In order to obtain this license, a business must demonstrate to ASIC’s satisfaction that it is complying with Australian financial services laws and regulations.

Features and benefits: 

What makes Airwallex Yield unique? Our product team has incorporated intelligent features that are dedicated to helping businesses grow.

• AUD and USD balances: With our global mindset and advanced financial infrastructure, it was essential for us to offer Yield balances in both AUD and USD. You can generate returns on your USD balances, just as easy as you would AUD, with no foreign accounts required  

• Competitive returns: Yield currently offers a daily return of 3.94% on USD and 3.72% on AUD*.  

• No lock-up period or penalties: Unlike comparable term deposits, you can move your money in and out of your Yield account as needed because it is an investment product. 

• Safe and secure: Grow your funds with a low-risk, highly graded liquid investment with Airwallex’s investment into JP Morgan money market funds.  

• Xero bank feed integration: Sync with your Yield balances and returns to Xero in real time for faster reconciliation.

Fees: 

Airwallex Yield is a part of our Business Account - the all-in-one solution for business financial operations. Our accounts bundle together our next-generation features to help you centralise and simplify operations. 

The most accessible account bundle is our ‘Explore’ plan, which is $29/month or $0/month if you meet our modest fee waiver requirement of depositing at least $5k per month or holding a minimum balance of $10k. Yield is available with every bundle offered by Airwallex.

Aside from Yield, what do you get as part of the ‘Explore’ plan?

• Business Accounts: Open multiple accounts per entity, collect and hold in 20+ currencies, free transfers to 120+ countries, access to interbank FX rates

• Spend features: Multi-currency company and employee cards with zero international fees, plus 2 free employee cards

• Payments: Online card and local payment method acceptance globally

• Smart Integrations: Bank feeds sync with Xero, QuickBooks, and NetSuite

Learn more about our ‘Explore’ plan and check out our other bundles here.

Great Southern Bank’s Business+ Saver

Established in 1946, it’s a mutual bank - meaning that it’s owned by its members. (1)

Their Business+ Saver is their savings option, which sits alongside their Business+ day-to-day business account. Customers must open a Business+ account to access the Business+ saver. 

Features and benefits (2): 

• Competitive interest rates: The Business+ Saver currently offers an interest rate of 4.1% p.a. on AUD balances of over $5000 

• Fast access: Customers can access their savings when they need them from their linked Business+ Account

Fees:

While there are no monthly account keeping fees for the Business+ Saver, customers are encouraged to review their terms and conditions as there may be other fees and charges related to their accounts. (2)

Macquarie Bank’s Business Savings Account

Macquarie Bank is a popular financial services company that operates in 34 markets. It offers a range of products and services, including investment banking, asset management, and retail banking. (3)

Their savings product is called the Business Savings Account, an online-only account with a number of features suitable for business savings. 

Features and benefits (4): 

• Competitive interest rates: The Macquarie Business Savings account offers a 4.65% p.a. standard variable rate on balances up to $1,000,000.

• Fast access: Customers can access their savings quickly

• Online access: Via a desktop or mobile app

• eGift Cards: Access to eGift cards through the Macquarie Marketplace

Fees:

There is no monthly fee associated with the Macquarie Business Savings Account.

Commonwealth Bank’s Flexi Business Investment Account and Business Investment Account

Commonwealth Bank is another popular choice for Australian residents and businesses, servicing around 17 million customers. The bank was founded in 1911, and commenced operations in 1912. 

Features and benefits of the Flexi Business Investment Account (5): 

• Early withdrawal: Users can withdraw up to 20% of your balance before their term ends

• Various terms available: Including 3, 6, 9 and 12 months

• Fixed interest rate: 3.10% p.a. (for a 3 month term), 3.25% p.a. (for a 6 month term), 4.30% p.a. (for a 9 month term) and 4.10% p.a. (for a 12 month term). Interest is paid at the end of the term

Features and benefits of the Business Investment Account (5): 

• Various terms available: Terms from 8 days to 5 years

• Fixed interest rate: 3.25% p.a. (for a 3 month term), 3.50% p.a. (for a 6 month term), 4.50% p.a. (for a 9 month term), 4.40% p.a. (for a 12 month term), 3.60% p.a. (for a 60 month term). Interest paid out at the end of the term (for under 12 month terms) or annual (for over 12 month terms)

Fees: 

• There are no set up or establishment fees

• If a customer withdraws all or part or their money before their term ends, a prepayment interest adjustment and a $30 administration fee may apply

Bank of Queensland Business WebSavings Account

The Bank of Queensland (BOQ) is a popular regional institution established in 1874. It offers a range of banking products and services, including home loans, personal loans, savings accounts, and credit cards.(6) BOQ also offers a business saver called the WebSavings Account.

Features and benefits (7):

• Interest rates: The Websavings Account offers 0% p.a. interest on balances up to $9,999, and 1.5% p.a. on balances $10,000 and over

• Special offer rate: New customers can access a special interest rate of 4.25% p.a. for four months. Interest is calculated on daily balances and credited to customer accounts on the last day of each month

• Free direct credits: Unlimited free direct credits

• BPAY: Free unlimited online BPAY payments

Fees:

• There are account establishment fees or ongoing maintenance fees

• A $1.00 fee applies for each cheque deposited

Do I Need a Business Savings Account?

It is not a legal requirement for businesses to have a specific business savings account. Many businesses will just use a core business account - that does not have specifically designed savings or returns capabilities - to manage their day-to-day finances. 

For example, if your business is registered as a company, partnership or trust in Australia, you are required to open a business account or business bank account for tax purposes. This does not have to be a specific savings product, instead it might just be a standard business account. Read more about business bank accounts and compare the top options on offer here.

What Should I Look for in a Business Savings Account?

The right business savings account for you will rely on a number of factors. It’s important to carefully evaluate what your business really needs, and how each account option might help your business grow. 

Consider the following when making your choice:

• Multi-currency capabilities: Does your business hold cash balances in only AUD, or are there other currencies that you also have cash in (that you don’t want to subject to international conversion fees in order to generate returns). Many accounts only offer AUD returns, so this may be limiting to your earning potential.

• Rates: Compare rates offered by different providers to find the most competitive rate that suits your needs. Bear in mind that some rates are only available for a limited time, as is the case with introductory offers. Many rates are also subject to change.

• Lockup and penalty periods: If having your money locked suits your business, then a term deposit may be right for you. If you need more immediate access to capital to support your needs, then it’s worth identifying accounts which don’t penalise you for withdrawing your money when you need it. It’s also worth reviewing the time that it will take to process your withdrawal. 

• Minimum balance requirements: Some accounts may have minimum balance requirements which may or may not suit your needs. Some accounts might also waive their monthly fee if you meet a certain balance.

• Accessibility: For ease of use, you may want to ensure the account is easily accessible through online banking and mobile apps. Having your savings solution integrated with accounting software platforms like Xero might also save you admin come reconciliation time.

• Additional features: Consider any additional features that may be beneficial to your business, such as business cards, expense management for your team, or FX and transfers.

By carefully evaluating these factors, you can select a business savings account that meets your specific needs and helps you achieve your financial goals.

How much money should a business have in savings?

There’s no ‘ideal’ amount of money for a business to have in a savings account. Every business’ savings account will look different, and there are several factors that dictate how much money should be in savings at any given time. 

To figure out how much money you would like to have in your business savings account, it can be helpful to talk to a business financial advisor who can give you specific advice on your unique situation, as there are many factors to consider.

• Industry: Businesses in industries with less consistent cashflow, such as retail, hospitality and entertainment, may want to maintain a larger pool of capital to weather fluctuations in demand.

• Size: Larger businesses typically have more resources to absorb unexpected expenses, but they may also have higher fixed costs that require more substantial savings.

• Growth plans: Businesses with high-growth ambitions may wish to allocate more funds for investments and expansion.

It's important for business owners and finance teams to review their financial situation regularly to decide on the best use and placement of capital.

Why open a Yield account with Airwallex?

We invite businesses of all sizes and industries to explore the possibilities of Yield. 

To recap the features that make it a first-of-its kind product; 

• AUD and USD balances: With our global mindset and advanced financial infrastructure, it was essential for us to offer Yield balances in both AUD and USD. You can generate returns on your USD balances, just as easy as you would AUD, with no foreign accounts required  

• Competitive returns: Yield currently offers a return of 3.94% on USD and 3.72% on AUD*.  

• No lock-up period or penalties: Unlike comparable deposit products, you can move your money in and out of your Yield account as needed because it is an investment product. 

• Safe and secure: Grow your funds with a low-risk, highly graded liquid investment with Airwallex’s investment into JP Morgan money market funds  

• Xero bank feed integration: Sync with your Yield balances and returns to Xero in real time for faster reconciliation

Many businesses have found there to be numerous benefits from using Yield, which now has over $100M invested in it from our Australian customers. We have established businesses, like iconic baby brand Love to Dream, utilising its capabilities - and emerging businesses have also eagerly jumped on board during our wider release.

Take cogsflow, an Aussie startup success story on a mission to empower eCommerce merchants. cogsflow was the first cab off the rank when we released Yield to all Aussie customers in July. 

Prior to Yield, cogsflow was using an existing solution to generate returns, but it wasn’t meeting their expectations.

“It absolutely dominates the CBA solution that we had,” says David Carbines, Co-Founder and CEO. “I think we've earned more with Yield in a week than we did with CBA in a month... We really expect innovation like this to drive the market forward …I can't recommend it highly enough…”

As a growing business that’s just starting to make waves, David shared how important it was to make their surplus funds work harder. “The nature of our business is that we have some swings with cash. Money is tight and every dollar counts for us and our clients. We expect our money to work as hard as we are, and the Airwallex Yield product helps us achieve that. Yield puts our money to work.”

“As an organisation, our ambition is bigger than our resources. We're not going to compromise on ambition, we want to gather more resources and we want the things we have to work harder. We expect Yield to help us do that.”

FAQs:

1. When do I need a Business Savings Bank Account?

It’s not mandatory to have a specialised business savings account. Unlike a day-to-day business account, which is required for tax purposes if your business is registered as a company, partnership or trust in Australia, it is up to you and your financial advisor to decide whether an additional business savings account is right for your situation. 

2. What features to look for with a Business Savings Account

Features you might evaluate when it comes to finding a business savings account include multi-currency capabilities, interest rates or rates of return, lockup and penalty periods, minimum balance requirements, accessibility and whether there are additional features that might benefit your business like debit cards, expense management tools and integrations with accounting platforms. 

3. What’s the difference between a business savings account and a regular savings account?

A business savings account is designed specifically for business needs. Unlike a personal savings account, they are likely to have multiple signatories, and have additional capabilities that can facilitate business transactions. 

Sources: 

1. https://www.greatsouthernbank.com.au/about 

2. https://www.greatsouthernbank.com.au/lp/business-saver 

3. https://www.macquarie.com/au/en/about.html

4. https://www.macquarie.com.au/business-banking/business-accounts/savings-account

5. https://www.commbank.com.au/business/investments/business-investment-account

6. https://www.boq.com.au/About-us/company-overview

7. https://www.boq.com.au/business/business-bank-accounts/savings-and-investment-accounts/business-websavings-account

The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [email protected].

The Airwallex Yield Liquidity Fund (Yield) is issued by K2 Asset Management Limited (K2) (ABN 95 085 445 094, AFSL No 244393), a wholly owned subsidiary of K2 Asset Management Holdings Limited. This information doesn’t take into account your objectives, financial situation, or needs. It is important for you to read the Product Disclosure Statement (PDS) for Yield, Read the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for Yield, which are available at www.airwallex.com.au/terms from Airwallex Capital Pty Ltd (ABN 37 609 653 312, AFSL No. 549026). All investments carry risk. *Target returns are net of fees as at [1 July 2024] (AEDT) and indicate past 1-day annualised returns of the relevant underlying JPMorgan Liquidity Funds.