Finding which business bank account is best in Australia is not as straightforward in today’s modern world, with new non-banking alternatives available that could help save you time as well as money1.
Whether you’re a sole trader just starting out or a growing small business looking to save time and gain more control of your expenses, understanding your business’s banking needs is the first step to making an informed decision.
Let’s have a look at some of the different types of business bank accounts available, and how they can potentially help you simplify your finance operations and reduce time-consuming bottlenecks.
Summary:
• What’s a business bank account?
• Am I required to open a separate bank account?
• Types of business bank accounts
• What are the alternatives to business bank accounts?
• Top 6 best business bank accounts and alternatives
• How are businesses leveraging multiple business accounts
• Compare the best business bank accounts in Australia
• What to consider when choosing a business bank account
• Why are Australian businesses choosing to open an OFX business account?
• Best business banks accounts FAQs
What’s a business bank account?
A business bank account is a dedicated account in your business name for managing your business finances, giving you the ability to collect payments from customers and make payments to suppliers, helping you keep track of all your business transactions.
Am I required to open a separate business bank account?
The Australian Tax Office states that if you’re operating business through a partnership, company or a trust, you must have a separate bank account for that business2.
Why is it important to open a separate business bank account?
It’s important to open a separate business bank account to keep your personal expenses separate from your business transactions.
Types of business bank accounts
Most banks offer two types of business bank accounts:
| Everyday bank transaction accounts | – For daily banking needs, like receiving and making payments. – Some Everyday bank accounts are just for online use, while others also allow in-person banking and cash deposits. – These accounts usually offer little to no interest on your balance.1 |
| High interest savings bank accounts | – These accounts enable you to earn interest on your balance. – May have certain requirements, like depositing a minimum amount each month or having a linked product. – Some accounts may have high introductory rates and then drop to a much lower rate after six or nine months.1 |
Are there alternatives to business bank accounts?
Yes, alternatives include non-bank business transaction account providers such as OFX3, who offer an all-in-one business account. They can help give you more control over your finances and operate globally with features such as corporate multi-currency cards, spend management platform and batch and payroll payments.
OFX Corporate Multi-Currency Card
Access to 30+ currencies directly linked to your business account, reducing unnecessary exchange conversions when you spend in those currencies.
Top 6 best business bank accounts and alternatives
- ANZ business account
The largest banking group, covering Australia and New Zealand, they won the Canstar Best Bank award 2022-2024. With their business bank account you can choose either: a simple pay-as-you-go account with no monthly account service fee or an account with a $10 monthly account service fee and an optional linked overdraft4.
- Commonwealth Bank business account
Winner of Mozo’s Small Business Exceptional Everyday Account Award 5 years in a row. They offer a simple digital app for easy use and have the largest customer base of the big four banks in Australia. With their business bank account customers pay $0 monthly account fee option when they bank mostly online.5
- National Australia Bank business account
NAB offers a large range of digital products. With their NAB Business Everyday account customers enjoy free electronic and ATM transactions with this everyday transaction account.6
- Westpac business bank account
Westpac won the Canstar award for outstanding value with their business transaction account in 2024. With their Everyday Business Bank account customers can manage their income and outgoings and easily switch between their business and personal banking in the Westpac App.7 - Macquarie business bank account
Manage multiple payments with DEFT, Batch Payments and Electronic Funds Transfer. Customers have the ability to integrate their transaction account with leading business management and accounting software.8 - Suncorp business bank account
With a Suncorp premium account customers get a full-featured transaction account with no monthly account keeping fee and unlimited fee-free transactions.9 - OFX business account
Different from other business transaction accounts, with the OFX Business Account you can control your finances with advanced spend management features. Open domestic and foreign currency accounts within minutes and spend like a local in major currencies with a corporate multi-currency card. Set budgets for teams or projects, automate approvals and save time on tracking your card expenses with our in-app receipt capture.
OFX isn’t a bank. OFX offer a financial platform for businesses to transact. A business transaction account with spend management, accounts payable automation, batch and payroll payments and corporate multi-currency cards.
How are businesses leveraging multiple business accounts
- Easier accounting
Having multiple accounts can make managing your finances easier, especially when tax time rolls around. To get a clearer picture of your cash flow, try setting up separate accounts for different purposes or “buckets” like everyday expenses, receiving payments, payroll, future projects, and emergency funds.11 - Savings interest and rewards
Help your business grow by choosing a savings account to earn interest on your business earnings. You can also open a non-bank business account that allows you to earn points on your rewards credit card when you fund your account to pay for domestic business transactions or international currency. - Manage spend with virtual corporate cards
For specific operating expenses, like software subscriptions and travel, having a business account that allows you to create multiple company cards and employee cards, makes it even easier to track these expenses.
- Better budgeting
Instead of wading through endless transactions in one account, setting up separate accounts or having a finance platform that can split out teams, projects or individual employees transactions can make budgeting a whole lot easier. Having a clear view of your expenses each month helps you stay on track and manage your budget more effectively.7 - Enhanced security
With online security being a big concern, it’s more important than ever to keep your business safe. Unfortunately, scams are on the rise, but if you spread your money across multiple business accounts, rather than keeping it all in one place, you may reduce your losses if you ever fall victim.7
Can you open a business transaction account (from a FinTech) alongside a business bank account?
Yes, many of our clients have bank accounts for legal or borrowing purposes whilst leveraging an OFX Business Account to help save them time and money on their financial operations and currency transfers.
I was recommended to use OFX, but honestly I wish I knew about it sooner. By far OFX is the most competitively priced and easiest platform we’ve ever used. The user experience and customer service have been a lot better for our finance teams to manage,” said Jonathon, co-founder of BikesOnline.
Compare the best business bank accounts in Australia
| ANZ Bank Business Extra Account3 | Commonwealth Bank Business Transaction Account4 | National Australia Bank Business Everyday Account | Westpac Bank Business One Low Plan6 | |
| Monthly fees | $10 monthly account service fee | $0 monthly account fee option when customers bank mostly online $10 monthly account fee when banking in branch | $0-$10 monthly account keeping fee | $10 monthly fee |
| International transfer fees | 3% international transfer fee | 3.5% international transfer fee | 3.5% international transaction fee | 3% international transaction fee |
Additional fees | 80c assisted transaction fee. $5 international ATM fee | $3 assisted transaction fee $15 overdraft fee $5 and 3% international ATM fee | $2.50 assisted transaction fee | $1 in branch deposit or withdrawal $5 and a foreign surcharge for international ATM fee $15 overdraft fee |
| Payment acceptance |  | | | |
| Multi currency account | X | X | X | X |
| Expense management | X | X | X | X |
| Interest savings | X | X | X | X |
Compare business savings accounts
| Macquarie Business Savings Account | Suncorp Business Saver Account | |
| Fees | $0 account keeping fees | $0 account keeping fees |
| Interest rates | 4.65%p.a standard variable (on balances of up to $1,000,000) | 2.25%p.a standard variable (on all balances) |
The alternative business transaction account
| Monthly fees | Payment acceptance | Multi currency account | Expense management | Interest savings | |
| OFX Business Account | $0 Business Plan | | | X | X |
| $15 Business Plus Plan | | | | X |
What to consider when choosing a business bank account
When it comes to choosing the best business bank account, different factors are important to different customers. Alongside low monthly fees and transaction fees, here are some other factors to take into consideration.
- Ongoing and one-off fees: Take a look at the monthly fees and charges for ATM usage, in-branch transactions, and any extra costs for things like cash or cheque deposits.
- Accessibility and speed: Some online accounts may not support cash deposits, might limit transactions to direct debits/credits, or may not offer real-time payment options like PayID or Osko.
- Ease of setup: Starting with a new business account can feel overwhelming, so choose one that’s easy to set up and integrates well with your existing software.
- Overdraft options: If having the flexibility to dip into a negative balance is important for your cash flow, check if the account offers an overdraft and what interest rates apply.
- Interest rates: Both transaction and savings accounts may pay interest, but savings accounts usually offer a better rate. Always compare based on the standard rate, not just the short-term or promotional rates.
- Online banking and app features: Look for tools that help track expenses, set goals, or even integrate with accounting software like Xero or Employee Hero.
- 24/7 support: If you’re planning to expand into in-person or online sales, consider a bank that supports these options as your business grows.
- Security and access: If multiple people need access, make sure the account allows for multiple signatories and has strong cyber security measures.
- Visibility and transparency: With money moving in all directions—supplier payments, subscriptions, customer transactions, and more—it’s crucial to have an eye on your finances. This is essential for making informed decisions and staying on top of every dollar.
- Scalability: Make sure your business account can grow alongside you. As your business expands, so will your payment needs. Features like international payments, online processing, and card creation from the start can save you the hassle of switching providers later on.
Why are Australian businesses choosing to open an OFX business account?
The big banks like ANZ, Commonwealth Bank, National Australia Bank, and Westpac offer trusted services, but they often come with higher fees and fewer features.
On the flip side, fintech companies like OFX offer all-in-one business accounts that are built to help businesses expand and operate globally without the hassle. With one platform for greater visibility and control, you can track every expense in one place, control your spending and have 24/7 support.
Manage your business efficiently with technology that helps drive growth.
With an OFX business account we can help you achieve more:
- Open domestic and foreign currency accounts within minutes
- Spend like a local with a corporate multi-currency card that saves you on currency conversions
- Earn reward points when you fund your account using your rewards credit card *Visa and Mastercard accepted
- Track all your spending in one place
- Gain more budget control with cards
- Save time with built in automation
- Make stress-free payroll and batch payments
Don’t let traditional banking slow you down. Open a business account with OFX and see how our all-in-one platform can transform your business.
Best business bank accounts FAQs
Business bank accounts versus personal bank accounts
Business accounts are quite similar to personal ones in many ways. Both typically come with a debit card, domestic and international payments, and an online platform where you can check your balance and transaction history. The main difference is in how they’re used.
- For your business: A business account is meant for all your business transactions, like paying suppliers and collecting sales revenue. You might even find some business-specific features that make managing your company’s finances easier.
- For your personal life: Your personal account is best kept for your own income and expenses—things like rent, groceries, and entertainment. Keeping the two separate helps you stay organised and manage your money better.
Do sole traders need a business bank account?
Sole traders are not required to have a separate business account, but having one is beneficial and will help you track your spending and income.
How do business transaction accounts and business bank accounts differ?
- Non Bank Business Transaction Account: Provided by a financial institution that isn’t a bank, but holds other regulated licences.
- Business Bank Account: Provided by a bank or a financial institution that that holds a banking licence.
How do I open a business transaction account?
These are the details you’ll need to set up your business account:
- Business name
- Personal details and identification papers (these can include your passport, drivers licence or a combination of papers that show your identity and address together)
- Personal details of any other owners/partners in the business
- ABN or ACN
- Industry category
Is the OFX business account like a bank account?
The OFX Business Account is not a bank account. It is a virtual business transaction account and a non-cash payment facility. The account enables clients to hold funds in different currencies and make and receive payments. All our services are serviced through our network and our partners.
What are the top business accounts in Australia in 2024?
Here are some of the top business accounts in Australia:
- OFX business account
- Wise business account
- Macquarie business bank account
- Suncorp business bank account
- ANZ business account
- Commonwealth Bank business account
- National Australia Bank business account
- Westpac business bank account
What are the disadvantages of a business bank account?
- Higher fees compared to personal accounts
- May require a minimum balance to avoid fees
- More paperwork to get set up
Looking for an alternative to your bank?
Try the OFX Business Account for free
Sources:
1. Compared to these banks, OFX could save you money on FX transfer fees https://www.ofx.com/en-au/bank-beating/
2. https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/detailed-business-record-keeping-requirements/running-your-business-records/banking-records#ato-Separate Bank Account
3. Disclaimer: In Australia, OFX is registered as a financial service provider and regulated by ASIC (AFS Licence number 226 484). OFX is not a bank, and so you are not protected by the Financial Claims Scheme when you send money with OFX.
4. https://www.anz.com.au/business/accounts/transaction-accounts/
5. https://www.commbank.com.au/business/bank-accounts/business-transaction-account.html
6. https://www.nab.com.au/business/business-bank-accounts/transaction-accounts
7. https://www.westpac.com.au/business-banking/bank-accounts/
8. https://www.macquarie.com.au/business-banking/business-accounts.html
9. https://www.suncorpbank.com.au/business-banking/bank-accounts/business-premium-account.html
10. https://www.commbank.com.au/articles/business/why-opening-multiple-business-transaction-accounts-may-be-useful.html
11. https://www.nab.com.au/business/business-bank-accounts/transaction-accounts/no-monthly-fee-business-account
12. https://www.nerdwallet.com/article/small-business/business-checking-vs-personal-checking
13. https://www.revenued.com/articles/business-banking/business-vs-personal-bank-accounts/
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.
