Business savers miss out on RBA rate hikes, but switching opportunity knocks

Two people talking discussing financial topics

As the Reserve Bank of Australia (RBA) holds the cash rate steady at 4.35%, new Mozo analysis reveals a surprising twist in the savings landscape. 

Despite 13 rate hikes since May 2022, business savers have been left behind – but they may also have the most to gain by switching accounts.

Let’s look at the numbers.

According to the Mozo database, the average business savings rate sits at a mere 1.99% p.a., significantly lower than the 3.48% p.a. average for personal savings accounts. This discrepancy has widened since the RBA began its tightening cycle, with business rates rising only 187 basis points compared to 306 basis points for personal accounts.

"It's clear that many banks are leaving their business customers behind," says Rachel Wastell, Mozo's personal finance expert. "Despite these business struggles, when you compare the average savings rate of personal savings accounts to business savings accounts, the difference is stark."

How business owners can get a better savings account

However, the silver lining for business owners lies in the potential gains from switching to rate leading accounts. While the average rates are lower, businesses that shop around could earn up to 4.65% p.a. on their savings (unconditional) – a whopping 2.66% above the average rate.

By contrast, personal savers switching to the best rates would only see a 1.77% improvement over their average. This translates to real gains: on a $20,000 balance, a business saver could earn $548 in annual interest by choosing a top rate, $179 more than a personal saver making a similar switch.

"Essentially small businesses who want to get savvy with their spending in time for the start of the new financial year could offset a lower interest rate average by opting for a bank who values business savers," Wastell explains.

Top business savings accounts currently offer rates ranging from 4.65% to 5.05% p.a., with some featuring bonus or introductory rates, as per Mozo data. Providers like Queensland Country Bank, Southern Cross Credit Union, and AMP Bank are among those offering the highest rates for business customers.

Business owners looking to switch can check out our business savings account page for more providers or compare some in the tables below.

Small business savings account comparisons on Mozo - last updated 23 July 2024

Search promoted business savings accounts below. Advertiser disclosure
  • Business Bonus Saver

    4.65% p.a. (for $0 to $2,000,000)

    0.50% p.a.(for $0 to $2,000,000)

    $10.00

    Minimum $1,000 monthly deposit and no withdrawals to earn bonus interest each month.

    Get a high-interest savings account for your business. At-call balances earn a high interest on balances up to $2 million as long as you deposit a minimum of $1,000 per month. Internet and mobile app banking access. Deposit $1k with no withdrawals to trigger bonus interest each month. PayID for easy account identification.

    Compare
    Details
  • Business Online Saver

    No Current Offer

    1.25% p.a.(for $5,000 and over)

    $0.00

    Compare
    Details
  • Business Access Saver

    No Current Offer

    1.35% p.a.(for $0 and over)

    $0.00

    Compare
    Details
  • Business Optimiser

    1.00% p.a. (for $0 to $1,000,000)

    0.60% p.a.(for $0 and over)

    $0.00

    bonus rate for 6 months

    Compare
    Details
  • Business Online Saver

    No Current Offer

    0.25% p.a.(for $0 to $50,000)

    $0.00

    Compare
    Details
  • Business Cash Maximiser

    No Current Offer

    1.15% p.a.(for $10,000 and over)

    $0.00

    Compare
    Details
  • Business Online Savings Account

    No Current Offer

    1.00% p.a.(for $0 and over)

    $0.00

    Manage your cash flow and pick up solid interest with a ME business savings account. No set up fees, no monthly fees – no fees at all

    Compare
    Details