A business savings account, is an account where business owners can stash money for future use. Like a personal savings account, you can earn interest on these funds and access them whenever you need to. You don’t have to consistently deposit large amounts, it can gradually grow as your business does over time. It could be the perfect option for business owners who are planning a future renovation or company expansion. Take a look at our comparison table above, to explore some of your business savings account options.
Benefits of a business savings account
While it’s not essential to open a savings account in addition to having a day to day business bank account, there are some big benefits of having a savings account for your business. First of all, you are preparing yourself by creating a liquid asset that can be used for any financial curveballs that could be thrown your way, and let’s be real, unpredicted business costs are almost unavoidable. It can also be a handy pile of cash to dip into around tax time, because running a business is time consuming, and having the security to pay taxes at the end of the financial year stress-free is a bonus!
Another major benefit of a savings account is, (wait for it), interest. While business accounts tend to have lower interest rates, opening an account and having your business savings grow over time can really help you at the end of the day. Similarly, up to $250,000 is insured with the Australian Government’s Deposit guarantee, so you can breathe easy knowing that your business savings are safe and secure where they are. Check out our business savings account guide, for more info.
Which account is right for my business?
There are a variety of options for your business savings, so having a clear idea of exactly what you are looking for before you open an account is the first step. Have a think about whether or not you want to simply lock your savings away for a certain amount of time, or you need the security of having constant access to your money when you need it.
With an instant access savings account, you may receive a lower interest rate, but you have the flexibility to move around money as you want to. Most banks offer other higher interest and bonus interest savings account options as well that may more appropriately suit your business needs. Alternatively, a business term deposit may be an option for your business, in the case that you have a lump sum you don’t want to touch for a number of months or years at a fixed interest rate.