The average cost of transactions

For business owners, transactions are their lifeblood – but when it comes to transaction accounts there is a wide variation of potential transaction fees.

Particularly in a low cash rate environment, transaction fees on bank accounts can really pack a punch. So across the products surveyed for the 2016 business deposit account star ratings, CANSTAR has calculated the minimum, maximum and average monthly transaction fees that business owners could be paying, depending on their choice of account and transaction habits.

When it comes to business accounts, CANSTAR assesses them across three profiles. Please note the information in all tables below is sourced from the CANSTAR 2016 business deposit account star ratings, assessing 83 business deposit products from 38 providers.

Business Accounts: Transactors

Business Accounts Transactors

This profile relates to business customers looking for a transaction account. Access to branch, ATM, Cheque, EFTPOS, Internet, Direct Credit and Direct Debit facilities must be available for an account to be considered for this profile.

 

So what fees should Transactors expect? Here’s a rundown:

Account keeping fee Direct Debit Direct Credit ATM withdrawal own network Branch withdrawal
Transactor
MIN 0.00 0.00 0.00 0.00 0.00
MAX 32.00 1.50 0.20 5.00 5.00
AVERAGE 9.48 0.14 0.02 0.50 0.94
Branch Deposit Cheque Withdrawal Cheque Deposit Internet transfer EFTPOS Transactions
Transactor
MIN 0.00 0.00 0.00 0.00 0.00
MAX 5.00 7.50 5.00 5.00 5.00
AVG 0.64 0.83 0.55 0.16 0.41

Business Accounts: Business Savers

Business account savers

This profile relates to business customers looking for a high interest savings account. To be eligible, the account must offer an interest rate of 1% or higher on a balance of $50,000.

 

So what fees should Business Savers expect? Here’s a rundown:

Account keeping fee Direct Debit Direct Credit ATM withdrawal own network Branch withdrawal
Business Saver
MIN 0.00 0.00 0.00 0.00 0.00
MAX 5.00 1.00 0.00 0.00 10.00
AVG 0.21 0.06 0.00 0.00 1.41
Branch Deposit Cheque Withdrawal Cheque Deposit Internet transfer EFTPOS Transactions
Business Saver
MIN 0.00 0.00 0.00 0.00 0.00
MAX 3.00 0.00 2.50 0.25 1.00
AVG 0.58 0.00 0.26 0.01 0.04

Business Accounts: Cash Managers

Business accounts cash managers

This profile relates to business investors looking to earn interest on their money while retaining full account access. To be eligible, the account must offer an interest rate of 0.10% or higher on a balance of $50,000

 

What fees should Cash Managers expect? Here’s a rundown:

Account keeping fee Direct Debit Direct Credit ATM withdrawal own network Branch withdrawal
Cash Manager
MIN 0.00 0.00 0.00 0.00 0.00
MAX 10.00 1.00 1.60 1.60 2.50
AVG 2.58 0.18 0.18 0.47 1.01

 

Branch Deposit Cheque Withdrawal Cheque Deposit Internet transfer EFTPOS Transactions
Cash Manager
MIN 0.00 0.00 0.00 0.00 0.00
MAX 2.50 2.50 1.60 1.60 1.60
AVG 0.38 0.68 0.43 0.18 0.45

As can be seen above, in every customer profile there is a reasonably wide variation in the potential fees, which can add up to a significant amount of money over the course of a trading year.

Of course there is more to a business account than just the fees: you should also take into consideration the accessibility, any free transactions or rebates and any other features that are important to you. Don’t be scared to switch though – there are many competitive transaction account options on the market for savvy business owners.

CANSTAR has researched and rated 83 business deposit products from 38 providers to determine which accounts offer outstanding value for businesses. You can compare business savings accounts here and compare business transaction accounts here.

Share this article