This year’s 5-Star Rated business savings and transaction accounts revealed

Savings and transaction accounts can be crucial to managing a business’s cash flow, but which ones offer outstanding value in 2020?

The coronavirus pandemic has had a significant impact on many Australian businesses. While some sectors, such as online retail and food delivery, have benefited from shifting consumer spending patterns, large numbers of businesses have seen their revenue tumble due to the lockdown and the resulting squeeze on economic activity and household budgets.

With some companies looking for ways to cut costs and ensure their suppliers – including their bank – are delivering bang for their buck, Canstar reveals which business transaction accounts and savings accounts offer 5-Star value in 2020.

How were business deposit accounts rated?

As part of its 2020 Business Savings and Transaction Account Star Ratings, Canstar assessed and rated 51 transaction accounts and 39 savings accounts on its database.

Business deposit accounts were assessed against one or more of four profiles which are designed to reflect business customers with different needs. Products were rated based on their price – including interest rates and fees – and their features, including ease of application and management, customer service and support, and ease of account closure. Each profile gives a different weighting to a product’s price and features based on what real-world businesses are likely to want from products in that profile.

Canstar Research then used each product’s scores to calculate a Star Rating from one to five. The accounts which achieved 5-Star Ratings were those found to offer outstanding value to Australian business customers.

5-Star Rated business deposit accounts in 2020

The tables below display the business savings and transaction accounts that received a 5-Star Rating this year in each of the four profiles assessed and are sorted alphabetically by provider name.

Business Saver

In this profile, pricing accounts for 75% of a product’s score and features make up the other 25%. Products considered here are aimed at business customers looking for a high-interest savings account. To be eligible for inclusion, the account must offer a base interest rate of 0.05% or higher on a balance of $50,000.

Electronic Transactor

Here, pricing accounts for 60% of a product’s score while features make up 40%. Products rated in this profile are aimed at business customers who conduct the majority of their transactions electronically, and who make an average of 100 transactions per month on their account. Access to ATM, EFTPOS, internet banking, direct credit and direct debit facilities must be available for a product to be eligible in this profile.

High Transactor

For High Transactor products, Canstar Research based their scores on a weighting of 60% for price and 40% for features. This profile is based on business customers who make an average of 100 transactions per month on their account, and may make non-electronic transactions (i.e. staff-assisted transactions). Access to branch, ATM, cheque, EFTPOS, internet banking, direct credit and direct debit facilities must be available in order for a product to be eligible for inclusion under this profile.

Low Transactor

Another profile where the weighting was 60% price and 40% features. Accounts rated under this profile may be suitable for business customers who make an average of 40 transactions per month on their account, according to Canstar Research. Access to branch, ATM, cheque, EFTPOS, internet banking, direct credit and direct debit facilities must be available for a product to be eligible for a Star Rating under this profile.

What made this year’s 5-Star Rated business deposit accounts stand out?

Two cuts to the official cash rate during the period when business accounts were being assessed (0.75% to 0.25%) made for an “ultra low-rate environment” according to Canstar Research. However, on the transaction side, businesses now have more options when it comes to reducing their general banking costs, with a number of low-fee transaction accounts available. This is especially the case for businesses that do not require staff-assisted transactions, Canstar Research said.

Products which saw reductions in fees since last year’s Ratings made a big impact in 2020. Suncorp’s Business Premium Account is an example of a product where reduced fees played a significant part in its performance, and along with Bankwest’s Business Zero Transaction Account it received a 5-Star Rating in all three business transaction account profiles.

On the features side of the assessment, this year the methodology placed more emphasis on the aspects of an account that enable frictionless frequent transacting, primarily through online channels. This is designed to reflect how businesses are using their accounts in 2020, Canstar Research said.

For more information on how this year’s results were calculated, you can read the business deposit accounts Star Ratings methodology document. You can also view the full results.