Award-winning savings and transaction accounts for Australian businesses
07 July 2022
With inflation and business expenses rising, many of Australia’s nearly 2.5 million businesses are under pressure. How can choosing an award-winning savings account or business transaction account provider help?
Recent data from the Australian Bureau of Statistics shows over a third of businesses are expecting to increase their prices by more than usual, while nearly one in five have capital expenditure planned over the next few months. In the March quarter, company gross operating profits rose by just over 10%, seasonally adjusted, but this figure hides some systemic economic pressures during the COVID-19 recovery.
As inflation races to new highs, you might be weighing up whether to fill up the tank, switch on the heater or swap your lettuce for homespun greens grown from seedlings to save on grocery costs. Just as these daily pressures are weighing on Aussie consumers, macroeconomic inflation is weighing on business confidence.
Rob Scott, CEO of Wesfarmers, named rising shipping costs and fuel prices, as well as shortages of key raw materials, as factors that were “driving costs up globally” when he spoke to the Australian Financial Review recently. Small businesses too are ‘feeling the pinch’ – with the chair of the chair of the Council of Small Business Organisations Australia (COSBOA), Matthew Addison, telling Accountants Daily inflation “spiking” to 5.1% is challenging many small businesses.
“We need to be planning,” he said.
“What does that mean for your business? What business decisions do you need to make? What do you need to do with your own prices?”
So, how can Canstar help?
“As part of your business planning, switching to an award-winning product for your everyday banking needs could make a difference, enabling you to have greater confidence that you are using products and institutions that are among the best in the market,” explained Canstar’s Ratings Manager, Joshua Sale.
“Our 2022 Business Savings and Transaction Account Star Ratings and Awards, calculated by our Research team, recognise the products and providers on our database that are offering outstanding value to business customers,” he added.
“At Canstar, we want to help Australian businesses make informed choices for their everyday banking needs.
“Whether you are looking for a high-interest savings product or a transaction account that comes with perks and benefits, having confidence in your everyday banking approach can help you and your team focus on what’s most important for running your business.”
At a glance:
Numbers crunched:
- 38 business transaction accounts rated
- 3 award-winning business transaction account providers
- 34 business savings accounts rated
- 5 award-winning business savings account providers
Outstanding Value – Business Savings Account Award winners
- AMP Bank
- Abal Banking (formerly Arab Bank Australia)
- ING
- MyState Bank
- ME
Outstanding Value – Business Transaction Account Award winners
- Heritage Bank
- NAB
- Suncorp Bank
What set the business savings account winners apart?
For business savings accounts, Canstar found the award winners’ products are offering good value overall, even though there is still room for interest rates to increase with possible further upcoming rate hikes.
“This year’s Business Savings Accounts award winners – whose highest current rates range from 0.40% to 1.05% (including promotional bonuses) – are offering outstanding value on a comparative basis, with the next best interest rate offers on business savings accounts being comparatively lower,” said Mr Sale.
“Savings accounts that perform well in this market are those offering a relatively strong base rate, additional introductory bonuses, or both.”
Award-winning business savings accounts
The five award-winning providers and accounts for 2022 are listed below in alphabetical order by provider name, with all five being recognised as offering outstanding value for business customers:
Abal Banking (formerly Arab Bank Australia) – Online Savings Account Business
AMP Bank – Business Saver Account
ING – Business Optimiser
ME – Business Online Savings Account
MyState Bank – Business Online Saver
Cover image source: Mangostar/Shutterstock.com.
Compare business savings accounts
What set the business transaction account winners apart?
“The providers that continue to dominate in this market are those offering fee-free electronic and manual transactions (or significant monthly fee rebates), and no monthly account-keeping fees,” said Mr Sale.
“Some high-performing products may charge fees for manual transactions or branch withdrawals, but will often offset these with a high number of free transactions each month.”
Compare business transaction accounts
Award-winning business transaction account providers
The three award-winning business transaction account providers for 2022 are listed below in alphabetical order by provider name, with each of them being recognised as offering outstanding value across a range of different business customers and needs through their top-performing products.
Heritage Bank – Business Cheque Facility
NAB – Business Everyday Account
Suncorp Bank – Business Premium Account
How did Canstar choose its winners?
To be eligible for an Award, providers must have had a business savings or transaction account available for six months, with Canstar seeking to include the majority of product providers in the market and to compare the product features most relevant to Australian businesses in our ratings.
Business transaction accounts
For business transaction accounts, Canstar considered how providers performed across their accounts for High Transactors (40%), Electronic Transactors (40%) and Low Transactors (20%). These categories relate to different types of transacting styles, with ‘High Transactors’ being business customers who make an average of 100 transactions, ‘Electronic Transactors’ mainly transacting electronically and making an average of 100 transactions, and ‘Low Transactors’ making an average of 40 transactions each month. Providers also needed to offer access to branch, ATM, EFTPOS, Internet, Direct Credit and Direct Debit facilities to be eligible.
Canstar found Heritage Bank, NAB and Suncorp Bank stood out overall on a weighted assessment of their pricing and feature benefits across their business transaction accounts. Canstar’s researchers assessed the net benefit against the net cost for each account, considering any interest earned over the term of holding the account against account-keeping fees and other common transaction fees.
“Congratulations to Heritage Bank, NAB and Suncorp Bank for this outstanding result, and their overall offerings for business customers nationally across their transaction account products,” said Mr Sale.
Compare business transaction accounts
Business savings accounts
For business savings accounts, like with business transaction accounts, a feature score was worked out assessing over 200 product features available during a consumer’s journey – from researching alternatives to applying, operating and using the account, accessing customer service and support and the process and information given during account closure.
“Congratulations to AMP Bank, Abal Banking, ING, MyState Bank and ME for their efforts in offering customers value with their business savings accounts in 2022, and being recognised in the latest Canstar awards.”
To find out more about how Canstar chose its winners, read the Star Ratings methodology and the Awards methodology.
Compare business savings accounts
Main image source: Mangostar/Shutterstock.com.
About Canstar’s Research team
Canstar’s Research team provides the expertise that powers our Star Ratings and Awards, designed to help consumers make better-informed financial decisions. As Australia’s biggest financial comparison site, Canstar researches and rates products from more than 775 brands, across more than 30 finance categories. Our expert researchers analyse products we rate by comparing price and features, with the top products being recognised with a 5-Star Rating. Our Star Ratings are made available for consumers to view for free via Canstar’s comparison tables. Providers whose products perform strongly in our Star Ratings may be recognised with an Outstanding Value Award.
→ Discover Canstar’s latest Star Ratings and Award winners
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This article was reviewed by our Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
