Business savings accounts in Australia for 2026 offer competitive at-call rates, with the best accounts typically ranging between 3.50% and 4.50% p.a. depending on the institution and conditions - significantly higher than the near-zero rates of recent years. Whether you're a sole trader with surplus cash or a company managing operational reserves, parking your business funds in a high-interest account is now a meaningful source of income.
Types of Business Savings Products
At-Call Business Savings
An at-call account lets you deposit and withdraw at any time. Rates are typically lower than term deposits but the flexibility is essential for operational cash.
| Bank | Product | Max Rate | Conditions | Balance Cap |
|---|---|---|---|---|
| High Interest Savings Account (Business) | 4.50% | Intro 4.50% | $1,000,000 | |
| Amp Bank Go Business Save | 4.25% | Base 4.25% | $500,000 | |
| Macquarie Business Savings Account | 4.15% | Base 4.15% | $2,000,000 | |
| Amp Business Saver Account | 3.75% | Base 2.25% | $5,000,000 | |
| Premiumsaver (Business) | 3.45% | Balance increased by $2000 a month, excluding interest paid. | $250,000 | |
| Business Cash Reserve Savings | 3.00% | Base 0.75% + Bonus 2.85% | Unlimited |
Business Term Deposits
Lock your surplus cash for a fixed period at a higher rate. Useful for reserves, provision accounts, or funds set aside for tax payments.
| Bank | Product | Term | Rate | Min Deposit |
|---|---|---|---|---|
| Online Term Deposit | 5 years | 5.10% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.10% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $1,000,000.01 | |
| Online Term Deposit | 5 years | 5.05% | $500,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $250,000.01 | |
| Online Term Deposit | 5 years | 5.00% | $1,000,000.01 |
Business Transaction Accounts With Interest
Some banks offer interest on business transaction account balances. Rates are lower, but every dollar earns something.
How to Structure Your Business Cash
A common approach is the three-bucket system:
Bucket 1: Operating (Transaction Account)
- Day-to-day expenses, payroll, supplier payments
- Keep 1-2 months of operating expenses
- Prioritise low fees and good banking features over rate
Bucket 2: Reserve (Savings Account)
- 3-6 months of operating expenses as a buffer
- High-interest at-call account for flexibility
- Transfer surplus operating cash here regularly
Bucket 3: Surplus (Term Deposit)
- Funds not needed for 3-12 months
- Tax provision, BAS payments due in future quarters
- Lock in the highest rate available
Business vs Personal Rates
Business savings rates sometimes differ from personal rates at the same bank. In some cases, business rates are lower because banks don't need to compete as aggressively for business deposits. In others, they're comparable or even higher.
Key differences from personal accounts:
- Often no bonus rate conditions (no minimum deposits per month, no spending requirements)
- May have higher minimum balance requirements
- Interest calculations and payment frequencies may differ
- Account access and management tools are business-focused
Tax Considerations
Interest earned on business savings is assessable income in the year it's earned. For most business structures:
| Structure | How Interest Is Taxed |
|---|---|
| Sole trader | At your personal marginal rate |
| Partnership | Distributed to partners, taxed at personal rates |
| Company | At the company tax rate (25% for base rate entities) |
| Trust | Distributed to beneficiaries or taxed at trustee rate |
For companies, the 25% tax rate on interest is often lower than individual marginal rates, making business savings accounts particularly effective for retaining profits.
BAS and GST: Interest income is an input-taxed financial supply, so it's not subject to GST. However, it can affect your GST-free proportion if you claim GST credits on acquisitions used for both taxable and input-taxed supplies.
Worked Example: Business Interest After Tax
A company holding $100,000 in a business savings account at 4.00% p.a. earns $4,000 in interest per year. At the 25% base rate entity company tax rate, the after-tax return is $3,000. For a sole trader on the 30% marginal rate (post-Stage 3 tax cuts), the after-tax return on the same $4,000 is $2,800. The company structure is slightly more tax-efficient for retained cash.
FCS Coverage for Businesses
Business deposits are covered by the Financial Claims Scheme, but the coverage applies per entity per ADI:
- A sole trader's business deposits are aggregated with their personal deposits at the same ADI - they share a single $250,000 FCS limit because the account holder is the same individual
- A company has its own separate $250,000 FCS limit per ADI
- A trust's deposits have a separate limit
If your business holds more than $250,000 in cash, spreading across multiple ADIs ensures full coverage.
Wrapping Up: Business Cash Strategy
With business savings rates above 4% at many institutions, parking business cash without earning interest is leaving money on the table. Structure your cash into operating, reserve, and surplus buckets. Shop for the best rate in each category. And remember that business deposits at ADIs are protected by the same government guarantee as personal accounts.
Compare current business savings rates across multiple banks in our business savings comparison.
Want to understand how the government deposit guarantee works in detail? Read our guide to the Financial Claims Scheme. If you're comparing term deposits for surplus cash, see our best term deposit rates.
Frequently Asked Questions
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