I'm looking for the best deal on banking for Pty Ltd entity.
I know of NAB/ING/Citi for personal accounts, who has the best deal for small business accounts?
Business Bank Account
marbss on 28/02/2012 - 18:47
Comments
I too was doing this research 18 months ago, trying to find the cheapest business bank account. Or more specifically, the cheapest combination of transaction account + credit card. Currently I am using St. George:
When I started (18 months ago), transaction account used to be $0/month when you have $5,000+ in the account, and the business credit card would have annual fee waived when you have transaction account with them. However they have recently removed the $0/month fee option from Freedom Business Account so it's always $5/month fee, i.e. $60/year. Still not bad I guess.
It just does not make sense that banks cannot provide a no-fee option for business entities that do not really require much branch access, similar to those $0/month personal everyday accounts. I think many small business/sole traders do most of their stuffs online and rarely need to go to the branch — a $0/month plain vanilla business account would suit them well.
Same with credit cards. There are plenty personal credit cards with no annual fee + rewards, but hardly any with business credit cards. Saving accounts also get at least 1% lower interest rate comparing to the personal saving account counter-part from the same bank.
Why set-up a business bank account and get slugged fees etc?…set up a normal account with no fees and use it for your business. I use CUA and I have an account in my business name. NO FEES AT ALL! What is a business bank account exactly? NOTHING! It's just a gimmick to slug you more fees! Talk to your accountant, he'll tell you the same thing.
And you get a VISA debit with the CUA account too :)
Are you sure you can have a personal account with a business name? People get business accounts because they don't want their personal name on the account for privacy reasons.
Yes I have opened a bank account with my business name with CUA. CUA doesn't have business bank accounts, they just have their normal accounts which u can name what u want, they verify by checking and scanning your business registration certificate. It just doesn't carry all the bullshit fees banks charge with 'business bank accounts'.
Yes people don't wanna be liable personally, and setting up a business account will keep you secure cos that's owned by the company, meaning its company money, not yours personally. But as long as the account is in a business name, it shouldn't be a problem.
Not just for privacy reason. We are talking about Pty Ltd here, and I am not sure any bank would let a "company" use their personal banking product. So CUA allows it? Interesting…
I checked up with CUA. They give prime access account (4 free transactions per month). But catch is if you want it in your business name then you don't have any free transactions :(. Something like $0.75 for eftpos,etc.
I guess this must be something new.
So, apart from bankwest there is no provider in australia which gives free transaction account in your business name with visa debit card. Surprising.
With the business bank account, you will still need to provide your personal details.
thanks for the responses. Typically in the US/Canada using a personal account would "pierce the corporate veil" and you would end up losing your limited liability provided by the corporate structure. Not sure if it differs here. nonetheless — I will look into it. anyone else have any info on this topic?
cheers,hi mate, I use AMP eASYCash Management for my business banking it costs $5 a month but I get 4.25% on whatever's in my account. So I always have $10k in there which earns me about $34 minus the $5 I earn $29. They give me unlimited transactions ATM Eftpos, Internet banking and cheque book which is all I need.
$5 a month is fairly standard.
if that's fairly standand why don't the big 4 offer it? I'm happy to be PAID $30 any month just for having my business transaction account.
HSBC definitely permits their standard online saving account to be used for business names (not sure about company names, but I don't remember anything about that in the application process). The account is a fully functional transaction account with no fees for most typical transactions. I've had two in my business names for about 10 years now.
What is diference between business name and company name?
A sole trader, a partnership or a trust can have business names registered with the states (or with ASIC from 28 May). However these are not companies.
I came across Suncorp which seems to be free and gives debit card:
http://www.suncorpbank.com.au/business/everyday-business-ban…I'll call them tomorrow. Anyone used them or any experience?
I use Suncorp for my business banking and its great. I also have a high interest saver which is linked. You just gotta be careful not to do every day transactions to the linked high interest account because those transactions cost money but using the basic account is free.
BUMP
I'm asking the same question so wondering if there have been any better deals in the last 3 years.
I'm looking for Fee free business bank account if they exist and a linked debit visa card, or business visa card with rewards (low fees)
Suncorp or bank west. This is from research a year ago. Maybe things have changed
Thanks, I'll take a look at them first.
I am actually after one too.
From what I know most of them charge $5 - $10 monthly fees. The account that are free are more like a savings account. They give you higher interest but you can't really use it for everyday transactions.
Only one I know so far is Zero Transaction Business Account from BankWest. That is totally free.
However, catch is that it is with BankWest. personally had bad experience with them and would not go near them.
I am in market of finding other business account that are $0 fees and give you visa debit which you can use like a normal transaction account.