How to compare business bank accounts?
Last updated: 23.10.2024
Confused about choosing a business account? Take a look at the top factors you should consider
Key takeaways
- Look into the fees charged by the business account for sending, receiving, and holding funds
- Find a provider with low and transparent currency exchange markup rates
- If your business regularly makes transactions in multiple currencies, opt for a multi-currency account
Introduction
When setting up a new business, you should focus all your energy on its core operations. However, one major decision remains: finding a reliable business bank account provider.
The process becomes even more complicated when you need a global business account to streamline international transactions while protecting your profit margins.
To help you make the decision, we list the top factors to consider when comparing business bank accounts. We also compare the top business bank accounts in Australia.
Table of Contents
How to compare business bank accounts
Fees and charges
Cost should not be the only factor you consider when selecting a business bank account. However, it is one of the most important factors you need to consider. Here are the main costs you should take into account.
- Transfer fees: Look for accounts with low or no fees to receive international payments. For sending international payments, the account should charge competitive rates. While some accounts may have a fixed transfer fee, others charge a percentage of the total transaction amount
- Account setup fee: You may be charged an initial fee for setting up an account. It’s better to look for an account that has a zero or minimal fee
- Monthly maintenance fee: While you may come across business bank accounts with a monthly maintenance fee, accounts with no monthly fees are more cost-effective
Currency conversion rates
Most banks and money transfer providers add a markup to mid-market rates when exchanging currencies for their customers. Compare different providers and look for a business bank account with low markup costs. Check if the provider transparently shares its markup rates. You can also check if they have a currency convertor on their website.
Transaction speed
Analyze the total time it takes to complete international transfers. While some providers may take several days to complete the transfers, others may offer faster transfers for certain currencies (instant or same-day).
Support for multi-currency account
If your business regularly makes transactions in multiple currencies, you should consider a payment service provider that supports multi-currency accounts.
A multi-currency account allows businesses to send, spend, and hold funds in multiple currencies. When you receive payment in a foreign currency, you can either repatriate those funds back to your bank account or hold the funds to make further payments.
The number of supported currencies will depend on your service provider. Look for a provider that supports all the major currencies your business usually transacts in.
Integrations
Consider whether the business bank account can integrate with accounting software like Xero so that you can streamline account management and reconciliation.
Customer support
Check the availability and type of customer support offered. At the same time, look into whether the provider offers extra assistance and support to its customers.
Regulatory compliance
The provider should comply with all the necessary international and domestic regulations. They should also follow strict security measures to protect customer accounts against unauthorized transactions or fraud.
Top business accounts in Australia
Let’s take a look at how the major business accounts in Australia compare with each other in terms of fees
| WorldFirst | CommBank foreign currency account [1] | Westpac foreign currency account [2] | NAB foreign currency account [3] | Wise business [4] | Airwallex [5] | |
|---|---|---|---|---|---|---|
| Monthly fee | Free | Free | Free | Free | Free | Free |
| Opening a multi-currency account | Free | Free, but you need to have a CommBank AUD transaction account | Free (but you need a linked Westpac AUD transaction account) | Unconfirmed – no information online | AUD 22 (18 currencies) | Free |
| Receiving funds | Free | Up to AUD 11 per transaction | AUD 12 for every received payment | Deposited to NAB account: $15 | Free for AUD, BGN, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, JPY, NOK, NZD, PLN, RON, SEK, SGD, TRY and USD (non-wire) USD wire payments cost USD 6.11and CAD SWIFT payments cost CAD 10 |
Direct debit funds are free. Payments received through local payment methods are charged at AUD 0.30+ payment method fee** |
| Holding funds in multiple currencies | Free | CommBank charges a credit deposit fee on some currencies | For wholesale clients, a deposit maintenance fee may apply on certain currencies and amounts | Interest charges may apply when funds exceed the threshold amount set for different currencies | Free | Free |
| Sending payments in the same network | Free and instant Currency conversion fees still apply in case of cross-currency transfers |
Free Currency conversion fees still apply in case of cross-currency transfer |
Foreign currency transfer via Westpac Online Banking except Corporate Online: $0 Foreign currency transfer via Corporate Online: $20 Foreign currency transfer in AUD via Westpac Online Banking: $20 Foreign currency transfers in AUD or foreign currency via branch: $32 **Fees are in USD and can be paid in USD or AUD. |
International money transfer through NAB Internet Banking in a foreign currency: $0 International money transfer with NAB Internet Banking in AUD: $30 Banker-assisted international transfer: $0 International money transfer requested by email: $35 |
Free and instant to other Wise users | Instant, but with a fee |
| Sending payments to other accounts | [Fixed transaction fee] + up to 0.6% currency conversion fee (0.8% for 1688 payments) |
Issued by branch: $30 Issued online with funds debited and credited in AUD: $30 Issued online with funds debited from AUD account and converted to foreign currency: Free A currency conversion fee also applies over the transaction fee. |
As above | Same as above | From 0.33% (fee varies by currency) |
Free for local transfer methods. For SWIFT transfers, a fixed fee of AUD 10 - 30 applies. Currency conversion rates also apply: 0.5% above interbank exchange rates for USD, HKD, CNY, AUD, EUR, GBP, CAD, SGD, CHF, NZD, JPY 1.0% above interbank exchange rates for all other currencies |
| WorldFirst | CommBank foreign currency account [1] | |
|---|---|---|
| Monthly fee | Free | Free |
| Opening a multi-currency account | Free | Free, but you need to have a CommBank AUD transaction account |
| Receiving funds | Free | Up to AUD 11 per transaction |
| Holding funds in multiple currencies | Free | CommBank charges a credit deposit fee on some currencies |
| Sending payments in the same network | Free and instant Currency conversion fees still apply in case of cross-currency transfers |
Free Currency conversion fees still apply in case of cross-currency transfer |
| Sending payments to other accounts | [Fixed transaction fee] + up to 0.6% currency conversion fee (0.8% for 1688 payments) |
Issued by branch: $30 Issued online with funds debited and credited in AUD: $30 Issued online with funds debited from AUD account and converted to foreign currency: Free A currency conversion fee also applies over the transaction fee. |
| Westpac foreign currency account [2] | NAB foreign currency account [3] | |
|---|---|---|
| Monthly fee | Free | Free |
| Opening a multi-currency account | Free (but you need a linked Westpac AUD transaction account) | Unconfirmed – no information online |
| Receiving funds | AUD 12 for every received payment | Deposited to NAB account: $15 |
| Holding funds in multiple currencies | For wholesale clients, a deposit maintenance fee may apply on certain currencies and amounts | Interest charges may apply when funds exceed the threshold amount set for different currencies |
| Sending payments in the same network | Foreign currency transfer via Westpac Online Banking except Corporate Online: $0 Foreign currency transfer via Corporate Online: $20 Foreign currency transfer in AUD via Westpac Online Banking: $20 Foreign currency transfers in AUD or foreign currency via branch: $32 **Fees are in USD and can be paid in USD or AUD. |
International money transfer through NAB Internet Banking in a foreign currency: $0 International money transfer with NAB Internet Banking in AUD: $30 Banker-assisted international transfer: $0 International money transfer requested by email: $35 |
| Sending payments to other accounts | As above | Same as above |
| Wise business [4] | Airwallex [5] | |
|---|---|---|
| Monthly fee | Free | Free |
| Opening a multi-currency account | AUD 22 (18 currencies) | Free |
| Receiving funds | Free for AUD, BGN, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, JPY, NOK, NZD, PLN, RON, SEK, SGD, TRY and USD (non-wire) USD wire payments cost USD 6.11and CAD SWIFT payments cost CAD 10 |
Direct debit funds are free. Payments received through local payment methods are charged at AUD 0.30+ payment method fee** |
| Holding funds in multiple currencies | Free | Free |
| Sending payments in the same network | Free and instant to other Wise users | Instant, but with a fee |
| Sending payments to other accounts | From 0.33% (fee varies by currency) |
Free for local transfer methods. For SWIFT transfers, a fixed fee of AUD 10 - 30 applies. Currency conversion rates also apply: 0.5% above interbank exchange rates for USD, HKD, CNY, AUD, EUR, GBP, CAD, SGD, CHF, NZD, JPY 1.0% above interbank exchange rates for all other currencies |
*Fees as checked at the time of writing this blog in August 2024.
Open a global business account with WorldFirst
Grow your business globally with fast global payments, online marketplace collections and more – with one multi-currency World Account.
Increase your competitive edge
Pay suppliers, partners, staff and tax authorities in 40+ currencies to expand your market access and global reach.
Simplify your global transactions
Receive, hold and convert funds in 15+ local currencies, including GBP, USD, CAD, AUD, CNH, EUR, and JPY, all from one account.
Grow where your customers are
Open the world to your business and collect payments from 100+ marketplaces and payment gateways, such as Amazon, eBay, Square and Stripe.
Make same-day transfers
You can make same-day transfers in multiple currencies (cut-off timings apply)
Access competitive fees and exchange rates
You aren’t charged anything for setting up your World Account or receiving payments. You are only charged for sending payments. We offer a maximum of 0.6% markup over currency conversion rates (0.8% for supplier payments on 1688.com)
- Open 10+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Source:
- https://www.commbank.com.au/content/dam/commbank/personal/apply-online/download-printed-forms/ADB1784.pdf
- https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/cb/foreigncurrencyaccount.pdf
- https://www.nab.com.au/important-information/business/banking-fees-charges#5-nab-foreign-currency-account
- https://wise.com/au/pricing/business
- https://www.airwallex.com/au/pricing
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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