Whether you’re a new business owner, or are working on growing your company from a side hustle to a full time gig, you’re going to need a separate bank account to manage your finances.
There are many different commercial banking options available, including accounts for limited liability companies, sole traders and partnerships. It’s worth comparing a few different products, including business bank accounts from large traditional banks, and some of the alternative options available from specialist providers.
This helpful guide will walk through the business banking products available from NAB, and also look at an alternative as a comparison - TransferWise for business. TransferWise offers a free business multi-currency account with handy features like batch payments and Xero integration, as well as the option to send low cost international transfers and receive cross border payments for free on some major currency routes. More on that later. Let’s take a look at NAB’s business account options.
NAB offer several different types of business bank account, which come with different fees and features. You can compare the accounts side by side using the helpful tool on the NAB website. Don’t forget to also compare other account options from modern providers, such as TransferWise for business.
Here’s a rundown of the account types available through NAB business banking:
This account type is recommended for business customers who do not make high volumes of transactions, and prefer to bank online. There’s no monthly fee to pay - instead you pay only for the transactions you need to make. Charges are $2.50 for assisted transactions and $0.60 for cheques and non-banker assisted paper based transactions. Electronic transactions are free, and you can also link your NAB account with your regular accounting package.
If you’d rather pay a flat monthly fee instead of per-transaction charges, you can also opt for a NAB business account which charges $10 a month, with no further fees for cheques and other basic transactions. You’ll get a linked debit card, and can synch your account with Xero or MYOB accounting packages. It’s worth knowing that not all transactions are free - you’ll still pay extra for things like international ATM usage, or cross border payments. We’ll cover the fees you need to know about a little later.
This is an interest bearing account which is intended as a way for businesses to make their surplus funds work harder for them. You’ll still have easy access to your funds once you need them again, and can use NAB internet and phone banking to manage your money. There’s no monthly fee, but you may be charged for transactions made using the account.
NAB also have options for specialist accounts aimed at meeting the day to day banking needs of customers working in agriculture or running charity organisations.
You can open a business bank account with NAB if you are a sole trader, run a company or partnership, or have a different type of business such as a foreign registered company or trust.
You may be able to get your account up and running online if you’re a sole trader or run a company with no more than 2 directors. However, in all other cases you’ll need to attend a branch in person to provide documents and signatures.
Opening a NAB business account can be done online in some cases. If you’re a sole trader or run a company with no more than 2 directors, you can get set up online as long as you have a valid ACN/ABN, and 2 pieces of official identification such as a passport or driving license.
You’ll simply need to complete the online form and provide copies of your ID documents for validation. You’ll then be sent an SMS and an email with your log in details to get your account up and running.
If you’re not able to open your account online, you will need to visit a local branch to get started. There are helpful checklists on the NAB website which detail the documents and information you’ll need to prepare, so you can open your business bank account. You can expect to need to give the following:
- Full name, address and birth date for business owner or directors
- Name and address of business, and information about the type of work you do
- Registration details of the business - such as ACN/ABN or Australian Registered Body Number (ARBN)
- Identification documents for all owners and directors
It’s best to make an appointment in advance at your local branch so you can talk directly to a member of the business banking team.
When you’re comparing account options, it makes sense to think about how you’ll use your business account, including the features you need, and the types of transactions you are going to have to carry out. Check the small print to make sure the transactions you carry out frequently don’t come with high fees.
Here are some of the key NAB business banking costs you need to consider:
|Open an account||Free|
|Fees to maintain the account||Monthly fees vary by account. You may select a business account with no monthly fee and pay for every transaction you make, or choose an account with a $10 monthly charge and free regular transactions|
|Transaction fees||If you select a regular business account with transaction fees you’ll pay $2.50 for banker assisted deposits and withdrawals, and $0.60-$1 per non banker-assisted transactions|
|International Visa card fee||3% of the value of the payment|
|International Visa card ATM withdrawal fee||2% of the value of the withdrawal + $4 per withdrawal Balance enquiries at international ATMs cost $1|
|International payments||Payments made in a currency other than AUD attract a 1% Visa fee|
|Cash advance fee||2% - minimum $2.50|
Before you decide which account will work best for your business, take a look at the options available from TransferWise for business. TransferWise is a specialist in international payments, and offers a free multi-currency borderless account for business - perfect for companies with global ambitions. If you work with suppliers or customers overseas, or plan on building a remote team who may live elsewhere in the world, a borderless account can save you time and money.
You’ll be able to receive fee free payments in Australian, New Zealand and US dollars, British pounds, and euros, making it easier for you to connect with your international customers. Handy features like integration with Xero, an open API and batch payment facilities mean your borderless account will involve less admin, and leave you with more time to invest in growing the business you love.
You can contact the designated team for business banking with NAB by completing a form and asking for a call back, or dialling 13 10 12. You’ll also be able to call into your local NAB branch and talk to the team there.
If you’re interested in exploring other options, you can also check TransferWise help center page and learn more about its services.
Getting the right support for your business is essential - and having a business account which works for you can help you save time and money in the long run. Compare several different products and providers to make sure you get an account which suits your needs - and don’t forget to look at modern alternatives to traditional business bank accounts like the borderless account available from TransferWise for business.
Sources correct as of 19 August 2019
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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