Business Savings Accounts and Term Deposits: Rates 2026

Business savings rates in Australia ran from 0% on small balances to 5.15% on 17 October 2026, and the big four's online savers paid no more than 1.55%. Twelve-month business term deposits paid 4.75% to 5.55%. Before you choose, check three things: whether the money is inside the $250,000 Financial Claims Scheme cap, how much notice you need to get it back, and how the interest will be taxed.

This page compares savings accounts, notice accounts and term deposits from 16 providers, using rates from each provider's own site checked on 17 October 2026. It is general information, not financial product advice, and it doesn't consider your circumstances. Read each product's terms and target market determination before you invest, and consider advice for large balances.

Savings, notice account or term deposit?

Most businesses use more than one. Tax money sits at call because the BAS date is fixed, a buffer may sit on notice, and money for a known future purchase can be fixed until that date. Our guide to setting a cash buffer helps you size each part.

Business savings account rates

Variable rates as at 17 October 2026 (dates shown by each provider are in the source note). Rates marked "whole balance" pay one rate on every dollar once you reach a tier. AMP pays each rate only on the part of the balance inside that tier.

Two patterns stand out. CommBank, ANZ and Westpac pay their highest saver rates only on balances of $250,000 or more, and the higher-rate accounts are mostly with providers where you would open a second banking relationship. A transfer from another bank may not arrive as quickly as one between linked accounts at the same bank (CommBank says transfers to its linked saver are near real-time), so allow time when you schedule a BAS payment.

Some payment platforms advertise returns on balances. Airwallex's pricing page showed "4.02% AUD" returns through its Yield product on 17 October 2026. Airwallex is not an ADI, so the Financial Claims Scheme doesn't apply, and you should read the product disclosure statement to see what the money is invested in.

Notice accounts and why they exist

A notice account sits between at-call savings and a term deposit. You can add money whenever you like, but you must give notice before withdrawing and then wait. In the two business notice products below, a longer notice period paid a higher rate on 17 October 2026.

Notice accounts suit money you won't need this month but don't want to lock up for a year, such as a reserve for an annual insurance renewal or a planned equipment purchase. Note the CommBank detail: once you give notice, the rate on that money drops while you wait. Don't park GST or PAYG money in a notice account unless the notice period ends well before the due date.

Business term deposit rates

Fixed rates as at 17 October 2026, interest paid at maturity unless marked annual. "n/o" means the provider doesn't offer that term.

Rates are for the standard deposit band (generally $5,000 up to $1 million or $2 million). Westpac's 5.20% is a limited-time special for existing customers. Macquarie and BOQ each showed a 2.00% two-year rate and no effective date, so confirm those directly. Rabobank adds 0.10% when a deposit is reinvested automatically before maturity.

The big four's short terms are the outlier. Their published 3- and 6-month rates sat between 3.25% and 3.55% on 17 October 2026, against 4.70% to 5.35% at the other providers listed. Their 12-month rates were much closer to the rest. If you roll short-term deposits with a major bank out of habit, compare the rate on each rollover.

What it costs to break a term deposit

Every provider above that publishes its terms requires 31 days' notice to withdraw early, except in hardship. The interest is then reduced. NAB's terms set the reduction by how much of the term is left:

ING uses the mirror image: it cuts the rate by 90% if less than 20% of the term has passed, falling to a 20% cut in the last fifth of the term. ANZ and CommBank add a $30 fee, BOQ halves the rate and charges $30, and Macquarie takes 25% of the interest earned.

Illustrative example. You put $100,000 into a 12-month NAB term deposit at 5.30%, give notice, and withdraw after 182 days, leaving 183 of 365 days (50.1% of the term).

In this example, breaking the deposit earns $1,510.85 less than leaving the money at call would have. Fix only the money you are confident you won't need, and match the maturity date to when you will need it.

How the Financial Claims Scheme cap works for business money

APRA says the Financial Claims Scheme protects deposits up to $250,000 for each account holder at each ADI incorporated in Australia. It covers transaction, savings and cheque accounts and term deposits. Four details matter for businesses:

1. Each entity has its own cap. A company, trust or SMSF is its own account holder. A sole trader's business savings are in your own name, so they add to your personal deposits at the same ADI.
2. Interest counts. APRA says the entitlement includes interest up to the date the scheme is declared, so leave headroom below $250,000 for interest that builds up.
3. Brands share a licence. APRA lists Bankwest under CommBank, and St.George, Bank of Melbourne and BankSA under Westpac. Money across those brands shares one cap.
4. Foreign currency is excluded. The scheme doesn't cover deposits in foreign currencies, even at an ADI.

Illustrative example. A company holds $600,000. Kept at one ADI, $350,000 is above the cap. Split as $240,000, $240,000 and $120,000 across three ADIs on separate licences, every dollar is inside a cap with room for interest. Check each provider on APRA's list of covered ADIs, which names the trading brands under each licence.

Zeller says its savings account is not protected by the scheme, and Airwallex is not an ADI. If you use a platform for payments, our business bank account comparison shows each provider's status.

Use separate savings for GST, PAYG and super

Some of the money in your transaction account belongs to someone else: GST you've collected, PAYG you've withheld from wages, and your own income tax. Sweeping it into a savings account the day it arrives keeps it out of the spending balance and earns interest until the due date.

Illustrative example: interest on a tax account. A business holds an average of $15,000 in its tax account over a 92-day quarter.

Rates as at 17 October 2026. The interest is taxable, and a separate bank means slower transfers. Some owners accept a lower rate to keep the tax account at the same bank as their transaction account for instant transfers. Either way, reconcile the balance to what you actually owe each quarter. Our guide to checking your tax reserve shows how, and GST and BAS explained covers what goes in.

Transfers between your own accounts are not income or expenses in your books. Record them as transfers with our guide to transfers between business bank accounts.

How interest is taxed: sole trader vs company

The ATO says bank interest is assessable income, and banks report the interest they pay to the ATO. How much tax you pay depends on who holds the account.

Individual rates exclude the Medicare levy, which the ATO lists separately at 2%. Company tax is not the end of the story, because profits paid out to owners are taxed again in their hands, with franking credits. Your accountant can show the full picture.

Two rules catch companies out:

• Passive income test. A company is a base rate entity only if its aggregated turnover is under $50 million and no more than 80% of its assessable income is base rate entity passive income. Interest counts as passive income. A company that mostly holds cash can end up paying 30%. See company tax rate: 25% or 30%.
• TFN or ABN withholding. If you earn $120 or more in interest a year and haven't quoted a TFN or ABN or claimed an exemption, the bank withholds tax at the top rate plus Medicare levy. The ATO says an organisation may quote its ABN instead of its TFN only if it made the investment while carrying on an enterprise. You can claim the amount withheld as a credit in your tax return.

Sole traders can read more in sole trader tax.

Paying down debt instead of saving

If your business has a loan or overdraft, compare the interest you'd earn with the interest you'd save by reducing the debt. Savings interest is taxable and business loan interest is generally deductible, so for most businesses comparing the two rates directly is a fair first test. Before you clear a facility, check whether you can draw the money again quickly, because cash in a savings account is available and a repaid loan may not be. Our guides to tracking overdraft headroom, overdraft vs line of credit and business loans cover the trade-offs.

How to choose where to put business cash

1. Split the money by when you'll need it: tax money (fixed dates), buffer (unknown date), surplus (known future use).
2. Keep tax money at call. A notice period or term deposit that ends after the BAS date creates a problem you don't need.
3. Count the eligibility rules. Many business savers need a linked transaction account at the same provider, and some exclude sole traders or trusts.
4. Look past introductory rates. Rabobank, BOQ and ING advertise intro rates that revert after four to six months. Diarise the revert date.
5. Stay inside the cap. Keep each entity under $250,000 per ADI, allowing for interest and shared brands.
6. Match term deposits to a date. If you can't name the date you'll need the money, a notice account or at-call saver may suit better.
7. Give the bank your TFN or ABN on every interest-bearing account.

What changed in 2026

• Payday super started on 1 July 2026. Super is now paid for each payday, so the quarterly super pile in many tax accounts has gone.
• Revolut became an ADI in July 2026, and its business savings tiers are now inside the Financial Claims Scheme for eligible AUD balances, according to Revolut.
• Zeller changed its savings rate on 1 October 2026 to 2.5% plus a 2.5% bonus on new money. Zeller says the account is outside the scheme.

Key takeaways

• Ongoing business savings rates ran from 0% on small balances to 5.15% as at 17 October 2026, and the big four's online savers paid no more than 1.55%.
• Big four 3- and 6-month business term deposits paid 3.25% to 3.55%, against 4.75% to 5.30% for 12 months.
• The Financial Claims Scheme covers up to $250,000 per account holder per ADI, including accrued interest. Brands under one licence share one cap.
• Breaking a term deposit needs 31 days' notice and usually cuts the interest. At NAB, half-way through a term you keep 40% of the interest earned.
• Interest is assessable income: taxed at your marginal rate as a sole trader, or at 25% or 30% in a company. Give the bank your TFN or ABN.
• A separate tax account for GST, PAYG and income tax earns interest while you wait for the due date and keeps that money out of everyday spending.

Where to get help

• APRA: Financial Claims Scheme information and the list of covered ADIs.
• ATO: tax on bank interest and quoting your TFN or ABN.
• Moneysmart (ASIC): plain-English guides to savings and term deposits at moneysmart.gov.au.
• Australian Financial Complaints Authority (AFCA): free dispute resolution with banks, at afca.org.au.
• Your accountant or registered tax agent: how much to set aside for tax, and whether holding cash in a company affects its tax rate.

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