Most business bank accounts pay almost no interest, but the gap between the best and the worst is now huge. Some business savings accounts pay over 5% a year, while the big banks’ standard business accounts still pay well under 1% on smaller balances. If your business keeps spare cash sitting in an everyday account, that gap is money you are leaving on the table. This guide explains how business banking interest rates work, what rates are on offer right now, and how to earn more on your business cash without locking it away when you need it.
Quick answer: As of November 2026, the best business savings rates sit around 4.90% to 5.55% a year, with the highest rates usually being short introductory offers. The Reserve Bank lifted the cash rate to 4.85% on 3 November 2026, its fifth rise this year, which is why savings rates have climbed. Business term deposits pay up to about 5.60% for a 12-month term, but your money is locked away for the term.
What Are Business Banking Interest Rates?
A business banking interest rate is the rate a bank pays you for keeping your business money with it. It works the same way as interest on a personal savings account, but the products are built for businesses: sole traders, partnerships and companies.
There are three main ways a business earns interest:
- Business savings accounts — at-call accounts that pay a variable rate. You can withdraw money when you need it, but the rate can change at any time.
- Business term deposits — you lock a lump sum away for a set period, from a few months to a few years, and earn a fixed rate for that term.
- Business transaction accounts — everyday accounts for paying bills and receiving income. Most pay little or no interest, which is why spare cash should not sit in them for long.
Interest earned on business accounts is generally treated as business income for tax purposes, so keep your interest statements for your tax return. Rates are quoted as a yearly rate, written as “% p.a.”, and interest is usually calculated daily and paid monthly.
Business Savings Account Rates Right Now
The rates below were current in early November 2026. Rates change often, so always check with the bank before you open an account.
| Account | Rate | What to know |
|---|---|---|
| Rabobank High Interest Savings Account (Business) | Up to 5.55% p.a. | 4-month introductory rate for new customers, then 3.55% standard on balances up to $1 million. No monthly account fees. |
| Judo Bank Business Savings Account | 5.10% p.a. | On balances up to $250,000, then 4.40% up to $2 million. At-call, no monthly fees. Not open to sole traders. |
| AMP Bank GO Business Save | 5.00% p.a. | On balances up to $500,000. Needs a linked AMP Bank GO everyday business account. |
| Macquarie Business Savings Account | 4.90% p.a. | Ongoing variable rate on balances up to $2 million. No monthly fees and no minimum deposit. Open to sole traders and companies. |
| CommBank Business Online Saver | 0.55% to 1.55% p.a. | Tiered rate that rises with your balance. Needs a linked CommBank business transaction account. |
| St.George Business Access Saver | 0.55% to 1.45% p.a. | Tiered rate based on your balance, from $0 up to $1 million and above. |
The pattern is clear: smaller and online-focused banks pay far more than the big four on business savings. The big banks’ standard business savings rates are still under 2% for most balances, while the challengers pay close to 5%.
Business Term Deposit Rates Right Now
If you can set money aside for a fixed period, a business term deposit usually pays more than an at-call savings account. The best 12-month business term deposit rates in November 2026 were:
- Bank Australia — 5.60% p.a. for 12 months
- Great Southern Bank — 5.50% p.a. for 12 months
- ING — 5.45% p.a. for 12 months
- CommBank Business Investment Account — 5.30% p.a. for 12 months
Shorter terms pay less. For example, 6-month rates from the same banks sit around 5.15% to 5.40%, and 3-month rates are lower again. Term deposits suit money you know you will not need, like a tax reserve or a deposit for a planned purchase. If you break a term deposit early, you usually lose some or all of the interest, and some banks charge a fee.
Why Business Rates Differ From Personal Rates
Business savings rates are often a little lower than the best personal savings rates, and there are a few reasons for that. Banks see business deposits as less sticky than personal savings, because businesses move money in and out to pay wages, suppliers and tax. Some accounts also have conditions, like needing a linked transaction account, or are only open to certain business types, such as companies with an ABN.
Another difference is how tiered rates work. Some accounts pay a different rate on each slice of your balance, so only the part above a threshold earns the higher rate. Others pay one rate on your whole balance based on which tier you reach. Before you compare two accounts, check which method the bank uses, because it changes what you actually earn.
How to Earn More Interest on Business Cash
1. Move spare cash out of your transaction account
Your everyday business account is for paying bills, not for saving. Keep enough in it to cover the next few weeks of expenses, and sweep the rest into a high-interest business savings account. Even a few thousand dollars earns real money at 5%.
2. Watch out for introductory rates
The highest headline rates are often introductory offers that last three or four months, then drop to a much lower standard rate. Rabobank’s 5.55% rate, for example, falls back to 3.55% after four months. Set a reminder to review your rate when the intro period ends.
3. Match the account to your balance
Some accounts pay their best rate only up to a limit, then drop sharply above it. Judo Bank pays 5.10% up to $250,000 but only 1.75% on the part above $2 million. If your business holds large balances, split the money across accounts or banks so more of it earns the top rate.
4. Use term deposits for money with a known date
Tax bills, GST payments and planned purchases have fixed dates. Money set aside for them can sit in a term deposit that matures just before the money is due, earning a fixed rate in the meantime.
5. Check the government guarantee
Under the Financial Claims Scheme, deposits of up to $250,000 per person per bank are guaranteed by the government if the bank fails. For companies, the guarantee applies per company per bank. If your business holds more than $250,000 in one bank, spreading it across banks can keep more of it covered.
Things to Watch Before You Switch
A higher rate is not the whole story. Check the monthly account fees, because a fee can eat the extra interest on a small balance. Check whether you need a linked transaction account with the same bank, and whether the account is open to your business type — some accounts exclude sole traders or trusts. Also check how you can access the money: some business savings accounts are online-only, with no branch or cheque access.
Finally, remember that rates move. The cash rate rose five times in 2026, and banks pass those changes on at different speeds. A rate that is best today may not be best in three months, so review your business savings at least twice a year.
Frequently Asked Questions
What is a good business savings interest rate right now?
In November 2026, a good business savings rate is around 4.90% to 5.10% a year on an ongoing basis, with short introductory offers reaching 5.55%. Anything under 2% is well below the best rates on offer.
Do business bank accounts pay interest?
Business savings accounts and term deposits pay interest, but most everyday business transaction accounts pay little or none. To earn interest, you need a dedicated savings or term deposit account for your business.
Can a sole trader open a business savings account?
Yes, many banks welcome sole traders, including Macquarie and AMP Bank. A few, such as Judo Bank, only accept companies, trusts and incorporated associations, so check the eligibility rules before you apply.
Is interest on a business account taxable?
Yes, interest earned on a business account is generally treated as business income and must be declared on your tax return. Your bank will send you an interest statement at the end of the financial year.
Are business term deposits better than business savings accounts?
Term deposits usually pay a slightly higher fixed rate, but your money is locked away. Savings accounts pay a variable rate and let you withdraw at any time. Many businesses use both: a savings account for flexible cash and term deposits for money with a fixed date, like a tax bill.
This article is general information only and is not personal financial advice. Interest rates change often and vary by bank, balance and business type. Check the current rate and the product terms with the bank before you open an account, and talk to your accountant or financial adviser if you need advice for your situation.
