Complete guide and comparisons to Westpac business account
This article covers:
- Types of Westpac business accounts
- Specialists Bank Accounts
- Business Debit Mastercard
- The Different Westpac Business Account Fees
- How to Open a Westpac Business Account
- Types of Corporate Banking Solutions
- Elevate Your Global Business Operations with Instarem
- Ready to make your business transaction with Instarem?
Nestled in the vibrant heart of Australia’s robust economy, businesses have witnessed tectonic shifts in the marketplace, driven by innovation, changing consumer behaviours, and the digital revolution.
As companies navigate these complex waters, they seek banking partners that are both grounded in experience and forward-looking in vision. Westpac, one of Australia’s most storied financial institutions, has consistently risen to the occasion, providing tailored banking solutions that cater to the unique needs of businesses, both big and small.
In this piece, we delve deep into the extensive suite of services that Westpac Australia’s business banking offers, illuminating how it has become an indispensable ally for enterprises in their journey toward growth and success.
Types of Westpac business accounts
Business transaction accounts
Westpac’s Business One is a testament to the bank’s commitment to simplifying business banking for its customers. Crafted meticulously, this everyday account is an entrepreneur’s ally, ensuring that managing business cash flow is a breeze. At no additional cost, businesses are offered an array of features tailored to modern banking needs. This includes unlimited free electronic transactions, providing flexibility and ease for digital-native enterprises. However, for those occasional times when you need staff assistance for a transaction, a modest fee of $3 is levied.
What truly sets Business One apart is the holistic banking experience it offers. With the ability to access business and personal finances through a singular application and in Online Banking, it seamlessly integrates the financial facets of a user’s life. Furthermore, the Business Debit Mastercard offers a tangible touchpoint for immediate transactions, while the eligibility for the EFTPOS Air mobile app extends its digital reach.
And for businesses seeking that extra financial cushion, there’s an optional overdraft facility, ensuring that they are always prepared for unforeseen expenses or ambitious expansions.
Business One Plus
Westpac’s Business One Plus stands as a comprehensive banking solution tailored to accommodate a diverse range of entities, from sole traders and partnerships to companies, associations, SMSFs, trusts, and not-for-profits. Particularly suitable for those needing an overdraft facility, this account offers an amalgamation of services that simplify financial management.
For a nominal fee of $10 monthly, account holders are entitled to unlimited electronic transactions at no additional charge, alongside 25 complimentary staff-assisted transactions. The seamless integration of both business and personal finances is made possible through a unified app and Online Banking interface.
The inclusion of a Business Debit Mastercard further augments transactional ease, and compatibility with the EFTPOS Air mobile app makes digital transactions effortless. The option of an overdraft facility ensures that businesses have the liquidity they need.
Besides that, Business One Plus account holders can also get discounts in areas such as energy, accounting software, legal services, online security, business support services and business electronics under Business One Plus partner offers.
Business Savings Accounts
Business Cash Reserve
The Business Cash Reserve offered by Westpac Australia stands as an instrumental financial tool for businesses aiming to judiciously set aside funds for prospective requirements. Tailored to provide the utmost convenience, this account guarantees uninterrupted 24/7 access, ensuring businesses can tap into their reserves at any time.
One of the standout attributes of the Business Cash Reserve is its cost-effectiveness, evidenced by the absence of account-keeping fees. This implies that businesses can maintain their savings without incurring recurrent charges.
Moreover, Westpac facilitates seamless liquidity management by eliminating fees associated with transferring money between the Business Cash Reserve and Westpac transaction accounts via Online Banking and the Westpac App. Companies are encouraged to make regular deposits, empowering them to progressively augment their savings.
The benefit of earning interest on surplus funds acts as an incentive, although it’s pertinent to note that zero interest rates could be implemented occasionally. Beyond the sheer accessibility to funds, Westpac further streamlines business operations by offering integration capabilities with leading accounting software such as Xero and MYOB via bank feeds, thereby simplifying accounting and reconciliation processes.
Business Term Deposit
Westpac’s Business Term Deposit offers businesses a secure way to grow their surplus capital with predetermined returns. Locking funds into this account assures attractive interest rates, with an online offer of up to 4.85% p.a. for durations of 12 to 23 months, and up to 4.20% p.a. for a 6-month term.
It’s a hassle-free investment avenue, letting businesses enjoy guaranteed growth without the unpredictability of market shifts. This strategic choice is ideal for businesses looking to optimise returns on their idle funds with minimal risk.
Farm Management Deposit Account
The Farm Management Deposit Account or FMD scheme is a government initiative that lets you build up cash reserves in the good years to help safeguard your future. You’ll earn a locked-in interest rate over the fixed term you’ve chosen, giving you the confidence of a regular income. Moreover, eligible income deposited into an FMD account for a year or more only becomes taxable when it’s withdrawn.
Specialists Bank Accounts
Foreign Currency Account
Westpac’s Foreign Currency Account offers a practical solution for businesses dealing in international transactions. This account allows businesses to make and receive payments in foreign currencies and choose the optimal time to convert these funds into AUD.
It integrates seamlessly with Westpac Online Banking, letting users view their foreign currency account alongside their other Westpac accounts.
Opening an account is straightforward, with an online setup available for 12 key foreign currencies including USD, ZAR, CAD, NZD, GBP, EUR, DKK, CNY, JPY, NOK, SGD, and HKD. For other currencies not available for online setup, businesses can visit their nearest Westpac branch for assistance.
Statutory Trust Account
Westpac Australia provides a specialised banking solution called the Statutory Trust Account for professionals who are legally mandated to hold client funds in trust. This includes solicitors, real estate agents, collection agents in Queensland, conveyancers, and settlement agents in Western Australia. The Statutory Trust Account is crafted to align with legal requirements, ensuring that professionals can seamlessly adhere to statutory obligations while managing client funds.
On opening such an account, you might need to present specific documentation or information to confirm compliance. Notably, the account offers 30 free transactions every month. It’s differentiated further based on the profession: Real estate agents across all states and collection agents in Queensland can use the “Statutory Trust – Real Estate Agents” account. Solicitors have the “Statutory Trust – Solicitors” account tailored for them, while conveyancers nationwide and settlement agents in Western Australia can opt for the “Statutory Trust – Conveyancers and Settlement Agents” account.
Project Trust Account and Retention Trust Account
For construction projects located in Queensland, Westpac offers two specific types of trust accounts to comply with the state’s legislative mandates: Project Trust Account and Retention Trust Account.
What’s a Project Trust Account?
The Project Trust Account is catered towards construction undertakings in Queensland to align with banking obligations set by the Building Industry Fairness (Security of Payment) Act 2017. Its primary purpose is to manage the financial flow related to a construction project.
For each project, a distinct account is created, ensuring that all payments under the construction contract are received seamlessly and contractors are paid duly.
What’s a Retention Trust Account?
On the other hand, the Retention Trust Account serves a slightly different purpose. When a construction contract specifies the need to hold certain cash amounts in retention, this account becomes a necessity.
Its main role is to securely keep cash retention amounts for qualifying contracts. The funds are held in the account until due payments are made to the respective contractors. Depending on the number of contracts and the specifics of each, you might need to open one or more Retention Trust Accounts to manage these retention amounts efficiently.
Business Debit Mastercard
Westpac offers businesses a unique way to manage their expenses with the Business Debit Mastercard. This card is tailored to help businesses keep track of their purchases and cash withdrawals seamlessly. Linked directly to your business bank account, the Business Debit Mastercard becomes an integral tool in depositing and withdrawing funds, as well as in conducting transactions.
Businesses can confidently make payments anywhere globally, thanks to its worldwide acceptance by merchants that support Mastercard.
Moreover, the card offers the convenience of withdrawing business cash internationally without incurring overseas withdrawal fees, specifically from ATMs affiliated with the Global ATM Alliance and certain partner ATMs, though other charges might still apply.
Some of the core benefits include:
- No Annual Fee: This debit card comes without an annual fee, though other specific fees might apply.
- Fraud Monitoring: Round-the-clock monitoring of transactions helps detect any irregular or suspicious activity, offering businesses a level of security and peace of mind.
- Contactless Transactions: For swift business purchases under $100, users can utilise the ‘tap and go’ feature.
- Card Management: Lost your card? Instead of rushing to cancel it, you can simply put a temporary block on it using the Westpac App or through Online Banking.
For businesses with diversified needs, the Business Debit Mastercard offers multiple benefits:
- Versatility: Businesses can order up to 12 cards per account, giving employees either full or restricted access as needed.
- Visibility: Track expenditures efficiently as individual cardholder transactions, identifiable by their card numbers, are consolidated on a single bank statement.
- Security Assurance: With the Westpac Fraud Money Back Guarantee, businesses are assured that they will be reimbursed for any unauthorized transactions, provided specific conditions are met.
Eligibility for the Business Debit Mastercard requires applicants and all signatories to be at least 18 years old. They should also be an account holder, signatory, or nominated by the account holder to receive a card. The business must operate in Australia with an Australian address.
The card needs to be linked to an eligible business account in the account holder’s name. Eligible accounts include Business One, Business One Plus, and Community Solutions One (for not-for-profit organizations).
For businesses new to Westpac, the Business Debit Mastercard is an attractive offering that comes included with eligible business accounts. Activation is simple, with options to do so over the phone or online for those with personal Online Banking.
The Different Westpac Business Account Fees
Business Transaction Accounts
Business One Plus
Number of free transactions/month
Transaction Fees (charge per transaction when number of free transactions per month is exceeded)
Cheques collected/ deposited
Overseas withdrawal fee
$5.00. Nil for cash withdrawals from ATMs belonging to Institutions in Global ATM Alliance.
Foreign transaction fee
3% of the AUD transaction amount where a transaction is made in a foreign currency and the merchant or financial institution accepting the card is located outside of Australia (comprising of 2% Westpac Processing Fee plus 1% Westpac On-Charged Scheme Fee)
2.2% of the AUD transaction amount where a transaction is made in foreign currency and the merchant or financial institution accepting the card is located in Australia (comprising of 2% Westpac Processing Fee plus a Westpac On-Charged Scheme Fee of 0.2%
Business Savings Accounts
Business Cash Reserve
Business Premium Cash Reserve
Number of free transactions/month
Unlimited transfers between other Westpac Business accounts held by the customer in the same name(s) as the Westpac Business Cash Reserve account using Online Banking or automated Business Telephone Banking only.
Transaction Fees (charge per transaction when the number of free transactions per month is exceeded)
Nil for withdrawals from the account to a Westpac Business account held in the same name(s) as the account. Otherwise, such withdrawal will incur a $5.00 fee per withdrawal.
These transactions are not available, however, if they occur, a $5.00 fee will be charged for each transaction.
These transactions are not available, however, if they occur, a $2.50 fee will be charged for each transaction.
Overseas Withdrawal Fee
Foreign Transaction Fee
How to Open a Westpac Business Account
Requirements for Opening a Westpac Business Bank Account
Westpac offers an array of business bank accounts tailored to cater to diverse business needs. If you’re considering opening one, here are the general requirements you need to meet:
- Age Limit: You must be 18 years or older.
- Business Registration: Your business must be registered in Australia. It’s mandatory to provide your Australian Business Number (ABN).
- Identity Verification: Be prepared to furnish official identification documents for an online identity check.
- Existing Transaction Account: If you aim to open a deposit account, it’s essential to have a business transaction account with Westpac already.
Do note that based on the specific type of account you wish to open, and depending on the nature of your business entity, you might need to provide additional documentation or information.
The Westpac website offers comprehensive details pertaining to each account type.
Procedure to Open a Westpac Business Bank Account
Opening a business account with Westpac is streamlined and user-friendly:
- Start Online: Begin by visiting the Westpac business account page.
- Choose Your Preferred Account: Navigate to the specific account type you wish to open and click on ‘open now’.
- Complete the Application: Follow the online prompts to fill out the application form, which typically takes about 10 minutes.
- Submit Identification: As part of the process, you’ll be prompted to upload or provide details of your identification for an online identity verification.
- Follow Up: After submitting your application, Westpac may get in touch if they require further information or once your account is successfully set up.
Remember, always ensure that you have all the necessary documentation at hand to streamline the application process. If you encounter any issues or have questions, Westpac’s customer service is available to assist you.
Procedure for Westpac Account Closure
Closing a business bank account involves certain steps to ensure that all obligations are met and the process is smooth. If you’re considering closing a Westpac business bank account, it’s advisable to first check with Westpac directly for the most accurate and up-to-date procedure.
However, based on general practices, here’s a basic guide on the procedure for closing a business bank account with Westpac:
- Review Your Account: Before initiating the closure, ensure there are no outstanding checks, pending transactions, or scheduled payments linked to your account.
- Settle Any Outstanding Amounts: Make sure your account is not overdrawn and any loan or overdraft associated with the account is settled.
- Switch Automated Payments and Direct Deposits: Redirect any automatic payments, direct debits, or incoming funds to your new bank account.
- Contact Westpac: Reach out to Westpac’s business banking department either by phone, online, or in person at a branch.
They may provide you with an account closure form to fill out.
Depending on the type of business account, certain documentation or approvals may be required.
- Obtain Confirmation: Once the closure request is processed, obtain a written confirmation from Westpac indicating that your account has been closed and no fees will be assessed going forward.
- Destroy Any Associated Debit or ATM Cards: To prevent potential fraud or misuse, securely destroy any cards linked to the closed account.
- Retain All Documentation: Keep all the account statements and the account closure confirmation for your records. This can be helpful for tax purposes or in case any disputes arise in the future.
- Monitor the Closed Account: It’s a good idea to monitor the closed account for a little while to ensure no accidental charges are posted.
Remember, always communicate with Westpac throughout the process. They can provide specific guidance tailored to your unique account type and situation.
Types of Corporate Banking Solutions
Corporate & Institutional
Westpac offers a dedicated team for larger businesses, assisting them in identifying and harnessing new opportunities. With the help of industry specialists, tools like Westpac DataX, and the Westpac IQ platform, enterprises can effectively navigate their sector’s nuances.
Geared towards the various stages of a business’s lifecycle, Westpac provides a suite of tailored solutions. These include tools and services that:
- Connect businesses to global markets.
- Streamline management of working capital, receivables, and payables.
- Integrate new payment platforms and procurement solutions, like Coupa.
Westpac offers a diverse range of financial market products and services. These cater to retail, corporate, and institutional clients and encompass areas such as:
- Foreign exchange, commodities, credit, and rates.
Debt capital market services.
- Insightful economics, strategies, and niche markets like carbon and green-tailored deposits.
Corporate & Structured Finance
Specialists in this domain arrange finance suited to various industries. The range of services includes:
- Loans, syndications, structured finance, and securitization.
- Unique solutions like asset finance, acquisition finance, sustainable finance, and more.
Trade & Supply Chain Finance
Westpac offers a comprehensive suite for businesses eyeing international horizons. With products and expertise in both domestic and global trade, services range from:
- Cash Flow management and structured trade finance.
- Aiding with import, export, and specific platforms like WinTrade.
A dedicated online banking platform for corporate and business customers hailing from Australia, New Zealand, Papua New Guinea, and Fiji. With Corporate Online, users can efficiently view, manage, and transact on their accounts, streamlined for their unique regional needs.
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Additionally, bulk payments handling up to 1,000 transactions has been streamlined, and there’s seamless integration with QuickBooks for accounting purposes. For businesses with multiple stakeholders, an internal approval process can be easily established, enhancing payment oversight.
Overall, Instarem offers greater flexibility and convenience for managing financial transactions, enabling users to be more mobile and efficient in their business operations. It simplifies the payment process, streamlines accounting integration, and provides tools for better oversight and approval within the organization.
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All details are accurate at the time of publishing. Instarem has no direct relationship with the products or vendors mentioned. Pricings are taken from the relevant website on 11 October 2023.
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