Business bank features available

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Author: Melanie

Article source: http://www.articledeshboard.com/. Used with author's permission.

GST Business Offset Accounts: Some banks such as NAB offer a business account with a GST facility. This allows you to set aside the GST money you owe ready for remittance to the Taxation Office. It gives the businessperson peace of mind, knowing that commitment is taken care of. The offset facility links to the business overdraft account, thus reducing the amount of interest that must be paid on it.

Business Investment Accounts: these are linked to other business accounts and allow surplus funds - that are not needed from day-to-day - to be transferred automatically so that higher interest rates can be paid. Once you nominate a minimum balance to be kept in your transaction account, the excess is automatically transferred. Tiered interest rates apply, with no interest being paid under $5,000.

Offset Account: this is a savings account linked to a loan account. It is used to offset the amount of interest paid by reducing the principal of the loan. There may be a minimum balance required to invoke offset. In some cases you have to pay a higher interest rate for those loans with an offset facility, so it doesn't always work out. It may be better to have a redraw facility.

Find a business savings account or the latest savings account online at www.raboplus.com.au/business/default.aspx