Top Business Bank Accounts For Small Businesses In South Africa

by | 10 Apr 2024

Starting a small business in South Africa is an exciting journey filled with possibilities, but it also comes with its fair share of challenges. One crucial aspect often overlooked in the initial stages is choosing the best business bank account. Many entrepreneurs underestimate the importance of this decision, but the truth is that selecting an appropriate business bank account can significantly impact the success and financial health of your venture.

Importance of Choosing the Right Business Bank Account

A well-suited business bank account offers tailored services, aids in effective cash flow management, and provides vital assistance during financial hurdles. Moreover, it streamlines operations, saving time and effort that can be directed towards business growth. With features like payment management, credit access, and international transactions, a reliable business bank account acts as a backbone for your business. Additionally, it ensures proper financial management by separating personal and business finances.

In this guide, we’ll delve deeper into the factors to consider when choosing a business bank account in South Africa and compare some of the top options available.

Key Features to Consider

Below we’ve listed the essential aspects to keep in mind when evaluating business bank accounts in South Africa. From account fees and transaction limits to online banking services and accessibility, researching these key features is crucial for making an informed decision that aligns with your business requirements.

  • Monthly Account Fees
  • Transaction Limits and Fees
  • Online Banking Services
  • Accessibility, Support and Branch Network
  • Interest Rates on Deposits
  • Overdraft Facilities and Credit Options

 

Absa

Absa offers several bank accounts suitable for small businesses with an annual turnover of up to R20 million. Their entry-level Business Evolve Lite account has zero monthly fees and is available to Sole proprietors and PTY Ltd companies with an annual turnover of up to R5 million.

First National Bank

FNB offers several bank accounts suitable for small businesses with an annual turnover of between R0 – R60 million. Their entry-level First Business Zero account has zero monthly fees and is available to Sole proprietors with an annual turnover of up to R5 million. For PTY Ltd companies with an annual turnover of up to R5 million, a Gold Business Account costs R83 per month.

Nedbank

Nedbank offers a Startup Bundle for sole proprietors and private companies with a single director and a turnover of less than R3 million per year. This has zero monthly fees for six months, thereafter R70 per month.

Standard Bank

Standard Bank offers an entry-level MyMoBiz Account at just R7 per month on pay-as-you-transact pricing. A Business Current Account is also available at R85 per month with additional support and features.

Alternatives to the “Big Four” banks

The newest entrants, Bank Zero, Tymebank, and Lula all offer a standard business account regardless of turnover with zero monthly fees. While Capitec offers a standard transactional account for all businesses at R50 per month.

Comparing South Africa’s Business Bank Accounts

Bank Account Monthly Fee
Absa Business Evolve Lite R0
First National Bank First Business Zero R0
Nedbank Startup Bundle R70
Standard Bank MyMoBiz Account R7
Capitec Business Account R50
Bank Zero Business Account R0
Lula Business Account R0
TymeBank Business Account R0

Good to know

To apply for a business bank account, your company needs to be formally registered before you apply. Company registration with the CIPC is a simple process that can be completed online. When you register your company online through 1-grid, you’ll receive official CIPC documentation, domain registration, web hosting, professional email, and a website builder for six months with a convenient one-off payment. Don’t miss out on this opportunity to kickstart your business journey with ease.

View company registration