Best Bank Accounts for Sole Traders
Find the perfect business bank account for your sole trader business. Compare low-fee options designed for freelancers and independent contractors.
What Sole Traders Need in a Business Account
✅ Essential Features
- • Low monthly fees (under $15)
- • Reasonable free transaction limits
- • Easy online banking and mobile app
- • EFTPOS and internet banking included
- • Simple account opening process
- • Good customer service
💡 Nice to Have
- • Invoicing and accounting integrations
- • Multiple savings accounts
- • Business credit card options
- • Overdraft facilities
- • Tax management tools
- • Business advice and resources
Top Sole Trader Account Recommendations
Kiwibank
Pros:
- • Lowest monthly fee
- • 100% NZ owned
- • Simple setup
Cons:
- • Limited free transactions
- • Fewer branches
ASB
Pros:
- • Excellent mobile app
- • Good digital tools
- • Easy online banking
Cons:
- • Higher monthly fee
- • Transaction fees add up
ANZ
Pros:
- • Large branch network
- • Comprehensive services
- • Good business support
Cons:
- • Higher fees
- • More complex setup
What You Need to Open an Account
Opening a business account as a sole trader is straightforward. Here's what most banks require:
📋 Required Documents
⏱️ Timeline & Process
Pro Tip: Have your initial deposit ready ($100-500 minimum for most accounts) to activate your account immediately upon approval.
Sole Trader Banking FAQ
Do I need a business account as a sole trader?
While not legally required, it's highly recommended. A business account helps separate personal and business finances, makes tax calculations easier, and looks more professional to clients and suppliers.
Can I use my personal account for business?
Yes, but it's not ideal. Mixing personal and business transactions makes accounting difficult, especially for tax purposes. Banks may also restrict business use of personal accounts.
What's the cheapest business account for sole traders?
Kiwibank offers the lowest monthly fee at $5, making it ideal for sole traders with low transaction volumes. For higher transaction volumes, compare the total costs including transaction fees.
How many transactions do sole traders typically need?
Most sole traders need 15-30 transactions per month, including customer payments, supplier bills, and business expenses. Choose an account with adequate free transactions for your volume.
Do I need business registration to open an account?
Not if you trade under your own name. However, if you use a business name (like "John's Plumbing"), you'll need to register it first and provide the registration certificate.
Ready to Choose Your Sole Trader Account?
Compare all business accounts or use our calculator to find the most cost-effective option for your business.