The ultimate guide on how to choose a bank account.
If you’ve never chosen a bank for yourself, you need to read this. There are many of you who simply bank with the bank as your parents or never bothered to switch from your Dollarmites account with the hope that it will be less of a hassle. However, you could end up in a far worse financial situation. Here’s a list of things you need to know when choosing the right bank for you.
Things to know when choosing the right bank for you
Everyday transaction accounts
Types of bank accounts
About transaction accounts
Best transaction accounts
How to open an account
Savings accounts
About savings accounts
Save more money
Different types of savings accounts
Traps and pitfalls of savings accounts
Is there more than one type of bank account?
In Australia, there are generally two main types of bank accounts: everyday transaction accounts and savings accounts. Let’s take a closer look at the features of each type of account.
Transaction accounts
A transaction account or demand deposit account is available for frequent and immediate access by the account owner or to others as directed by the account owner. Think of it as an everyday account. If you want to purchase something, you would typically use this type of account.
Here are the common features of transaction accounts.
EFTPOS facility. This feature allows you to perform transactions via EFTPOS with your linked debit card
Linked debit card. This is the small plastic card that is linked to your account and lets you spend and deposit your money – usually either Visa or MasterCard.
ATM access. This feature allows you to make ATM transactions.
Internet banking. This feature allows you to go online to access your account details and make transactions.
Branch access. This feature allows you to process transactions in a bank branch.
Cheque book. This feature allows you to make purchases with cheques.
BPAY. BPAY is a facility that allows you to pay bills online using an allocated account and reference number. Funds are withdrawn directly from your transaction account and credited to the company that issued the bill.
Special benefits of everyday transaction accounts
There are several special benefits attached to some transaction accounts:
Earn points for gifts: With a Bankwest Rewards Transaction account, you can earn points so you can choose from plenty of gifts such as Woolworths or Caltex vouchers, to flights, food and wine. You receive five points for every purchase you use your Debit MasterCard and 10 points for some overseas purchase.
Frequent flyer rewards: Frequent flyer cards have become very popular and suit people who travel often and look for a cheaper way to fly. Each card will have its affiliated airlines. You may be able to gain points while shopping. Some petrol service stations offer frequent flyer points every time you fill up.
Cash back: This is a form of incentive offered to buyers of certain products whereby they receive a cash refund after making their purchase. With an ING Direct account, you can get a 2% instant cash rebate on purchases of $100 or less using Visa payWave. In order to keep the 2% cash back, you’ll need to deposit at least $1,000 into your transaction or savings account.
Travel perks: Most transaction accounts offer global ATM access, however, there might be fees attached to every withdrawal. With the Citibank Plus account, there are no transactional fees whatsoever. You can access global Citibank ATMs completely free of charge.
Rates last updated February 17th, 2016
Monthly Deposit
$
Monthly Account Fee
Debit Card Access
ATM Withdrawal Fee
Fee Free Deposit p.m.
Details
NAB Classic Banking
Only bank from the big four in Australia to truly waive monthly fees.
Visa
$0
$0
No fees when using a NAB or RediATM and $0 overdrawn fees.
Open
More
Citibank Plus Everyday Account
Enjoy 5% cash back on Visa payWave purchases (conditions apply)
Free international money transfers and free overseas Citibank ATM withdrawals
Visa
$0
$0
No ATM fees using Citibank, Westpac, BankSA and St.George branded ATMs in Australia. Use overseas Citibank ATMs for free.
Open
More
Bankwest Qantas Transaction Account
Earn up to 10,000 Bonus Qantas Points for new customers.
Earn Qantas frequently flyer points for spending and having a balance. Free membership available! Conditions apply.
Mastercard
$0
$2,000
No monthly fees (conditions apply). Free access to Bankwest and CommBank ATMs in Australia. No overseas ATM withdrawal fees (charged by Bankwest) though third party fees may apply.
Open
More
ING DIRECT Orange Everyday Account
Get up to 2% cash back on Visa payWave purchases.
Use any ATM in Australia for free (conditions apply).
Visa
$0
$1,000
No monthly fees, and you can use any ATM in Australia for free when you deposit $1,000 each month e.g your salary.
Open
More
ANZ Access Advantage
Open ANZ Access Advantage account and enjoy unlimited transactions at ANZ ATMs, EFTPOS, Internet, Mobile and Phone Banking.
Visa
$0
$2,000
No monthly account fee when you deposit at least $2,000 per month.
Open
More
HSBC Day to Day Transaction Account
Receive up to 5% cash back on all payWave purchases under $100.
Your Visa debit card unlocks special privileges worldwide with the HSBC home&Away Privilege Program.
Visa
$0
$0
No ATM fees at over 3,000 HSBC, Westpac, St.George, Bank of Melbourne and BankSA ATMs.
Open
More
ME Bank EveryDay Transaction Account
No monthly account keeping fees, free access to any ATM in Australia – get your fee refunded within 30 days.
Mastercard
$0
$0
No fees when using any ATM in Australia – you'll get a refund within 30 days for any fees you pay for an ATM.
Open
More
Bankwest Easy Transaction Account
Pay no ATM fees at over 10,000 ATMs in Australia (conditions apply).
Mastercard
$0
$2,000
Minimum deposit of $2,000 per month needed to waive the monthly account fee otherwise $6 monthly fee applies. No ATM fee applicable at Bankwest, CBA, NAB, ANZ, Westpac, St.George, BoM and BankSA ATMs in Australia.
Open
More
Westpac Choice
Pay no ATM withdrawal fee at over 50,000 ATM globally via Westpac's Global ATM Alliance. Get Cash without your debit card (conditions apply).
Mastercard
$0
$2,000
No ATM fees when using St.George, Westpac, BankSA or Bank of Melbourne ATMs in Australia. Deposit at least $2,000 per month and enjoy no monthly service fee.
Open
More
BankSA Complete Freedom Account
Open one in less than 5 minutes with Cardless Cash available.
Visa
$0
$2,000
No monthly account keeping fees when you deposit at least $2,000 in the account each month. Free access to BankSA, St.George, Westpac and Bank of Melbourne ATMs.
Open
More
St.George Complete Freedom Account
Cardless Cash available with an SMS and email alert system.
Visa
$0
$2,000
No account keeping fees, if you deposit $2,000 per month plus no minimum balance required. No ATM fees when using St.George, Westpac and BankSA ATMs.
Open
More
Bank Australia Everyday Access Account
Everyday bank account that's potentially fee-free.
Visa
$1.50
$2,000
Access to over 3,000 rediATMs. No monthly fee if you at least deposit $2000 per month, or have a loan or investment of $50,000 with Bank Australia, or are under 25 years of age.
Open
More
BankSA Express Freedom Account
Get Cardless Cash, free SMS and email alerts.
Visa
$0
$1,000
Avoid ATM fees when using BankSA, St.George, Bank of Melbourne and Westpac ATMs. Avoid the monthly fee if you deposit $1000 into this account each month.
Open
More
Bank of Melbourne Complete Freedom
Get Cardless cash and shop securely with your Visa debit card. Customise SMS and email alerts.
Visa
$0
$2,000
No ATM fees when you use Bank of Melbourne, BankSA, St.George or Westpac ATMs. No monthly fees when you deposit at least $2000 into this account each month.
Open
More
Bank of Melbourne Express Freedom
Get Cardless Cash and PAYG branch and cheque services.
Visa
$0
$1,000
No ATM fees when you use Bank of Melbourne, St.George, Westpac and BankSA ATMs. No monthly fees if you deposit $1000 into your account each month.
Open
More
BankSA Sense Everyday Account
Save and budget – get two accounts working together and save faster.
Visa
$0
$2,000
Use over 3000 BankSA, St.George, Bank Of Melbourne and Westpac ATMs in Australia for free.
Open
More
Top 10 factors to consider when choosing an everyday bank account
Are there any monthly fees? Check to make sure that you don’t fall into this trap. There are many banks that offer fee-free accounts.
Does your bank have a large number of ATMs?
Does your bank have a national network of branches?
Are you eligible for a student account that does not charge any monthly account fees?
Eligibility criteria for certain accounts. You’ll typically need to be 18 years or older to open most Australian bank accounts. Other eligibility requirements may include Australian citizenship or permanent residency, a good credit rating and a minimum annual income.
Currency conversion fees and International Money Transfer (IMT) fees. Some banks will charge you expensive fees for transferring foreign currency. These fees quickly add up, so look for a bank that charges minimal fees.
Minimum deposits. Some banks require you to make a minimum deposit in order to open an account. Others will require you to make regular deposits of a certain amount to ensure that your account remains active.
Does the account include a Visa or MasterCard debit card at no extra cost so you can shop online with your own money?
Beware of freebies. There’s no such thing as a free lunch. Banks use freebie incentives as the carrot to get you through the doors. If you’re a student or someone new to the banking world, don’t be fooled by the free giveaways.
Shop around. It’s OK if you don’t find the bank you want right away. It may take some time to sort through all the features of different banks. It’s all part of the process. Banks may have changed since you last used them or if you’ve never used one, it’s a good idea to shop around until you’re satisfied.
How do I open an everyday transaction account?
The process is very easy – it usually goes as follows:
Most banks will allow you to open an account through its website. You’ll need to supply identification such as a driver’s licence or any other government ID.
When your application has been processed and approved, you’ll be notified and given the details of your new account so that you can transfer money into it.
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What are some of the best transaction accounts?
Although transaction accounts differ between providers, they all serve the same basic purposes. Take a look at some of the best transaction accounts available.
NAB Classic Banking account
This transaction account is designed to make your money easy to manage for day-to-day use. Before you apply for an account, compare the features below with the features available in other accounts.
Rates and fees. There are no monthly account fees – ever. There are no overdrawn fees and no direct charges when you use NAB ATMs or rediATMs. Owners of other ATM networks (not in the NAB network) may charge you for using their ATMs. In those cases, a message will appear on the screen and show you how much you’ll be charged if you continue with the transaction. There’s a $5 fee for every withdrawal from an ATM overseas. A $3 fee applies for cash withdrawals or purchases in currencies other than Aussie dollars.
Unlimited access to your money. You can access your account through Internet and phone banking, by visiting any NAB branch, through NAB’s ATM network, by EFTPOS and an optional chequebook.
Use money easily and safely. Shop wherever Visa is accepted using your own money with a NAB Visa Debit card. You can pay for smaller purchases under $100 using payWave. It’s safe and quick.
Protection. The security of your account is protected by NAB Defence. This program monitors your account for high-risk transactions and lets you know about suspected fraudulent activity. If you’re a victim of fraud, NAB will reimburse you 100% of any amount taken from your account.
Deposits. There are no minimum deposits you need to make to keep your account active.
Citibank Plus Everyday account
This transaction account is an everyday account with no monthly or transactional fees. Compare the features below:
Flexibility. You have unlimited fee free transactions and no minimum opening balance.
Access. Use any Citibank, Westpac, St.George, Bank of Melbourne or BankSA ATMs in Australia free of charge.
Fees. Fee-free international money transfers to any bank and no fees for Citibank overseas ATM or in-store transactions.
Debit card. Get a free Visa Debit card with Visa payWave so you can shop online, in-store or overseas.
Cashback. Get a 5% cashback on your Visa payWave purchases under $100 for four months when you deposit $3,000 or more each month. Each monthly cashback is capped at $150 (conditions apply).
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Savings accounts
These accounts are specifically designed to help your savings grow faster. They offer a higher interest rate than basic transaction accounts. Some also make it harder for you to access your money so you’re not as tempted to dip into it. With more money saved, you’ll be able to take that dream holiday or pay off your HECS debt.
Accumulate more into your savings
There are several types of savings accounts that you’ll need to be aware of before you choose the one that’s right for you. They include regular savings accounts, bonus savers and introductory bonus savings accounts. Here are some of the features to compare before deciding which savings account is best for you.
The interest rate. How regularly is interest paid into your account and for how long does the honeymoon or introductory interest rate apply?
Minimum and maximum account balances.
Account-keeping fees.
What interest you lose if you withdraw money and what rewards you get if you deposit money regularly.
Whether a linked account is required.
Rates last updated February 17th, 2016
Initial Deposit
$
Monthly Deposit
$
Period
Maximum Variable Rate p.a.
Standard Variable Rate p.a.
Bonus Interest p.a.
Fees
Min Bal / Min Deposit
Interest Earned
ING DIRECT Savings Maximiser
Earn 3.50% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month. Available on balances up to $100,000.
3.50%
2.25%
1.25%
$0
$0 / $0
Open
More
RaboDirect High Interest Savings Account
Introductory rate of 3.50% p.a. for 4 months, reverting to 2.55% p.a. Available on balances up to $250,000.
3.50%
2.55%
0.95%
$0
$0 / $0
Open
More
Bankwest Hero Saver
Earn 3.15% p.a. when you deposit at least $200 p/m with no withdrawals. Available on balances up to $250,000.
3.15%
0.01%
3.14%
$0
$0 / $0
Open
More
ME Bank Online Savings Account
Ongoing 3.60% p.a. variable rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.
3.60%
1.80%
1.80%
$0
$0 / $0
Open
More
ANZ Online Saver
Introductory rate of 3.10% p.a. for 3 months, reverting to 1.80% p.a. Available on the entire balance.
3.10%
1.80%
1.30%
$0
$0 / $0
Open
More
Easy Street Easy Savings
Introductory rate of 3.00% p.a. for 6 months, reverting to 2.00% p.a.
3.00%
2.00%
1.00%
$0
$0 / $0
Open
More
Bank Australia Bonus Saver Account
Earn bonus interest when you deposit at least $100 and make no withdrawals for the month. Available on the entire balance.
3.00%
0.15%
2.85%
$0
$1 / $1
Open
More
HSBC Serious Saver
Introductory rate of 2.75% p.a. for 4 months, reverting to 2.10% p.a. Available on balances up to $1,000,000.
2.75%
2.10%
0.65%
$0
$0 / $0
Open
More
Westpac eSaver
Introductory rate of 2.85% p.a. for 3 months, reverting to 1.75% p.a. Available on the entire balance.
2.85%
1.75%
1.10%
$0
$0 / $0
Open
More
ANZ Progress Saver
Earn 2.51% p.a when you deposit at least $10 and make no withdrawals. Available on the entire balance.
2.51%
0.01%
2.50%
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