Transaction accounts

Transaction accounts are where you do your everyday spending like paying bills, doing groceries and making deposits. You can use our table to understand contactless (like Apple Pay) and instant payment (like PayID) options, monthly fees, and unique account perks. Look for an account that gives you freedom to monitor your money and pay for things the way you like, with low fees.

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Bank account offer

HSBC Everyday Global Account

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$0

monthly fee

$0

ATM withdrawal fee

• Google Pay, Apple Pay
• Monthly fees: $0
• No international transaction fees
• Up to 10 currencies

HSBC Everyday Global Account

Special offer: $100 cash bonus for new HSBC customers. Earn 2% cashback on tap and pay purchases (T&C's apply).

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Special offer: $100 cash bonus for new HSBC customers. Earn 2% cashback on tap and pay purchases (T&C's apply).

How does a transaction account work?

Although some options and features offered by transaction accounts differ between banks, they all serve the same basic purpose: to provide you with various means of accessing your money. This can be done by issuing bank cheques, through branch or ATM withdrawals and debit card purchases. From your transaction account you can:

• Make deposits
• Make bill payments
• Transfer money between your own accounts and to others' accounts
• Withdraw cash from ATMs
• Make purchases at EFTPOS terminals, online and via PayPal
• Set up automatic payments where a monthly obligation such as a home loan can be paid directly from the account

As with all accounts, transaction accounts come with its own fees and charges, including fees for services provided by the bank you open an account with. Fees will also depend on the types of features included with the account.

What are the transaction account types?

There are different types of transaction accounts available on the market. Each type comes with its own benefits, fees and features. Here are some common bank account types to help you with choosing.

How do I compare everyday accounts?

There's a lot to consider when choosing a transaction account. Now that you understand the difference between the types of bank accounts in the market, here's some things to consider when comparing the features.

• Options for accessing your cash. A traditional transaction account will allow for teller-assisted services at a branch and over the phone, while more and more banks are now providing their customers with online banking services as well. Online banking will allow you to view your account, make payments and transfers and set up for recurring monthly payments right from your computer. Also check to see if there is a mobile app available that will make the online bank feature even more convenient.
• What are the monthly fees and charges? Compare monthly account keeping fees along with individual transaction fees. For example, some banks will allow for unlimited transactions at the branch, while others may add a fee if you conduct a transaction with a teller's assistance.
• Debit card and ATM networks. In order to allow for access to your cash a transaction account will include a debit card that allows for withdrawals at ATMs around Australia. Look at the ATM network of the bank to check how many you will have access to. Check if there is a fee for withdrawing cash at an ATM outside of your banks network. Many banks today will allow anyone to use their ATMs for free, but some still do charge you for this. Some provide you with a debit card that is backed by a major credit card logo. These will allow you to make purchases over the counter, online and over the phone the same way you use cash.

• International transactions. Larger banks with an international presence can provide you with certain services while overseas, including cash withdrawals at an ATM. Check the fees for international money transfers, overseas purchases and currency conversion when looking at different transaction accounts.

How do I compare banks?

There are several features to consider when weighing up the pros and cons of banks, including:

• Your own banking needs
• Your current and future financial goals
• The products and services a bank offers
• The bank's fees for the transactions you're likely to conduct regularly
• The ease of use of its internet banking platform
• Whether or not it has a mobile app
• Its branch network and whether it has locations convenient to you
• Its customer support options
• How long it has been in business
• Its reputation among friends, family and other consumers

Thinking about using your bank account overseas or for online shopping?

Look for an account that can be accessed from overseas and also charges minimal fees when you withdraw funds abroad. UBank, RaboBank, ING DIRECT and a range of other providers offer online bank accounts that are worth considering; however, keep in mind that you may need an Australian phone number in order to be able to perform certain transactions.

Why should I get a transaction account?

• Money management. A transaction account gives you a secure place to deposit your pay and other income and then manage the way in which it is being spent from one place.
• Purchase power. With a debit card that has a credit card logo, you have practically unlimited means of making purchases and withdrawals using the money in your transaction account.
• Convenience. If you choose a transaction account that has online banking, you will be able to see your balance daily and manage your spending.
• ATM access. With your linked debit card, you can access your funds at an ATM for more flexibility.

What are the risks involved with transaction accounts?

There are certain things you should avoid in using your transaction account that will help you in maximising its benefits:

• Fees. Some transaction accounts will have various fees that you should be aware of. Don't only look for a monthly fee, but check to see how much you are charged for cheque transactions, overseas purchases and teller assistance.
• Minimum deposits. There are some accounts that do not require a minimum balance while with others you will have to meet a monthly minimum deposit requirement.

• Too many transactions. In some cases you are only allowed a certain number of transactions with a feature, such as ATM withdrawals or teller assistance, before you begin incurring fees for them.
• Online purchases. Be sure that you understand the fees for purchases made overseas, as in some cases this will relate to online purchases as well. You may be charged extra for making an online purchase originating from abroad or have to pay a percentage of the cost for converting the currency.

More questions, answered. . .

• Will my money earn interest in a transaction account?

  No, these are not interest earning savings accounts, although some do calculate a nominal interest rate on your daily balance.

• Will I be able to use the debit card at any ATM in Australia?

  Different banks have their own networks of ATMs to provide their customers with free transactions. If you go outside of their network, you may be facing a fee. Check first with the bank to see who they are partnered with and which ATMs allow you free transactions. Anyone with an Australian bank account can access one of the Big Four's ATMs for free.

• How will a mobile app for everyday banking work?

  If applicable, you can download the appropriate bank's app onto your mobile phone and get the same banking features as online banking provides. Check for compatibility with mobile devices as well as the availability of the app.