With the Bank Australia Overdraft you will never have to worry about running out of funds. This facility links to your transaction account and allows you to still make purchases, withdraw cash, or pay bills even when you are out of funds. You will be charged interest on the money that you use, but that could be the better alternative to a declined transaction when you need it.
What are the features of the Bank Australia Overdraft?
With an interest accruing product like an overdraft facility, it is important that you have a full understanding of how it works and what you will be charged for its use. Compare the features that Bank Australia is offering against other Australian financial institutions before making your final decision:
- Account maintenance fee. With an overdraft, you will be charged $2 a year which will automatically be deducted from your account.
- How it works. An overdraft is a credit facility that can extend your available balance when your funds have been exhausted. When you deposit money into the attached Everyday Access Account, the balance of your overdraft will be cleared first.
- What it covers. Your overdraft will cover all purchases made using your linked Visa debit card, cash withdrawals and electronic payments and transfers that cause you to go below a zero balance in your banking account.
- Overdraft coverage. The amount of credit extended to you through your overdraft will be dependent on your personal finances and credit rating.
- Interest rate. Like a credit card, and interest rate is applied to all of the funds borrowed from the overdraft facility and will be added to the amount that you owe.
- Linked account. The Bank Australia Overdraft will be linked to your Everyday Access Account.
- Membership. Bank Australia is a customer owned financial institution. In order to be eligible for the overdraft or any of their other banking products, you will need to first fill out an online application form.
- Peace of mind knowing you'll have money available
- Annual fee applies
- Interest applies to balance
How do I apply for the Bank Australia Overdraft?
The application process for an overdraft differs from applying for a savings account, as you are applying for product that is extending you credit. For that reason, when you start an online application you will be directed to a loan application. If you don’t already have a Bank Australia Everyday Access Account, you will need to apply for that transaction product first. Other eligibility requirements you will have to meet include:
- Minimum age. As with the linked Everyday Access Account, you must be at least 18 years of age to be considered for the overdraft.
- Residency requirements. Only Australian residents with a verifiable residential address are permitted by Bank Australia to become a member and apply for any of their products.
- Depository requirements. With the overdraft and its linked Everyday Access Account you will not be asked to meet an opening deposit requirement.
Bank Australia also recommends that you have the following documentation handy to assist you in filling in your online application:
- Tax file number. Your tax file number (TFN) or exemption code is used to ensure that any withholding tax applied to your interest earnings is at the right rate for your circumstance.
- Identification. If you are not already an existing Bank Australia member you will need information that can be found on your driver’s licence, passport or Medicare card.
- Financial information. You will need to be ready to provide details of your personal finances including your income, value of assets, and amount of liabilities.
Bank Australia will go over the details of your application and finances before letting you know whether you qualify for their overdraft facility. Once initiated you can begin making daily transactions with the peace of mind in knowing your purchases will always be covered.