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The best bank in Australia

Which is the best bank in Australia? It may not even be a bank.

What makes a bank ‘the best bank’? Is it the number of products, low rates, a regional touch or all of these things combined. Best is such a subjective term, it all depends on what’s important to you. Think about these points when you’re evaluating banks side by side.

Banks versus nonbanks

We use bank as an umbrella term for financial institutions that offer banking products. There are hundreds of customer owned banking institutions operating in regional communities and big cities all over Australia. There are credit unions, mutual societies, friendly societies, cooperatives to think about as well as small local banks, foreign banks and the Big Four.

Rates last updated January 23rd, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
Easy Street Bonus Saver Account
2.55%
0.01%
2.54%
$0
$0 / $2
Ongoing, variable when you deposit 50+ each month and make no withdrawals. Available on balances up to $5,000,000.
Community First CU Bonus Saver
2.20%
0.10%
2.10%
$0
$0 / $0
Ongoing, variable 2.20% p.a. when you deposit $20+ each month and make no withdrawals. Available on the entire balance.
Easy Street Easy Savings
2.00%
2.00%
0.00%
$0
$0 / $2
Earn an ongoing interest rate of 2.00%. Available on the entire balance.
Community First CU Christmas Cracker
1.50%
1.50%
0.00%
$0
$0 / $0
Ongoing, variable 1.50% p.a. Available on the entire balance.
CUA Youth eSaver Account
4.00%
4.00%
0.00%
$0
$1 / $1
Ongoing, variable 4.00% p.a. Available on balances up to $5,000.
IMB Reward Saver Account
2.40%
1.40%
1.00%
$0
$0 / $0
Introductory rate of 2.40% p.a. for the first 4 months when you deposit $50+ each month and make no withdrawals per month. Available on balance of $5,000 or higher.
Greater Bank Bonus Saver
2.00%
2.00%
0.00%
$0
$1 / $1
Ongoing, variable 2.00% p.a. when you deposit $1+ each month. Available on the entire balance.
Community First CU Money Market Account
0.25%
0.25%
0.00%
$0
$0 / $5,000
Ongoing, variable 0.25% p.a. for deposits under $10,000. Interest rates are tiered, with higher interest rates available on larger deposits.
IMB DIY Super
2.15%
1.40%
0.75%
$0
$0 / $0
Introductory rate of 2.15% p.a. for 4 months, reverting to a rate of 1.40% p.a. Available on balance $0 and over.

Compare up to 4 providers

Rates last updated January 23rd, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
Westpac eSaver
2.51%
0.50%
2.01%
$0
$0 / $0
Total introductory rate of 2.51% p.a. for 5 months, reverting to a rate of 0.50% p.a. Available on the entire balance.
ANZ Online Saver
2.30%
0.50%
1.80%
$0
$0 / $0
Introductory rate of 2.30% p.a. for 3 months, reverting to 0.50% p.a. Available on the entire balance.
NAB iSaver
2.55%
0.50%
2.05%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 0.50% p.a. Available on balances below $20,000,000.
Commonwealth Bank NetBank Saver
2.55%
0.50%
2.05%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 5 months, reverting to a rate of 0.50% p.a. Available on balances up to $5,000,000.

Compare up to 4 providers

Rates last updated January 23rd, 2019
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
HSBC Everyday Global Account
Visa
$0
$0
No foreign ATM or transaction fees.
$0 monthly account fee.
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
NAB Classic Banking
Visa
$0
$0
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.
Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone. Temporarily block your card at the touch of a button if you lose it.
ING Orange Everyday Account
Visa
$0
$0
No fees for any ATM in Australia or overseas.
$0 monthly account fees.
Enjoy $0 ATM withdrawal fees when you deposit $1000 and make 5+ card purchases per month. Get a competitive ongoing variable rate when linked with the ING Savings Maximiser.
UBank USaver Ultra Transaction Account
Visa
$0
$0
Earn up to 2.87% p.a. interest on your linked savings account. No foreign ATM or transaction fees.
$0 monthly account fee.
You must open the UBank USaver savings account in order to get this account. Enjoy access to ATMs in Australia and overseas for free and a 0% foreign transaction fee for online purchases. Manage your spending with a built-in sweep facility that automatically moves money between your linked accounts based on the limits you set.
Citi Global Currency Account
Mastercard
$0
$0
Hold up to 10 currencies.
$0 monthly account fee.
Enjoy one linked debit card to hold up to 10 currencies and receive foreign currencies for free. Earn up to 2.25% p.a. interest on your AUD balance.
NAB Classic Banking with Platinum Visa Debit Card
Visa
$0
$0
$10 cashback on contactless purchases, $0 foreign transaction fee and complimentary travel insurance.
$10 monthly account fee.
Receive $10 cashback when you spend $1000 on contactless purchases. Complimentary travel insurance, transport accident insurance, purchase protection insurance and more when you meet eligibility criteria.
AMP Bett3r Account
Visa
$0
$2,000
Earn 1.50% interest. Manage your budget effectively with a bundle of accounts.
$5 waivable monthly account fee.
Earn 1.50% interest on your balance. Monthly account fee waived if you deposit at least $2,000 a month from a source that is not another AMP bank account. Reach your savings goals with a bundle of linked Pay, Spend and Save accounts.

Compare up to 4 providers

Rates last updated January 23rd, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
HSBC Serious Saver
3.10%
1.40%
1.70%
$0
$0 / $0
Receive a maximum variable rate of 3.10% p.a. for 4 months, reverting to an ongoing rate of 1.40% p.a. when you make no withdrawals in the month. Available on balances below $1,000,000.
RaboDirect High Interest Savings Account
3.05%
1.80%
1.25%
$0
$0 / $0
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
Bankwest Hero Saver
2.60%
0.01%
2.59%
$0
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
HSBC Flexi Saver Account
2.50%
1.25%
1.25%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you grow your balance by $300+ per month. Earn bonus interest even if you make withdrawals during the month. Available on balances up to $5,000,000.

Compare up to 4 providers

What are the pros and cons of banks

Pros

  • Mainstream banks have more money to develop online banking facilities.
  • Large choice of banking products and financial services.
  • Large branch and ATM presence.

Cons

  • Fees can be higher what’s charged to members of community banks.
  • Bank customers are customers. Members of community banking institutions own a part of the bank and have a say about how the organisation is run.

What are the pros and cons to customer-owned banking?

Pros

  • Members benefit from bank profits through lower rates and fees. Customer owned banks can offer lower rates than big banking institutions.

Cons

  • Limited choice of products.
  • Limited branch access.
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There’s no loyalty in banking, financial institutions have different strengths

Some banks offer great rates on your deposit, non-banks credit cards are often market leading and online only mortgage lenders can give you a cheap loan, the point is to remember to shop around to get the best deal. Don’t be afraid to use the services of a number of different institutions for your banking and personal finance needs. A little extra time using a comparison service before you apply for a financial product can save you money in fees and interest.

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What do you want as a customer?

Ask yourself what you want as a customer to find yourself the best bank.

  • A good rate. Customer owned banking institutions can offer better rates and fees than big banks. Every customer is a part owner and profits benefit members through better rates and lower fees.
  • Lot of products. Are you looking for a bank that can offer a wide mix of products such as savings accounts, platinum and rewards credit cards, home loan and personal loan products, or do you want a financial institution that offers fewer products at a lower cost.

Large institutions like the Big Four Australian banks offer products and services that suit a number of different demographics; whereas credit unions and mutuals have fewer products packed with benefits. In some cases it can be cost effective to show customer loyalty. For example, the Commonwealth Bank have a credit card annual fee waiver offer for existing customers.

  • A superior online experience. When was the last time you actually went to a bank branch, and what was it for? You can open a bank account online with little, if any, face to face interaction with another person. The institution’s investment in online banking, while not a deal breaker — yet — is becoming increasingly important.
  • Decent customer service. Excellent customer service is expected when you visit a branch at any financial institution, but how does the level of service extend to the institution’s call centre team. The Big Four bank call centre staff are based in Australia, international banks have offshore representatives. Some customer owned banks may refer your call to a third party if it’s outside of business hours.
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How do I compare the best banks in Australia?

Here are a few ways you can compare different banks and financial institutions. Ask yourself:

  • Do they charge monthly fees? Banks and fees and almost synonymous. There are institutions that make low or no fees a point of difference. Online lenders don’t have the overheads of a bricks and mortar bank so they can pass the savings onto consumers.
  • How big is it's ATM network? How many places can you withdraw your money for free? Banks and nonbanks have different partnerships and arrangements with other financial institutions. For example, some smaller financial institutions have agreements with rediATM, which is a third party ATM operator in Australia, whereas banks operate their own ATM network, for example St.George bank customers can use Westpac ATMs because St.George is part of the Westpac banking group.
  • How superior is their online service? Face to face banking is becoming less common. For example, you can apply for a credit card, make payments and repayments, apply for a credit limit increase or decrease just using the internet. If this is how you do your banking, institutions with an enhanced online experience may appeal to you.
  • What other products does the financial institution offer? It can be both convenient and cost effective to hold your loan accounts, everyday banking and savings accounts with the same financial provider. As well as getting a few points off your loan rates and discounted annual fees for credit cards, you can also make instantaneous transfers between accounts.

If you’re not happy with your bank, what’s stopping you from making the switch? Whether it’s monthly fees, transaction fees or credit card or mortgage interest, it’s easier than ever to switch banks get the best deal.

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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Savings Account Offers

Important Information*
HSBC Serious Saver

Maximum Variable Rate

3.10

Standard Variable Rate

1.40
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05

Standard Variable Rate

1.80
Bankwest Hero Saver

Maximum Variable Rate

2.60

Standard Variable Rate

0.01
AMP Saver Account

Maximum Variable Rate

2.55

Standard Variable Rate

2.10

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4 Responses

  1. Default Gravatar
    tammyJanuary 13, 2019

    I am looking at a term deposit, offering the best interests. I have reservations with the online-only banks. How safe will my money be investing in them?

    • finder Customer Care
      JhezelynJanuary 15, 2019Staff

      Hello Tammy,

      Thank you for your comment.

      The interest rate varies per term. Please see the list of the term deposit accounts with its corresponding interest rates per number of terms. After comparing, you can click the Go to Site button to apply. Please make sure that you’ve read the relevant T&Cs or PDS of this account to help consider whether the product is right for you.

      Regarding the safety, please select the account that is government guaranteed which means an amount of your money is surely protected.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  2. Default Gravatar
    October 12, 2017

    Hi again Finder team,
    I don’t know if you remember me but I have been using your Q&A system as well as your comparing system for the last month or two, I would like to say thank you for your time and effort.
    Okay question time.
    Q.. what True security do I have with an online banks compare to the big 4’s from cyber attacks??
    Q.. If the internet is down for some reason let’s say how would I get my money??

    • Default Gravatar
      LiezlOctober 12, 2017

      Hi Andrew,

      Thank you for frequenting finder and for these interesting questions.

      While we cannot comment nor compare the reliability of the banking institutions’ security systems, generally banks have their own security measures in place to protect you against fraudulent activity online and offer some type of Security Guarantee. As part of the Guarantee, the customer will be entitled to compensation for losses he has incurred if the bank has failed to take proper care of the customer’s personal information, due to a cyber-attack. It’s important to read up on the measures as well as term and conditions your bank takes to protect your funds and your identity when banking online.

      In the event of internet blackout, you can visit your bank and withdraw your money over the counter. You might need to visit the bank’s branch where you opened your account in order to do the transaction. You may want to ask this question to your bank so you’ll know what other options there are in case of such event.

      I hope this has helped.

      Cheers,
      Liezl

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