In 2014, Australians paid over $1 billion in banking fees for administration on transaction accounts.
While no banking service is completely without fees, customers are free to shop around for the most attractive products with the lowest banking fees charged.
The amount that banking customers pay in fees depends on the bank, the type of account and the additional features from which they wish to benefit. It pays (literally) to shop around and compare your options.
Compare fee-free bank accounts below
Certain products charge no bank account fees at all, but this perk usually comes with certain conditions, like a required minimum deposit amount each month. Other perks can include cash back on Visa PayWave purchases (usually under $100) and reimbursed ATM fees.
If you’re interested in applying for a basic, no-fee product, here are a few options to consider:
|NAB Classic Banking Account||$0|
|HSBC Day to Day Account||$0|
|ME Everyday Transaction Account||$0|
|ING Orange Everyday||$0|
Shopping around for low or no-fee alternatives will help you save on what you spend on banking. However, sometimes certain conditions apply to benefitting from fee-free banking. The following banks will waive monthly bank account fees if you deposit a minimum of $2,000 a month:
|Product||Monthly fee charged without minimum deposit|
|Commonwealth Bank Smart Access Account||$4|
|Bankwest Qantas Transaction account||$6|
|ANZ Access Advantage||$5|
Low fees, low maintenance
While classic and basic accounts are usually aimed at teens, students and seniors, these products can also serve customers who simply want to curb the amount spent on fees and charges. If you’re in a higher income bracket but your banking needs are simple, a standard-type account would be ideal since it still offers access to features like free ATM transactions, fraud protection and no monthly fees. Take some time to compare Australia’s best bank accounts.
High interest for high earners
Everyday accounts cost less to maintain, but on the other hand, they usually imply less flexibility, limited features and little to zero opportunity for high returns on money set aside for savings. If you’d like to benefit from a favourable interest rate along with a few additional features, your needs would be better met with a high-interest savings account. Australia’s best savings accounts offer a combination of attractive features and interest rates.
As far as fees go, there are several savings accounts on the market that will waive monthly and transaction fees, but this is usually offset by a less attractive standard interest rate. Here are a few to consider:
|Product||Account fees||Interest rate||Features and restrictions|
2.70% p.a. intro rate for 3 months
|Bank Australia Bonus Saver||$0||2.60% p.a. (conditions: minimum $100, no withdrawals during the month)|
|HSBC Serious Saver||$0|
3.00% p.a., then 1.60% after 4 months
|ANZ Online Saver||$0||2.55% p.a. then 0.50% after 3 months|
|Citibank Online Saver||$0||2.85% p.a. then 1.70% after 4 months|
The savings-account options available are varied: some offer introductory interest rates for short period before reverting to a standard rate. Others offer ongoing variable rates as long as you link your savings account to an everyday account.