Choosing the right bank account is easier than you think

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 kiddie 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.

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 Funds are withdrawn directly from your transaction account and credited to the company that issued the bill.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 bonus: This is a form of incentive offered to buyers of certain products whereby they receive a cash bonus after opening the 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.

Bank Account Offer

HSBC Everyday Global Account

Bank Account Offer

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.

  • Account keeping fee: $0.00
  • Linked debit card: Visa
  • ATM withdrawal fee: $0.00
  • Overseas EFTPOS fee: $0.00
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Rates last updated May 26th, 2019
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
HSBC Everyday Global Account
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.
UBank USaver Ultra Transaction Account
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. Make contactless payments with Apple Pay.
NAB Classic Banking
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.
Tap and pay with your NAB Visa Debit card or your phone using Apple Pay, Google Pay, Samsung Pay or NAB Pay for Android. Temporarily block your card at the touch of a button if you lose it.
ING Orange Everyday Account
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.
MyState Bank Glide Account
Simplify your everyday banking with these sleek digital features.
$0 monthly account fee.
Choose the way you pay with access to Google, Samsung and Apple Pay plus Fitbit Pay and Garmin Pay. Send and receive money in less than 60 seconds with PayID.
CUA Everyday Account
Enjoy flexible payment options and access to a wide network of ATMs.
$0 monthly account fee.
Access to Google, Samsung and Apple Pay. Enjoy fee-free cash withdrawals from 10,000+ ATMs across Australia. Deposit $1,000+ into this each month and receive bonus interest on a linked CUA eSaver Reward Account.
Citi Global Currency Account
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.
ANZ Access Advantage
Pay with Apple Pay, Google Pay & Samsung Pay.
$5 waivable monthly account fee.
Monthly account fee waived if you deposit at least $2,000 a month, are under 25 or if you meet other eligibility criteria.

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Top 10 factors to consider when choosing an everyday bank account

  1. 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.
  2. Does your bank have a large number of ATMs?
  3. Does your bank have a national network of branches?
  4. Are you eligible for a student account that does not charge any monthly account fees?
  5. 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.
  6. Currency conversion and International Money Transfer fees. A few banks can charge high fees for a foreign money transfer. If you have to pay these types of fees over and over again, they can add up to a bit of money that you don't have to spend.
  7. Minimum deposits. Sometimes you might need to make a minimum deposit to start a bank account. Other banks encourage you to make continual deposits in order to keep that account active.
  8. Does the account include a Visa or Mastercard debit card at no extra cost so you can shop online with your own money?
  9. 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.
  10. 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:

  1. 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.
  2. 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.

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. Owners of other ATM networks (outside of Westpac, CBA and ANZ) 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.

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 Debit Mastercard with Mastercard PayPass so you can shop online, in-store or overseas.
  • Cashback. Receive 5% cashback when you make a purchase less than $100 with PayPass for four months. You must deposit a minimum of $3,000 each month to earn a capped cashback of $150.
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Savings accounts

These accounts are especially designed for saving purposes and boosting your personal savings. They give you a higher interest rate compared to transaction accounts. Other accounts put restrictions on your withdrawals so you can actually reach your savings goals without spending your money. As you save more money, you’ll be able to take that holiday you've been wanting 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 choosing the best suited savings account for you:

  • The interest rate. How often is interest paid into your account and for how long does the bonus or introductory interest rate apply?
  • Minimum and maximum account balances.
  • Fees that apply to account maintenance.
  • What interest you lose if you withdraw money and what rewards you get if you deposit money regularly.
  • Whether you need to open another account and link it to your savings account (ie, a transaction account).
Rates last updated May 26th, 2019
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
UBank USaver
$0 / $0
Earn up to 2.87% p.a. by linking your USaver account to a UBank Ultra transaction account and transferring at least $200 per month into either account. This offer is available on balances up to $200,000.
AMP Saver Account
$0 / $0
Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 2.10% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.
HSBC Serious Saver
$0 / $0
Receive a maximum variable rate of 3.10% p.a. for 4 months, reverting to an ongoing rate of 1.20% p.a. for each month you don't make any withdrawals from the account. Available on balances below $1,000,000.
NAB iSaver
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 0.50% p.a. Available on balances up to $20,000,000.
Bankwest Hero Saver
$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.

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Bonus savers accounts help you achieve your savings goals even faster than regular savings accounts since they usually have a higher interest rate, but there are usually deposit and withdrawal requirements to adhere to. Compare some of the features of the ING Savings Maximiser account.

This account is designed to maximise your savings so you can reach your savings goals more effectively. Look at the features of the account and compare them to other accounts to find the right one for you.

  • Interest rate. You can get a high variable interest rate of 2.80% p.a., no matter how many times you withdraw, if you deposit $1,000 or more each month and have an Orange Everyday bank account. The bonus rate applies to balances up to $100,000. The standard variable rate is 1.00%.
  • No fees. There are no monthly maintenance or withdrawal fees.
  • Instant access. If you have a Savings Maximiser account and an Orange Everyday bank account, you can transfer cash online, over the phone and via mobile for instant access. You can also visit branches and use Internet banking to access your account.

On the other hand, an introductory bonus saver account will have an interest rate that is set up for a certain amount of time. Although these rates will be higher than usual rates, they won’t last forever, so you’ll need to make sure you can reach your savings goals with the revert rate. That’s the main difference between bonus savers and introductory or honeymoon rates.

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What are the other different types of savings accounts?

The less obstacles that stand in the way of your savings goals, the more chance you’ll have of achieving them. Online savings accounts are popular because they’re convenient. You can make your deposits from the comfort of your living room. These accounts typically offer competitive interest rates due to the lower overheads associated with online-based institutions.

Encouraging children to start saving early can greatly benefit their financial habits in the future. Many banks offer savings accounts specifically for children. Most require a parent or guardian to open the account on behalf of the child.

If you have a large initial outlay that you want to deposit, usually $5000 or more, a cash management account might suit you. Although these accounts don’t always offer the highest interest rates, you can access your money when you need it..

Super is a form of investment and saving. These accounts are created so you can put aside money for your retirement. Your employer contributes to your super and your super fund invests your money for a greater return.

Christmas has a unique way of bringing out the spender in all of us, and we sometimes end up with large amounts of debt or overused credit cards. Christmas savings accounts help you beat the spending madness. It works as a forced savings account that you generally can’t access until Christmas. One downside is that it may not offer the highest interest rate.

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What are the traps and pitfalls of savings accounts?

There are several traps and pitfalls of savings accounts that you need to be aware of:

  • Time delay on transactions. At times, the transfer of money may be delayed for one or many business days. This still depends on the bank that you do your transactions through.
  • Interest rates. Interest rates depend on your bank and the Reserve Bank of Australia (RBA).
  • Withdrawal limitations. There is a standard requirement on the number of withdrawals you’re allowed to make each month. Basic savings accounts usually allow up to six transfers each month.
  • Watch out for honeymoon rates. Honeymoon or introductory rates can be enticing. They offer a high interest rate but be warned - this only lasts for a limited time. Usually the introductory rate lasts for six months, then it will revert to the standard rate.
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2 Responses

  1. Default Gravatar
    LaMinSeptember 20, 2016

    I would like to get your bank account.Because I want to find online money or us dollars

    • Avatarfinder Customer Care
      ClarizzaSeptember 20, 2016Staff

      Hi LaMin,

      Thanks for your comment.

      Just to confirm, we are a comparison site and provide general advice. If you would like to compare and open an account, you can use the table on this page to view features and fees of each bank account to find out which account suits you best. Or you can take a look at the Savings Account page which outlines the different types of savings accounts – the infographic may also help you in your decision.

      Hope this has helped.


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