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Congratulations! You've decided to study in Australia. There are a million things you'll need to get sorted before making the big move, such as getting your immigration documents in order and finding a place to live, but it's also important to think about how you're going to manage your finances.
This guide will help you navigate the complexities of the Australian banking system, ranging from choosing the right bank account to gathering all the information you'll need to open an account.
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Whether you're paying your weekly rent, receiving income from your casual job or even paying for the train to university, having an Australian bank account is essential. If you're constantly receiving money from overseas or paying with an overseas credit card, it's likely that you'll be incurring enormous and unnecessary fees. Opening an everyday bank account in Australia is one of the best things you can do to make your move to Australia as smooth as possible, and you don't need to wait until you land to open one. Some accounts will even give you access to exclusive discounts and rewards.
As an international student you'll be happy to know that you have lots of short-term options to choose from for your banking needs, each offering different features and benefits. You can choose from two different account categories: a transaction account or a dedicated student account.
A transaction account is a basic, day-to-day account for daily expenses. You can use it to pay your bills, deposit (or put in) your income, pay for goods and services or make daily transactions. It can also be the account that you use to transfer your overseas savings into for the time you're studying in Australia. With this account, you'll receive log-in details for online and mobile banking and a debit card to withdraw money at ATMs (cash machines) and make everyday payments. Compare bank accounts that offer special features for students below.
Most banks will also offer an account specifically designed for students moving to Australia to study. This account will give you a lot of the same things as a transaction account with some added benefits. If you open an account and you're a full-time student, you'll most likely be able to skip the monthly and/or annual account fees. Many dedicated student accounts also provide student rewards. For example, Westpac Choice provides students with a one-year international student card, and the Bankwest Student Account allows customers to access discounts at McDonald’s and other outlets.
Your student bank account shouldn't come with any monthly fees for the first 12 months and should also give you an unlimited number of transactions, whether you make a transaction online, via EFTPOS or in a branch.
The fees you'll need to look out for are the unconventional fees, such as overseas transaction fees and overdrawn fees. In some cases, there may be limits on the number of ATM transactions which you can make per month so you should ensure the permitted number of ATM transactions suits your banking habits.
If your student bank account runs out of cash, you can expect to pay a fee. To avoid this, you may be able to request an account with no overdraw facility so that you can't accidentally spend more than what’s available in your account and get stuck with fees.
If you're travelling or going overseas, using your debit card might incur international transaction fees and foreign ATM fees. These can add up, so before travelling you might want to look into debit cards with low foreign transaction fees.
These are often fees charged to your account when you use an ATM that's outside your bank's network. To avoid this, you might want to look for the banks with the widest ATM networks.
There is no single best Australian bank for students. The best bank for you may not be the best for someone else. The following are some of the factors to consider when choosing a bank:
You should compare a range of accounts when deciding which provider is best suited to your everyday banking needs.
The following are the biggest banks in Australia:
Other major banks include Bendigo Bank, BankSA, Bankwest, St.George and Bank of Queensland. There are also a number of community-owned banks. Some international banks also operate in Australia including ING Bank, Citibank and HSBC.
Setting up an account is a simple process, and if you have all the information in front of you, it should only take five minutes. Remember, you don't have to be in Australia to open a bank account; you can complete the whole sign-up process online before you hop on the plane.
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Setting up an account online is simple and, if you have all the information in front of you, should only take five minutes. There is no need to visit a bank branch to sign up for an account.
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According to finder’s “How to study in Australia” guide, you will need the following amount:
“To give you an idea of the answer, at the time of writing (2014), the University of Technology estimates that an international student requires AU$14,786 to AU$25,680 to cover their living expenses for one academic year. These expenses include rent for shared accommodation near your educational institution, groceries, phone and internet bill/s, home utilities like electricity and water, textbooks and other study materials, and transport.”
The following are a few of the available options to transfer money:
Most banks will send money to an Australian bank account and exchange your currency into Australian dollars. This method is also known as an international money transfer, a telegraphic transfer (TT), a wire transfer or a SWIFT transfer.
However, using a bank will come at a cost. Most banks will charge a flat fee and poor exchange rates, which can have a huge effect on how much the transaction ends up costing you. Additionally, your bank and the bank at the other end of the transaction could charge "sending" and "receiving" fees.
Alternatively, you can use an online money transfer or foreign exchange company such as OFX, WorldFirst and InstaReM. Simply tell the company you choose how much money you want to send to Australia and they’ll quote an exchange rate, convert the funds, and send them to your nominated bank account. You’ll need to set up a separate account with a transfer service, but these services are often much cheaper to use when you are receiving between $1,000 and $1,000,000 and will almost always offer a better exchange rate than the banks.
Once you arrive in Australia you must complete an identity check at a local bank branch. Make sure you bring the following with you to the bank:
Remember to check the bank's opening hours before you leave the house. Australian banks are generally open between 9:30am and 4pm.
