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Compare everyday and savings accounts from a range of online banks

Online banking is here to stay, but can you afford to do away with branch banking completely?

Shirley Liu
Shirley Liu

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Most mainstream banks and financial institutions give their customers access to online banking platforms, but there are some institutions that limit their offerings to the online world. Online banks provide their services and products through the World Wide Web, which you can access using an Internet enabled computer or smartphone. In the online world, you can bank as and when you like and there are no queues to worry about.

Data indicated here is updated regularly
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Interest Earned
Westpac Life (18-29 year olds only)
Westpac Life (18-29 year olds only)
3%
0.2%
2.8%
$0
If you’re between 18-29, you can earn a 3% p.a. variable rate each month you grow your balance (excl. interest) and make 5+ settled debit card purchases from your linked Westpac Choice account, up to a balance of $30,000.
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Westpac Life (18-29 year olds only)
Westpac Life (18-29 year olds only)
0.55%
0.2%
0.35%
$0
If you’re between 18-29, you can earn a 0.55% p.a. variable rate each month you grow your balance (excl. interest) and make 5+ settled debit card purchases from your linked Westpac Choice account, up to a balance of $30,000.
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MyState Bank Bonus Saver Account
MyState Bank Bonus Saver Account
1.2%
0.1%
1.1%
$0
Ongoing, variable 1.2% p.a. when you deposit at least $20 into the account each month and make 5 or more Visa Debit card transactions from a linked MyState transaction account. Bonus interest available on balances up to $250,000.
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Citibank Online Saver
Citibank Online Saver
0.35%
0.35%
0%
$0
Introductory rate of 0.35% p.a. for months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
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Citibank Online Saver
Citibank Online Saver
1.1%
0.35%
0.75%
$0
Introductory rate of 1.1% p.a. for 4 months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
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Bankwest Hero Saver
Bankwest Hero Saver
0.8%
0.01%
0.79%
$0
Ongoing, variable 0.8% 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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Bankwest Hero Saver
Bankwest Hero Saver
0.01%
0.01%
0%
$0
Ongoing, variable 0.01% p.a. rate when you deposit at least $0 each month and make no withdrawals. Available on balances up to $250,000.
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HSBC Flexi Saver Account
HSBC Flexi Saver Account
0.85%
0.05%
0.8%
$0
Ongoing, variable 0.85% 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.
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HSBC Flexi Saver Account
HSBC Flexi Saver Account
0%
0%
$0
Ongoing, variable 0% 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 $5,000,000,000.
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Westpac Life
Westpac Life
0.55%
0.2%
0.35%
$0
Ongoing, variable 0.55% p.a. each month you deposit money, and make sure your balance is higher at the end of the month than it was at the beginning. No monthly account-keeping fee.
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HSBC Serious Saver
HSBC Serious Saver
0.9%
0.05%
0.85%
$0
Receive a maximum variable rate of 0.9% p.a. for 4 months, reverting to an ongoing rate of 0.05% p.a. for each month you don't make any withdrawals from the account. Available on balances below $1,000,000.
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Data indicated here is updated regularly
$
Name Product Card access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee
Suncorp Everyday Options Account
Suncorp Everyday Options Account
Visa
$0
$0
Link up to 9 interest-earning sub accounts.
$0 monthly account keeping fees.
Earn interest on your linked sub accounts to help you save for individual goals, with no account fees to pay. Make contactless payments using Google Pay and Apple Pay.
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MyState Bank Glide Account
MyState Bank Glide Account
Visa
$0
$0
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.
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CUA Everyday Account
CUA Everyday Account
Visa
$0
$0
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.
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CUA Everyday Snap Account
CUA Everyday Snap Account
Visa
$0
$0
Refund of international ATM withdrawal fees and international card transaction fees (conditions apply). Refund of overdrawn fees.
$0 monthly account fee. Unlimited fee-free everyday transactions.
Apple Pay, Google Pay and Samsung Pay available. Savings Top Up tool automatically transfers to linked savings account.
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How does an online bank work?

An online bank is one that does not have any branches. Since this leads to a considerable reduction in overhead costs, and so these banks tend to offer competitive interest rates and keep fees to a minimum. An online bank works like a conventional bank and offers similar products and services, which means you can turn to an online bank to open an everyday or savings account. You can also open an online term deposit, home loan and even a self managed superannuation fund (SMSF).

Online banks give their customers round-the-clock access to account related information via Internet banking, and you can transact online and over the phone.

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How do I compare online banks?

If you’re comparing online banks to pick one that works best for you, pay attention to the following:

  • The range of products and services they offer. This aspect is important if you wish to deal with a single institution for all your banking related needs. Know that some online banks offer products and services you’d typically associate with conventional banks. Some such banks provide a range of offerings such as home loans, everyday transaction accounts, term deposits and SMSF accounts. Some offer business banking solutions as well.
  • The level of security incorporated into their online systems. Many people cite security as a concern for staying away from online banking, but do you know that even mainstream banks store your information in data centres that are not really hacker-proof? For that added peace of mind, you can always choose an online bank that protects individual deposits of up to $250,000 through the Government Financial Claims Scheme.
  • The extensiveness of it's ATM network. If you plan to use an account linked debit card to access your funds, paying attention to this aspect is important. Consider this - the ING DIRECT Orange Everyday account comes with a Visa debit card that you can use at any ATM in Australia for free, provided you deposit at least $1,000 in your account each month. If you get a debit card through UBank, you can get free access to all NAB ATMs across Australia.
  • The quality of it's customer service. If you’re someone who prefers interacting with a human face when faced with a problem, branch banking might be best for you. If not, you can still expect good customer service from online banks. Some online banks have 24/7 Australian based call centres, some let you chat online and you can always get in touch with your bank via email and regular mail.
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What are the pros and cons of using an online financial institution?

Pros

  • Making deposits and withdrawals 24/7. Online banks can give you access to money in your account via a debit card as well as online banking and phone banking, and some also let you transact via BPAY and at Bank@Post outlets. You can mail in physical cheques, and your bank can also let you take a picture of a cheque and upload it for deposit.
  • Competitive interest rates compared to big banks. Online banks tend to offer more competitive interest rates when compared to traditional banks, mainly because of their lower operational costs.
  • Less fees compared to big banks. Online banks tend to have lower minimum balance requirements when compared to conventional banks, and you may not have to pay any ongoing account keeping fees. Online banks are also more likely to provide fee-free everyday accounts.

Cons

  • No branches. This is a drawback for people who wish to bank in person. However, this may change in the future, with online banks trying to create some kind of a physical presence. For example, ING DIRECT has a customer information centre in Sydney that operates Monday to Friday.
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Traditional bank versus online bank

When choosing between the two, a lot boils down to personal preferences. If you’ve shared a personal relationship with your banker over a prolonged time, and this makes you privy to special rates and offers, continuing with your existing banking relationship might make sense. In most cases, people are getting used to the technological changes in this realm, and even people who deal with conventional banks are turning to online and mobile banking platforms.

The main reason behind the popularity of online banks has to be the fact that they offer cheaper banking solutions. Not to fall behind conventional banks, they’re also trying to provide top notch customer service. However, the online world offers limited options as of now, and if you're looking for a credit card, a personal loan or a car loan chances are you'll have to get in touch with a conventional bank.

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