Pay zero account keeping fees in Australia

Information verified correct on October 21st, 2016

Learn more about account keeping fees in Australia and how you can pay $0 for your monthly account.

Accounting fees don’t need to be a thorn in the flesh. It’s a simple matter of knowing what you’re dealing with and how to get the most out of your fees.

An account keeping fee is a fee charged by an organisation or financial institution in exchange for granting you the benefit of an account within its organisation. It’s important to note that account keeping fees and interest charged or paid is not the same thing.

NAB Classic Banking

Zero account keeping fees offer

Enjoy $0 monthly account fees on the NAB Classic banking account.

  • Free use at over 3,400 NAB and RediATMs in Australia
  • 24/7 Mobile Banking, including Quick Balance checker
  • Tap and Pay for Android
  • Free linked NAB Visa debit card with payWave

    Save money in two easy steps: compare and apply within 15 minutes in the table below

    Rates last updated October 21st, 2016
    Monthly Account Fee Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Details
    NAB Classic Banking
    Tap and Pay with your Android Phone using NAB Pay.
    No minimum deposit required.
    Visa $0 $0 No monthly account fees, ever. Free use at over 3,400 NAB and RediATMs Australia wide and $0 overdrawn fees. Open More
    HSBC Day to Day Transaction Account
    Your Visa debit card unlocks special privileges worldwide with the HSBC home&Away Privilege Program.
    Visa $0 $0 $0 monthly fees. No ATM fees at over 3,000 HSBC, Westpac, St.George, Bank of Melbourne and BankSA ATMs. Open More
    AMP Access Account
    An everyday transaction account with fee-free banking.
    Visa $0 $0 Unlimited fee-free transactions at rediATMs, $0 transaction fees using BankNet, mobile banking and BankPhone. Open More

    The difference between account keeping fees and interest

    Interest is a fee charged for the use of another party’s money. It can be either the cost of renting the money, or the income from lending the money. Account keeping fees are charged for maintaining the account you are holding and includes most of the benefits you gain from holding such an account.

    Your guide to high interest savings accounts.

    When do I pay account keeping fees and why do I need to pay them?

    Most account keeping fees will be deducted/charged on a monthly basis. The monthly account keeping fees are automatically charged to your account and the deduction of such a fee will be listed as a condition in a standard contract. These fees cover the cost that the institution needs to incur to maintain this account.

    How much are general account keeping fees for some basic banking products?

    General account keeping fees differ depending on the bank. Some banks, such as the account keeping fees of NAB, have a policy of not charging a monthly account service fee, overdrawn account fee or over-the-limit credit card fee. See further down in the article for a breakdown in fees on different banks and their financial products.

    Home loan account keeping fees and related tax consequences

    If the fees are loan specific, a tax claim may be allowed. This will depend on the reason for the loan or what the money of the loan is spent on. A claim will be allowed if the loan was for investment purposes such as cash management accounts, due to the fact that the fee will then relate to earning of interest income. These interest deductions are known as D7 interest deductions.

    It is important to note a few things regarding the tax claim:

    • You will need your bank or financial institutions statements or passbooks.
    • No account-keeping fees can be claimed on a first home saver account.
    • If an account is a joint account, the claim is limited to your share. It is important to keep a record of the calculation of your portion where the account holders did not share the expenses equally.
    • If a particular expense was incurred, such as interest on borrowed money, and this expense relates to certain overseas investments (or a foreign residents’ investment in Australia), a claim may be affected by the thin capitalisation rules.

    With what banking products can I save on account keeping fees?

    When making the decision of which bank to use, it is important to first calculate how much you can afford to deposit every month. This tends to determine whether you will pay any account keeping fees whatsoever.

    Many banks have removed their monthly fees after consumers seriously started questioning what they were paying for. For the best accounts that don’t charge a monthly fee, look at the following on the finder.com.au website:

    These accounts also have some other benefits connected to them such as no charge for EFTPOS transactions, internet transfers, withdrawals made in-branch, and the normal no charge for withdrawals made at said bank's own ATM.

    Different banks have different methods of determining your monthly fee and when it will be waived. The most noteworthy offers that will save you on monthly fees from the big four are the following.

    I want to avoid my monthly fee with one of the big four banks

    Below we've listed the conditions to help you avoid monthly fees if you bank with one of the big four.

    ANZ Access Advantage account

    Will waive your monthly fee if:

    • You are under 25, or over 60 years of age
    • You are a full-time student at an Australian educational system
    • You receive a disability support pension etc.
    • You have $50,000 or more in certain of their accounts

    Commonwealth Smart Access account

    Will waive your monthly fee if:

    • You are under 21 years old
    • Opened your account after 1 June 2010 and deposit at least $2,000 each calendar month
    • Deposit a minimum of $1,000 if you’re between 21 and 24 years old
    • You have a balance of $50 000 or more in an eligible contributing account

    NAB Classic Banking account

    NAB is well-known for its zero monthly account fees policy

    Westpac Choice Transaction account

    • Your Australian social security benefits need to be paid into this account
    • You need to hold a current Pensioners Concession or Health Care card

    It is clear that account keeping fees will not be the most substantial fee, with a general fee of $5 to $6 depending on the financial usage situation. But, if you add these fees up and see what they could have done over a couple of years if put into investments, it will surprise you!

    Shirley Liu

    Shirley is finder.com.au's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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