Compare bank accounts

What is a bank account?

A bank account is a deposit product that holds your money. It's the main account that you use to access your money and pay for things. Banks, credit unions, building societies or other financial institutions offer them. Bank accounts are also often referred to as everyday accounts or transaction accounts.

Your employer can deposit your salary or wages directly into your bank account, which you can access whenever you want through ATM cash withdrawals, EFTPOS purchases with the linked debit card or bills payment.

How to compare bank accounts

When starting your bank account comparison, consider the following features to make sure you choose the right bank account for you.

Consider the account-keeping fees.

Look for an account that charges no or low monthly account keeping fees. Or, if there is an account-keeping fee, you can often get the fee waived by depositing a certain amount of money into the account each month.

Check the deposit conditions.

If the account requires you to meet a monthly deposit requirement (this can be anywhere from $200 to $2,000 a month), make sure it's an amount that you can easily meet each month.

Check the ATM fees

Will you be charged an ATM withdrawal fee to access your cash? Don't forget to check the overseas ATM withdrawal fee too as this can be quite high with some bank accounts.

Compare the overseas fees and charges.

If you travel a lot or regularly shop online from overseas retailers, check the international transaction fee when comparing bank accounts. Some bank accounts don't charge an international transaction fee at all, and others will waive this fee if you meet certain deposit conditions.

Look at the linked savings account.

If you want to link a savings account to your bank account with the same bank, check the interest rate you can earn with the savings account. If you're trying to save money, the more interest you can earn on your savings account the better.

Consider the payment options.

If you want to make contactless purchases with your phone, check that the bank account supports Apple Pay, Google Pay or Samsung Pay. If you want to make instant bank-to-bank transfers, looking for an account that offers instant payments with PayID and Osko.

Do you need a joint account?

If you're looking for a bank account that you can share with another person (such as your partner), make sure you check if the account can be opened as a joint bank account. Most bank accounts can be opened as a joint account.

Does it offer any special deals?

Some bank accounts offer cash bonus offers or cash back deals when you open an account. Others will offer an ongoing cashback offer when you make purchases. Just make sure the fees charged on the account don't outweigh any benefit offered with these cash promotions.

Bank accounts: Key features and benefits

• Safer than cash. Bank accounts offer a secure place to hold your money. It is much safer (and easier) than keeping your money in physical cash. Plus, the Australian government protects your deposit up to $250,000 in an Australian bank account.
• Easy access to your money. The money in your bank account is yours to access and use whenever you want. You can withdraw cash at an ATM, use the debit card to purchase things in stores, pay your bills or shop online 24/7.
• Free debit card. Bank accounts come with a free debit card linked to your account, usually either Visa or Mastercard debit card. You can use this debit card in stores in Australia and overseas, at ATMs and online. Unlike a credit card, the money on your debit card is limited to what you deposit into the account.
• Transaction history. You can see all your past bank account transactions and purchases by logging into your Internet banking portal or mobile banking app. This is handy to keep track of where and how you're spending your money.
• No interest charged. Unlike a credit card that is a type of loan that you need to repay, the money in your bank account is your money. You can only spend what you have in the bank account, so there are no interest repayments to worry about. There's also no risk of spending more than you have.
• Mobile banking app. Most bank accounts offer mobile app access. You can keep track of your bank account, manage your expenses and see your transactions in the app 24/7.
• Linked to savings. A bank account can also be linked to a savings account with the same bank. You can move money from your savings into your bank account so you can spend it when needed.

Our expert says

"Bank accounts seem like a pretty basic product - but don't overlook the fees. International fees may not mean much day to day, but can really stack up when you're on holiday tapping away at the swim up bar. This is often a % of the transaction and can range from 0% to 3%+. There's also international ATM fees, so if you're someone that holidays even once a year - be sure to check that. "

Alex Holderness

Head of publishing

Bank account or savings account: Which do you need?

A bank account (also called a transaction account) and a savings account are two different types of accounts that serve different purposes. A bank account is a transaction product designed for daily use to buy things in stores, withdraw from ATMs, pay bills, transfer money to friends and receive your salary or wages. A bank account comes with a debit card but typically doesn't pay interest on your money (although there are some rare examples of bank accounts that do pay interest, such as the Macquarie Transaction Account).

A savings account is another account that you can link to your bank account. A savings account pays interest on the money in the account as it's designed to help you save. It doesn't come with a debit card as it's not meant to be used as a transaction account for purchases and day-to-day spending.

You don't have to pick just one of these. In fact, having both a bank account and savings account linked together is a great way to manage your spending and saving side-by-side.

My 3 bank accounts

"I have 3 bank accounts. The first is where my salary is deposited and it's the account that's linked to my high interest savings account. I use this bank account for all my personal spending and to move money into my savings each month. The second is a joint account with my husband for shared expenses and bills.

The third bank account is one I don't use much, but I keep it there for any income I earn outside of my full-time job. So if I do some freelance work, for example, I'll get paid into this separate account as it helps me see what I've earned outside of my main job when it comes to tax time."

Alison Banney

Editor

How to open a bank account

Here's how to open a new bank account online in 5 steps:

1. Compare. Compare bank accounts using the table above and find the right one for you.
2. Apply online. Once you've chosen one, complete the online application form.
3. Add your details. Fill in your name, age, address, contact details and residency status.
4. Verify your identity. Once the bank has verified your identity with your driver's licence, passport or other forms of ID, your account will be opened instantly.
5. Fund your account. Transfer some money into your new bank account from another account or deposit cash into the account via a bank branch, ATM or Post Office. You'll soon receive your debit card in the mail.

What type of bank account are you looking for?

Need a bit more help choosing a bank account? The right bank account for you will depend on how you plan to use the account and what you're looking for.

Bank accounts to use overseas

If you travel a lot or often purchase things online from overseas merchants, these bank accounts charge low or no foreign transaction fees or international ATM fees.

Business bank accounts

If you're a business owner, compare business bank accounts to keep your business banking separate from your personal banking.

Bank accounts for expats

If you're in Australia to study or for work, there's a number of bank accounts that you can compare.

Student bank accounts

Compare bank accounts that waive the monthly account keeping fees while you're a student.

Joint bank accounts

A joint bank account gives more than 1 person access to the account. These are convenient for couples with shared finances.

Fee-free bank accounts

Compare bank accounts with no monthly account keeping fees and no ATM withdrawal fees to save you cash.

Frequently asked questions

• What's the difference between a transaction account and a savings account?

  A transaction account is designed for spending (including daily purchases, paying bills, transferring money, shopping online etc.) while a savings account is design for saving. A transaction account comes with a debit card to allow you to easily spend the money, while a savings account doesn't come with a debit card and instead earns interest to encourage you to keep money in the account.

• Which bank accounts have no minimum deposit requirements?

  It's more common for a bank account to have no minimum deposit requirements than it is to have a minimum deposit requirement. So if you're looking for an account without a deposit condiiton, this will be easy to find. Some examples include HSBC Everyday Global, Virgin Money Go Account and St.George Complete Freedom Account.

• How much does it cost to open a bank account?

  There are usually no costs involved to open a bank account. Some banks will require you to make an initial deposit of at least $1 in order to activate the account. If you're opening a bank account with a member-owned bank, mutual or co-operative sometimes you will be required to first join as a member and pay a membership fee (this varies, but is usually around $10). However, this isn't very common anymore.

• Which account should I put my salary into?

  It's a good idea to have your salary sent to your main everyday bank account. This way, you can instantly use the money to pay your bills, make any recurring payments and buy things you need. Once the money is in your bank account you can transfer some into other accounts you might have (like a savings account or a joint bank account you share with someone else).

• Which bank account has no international fees?

  Some bank accounts that don't charge international transaction fees include HSBC Everyday Global, Macquarie Transaction Account, UBank Spend Account, ING Orange Everyday Account and Suncorp Everyday Options Account.

• What is the best bank account to pay my bills?

  Most bank accounts offer similar features for paying bills. Look for an account that offers BPay paymets and the ability to schedule recurring payments. It could also be worthwile to choose an account that offers Osko for instant money transfers, which could be handy if you need to pay a bill ASAP. Another feature that will help you pay your bills is a mobile banking app - this will allow you to pay bills anywhere, anytime without having to log into Internet banking on your desktop computer.

• What will happen to my bank account if I die?

  In the event of death, the deceased's bank accounts are closed by the bank. Before that, any remaining money will be paid out in line with what was requested in their will, which is a legally binding document outlining who gets the deceased's assets following death.

  If there is no will, ownership of the account and its assets will be transferred to the next of kin or estate administrator. It's important to note that any credit card debt or personal loan debt will be paid from the deceased's bank and savings accounts before the account administrator takes control of any assets.

  If you don't yet have a will created, you can get started making a will on the Service NSW website online.

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To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Serina Bird, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 625 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living